TITLE
Recommendation to authorize City Manager, or designee, to execute all documents, including any necessary amendments, with the Federal Aviation Administration, to accept an increased Airport Improvement Program Grant award for federal Fiscal Year 2022 funding, for capital improvements to the Rehabilitate Runway 12-30 Lighting Project (formerly Runway 12-30 Electrical Improvements Project) at the Long Beach Airport, and increase the award amount by $1,700,000, for a revised amount not to exceed $8,700,000. (Districts 4,5)
DISCUSSION
On March 1, 2022, the City Council authorized the City Manager to accept an Airport Improvement Program (AIP) Grant award in an amount not to exceed $7,000,000, for capital improvements to the Airport Rehabilitate Runway 12-30 Lighting Project, formerly known as the Runway 12-30 Electrical Improvements Project (Project). Since that time, the Long Beach Airport (Airport) has completed the bid for the construction of the Project. The bid results reflect that the cost of the Project, including construction design, construction management, inspection services, material testing, labor compliance, Disadvantage Business Enterprises administration, and related project support, exceeds the original Engineer’s estimate. Material shortages, gas pricing, and recent world events have created a very volatile bidding environment and contractors are factoring in future price increases.
Funds for the Project are pending receipt of the grant offer from the Federal Aviation Administration (FAA). The grant requires shared financial participation by the Airport in the amount of 9.34 percent of the Project cost. The revised estimated cost for the Project is $8,631,383, of which $7,825,212 will be federally funded. The final amount of the AIP grant may be slightly higher or lower, depending on the actual construction amount and available FAA funds. The Airport’s share of $806,171 will be funded with Airport revenue.
This matter was reviewed ...
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