To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Final Settlement for Buchanan Airport Terminal Project
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Administrator, or designee, to sign final Change Order #106 with W. E. Lyons Construction Co. in the amount of $2,100,000 to settle all claims from the Buchanan Airport Terminal Project.
FISCAL IMPACT:
Funds for the settlement amount are partially from funds already appropriated for the project with the remainder, approximately $500,000, coming from the General Fund sources including bond interest earned from the bond funds issued as part of the project.
BACKGROUND:
The Buchanan Airport Terminal Project was substantially complete on April 30, 2024. The airport began occupation and operations of the new building on that date. The initial contract amount was $12,990,000. Mutually agreed change orders, totaling $2,544,003.42, brought the construction contract amount to a final sum of $15,534,003.42. During the project W.E. Lyons submitted claims for approximately $4,100,000. These claims consisted of a variety of issues including delays caused by the County, other agencies having jurisdiction (e.g. PG&E), cost escalation, and disputes about the approved plans and specifications. The County offered, and W.E. Lyons accepted, $2,100,000 as settlement of all claims and disputes.
CONSEQUENCE OF NEGATIVE ACTION:
Not approving the settlement will expose the County to mediation and potential litigation and all the costs and risk associated with an unknown outcome and could cost the County well in excess of the settlement amount.