Resolutions executing professional services and guaranteed maximum price amendment for the Airport Traffic Control Tower Construction Project.

Adoption of the attached resolutions.

As Council recalls, Mankato applied for and received federal fiscal year 2026 funds for the construction of the airport traffic control tower in the amount of $24,872,614. The remaining funds will be requested in fiscal year 2027. The soonest additional 2027 funding could be available is April. 

Based upon the funding awards, Knutson Construction has prepared usable units of work with a guaranteed maximum price for each award, which, if approved, will construct a majority of the project. Knutson Construction entered into a CMAR agreement for pre-construction services with the City on July 9, 2026, as Construction Manager at Risk.

The Guaranteed Maximum Price (GMP) for the usable units of work, aligning with the awarded funds for the Airport Traffic Control Tower project is $22,593,999.74. The Guaranteed Maximum Price does not include owner costs or the Construction Administration Fee.

As the Council recalls, Mankato entered into a Professional Services Agreement with EXP U.S. Services Inc. on August 12, 2024. Professional services included design, construction administration, and inspection at the Mankato Regional Airport. EXP submitted a fee proposal for Construction Administration (CA) services for the Mankato Airport Traffic Control Tower project, which includes subconsultant fees into the total fee. EXP shall be compensated with an Hourly Not to Exceed fee of $2,160,114.
EXP will provide for the project:

• Project Formulation
• Bidding and Permitting Phase Services
• Construction Administrative Services
• B3 and Commissioning Services
• Post Construction Services

Subconsultants will provide for the project:

• Quality Assurance Testing
• Cab Equipment Installation Support
• Civil Construction Administration

An Independent Fee Estimate was conducted by a consultant and, after negotiation between both parties, was found to be within 12% of EXP’s proposal. The FAA guidelines recommend a margin of 10%. Staff recommend accepting the proposal based upon fair and reasonable standards. 

Background:
Awarded Funding for Construction includes:

Source	Total	Federal Share	State Share	Local Share
Federal Contract Tower Program	$9,070,539	$9,070,539	$0	$0
Congressionally Directed Spending	$3,684,211	$3,500,000	$92,105	$92,105
2026 Discretionary Airport Improvement Funding	$12,117,864	$11,511,971	$302,947	$302,947
Total Funding Award	$24,872,614	$24,082,510	$395,052	$395,052

The latest federal eligible projection for construction of the Airport Tower is $28,279,823.

• Tower Construction Estimate $26,001,203.
• Construction Administration $2,168,614.
• FAA Reimbursable Commissioning $100,000.
• City Administration $10,000.
• Additional costs which are only state capital funding eligible include furniture, appliances, and fixtures estimated at $50,000 and technology estimated at $120,000 with a 30% local share.

The remaining federal eligible cost ($3,407,209) reserves the state airport fund ($1,265,000) available for local share use.

Groundbreaking is scheduled to begin in the spring of 2027 with substantial completion in summer 2028. Mankato Regional Airport has until April 19, 2029, to complete the FAA Operational Readiness Inspection.
Mankato Regional Airport is one of 17 sponsor-owned towers conditionally approved for the FAA Contract Tower program and one of 179 airports eligible for the competitive program. Also included in the program are towers already constructed and operating at Anoka County-Blaine and St. Cloud Regional airports.