TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Award Construction Contract for Fuel Farm Improvement Project, PW 24-30.
RECOMMENDATION
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Approve creation of a capital improvement project (CIP), “Fuel Farm Improvement Project,” (PW24-30); approve Amendment No. 1 to Agreement No. 240127B with Roundtable Technical Resource, LLC for project design services; authorize a waiver of competitive bidding and award a sole source construction contract to American Environmental Aviation, Inc., for the “Fuel Farm Improvement Project,” making the associated findings in support of the award; and approve an associated Budget Amendment. (Fiscal impact: $907,460 Expense; Airport CIP Fund; Not Budgeted; Discretionary).
[4/5 vote required]
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BACKGROUND
The County entered into commercial fixed base operator (FBO) agreements with Napa Jet Center, Inc dba Atlantic Aviation (“Atlantic Aviation”) and SkyServiceUS California, LLC, which were approved by the Board in December 2022. The agreements established multi-party commitments to redevelop airport terminal areas and critical infrastructure, including a County commitment to improve/redevelop the existing fuel farm and each FBO committed to develop new fuel farms. The existing fuel farm is currently operated by Atlantic Aviation and will revert to the County for operation once a new fuel farm is developed by Atlantic Aviation.
In preparation to take over operation of the existing fuel farm, Airport staff retained fuel farm consulting firm Roundtable Technical Resource to assess the condition of the fuel farm and to prepare a report of needed improvements. The report identified the following needed improvements at the fuel farm: updated electrical service improvements; installation of an oil-water separator for stormwater protection; and other infrastructure improvements serving all parties’ fuel farms, the costs of which should be shared between the Airport and the two FBOs.
In order to execute these recommendations, staff is requesting the Board approve the creation of a capital improvement project, “Fuel Farm Improvement Project;” approve an amendment with Roundtable Technical Resources for project design; waive competitive bidding and award a sole-source contract to American Environmental Aviation, Inc. ("AEA") to construct required fuel farm improvements; and approve an associated budget amendment to fund the Fuel Farm Improvement Project (“Project”). The Project will be funded by the Airport Enterprise fund and it is anticipated that 50% of the cost will be reimbursed by the two FBO’s, which commitment will be secured via amendments to the FBO agreements. Should the amendments not be executed to reflect the cost sharing, the Project will be scaled to only meet the requirements of the County and, in that case, the FBOs will be responsible for developing their fuel farm infrastructure independently.
Roundtable Technical Resources is the design professional firm and AEA is the general contractor currently engaged by both FBOs. These contractors are capable of designing and building, respectively, both new fuel farms for the FBOs as well as the County’s needed fuel farm improvements, as they are experts in the industry with specialized knowledge of fuel farm design and construction. Airport staff is requesting a waiver of competitive bidding and approval of a contract with AEA due to its expertise and due to the efficiencies of redeveloping the County fuel farm infrastructure while the two new fuels farms are being constructed by the FBOs. Airport staff have reviewed the proposed scope of work and find the cost and schedule satisfactory for the requirement of stormwater regulatory compliance and a long service life of electrical switchgear.
With respect to the requested waiver of competitive bidding and sole-source contract with AEA, the sole source is justified by AEA’s expertise as a fuel facility developer. In addition, because both FBOs have likewise recognized AEA’s expertise in the field and have independently contracted with AEA, the County will experience cost and time efficiencies by engaging AEA for the construction of this Project. AEA has specialized knowledge and experience in constructing such fuel facilities as well as unique knowledge of the FBOs’ projects, with which the County fuel farm must be compatible. Additionally supporting the sole-source award to AEA, were the County to competitively bid this construction contract, the fuel farm improvement project schedule would be delayed by at least 12 months and the County would lose the cost savings of the mobilizing the contractor at the same time the FBOs’ contractor mobilizes. Engaging in a competitive bidding process for this contract would not produce a better result for the County, nor would it be expected to provide the County with any advantage. Staff believes it serves the greatest benefit to the County and the public to engage AEA as a sole-source contractor for this Project.
Within the project budget summary, we have included all the necessary appropriations: design, construction,
10% construction contingency, engineering and administrative costs, and costs related to third-party construction management.
Requested Actions related to the “Fuel Farm Improvement Project”:
1. Approve creation of a new Airport Capital Improvement Project PW 24-30 for the “Fuel Farm Improvement Project”;
2. Approval of and authorization for the Chair to sign Amendment No. 1 to Professional Services Agreement No. 240127B (formerly 240127C) with Roundtable Technical Resources, Inc. for design services in the amount of $95,000;
3. Authorize a waiver of competitive bidding and award sole-source construction contract No. 240399B to American Environmental Aviation, Inc. for its bid of $543,900, with a term end date of June 30, 2025, pursuant to Napa County Code Section 2.36.090, and find that the sole-source is justified by the contractor’s special expertise in such projects, due to the cost and time savings to the Project, because the sole source provides the greatest benefit to the County and the public, and because no advantage would be gained by competitively bidding the contract; and
4. Approve a Budget Amendment for the following:
a. Increase Intrafund Transfers Out appropriation by $907,460 in the Airport Operations budget (Fund 5010, Subdivision 5010000) offset by the use of its available fund balance to transfer to the “Fuel Farm Improvement Project,” PW 24-30 budget (Project 24032); and
b. Increase Construction Services appropriation by $907,460 in Project 24032 budget (Fund 5010, Sub-Division 5010500, Project 24032, Account 52360) transferred from Airport Operations.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
This is a new capital project with funding sourced from the Airport Enterprise Fund (Fund 5010) and anticipated partial reimbursement from the two (2) FBO’s. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
To provide for safe and effective handling of hazardous materials at the Napa County Airport, Napa County looks to develop infrastructure and support services that are robust and will provide a long service life. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
This project will extend into future fiscal years and will be budgeted in the Airport Enterprise CIP Fund accordingly. |
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Consequences if not approved: |
The FBOs and County will have to individually reapply for electrical service and develop unique oil-water separators for each respective facility. The County and the FBOs will endure a significant schedule impact in completing the fuel farms delaying the goal of a competitive fuel market for aircraft operators. County and the FBOs may face additional project costs due to the added facility complexity and schedule delay. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The Board previously considered and adopted a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for this Project, pursuant to Resolution No. 2020-120. There have been no substantial changes to the Project or new information of substantial importance within the meaning of CEQA Guidelines section 15162 that would warrant additional environmental review in connection with this action.