TITLE
Recommendation to adopt Plans and Specifications No. R-7085 for the Improvements to Runway 7R-25L at the Long Beach Airport; award a contract to All American Asphalt, of Corona, CA, in the amount of $14,519,593, authorize a 10 percent contingency in the amount of $1,451,959, for a total contract amount not to exceed $15,971,552; and authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments; and
Increase appropriations in the Airport Fund (EF 320) in the Airport Department (AP) by $14,310,476. (District 5)
DISCUSSION
City Council approval is requested to enter into a contract with All American Asphalt, for the Improvements to Runway 7R-25L. This runway is primarily used for general aviation purposes and extensive flight training operations due to its proximity to Fixed Base Operators (FBOs), flights schools, and flying clubs located on the south side of the airfield. Runway 7R-25L has a width of 150 feet, which exceeds the Federal Aviation Administration’s (FAA) minimum 75-foot width for a B-II runway. Runway 7R-25L will be reconstructed to a 100-foot width and the centerline will be shifted north 25 feet. The basis for the additional width beyond the minimum requirement is to address specific operational factors associated with activity on the runway and to enhance operational safety through an increase in visual acuity of the runway alignment and situation awareness of pilots. Other improvements include drainage systems, signage, pavement markings, runway guard lights, and grading infield areas. Existing lighting will be replaced with FAA-approved LED lighting. Due to natural shifts in the earth’s magnetic field, the runway will be re-designated as 8R-26L. Other work includes construction of two new aircraft run-up areas, blast pads for Runway 7L-25R, and re-designation of Runway 7L-25R to 8L-26R, also due to natural shifts in the earth’s magnetic field.
On December 6, 2016, the City Council authorized the submittal of an application to the FAA for the Airport Improvement Program (AIP) Grant for Fiscal Year 2017 (FY 17) to fund capital improvements to Runway 7R-25L in the amount of $12,881,879. Following completion of the bidding process for the project, it was determined that costs would exceed the original grant amount requested from the FAA. As a result, an updated application for additional AIP Grant funding for this project in the amount of $2,422,594 was presented to the City Council for consideration.
The bid was advertised in the Long Beach Press-Telegram on May 3, 2017, and 4,414 potential bidders specializing in construction services were notified of the bid opportunity. Of those bidders, 95 downloaded the bid via the City's electronic bid system. The bid document was made available through the City’s Purchasing Division, via the Division’s website at www.longbeach.gov/purchasing. A bid announcement was included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 22 local, minority and women-owned business groups. Bid documents were also sent to several trade publications and plan rooms catering to these groups within the construction industry. Five bids were received on June 14, 2017. Of the five 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-based businesses (Local). All American Asphalt, of Corona, CA (not a MBE, WBE, DBE, SBE or Local), was the lowest responsible bidder.
Local Business Outreach
In an effort 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, 397 Long Beach vendors were notified to submit bids, of which seven downloaded, but none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on July 24, 2017 and by Revenue Management Officer Geraldine Alejo on August 2, 2017.
SUSTAINABILITY
The construction method of treating the soil in-place will reduce the number of truck trips for removal and eliminate the number of truck trips required for construction of the stabilized sub-base. The in-place treatment of the soil will also reduce the overall number of truck trips thereby reducing vehicle emissions.
The reconstructed runway will have an anticipated service life of at least 20 years. Existing runway lights and associated signs will be removed and replaced with 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 Specifications No. R-7085 and award a contract concurrently is requested on August 15, 2017, to expedite commencement of this work. Construction is anticipated to begin in November 2017, and should take approximately 10 months to complete. The construction Plans and Specifications contain phasing requirements that maintain continued access for all Airport operators, including commercial airlines and general aviation tenants.
FISCAL IMPACT
The total construction contract amount is not to exceed $15,971,552, which includes a recommended 10 percent contingency of $1,451,959, due to the potential for unforeseen circumstances. The total project cost, including the contract award, is currently estimated to be $19,227,426 and will be funded with the FAA AIP grant award, Passenger Facility Charges (PFC), and Airport operations revenue.
Of the total funding amount, $2,494,356 from PFC and operation revenues is currently appropriated in the Airport Fund (EF 320) in the Airport Department. The FAA AIP grant award is currently unbudgeted. An appropriation increase in the amount of $12,881,879, offset by grant funding, is requested in the Airport Fund (EF 320) in the Airport Department (AP). An appropriation increase for the remaining $2,422,594 will be requested after the AIP grant offer is received and executed. An additional appropriation increase in the amount of $1,428,597 is requested in the Airport Fund (EF320) in the Airport Department (AP), offset by Airport operations revenue, to cover the required AIP grant match. The award of this contract will provide continued support to our local economy by supporting approximately 115 temporary full-time jobs during construction.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JESS L. ROMO, A.A.E.
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER