REPORT TO THE CITY COUNCIL FROM: MARK THORPE, Director of Aviation Airports Department BY: FRANCISCO PARTIDA, Assistant Director of Aviation Airports Department JARRED S. GARZA, Airports Project Manager Airports Department SUBJECT ..Title Actions pertaining to Phase Two Construction of the Progressive Design-Build as part of the New Terminal Expansion project at Fresno Yosemite International Airport (Council District 4) 1. Approve Change Order No. 2 for Phase Two Construction of the Progressive Design-Build contract with Q&D Construction as part of the New Terminal Expansion project at Fresno Yosemite International Airport for 72 calendar days 2. Approve Change Order No. 3 for Phase Two Construction of the Progressive Design-Build Contract with Q&D Construction as part of the New Terminal Expansion project at Fresno Yosemite International Airport in an amount not to exceed $3,955,687.00 and 90 calendar days ..Body RECOMMENDATION Staff recommends that Council 1) approve Contract Change Order No. 2 and grant 72 calendar days for rephasing; 2) approve Contract Change Order No. 3 to increase the Owner Contingency amount for $3,955,687.00 and 90 calendar days for the G1 service elevator scope for the Terminal Expansion Project (Project) at Fresno Yosemite International Airport (FAT) and authorize the Director of Aviation, or designee, to execute all documents related to these change orders. EXECUTIVE SUMMARY On February 23, 2023, Council awarded the Phase 2 Construction of the Progressive Design-Build Contract with Q&D Construction for the New Terminal Expansion project at FAT. This construction phase consists of site excavation and grading, underground utilities, approximately 96,000 sq ft terminal building, two passenger boarding bridges, and parking lot improvements. On December 4, 2024, City Council approved Contract Change Order No. 1 for $2,506,006 and 140 calendar days, covering the expanded FIS Arrivals Hall and Plaza. During the course of construction there were multiple rounds of additional plan check review, including rephasing construction tasks, as well as TSA ASP Amendment review and approval. In working with the city building department, FAA, and local TSA it was evident that the construction tasks needed to be rephased in order to effectively work on the project while keeping the operational needs of the Airport still functional. Contract Change Order No. 2 will cover the full contract time needed to properly phase the project while keeping the existing terminal fully operational and not affect the passenger experience or the Airports revenue. This change order adds 72 calendar days to the contract completion date. After reviewing the operational needs of the airport during construction it was determined that the G1 Concourse required a service elevator to support terminal operations and accommodate the growing passenger and tenant numbers. G1 Concourse Service Elevator was not included in the original contract GMP scope but was identified as needed once the growing number of passengers continued to reach record numbers. To accommodate the tenant services needed in Terminal B a service elevator would be utilized to efficiently stock and maintain the terminal without interfering with the passengers. Once the new G1 service elevator was identified as a need the Airports Team worked diligently to identify a Grant program from the FAA that would cover the cost of the new elevator while keeping the project on track. This change requires a contract adjustment to cover the cost of procurement, delivery, and installation, including all associated mechanical, electrical, and structural work necessary to place the elevator in service. Contract Change Order No. 3 will cover the full scope of the G1 Concourse Service Elevator procurement and installation on a Not-to-Exceed basis of $3,955,687.00 and will add 90 calendar days to the contract completion date to account for elevator procurement lead time, installation sequencing, and the California state inspection and acceptance process. Upon completion, the Project will accommodate FAT's passenger demand projected for FY 2026 and beyond. The Project continues to generate significant economic benefit to the Fresno region, having employed up to 683 people with the vast majority of the craft labor workforce being local hires, and providing an estimated economic impact of $85,000,000 to the local economy. BACKGROUND Execution of the Phase Two Construction Contract in February 2023 has progressed the Project through substantial completion of the terminal building and concourse areas. The Phase Two Contract was originally awarded for $126,868,863, covering site excavation and grading, underground utilities, approximately 96,000 sq ft terminal building, two passenger boarding bridges, and parking lot improvements. Contract Change Order No. 1, approved by Council on December 4, 2024, added $2,506,006 and 140 calendar days for the expanded FIS Arrivals Hall and Plaza, bringing the revised contract price to $129,374,923.55 and the revised contract completion date to December 27, 2025. With the addition of the approved Contract Change Order No. 2 for the rephasing of the terminal construction tasks at $0 and 72 calendar days, the Construction Phase GMP will be $129,374,923.55 and the revised contract completion date will be March 9, 2026. Other costs include the now-completed Phase One Design Contract ($10,293,974). The total Project cost will be a not-to-exceed price of $139,668,897.55. With the addition of the approved Contract Change Order No. 3 for the G1 Service Elevator at $3,955,687.00 and 90 calendar days, the Construction Phase GMP will be $133,330,610.55 and the revised contract completion date will be June 7, 2026. Other costs include the now-completed Phase One Design Contract ($10,293,974). The total Project cost will be a not-to-exceed price of $143,624,584.55. ENVIRONMENTAL FINDINGS An Initial Study and Mitigated Negative Declaration (IS/MND) was prepared to evaluate the FATforward, Passenger Terminal and Parking Expansion Project pursuant to the California Environmental Quality Act (CEQA) and adopted State CEQA Guidelines (Title 14, California Code of Regulations [CCR], Chapter Three). The City of Fresno Airports Department is the 'lead agency' for this project (CEQA Guidelines, Section 15367). Based on the IS/MND, the following findings are made: (1) the project will not generate significant effects on the environment, and (2) when all applicable mitigation measures have been applied, the project will result in a less than significant impact on the environment. A Public Notice of Intent to Adopt a Mitigated Negative Declaration for FATforward was published in the local newspaper on December 20, 2019, as required for public review and comment. A Notice of Determination was recorded with the Fresno County Clerk's office on February 27, 2020. LOCAL PREFERENCE The Project will be executed using the Council approved Project Labor Agreement and Targeted Hiring Policy, and it is anticipated that up to 75% of the craft labor will be local hires. FISCAL IMPACT The Terminal Expansion project will position the Airport to meet current and future demand as our region grows, resulting in further economic activity and job growth. The Project will be funded through a combination of Infrastructure Grants, FAA Grants, Passenger Facility Charges, Measure C, CARES Act, TSA Grant, and Airport Revenue Bonds. Executing these Change Orders will have no impact on the City's General Fund or Airports financial stability. Attachments: Site Map Project Change Order 16 Independent Construction Estimate - G1 Service Elevator