REPORT TO THE CITY COUNCIL
FROM: HENRY THOMPSON, Director of Aviation
Airports Department
BY: MARK W. DAVIS, Airports Planning Manager
Airports Department
SUBJECT
Title
Actions related to the Terminal Expansion Project at Fresno Yosemite International Airport (Council District 4):
1. Approve Design-Build Contract Amendment No. 3 for Phase Two of a Progressive Design-Build contract with Q&D Construction, to construct a New Terminal Expansion at Fresno Yosemite International Airport in an amount not to exceed $126,868,863
2. Approve a consulting agreement with Moore Twining Associates, Inc. of Fresno, California, to provide geotechnical quality assurance testing and inspection services for the New Terminal Expansion at Fresno Yosemite International Airport in the amount of $777,667
Body
RECOMMENDATION
Staff recommends that Council authorize the Director of Aviation to execute Phase Two of a Progressive Design-Build contract with Q&D Construction of Reno, Nevada, in an amount not to exceed $126,868,863 for the Terminal Expansion Project (Project) at Fresno Yosemite International Airport (FAT), and execute a consulting agreement with Moore Twining Associates Inc. of Fresno, California, to provide geotechnical quality assurance testing and inspection services for the Project in the amount of $777,667.
EXECUTIVE SUMMARY
In response to unprecedented growth and to maintain high levels of service expected by the public the Airports Department has initiated and completed Phase One of the FAT Terminal Expansion Project, which included design, cost, and schedule development and other preconstruction services. It is now time to award Phase Two of the Design-Build Contract for construction activities necessary to deliver the Project as designed.
Phase Two of the Project will construct a new terminal concourse adding capacity to meet passenger demand while improving safety, security, and the efficient operation of domestic/international flights. The Project expands the airport to meet current and future needs, incorporates ADA improvements and enhances the travel experience while providing increased travel options for the region.
Upon completion, the Project will accommodate FAT’s passenger demand projected for FY 2025 and beyond and will have put up to 250 people to work, with the vast majority of the craft labor workforce from the Fresno area. Putting people to work at a time when it is most needed is a strong, positive and confidence building step for the City. The Project will also have an estimated economic impact of $85,000,000 to the local economy taking into account the variety of support services associated with building a new terminal expansion and create additional induced and indirect local jobs.
BACKGROUND
Specific elements of the Project include: (2) new international/domestic gates with passenger boarding bridges, new hold-rooms with concessions spaces, new international arrivals center and Federal Inspection Station, expanded passenger screening checkpoint, a new baggage handling and inspection system including new baggage conveyors at ticketing and significant expansion of airline and concessions spaces in the existing terminal.
Execution of the Phase Two contract will keep the Project on schedule and lock in a guaranteed maximum price for the work avoiding potential increased costs if delayed. The proposed schedule anticipates issuing a notice to proceed this spring upon completion of underground work in the previously awarded East Apron project resulting in beneficial occupancy of the Terminal Expansion in December 2025.
The Phase Two contract includes a guaranteed not-to-exceed construction cost of $126,868,863. 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 $137,162,837. Airports was able to achieve this outcome due to the collaborative process associated with a Progressive Design Build procurement.
A competitive qualifications-based design-build procurement process in accordance with Fresno Municipal Code Section 4-502(d) was conducted in late-2019. On March 19, 2020, Council awarded a Phase One contract, in the amount of $8,450,000 for design and cost development in accordance with the Project program and budget. On September 19, 2021, Council approved the First Amendment bringing the total to $8,915,000. Then on September 29, 2022, Council approved a Second Amendment to the contract bringing the total amount of the Design Contract to $10,293,974. All other components of the design effort under Airports control are within the Design Contract amount.
The Project requires Quality Assurance (QA) - special inspection and testing services including soils and compaction, structural concrete, welding, and masonry. Airports issued a competitive Request for Qualifications (RFQ) for geotechnical QA testing and inspection on-call services in July 2022. Six Statements of Qualifications were received and evaluated, and all six firms were approved to provide QA testing and inspection services for the Airports Department on an on-call or individual basis. Moore Twining and Associates has been determined to be most qualified for this Project. A scope of work and fee, consistent with Project requirements and industry best practices, was negotiated for the Project. QA services are of a specific technical nature and beyond the capabilities of staff to perform, thereby requiring the enlistment of a specialized QA consulting firm.
The City Attorney has reviewed and approved the Third Amendment to the Design Contract with Q&D Construction as to form. The agreement with Moore Twining utilizes Standard Document #FYI-S-Fed Fund Eng. Serv. CSA, Short Form, Total Fee (11-2022), pre-approved as to form by the City Attorney’s Office and used without modification as certified by Airport staff.
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 2023 and beyond.
Attachments:
- Design Build Contract Amendment No. 3
- Moore Twining Associates Agreement
- FAT Terminal Expansion Phase 2 Construction Presentation 2-23-2023