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SR 12-13-2022 5C City Council Report City Council Meeting: December 13, 2022 Agenda Item: 5.C 1 of 5 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. 5.C Packet Pg. 35 2 of 5 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 5.C Packet Pg. 36 3 of 5 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 5.C Packet Pg. 37 4 of 5 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 5.C Packet Pg. 38 5 of 5 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 5.C Packet Pg. 39 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)