Item Number: 22
City Council / Board of Directors
Written Communications
Meeting of: July 21, 2026
Submitted By:
James Murawski, Airport Director
Subject:
Runway 17/35 Reconstruction Phase VI, Project CC26-043, Change Order #RCO-001 Recommendation:
That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors:
(1) Approve Change Order #RCO-001 (“Change Order”) to the Construction Contract with Coffman Specialties Inc., (“Coffman”) for Runway 17/35 Reconstruction Phase VI, Project CC26-043; and
(2) Authorize the Executive Director to execute said Change Order.
Fiscal Impact:
The Change Order presented herein does not require an additional budget appropriation.
On October 07, 2025, The SCLAA Board of Directors approved the ratification of Grant #34, and a Construction Agreement with Coffman for Runway 17/35 Reconstruction, Phase VI, Project CC26-043, in the amount not to exceed $8,725,000. The proposed Change Order will result in additional expenditures of $1,308,750. The additional expenditures will be paid for by budgeted Grant #34 funds of approximately $1,243,312.50, which will be reimbursed to the SCLAA by the FAA. The SCLAA will pay approximately $65,437.50 as grant matching funds. Budgeted Grant #34 revenue, expenses, and SCLAA matching expenses for this project are sufficient to accommodate the increase that will result from the proposed Change Order. The financial details of the Change Order are outlined in the tables below:
Grant #34 Budget
Funding Source Account Amount
Grant 34 Revenue 4571301A-43120-95158 $13,680,000
Grant 34 Expense 4571301A-55320-95158 $13,680,000
Grant 34 Match Expense 5% 4501301A-55320-95158 $684,000 4 8
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Coffman Construction Agreement Change Order RCO-001 Impact Amount
Original Agreement $8,725,000
Change Order RCO-001 (15% Increase) $1,308,750
Amended Construction Agreement Total $10,033,750
Change Order RCO-001 Increase to SCLAA Grant #34 5% Match Amount
SCLAA Match of Original Agreement ($8,725,000 X 5%) $436,250 SCLAA Match of Change Order RCO-001 ($1,308,750 X 5%) $65,437.50 SCLAA Match Total (Original + Change Order RCO-001) $501,687.50 Change Order RCO-001 Impact on SCLAA Match Budget
Amount
SCLAA Match Grant #34 Budget $684,000
SCLAA Match (Original + Change Order RCO-001) $501,687.50 SCLAA Match Grant #34 Budget Remaining $182,312.50
This Change Order will increase the SCLAA’s matching expenditure for this project by approximately $65,437.50, to an approximate total of $501,687.50. However, the additional matching expenditure does not exceed the established SCLAA Grant #34 Match expense budget of $684,000. Furthermore, the revised Construction Agreement not to exceed amount with Coffman for a total of $10,033,750 is well below the budgeted Grant #34 award amount of $13,680,000.
Strategic Plan Goal:
Goal E. Invest in Infrastructure: Project CC26-043 invests in airfield infrastructure by providing additional runway improvements to Runway 17/35 as part of Phase VI of Runway 17/35 Reconstruction Project.
Background:
The Southern California Logistics Airport (“SCLA”) airfield consists of two commercial- length runways and nine taxiways. The main runway, Runway 17/35, consists of aged asphalt and newer concrete pavement sections. The asphalt sections have been of particular concern for Airport users since asphalt rutting, pitting, cracking, and breaking are major safety concerns as these conditions create foreign object debris that collect on the runway and taxiways, becoming major hazards to aircraft. Several asphalt sections have been replaced with concrete in phases over the last few years as FAA funding has become available. Project CC26-043 is continuing the asphalt reconstruction efforts on Runway 17/35 to improve runway pavement and overall safety for aircraft operations.
The reconstruction of Runway 17/35 for the current and previous phases has focused on replacing the aging asphalt sections of the runway with durable, long lasting reinforced concrete. Each runway at SCLA has asphalt shoulders that span thirty-five feet from each edge of the runway. To preserve funds for runway reconstruction, minimal construction 4 8
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was performed on runway shoulders on previous projects. The practice of focusing on the actual runway pavement work has resulted in the asphalt pavement of Runway 17/35 being fully replaced with concrete. With the full conversion of the asphalt on Runway 17/35 to concrete complete, staff contacted the FAA regarding the potential to utilize the remaining funds from Grant #34 for shoulder replacement work on Runway 17/35.
Shoulder replacement work has not been possible in large sections on previous phases due to limited grant funds that were utilized for the conversion of Runway 17/35 from asphalt to concrete.
Coffman has proposed replacing the deteriorated asphalt runway shoulder segments that align with the current scope of work. Runway shoulder replacement work is included in the original scope of work for Phase VI of the Runway 17/35 Reconstruction, Project CC26-043.
Lastly, this is the most opportune time to perform the asphalt shoulder replacement work while Runway 17/35 is currently closed to air traffic.
Discussion:
Staff contacted the FAA regarding the deteriorated asphalt shoulders and have received FAA approval to increase the construction costs of the current project by 15% to accommodate the cost of the proposed shoulder work. The asphalt shoulder replacement that is needed on Runway 17/35 necessitates the expertise of a construction firm that is capable of successfully removing the existing pavement and fully reconstructing the asphalt shoulders to FAA standards. To procure these services, SCLAA staff requested a proposal from Coffman, in accordance with Municipal code section 2.28.180, which governs Construction Contract Change Orders. Staff received a proposal (“Proposal”) from Coffman for the necessary surface preparation and installation of the asphalt shoulders in the amount of $1,308,750, which is 15% of the original contract value.
Staff reviewed the Proposal and found the costs to be reasonable, given that they match the line items costs of their original bid. Moreover, the work required to remove the shoulders, excavate and compact the subgrade soil, provide aggregate base material, and replace the asphalt shoulders are extensions of existing bid items for Phase VI and are necessary to provide a runway shoulder surface that will last for many years. Because this scope of work is identical to various items of the Runway 17/35 Reconstruction Project, economies of scale and saving of mobilization costs greatly benefit the SCLAA.
When staff isolated and compared Coffman’s total costs proposed in this Change Order on a line-by-line basis with the other bidder’s prices for Phase VI, Coffman’s proposed total was lower. Staff has concluded that conducting a separate procurement for the additional work will not result in additional savings, given the current market price of oil, a direct cost component of asphalt and a component in the cost of shipping the ingredients that make asphalt, and realizing that the current project was bid and awarded in the fall of 2025 which was prior to significant oil market price volatility stemming from global supply disruptions from the Middle East that began around March 2026. 4 8
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Approval of the Change Order will allow Coffman to perform this much needed work to the asphalt shoulders of Runway 17/35. Furthermore, since Coffman is already onsite with their equipment and personnel, they have minimal mobilization expenses included in their Proposal.
Each time a runway is closed, staff must notify the FAA and issue an official Notice to Airmen that informs pilots of the runway closure. Also, staff must install warning signs in the form of large, illuminated X-shaped barricades at each end of the runway to demonstrate to inbound pilots that the runway is closed. Staff must also secure the runway by placing physical barriers and temporary signs at each taxiway entrance to prevent a plane from inadvertently entering the runway. Staff spends a significant amount of time planning runway closures with tenants, to reduce the impact that closures have on their ability to receive and return aircraft. The current closure of Runway 17/35 as part of Phase VI presents an ideal time to complete the FAA approved runway shoulder removal and replacement work. To perform this work at another time would require staff to redundantly spend time and resources to close Runway 17/35 and could disrupt tenant flight activities. The opportunity to perform this work is now, given the current closure of Runway 17/35 and the advantageous cost savings presented by Coffman.
Therefore, staff requests and recommends that the SCLAA Board of Directors approve the proposed Change Order by and between the SCLAA and Coffman Specialties Inc., increasing the total not to exceed compensation by $1,308,750 to $10,033,750, for Runway 17/35 Reconstruction Phase VI, Project #CC26-043, and authorize the Executive Director to execute said Change Order.
Staff remains available for any questions or comments you may have.
Prepared By:
James Murawski, Airport Director
Samuel Evans, Airport Business Analyst
Attachments: A. Site Map
B. Change Order RCO-001
C. Coffman Specialties, Inc. Proposal
D. Municipal Code 2.28.180