SR 12-13-2022 5C
City Council
Report
City Council Meeting: December 13, 2022
Agenda Item: 5.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Airport
Subject: Award Request for Proposal to Aeroplex Group Partners, LLC, for Airport
Self-Service Fuel Operator
Recommended Action
Staff recommends that the City Council:
1. Award RFP #335 to Aeroplex Group Partners, LLC, a California-based company
for services as a commercial self-service fuel operator to manage the City of
Santa Monica's self-serve fuel station for retail aviation fueling services at Santa
Monica Airport for the Public Works Department;
2. Authorize the City Manager to negotiate and execute a contract with Aeroplex
Group Partners, LLC, in an amount not to exceed $1,267,200 for three years with
two additional one-year renewal options at the City's discretion for $422,400 for
the first renewal year and $422,400 for the second renewal year for a total
amount not to exceed $2,112,000 (including a 10% contingency) over a five-year
period with future year funding contingent on Council budget approval; and
3. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing
Facilities), of the California Environmental Quality Act (CEQA) Guidelines.
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Summary
Staff anticipates the continued need for a commercial fuel operator to provide fuel
dispensing services at the Santa Monica Airport and to manage the City’s self-serve fuel
station for retail aviation fueling. Based on the results of a competitive Request for
Proposal (RFP) process, Staff recommends that the contract to manage and operate
the Airport’s self-serve fuel station for retail aviation fueling services be awarded to
Aeroplex Group Partners, LLC (“Aeroplex”) for an amount not to exceed $2,112,000
(including a 10% contingency).
Discussion
The City of Santa Monica owns the self-serve fuel station at the Santa Monica Airport
and has operated it since April 2017. Prior to this, the fuel station was operated by the
City’s former tenant and dispensed 100 Low Lead (100LL) aviation fuel. Consistent with
its commitment to use the most environmentally sustainable products, the City
substituted the fuel product with UL94, which is an unleaded aviation fuel used by many
piston-powered aircraft. However, UL94 is not a true replacement fuel for the entire
piston powered aircraft fleet and is subsidized by the City in order to offer its users a
competitive price relative to the significantly cheaper 100LL fuel.
Aeroplex has operated and managed the fuel station on behalf of the City since April
2017. The City’s agreement with Aeroplex for these services expires on December 31,
2022. To ensure the continuity of the Airport’s fueling operations — a City obligation
pursuant to the Consent Decree with the FAA for the operation of the Airport until
December 31, 2028 — the City issued an RFP for the selection of a vendor to provide
retail aviation unleaded fueling services to Airport users.
On September 23, 2022, the City issued a Request for Proposals (RFP #335) for
Commercial Self-Service Fuel Operator Services. On October 20, 2022, one proposal
was received.
The RFP was posted on the City’s on-line bidding site, and notices were advertised
in the Santa Monica Daily Press in accordance with the City Charter and the Santa
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Monica Municipal Code. Five (5) vendors downloaded the RFP, but only Aeroplex
Group Partners responded and submitted a proposal. Procurement conducted
additional outreach to vendors who downloaded the bid to see why they did not
submit a bid, but no responses were received.
Aeroplex would be tasked with managing and operating the Santa Monica Airport’s
self-serve fuel station for retail aviation unleaded fueling services to Airport users.
Vendor Selection
Best and Only Bidder Aeroplex Group Partners
Submittals Received Selection Criteria
Aeroplex Group Partners Municipal Code SMMC 2.24.190
Evaluation Criteria
Price; Ability to perform the work within the desired time frame; Ability to
meet project work plan; Ability to provide high qualified staff to provide
management and representatives assigned to the engagement and
provide assurance of resources to accommodate changes or turnover in
staff; Stability and References; Experience/Technical Competence.
Bid Data
Date Posted Posted On Advertised In
(City Charter & SMMC) Vendors
Downloaded Date Publicly
Opened
09/23/2022 City's Online
Bidding Site Santa Monica Daily Press 5 10/20/2022
Additional Vendor Outreach & Justification to Award
A three-person committee from the Water Resources Division (WRD) and Santa Monica
Fire Department evaluated the single proposal received from Aeroplex Group
Partners.). (Part of the Water Division’s responsibilities is to oversee the City’s
Underground Storage Tanks. WRD oversees the Airport’s fuel underground storage
tanks in conjunction with SMFD, is familiar with the fuel systems and ensures
compliance with regulations and insurance requirements.) Evaluation was based on
experience/technical competence, cost of services/cost control, ability to meet project
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work plan and timeliness, references, and project team. Based on these criteria and
criteria listed in SMMC 2.24.190, staff determined that Aeroplex Group Partners is well
qualified to provide services as a commercial self-service fuel operator to manage and
operate the Santa Monica Airport’s self-serve fuel station. Aeroplex Group Partners has
completed similar projects for other public agencies including Los Angeles World
Airports, as well as the City of Santa Monica. For the reasons above, Aeroplex Group
Partners is recommended as the best qualified firm.
Environmental Review
The award for airport self-service fueling operator is categorically exempt from the
California Environmental Quality Act (CEQA) under Section 15301.
Section 15301 of the CEQA State Guidelines provides Class 1 (existing facilities)
exemption for projects that consists of the operation, repair, maintenance, leasing,
licensing, permitting, or minor alteration of existing public or private structures, facilities,
mechanical equipment, or topographical features, involving negligible or no expansion
of the existing or former use. The award bid for the airport self service fueling operator
would not result in any modifications to existing fueling facilities. Airport fueling facilities
currently exist and the proposed award bid would not expand or materially change
existing fueling operations. Therefore, the project is categorically exempt as set forth in
Section 15301 of the CEQA State Guidelines.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Airport Fund to award a
contract with Aeroplex Group Partners, LLC for services as a commercial self-service
fuel operator to manage and operate the City of Santa Monica’s self-serve fuel station
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for retail aviation fueling services at the Santa Monica Airport. Future year funding is
contingent on Council budget approval.
FY 2022-23
Request Amount
Future Years
Amount
Department Account # Total Contract Amount
$211,200 $1,689,600 57500001.552010 $2,112,000
Prepared By: Diana Hernandez, Airport Operations Analyst
Approved
Forwarded to Council
Attachments:
A. 20220329_ AERO_OAKS INITIATIVE FORM
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
5.C.a
Packet Pg. 40 Attachment: 20220329_ AERO_OAKS INITIATIVE FORM (5359 : Award Airport Self-Service Fuel Operator)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Aeroplex Group Partners LLC
Name(s) of trustees, directors, partners, and officers:
Curt Castagna – Member, Randall Berg – Member, Justin Castagna- Member,
Aerolease West LLC- Member, Aerolease Associates - Member
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Aeroplex Group Partners- Curt and Justin Castagna
Aerolease Associates LLC – Ken, Randy, Brian, Bryce, Kiley and Stephen Widelitz
and the Howard Keck Trust
Aerolease West LLC – Ken, Randy and Brian Widelitz
Prepared by: Curt Castagna Title: Manager
Signature: ______________________________________ Date: ________________
Email: castagna@aeroplex.net Phone: 562-981-2659
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
March 29, 2022
5.C.a
Packet Pg. 41 Attachment: 20220329_ AERO_OAKS INITIATIVE FORM (5359 : Award Airport Self-Service Fuel Operator)