REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department BY: JARRED GARZA, Airports Project Manager Airports Department SUBJECT ..Title Actions related to the Terminal Expansion Project at Fresno Yosemite International Airport (Council District 4): 1. Approve Change Order No. 1 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 $2,506,060.55 and 140 days. ..Body RECOMMENDATION Staff recommends that Council authorize the Director of Aviation to execute Contract Change Order (CCO) No. 1 for $2,506,060.55 and 140 days for the Terminal Expansion Project (Project) at Fresno Yosemite International Airport (FAT) 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, approx. 96,000 sq. ft. terminal building, 2 passenger boarding bridges, and parking lot improvements. During the initial Council award, the Council requested that the new Terminal Arrivals Hall be expanded to properly accommodate the amount of passengers that would flow through the area. The Airports Projects Team and the General Contractor Q&D agreed that could be accomplished and that a return to council would be needed to increase the contract amount to incumber the new change at approx. $2,500,000. After working through the design changes and implementing the requested expansion from Council the project will be able to deliver the expanded arrivals hall accommodating the 2,500 sq. ft. as well as the upgraded arrivals plaza with CCO No.1 for $2,506,060.55 and 140 days. This Change Order will cover the expanded area's full scope to be constructed and time to complete the work, including unforeseen delays in added design, submittal review, additional phasing, and construction scope. Upon completion, the Project will accommodate FAT's passenger demand projected for FY 2025 and beyond and will have employed up to 683 people to work, with most of the craft labor workforce being from the Fresno area. Employing workers at a time when it is most needed is a positive benefit for the local economy. This Project will provide an estimated economic impact of $85,000,000 to the local economy considering the variety of support services associated with building a new terminal and will create additional induced and indirect local jobs. BACKGROUND Execution of the Phase Two Construction contract in February 2023 has kept the Project on schedule and locked in the Guaranteed Maximum Price (GMP) and/or a path to achieving the beneficial occupancy of the Terminal Expansion in Fall of 2025. The Phase Two contract was awarded for $126,868,863, for the original scope of work which included the site excavation and grading, underground utilities, approx. 96,000 sq. ft. terminal building, 2 passenger boarding bridges, and parking lot improvements. With the addition of the approved Change Order No. 1 the Construction Phase with be a GMP of $129,374,923.55 and a total of 952 days for construction. This will complete the original scope and the requested expansion of the Arrivals Hall and upgrade of the Plaza. 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. The City Attorney has reviewed and approved the Change Order No. 1 to Phase 2 of the Design Contract with Q&D Construction as to form. 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, �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 the Project will have no impact on the City's General Fund or Airports financial stability through FY 2025 and beyond. Attachments: CCO No. 1 Memo CCO No. 1 FAT Terminal Expansion FIS Extension Site Map