REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, A.A.E., C.A.E, IAP, Director of Aviation Airports Department BY: JUDAH SAMBO-MAHEKEYA, Safety Management Systems Manager Airports Department SUBJECT ..Title Actions related to the Second Amendment to the Consultant Services Agreement with Landry Consulting LLC: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environment Quality Act Guidelines. 2. Approve the Second Amendment to the Consultant Services Agreement for an additional $180,000 with Laundry Consulting, LLC., for the implementation of the Airport Safety Management Systems program at Fresno Yosemite International airport. The total contract value is not to exceed $380,000. (Council District 4) ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption, pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines and authorize the Director of Aviation to execute the Second Amendment to the Consultant Services Agreement with Landry Consulting LLC. (Landry), for implementation of the Airport Safety Management Systems Program at Fresno Yosemite International Airport (FAT). Cost of the implementation phase is $380,000 (Council District 4). EXECUTIVE SUMMARY The Federal Aviation Administration (FAA) provided a Supplemental Notice of Proposed Rule making (SNPRM) [Docket No.: FAA-2010-0997; Notice No. 16-04] stating that all US Airports with international commercial passenger service will need an Airport Safety Management System (SMS); which emphasizes safety management as a holistic and fundamental business process that is tied to decision making, management capabilities, risk controls, knowledge sharing, and promoting a culture of safety. The first phase of the SMS process supported by Landry Consulting included development of an SMS plan for review and approval by the FAA has been completed. The Second Amendment (Phases 2 and 3 of the SMS process) includes implementation and program rollout. FAT's development and implementation of the SMS program is on track to be one of the airport industry's first. BACKGROUND The FAA has progressively mandated SMS throughout the aviation industry, including within their agency and a requirement for airlines. With the issuance of SNPRM (FAA Order 5200.11) on May 24, 2022, all airports with commercial passenger service will have 18 months to implement their SMS following the federal Register publication. In anticipation of this regulation, Airports has been working with Landry Consulting for nearly two years to create the framework for the development of SMS at FAT. The second phase of this project is the implementation of a final functioning program that can be administered by Airport staff as required by the FAA. On April 9, 2020, Council approved the initial contract in the amount of $100,000 to Landry Consulting for the development of an SMS plan, which is complete (Phase 1). On August 17, 2021, the First Amendment, in an amount not to exceed $100,000 was approved by Council for plan implementation and training for a total of $200,000. Anticipated Phases 2 and 3 work will be for safety assurances, including audits, assessments and optimizing the system. Landry Consulting, LLC is uniquely qualified to assist airports in complying with this FAA Ruling. Due to their expertise, Joanne Landry LLC has been contracted by several other airports around the nation. The proposed service agreement will cover time and material costs for both virtual and in- person meetings. Consultant also plans to establish virtual training programs which the FAT airport SMS Team can enroll without additional costs. ENVIRONMENTAL FINDINGS This Agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in CEQA Guidelines, Section 15301 for existing facilities, as it involves no alteration of existing facilities, with no expansion of use, and will not result in any significant negative effects relating to traffic, noise, air quality, or water quality. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because this item is an amendment to an existing agreement. FISCAL IMPACT The cost of the Second Amendment to the Landry Agreement is included in the Airports FY 2024 Adopted Budget. There is no impact to the General Fund or ratepayers of the City of Fresno from this item. Attachment: Landry Original Agreement (March 2020) Landry First Amendment to Agreement (November 2021) Landry Second Amendment to Agreement