Council approves change orders for Air National Guard ramp repairs and modification to cooperative agreement for hangar repair

The Klamath Falls City Council approved change orders for the Oregon Air National Guard aircraft ramp repair project and authorized a modification to the city's cooperative agreement with the National Guard Bureau to finalize costs for the repair of aircraft shelter B325.

Development Services Director Mbasi (name in packet) told council that the aircraft ramp project is a large construction effort and that most concrete work is complete. He said the city has paid approximately $27 million of a $37 million project and that the change orders represent additional work the Guard specified; the Guard is covering the added costs. "These are additional pieces of work that the Air National Guard has specified and they're paying for," Mbasi said.

Council authorized change orders totaling $478,079.49 for Rocky Mountain Construction LLC associated with ramp repair work, and later authorized Modification No. 2 to the facility sustainment, repair and modernization cooperative agreement with the National Guard Bureau in the amount of $7,417,506 for repair of aircraft shelters (itemization in staff packet). Mbasi said the modification trues up exact bid numbers for Outlier Construction and associated structural engineering and inspection services.

Councilors asked about the city's fee collection from the program; Mbasi reported the city has collected about $7.07 million in fees through the fiscal year and estimated future receipts could be in the range of millions depending on federal approvals and additional agreements. Mbasi also said airport liability and other specialized insurances are in multi‑year contracts and that specific project fees generate interest revenue while the city acts as construction agent for the Guard.

Council approved motions to execute the change orders and the cooperative agreement modification by motion and roll call. No public testimony was received on these items during the meeting.

Councilors discussed local contractor participation and federal procurement rules; Mbasi said because federal funds are involved, state/local preference rules may be limited and the city must accept the lowest responsible bid under federal procurement requirements.