TITLE
Recommendation to adopt Plans and Specifications No. R-7194 and award a contract to Vellutini Corporation dba Royal Electric Company of Sacramento, CA, for the Rehabilitate Runway 12-30 Lighting Project at the Long Beach Airport, in an amount of $6,739,739, authorize a 10 percent contingency in the amount of $673,974, for a total contract amount not to exceed $7,413,713; and authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments;
Adopt Categorical Exemption CE-22-046; and
Increase appropriations in the Airport Fund Group in the Airport Department by $7,935,054 offset by grant revenue and Airport funds available. (Districts 4,5)
DISCUSSION
City Council approval is requested to enter into a contract with Vellutini Corporation dba Royal Electric for the Rehabilitate Runway 12-30 Lighting Project (Project) at the Long Beach Airport (Airport). Airport Runway 12-30 (Runway) is the primary air carrier runway. The Runway's electrical equipment and lighting fixtures are over 15 years old and operating beyond their useful life. Electrical improvements to the Runway’s electrical systems will preserve safety and aligns with the Airport's sustainability efforts, as the existing fixtures will be replaced with light-emitting diode (LED) fixtures.
The bid was advertised in the Long Beach Press-Telegram on February 25, 2022, and 2,952 potential bidders specializing in runway lighting and construction services were notified of the bid opportunity. Of those bidders, 62 downloaded the bid via the City's electronic bid system. The bid document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 42 local, minority-owned, and women-owned business groups. Three bids were received on March 18, 2022. Of those three bidders, none were Minority-owned Business Enterprises (MBEs), Women-owned Business Enterprises (WBEs), Disadvantaged Business Enterprises (DBEs), certified Small Business Enterprises (SBEs), or Long Beach businesses (Local). Vellutini Corporation dba Royal Electric, of Sacramento, CA, (not a MBE, WBE, SBE, or Local) was the lowest responsible bidder.
Mobilization is anticipated for August 2022, and construction completion is anticipated in June 2023. The construction Plans and Specifications contain phasing requirements to maintain sufficient access for all Airport passengers and operators, including commercial airlines and general aviation tenants.
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, 191 Long Beach vendors were notified to submit bids, of which five downloaded, and none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
In an effort to notify DBEs, in addition to regular practices, an additional bid announcement was made, and 231 DBEs specializing in construction-related services were also notified of this bid opportunity.
In accordance with the California Environmental Quality Act (CEQA), Categorical Exemption CE-22-046 was issued for this project (Attachment). The project received a Categorical Exclusion pursuant to FAA Order 1050.1F, and in accordance with the National Environmental Policy Act on April 6, 2022.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on June 24, 2022, Purchasing Agent Michelle Wilson on June 15, 2022, and by Budget Analysis Officer Greg Sorensen on June 23, 2022.
SUSTAINABILITY
Existing Runway incandescent lights, cables, and associated electrical equipment will be removed and replaced with new cables, electrical equipment, and new LED lights, which will have a much longer life expectancy, lower energy consumption, and lower maintenance costs compared to existing lighting.
TIMING CONSIDERATIONS
City Council action to adopt Plans and Specifications No. R-7194 and concurrently award a contract is requested on July 12, 2022, to ensure the contract is executed expeditiously.
FISCAL IMPACT
The total construction contract amount will not exceed $7,413,713, inclusive of a 10 percent contingency for unforeseen circumstances. The total project cost, including the contract award, is estimated at $9,498,421, which includes design, construction management, inspection services, material testing, labor compliance, DBE administration, and related project support.
On August 10, 2021, the City Council authorized an appropriation increase in the amount of $1,023,000 for the design and construction management phases of the project. On May 17, 2022, the City Council authorized an appropriation increase in the amount of $540,367 for a total revised appropriation of $1,563,367. An appropriation increase in the amount of $7,935,054 in the Airport Fund Group in the Airport Department is requested for the remaining project cost, offset by reimbursement grant revenue and Airport funds available.
On March 1, 2022, the City Council authorized the acceptance of the Federal Aviation Administration (FAA) Airport Improvement Program (AIP) Grant for Fiscal Year 2022 to fund the project in an amount not to exceed $7,000,000. On April 19, 2022, the City Council authorized an amendment to the AIP Grant to increase the reimbursement amount by $1,700,000 for a revised amount not to exceed $8,700,000 based on the construction bid amount. The FAA awarded the Airport the grant for the project on June 16, 2022, in the amount of $7,871,393. The grant requires matching funds in the amount of $810,929. The matching funds and amounts not covered by the grant will be funded by Airport funds available.
This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for seven full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
CYNTHIA GUIDRY
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
THOMAS B. MODICA
CITY MANAGER