Report Prepared by: Karen Baker, Economic Development Associate
Title
SUBJECT: Approval of a Supplemental Appropriation from the Unencumbered, Unreserved Fund Balance of Fund 1017-Economic Development Opportunity in the Amount of $100,000 for the Airport Terminal Replacement Project CP230073
REPORT IN BRIEF
Considers approving a supplemental appropriation from the unreserved, unencumbered fund balance from 1017-Economic Development Opportunity in the amount of $100,000, transferring to Fund 5006 - Airport CIP, and appropriating said funds to Airport Terminal Replacement Project CP230073, for the Transportation Security Administration (TSA) security equipment to be installed, relocated and/or decommissioned by a certified Maintenance Service Provider (MSP) trained by the Original Equipment Manufacturer (OEM).
RECOMMENDATION
City Council - Adopt a motion approving a supplemental appropriation from the unreserved, unencumbered fund balance of Fund 1017- Economic Development Opportunity in the amount of $100,000, transferring to Fund 5006 - Airport CIP, and appropriating the same to the Airport Terminal Replacement Project CP230073.
Body
ALTERNATIVES
1. Adopt the motion as recommended by staff; or
2. Modify the action (specific in motion); or
3. Deny the action; or
4. Continue to a future City Council meeting (date and time to be specified in motion).
AUTHORITY
Charter of the City of Merced, Section 200; Economic Opportunity Fund Policy (h) To fully utilize existing real estate, real property, or existing or planned infrastructure, facility or capital improvements.
CITY COUNCIL PRIORITIES
As provided for in the 2025/2026 Adopted Budget.
DISCUSSION
The Merced Yosemite Regional Airport is an Essential Air Service (EAS) Airport. Transportation Security Administration (TSA) is a requirement at all EAS Airports. As part of the Terminal Replacement Project, TSA requires all TSA security equipment to be installed, relocated and/or decommissioned by a certified Maintenance Service Provider (MSP) trained by the Original Equipment Manufacturer (OEM). TSA has provided a specific list of vendors that are approved to move existing equipment into the new terminal and set up new equipment that will be provided by TSA. In addition, the vendor selected will decommission, package and ship equipment back to TSA. The vendor selected will provide project management, supervision, and rigging of One (1) CEIA WTMD (Walk Through Metal Detector), Two (2) Leidos ETDs (Explosive Trace Detection), One (1) CEIA BLS (Bottle Liquid Scanner), Barrier gates and ancillary equipment. This is a required expense to open the new terminal. City staff is requesting more than proposals submitted in case of unforeseen expenses that might occur. After Council approval of this supplemental appropriation, a Statement of Services agreement will be executed.
Economic Development Opportunity Fund
On April 2, 2018, the City Council adopted Resolution 2018-20, A Resolution of the City Council of the City of Merced, California, adopting Economic Development Opportunity Policy, establishing the terms in which funds from the Fund may be used (Attachment 3). The Terminal Replacement Project is a capital improvement project complying with Policy (h) “To fully utilize existing real estate, real property, existing or planned infrastructure, facility or capital improvements.
Essential Service
TSA Screening equipment and TSA staff are required at an Essential Air Service Airports as a priority function of the Merced Yosemite Regional Airport.
IMPACT ON CITY RESOURCES
Staff are seeking approval of supplemental appropriation from the unreserved, unencumbered fund balance from 1017-Economic Development Opportunity in the amount of $100,000 and transferring to Fund 5006 - Airport CIP and appropriating the same amount to Airport Replacement Project CP230073.
The current balance available in the Economic Development Opportunity fund is approximately $1 million.
This item requires five (5) affirmative votes from Council for approval.
ATTACHMENTS
1. V2X Proposal
2. K2 Proposal
3. Economic Development Opportunity Fund Resolution 2023-54