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SR 11-28-2023 5A City Council Report City Council Meeting: November 28, 2023 Agenda Item: 5.A 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Bid and Contract to Vellutini Corporation for Replacement and Maintenance of Airport Runway Lighting and Controls Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemption pursuant to Sections 15301 (Existing Facilities), and 15302 (Replacement/Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines. 2. Award Bid #SP2496 to Vellutini Corporation (dba Royal Electric) for the replacement and maintenance of Airport runway lighting and controls for the Public Works Department. 3. Authorize the City Manager to negotiate and execute a contract with Vellutini Corporation, in an amount not to exceed $647,758, including a $58,887 contingency, for the construction of the new lighting system. 4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. 5. Authorize the City Manager to negotiate and execute an agreement with Vellutini Corporation, in an amount not to exceed $150,000 for three years, with two additional one-year renewal options in the amount of $100,000, to maintain and repair runway lighting and controls, on the same terms and conditions, for a total amount not to exceed $250,000 over a five-year period, with future year funding contingent on Council budget approval. Summary Airfield lighting is critical to safe operations at the Santa Monica Municipal Airport (SMO). The airfield lighting control and monitoring systems (ALCMS) and fixtures at the SMO have surpassed their useful life. The City of Santa Monica advertised a Request for Bids (RFB) for the Radio Control, ALCMS, and Runway Edge Lighting Project (Project). Staff recommends awarding a contract to Vellutini Corporation (dba Royal 5.A Packet Pg. 17 2 of 5 Electric) as the best and only bidder for the construction of the Project in an amount not to exceed $647,758 (including a $58,887 contingency). Staff also recommends awarding a contract to Vellutini Corporation (dba Royal Electric) as the best and only bidder for a three-year on-call contract for maintenance services in an amount not to exceed $150,000 with two one-year renewal options in the amount of $100,000 for a total amount not to exceed $250,000 over a five-year period. Discussion The ALCMS and fixtures at SMO have reached the end of their useful life and need to be replaced to ensure safe aircraft operations during night and inclement weather conditions. Staff advertised an RFB for the Project for two scopes of work, one for the construction of the Project and a separate scope for the ongoing maintenance of the newly installed lighting systems. The construction scope includes demolition of the existing in-ground light system and existing pavement from the runway/taxiway to the FAA tower, installation of new above ground lights, underground wiring and underground vaults, new radio control equipment in the FAA Tower. This contract would include three years of maintenance service with two one-year renewal options to maintain the system in top working order. 5.A Packet Pg. 18 3 of 5 Vendor Selection Best and Only Bidder Vellutini Corporation (dba Royal Electric) Submittals Received Selection Criteria Bidder $897,758 Municipal Code SMMC 2.24.180 Evaluation Criteria The ability, capacity and skill of the bidder to perform or provide the materials or services; the capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference; the experience and efficiency of the bidder; and the ability of the bidder to provide future maintenance or service as may be needed. Bid Data Date Posted Posted On Advertised in (City Charter and SMMC Vendors Downloaded Submittals Received Date Publicly Opened 8/9/2023 City’s Online Bidding Site Santa Monica Daily Press 33 1 9/12/2023 Additional Vendor Outreach & Justification to Award Staff contacted firms that downloaded the RFB to determine why they did not submit a bid. The responses included that the firms did not have the capacity to provide services at this time and that the firms were unable to identify sub-contractors to provide the specialized equipment. A selection panel including staff from the Public Works Department reviewed the sole bid received. Vellutini Corporation has extensive experience and demonstrated competency, capacity, and the skill in performing light replacement projects on active airport runways, including Dallas Fort Worth, UC Davis University Airport Runway, San Diego Airport, and many more. In addition, they were a sub-contractor for the primary contractor that executed the SMO runway shortening project. Vellutini also has extensive knowledge of the SMO lighting system as they were the contractor that performed maintenance projects and testing procedures on the existing airfield lighting. Based on these criteria, staff recommends Vellutini Corporation as the best and only bidder for both scopes of the Project 1) construction of the new lighting systems and 2) ongoing maintenance of the newly installed lighting systems. 5.A Packet Pg. 19 4 of 5 Environmental Review The award contract for airfield lighting is categorically exempt from CEQA pursuant to Section 15301, and Section 15302 of the CEQA guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA which includes operation, repair, maintenance, permitting, leasing licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure will be located in the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. The awarded contract would provide the City with replacement airfield lighting system and paving as well as maintenance service. Therefore, the award contract is categorically exempt from CEQA review under CEQA Guideline sections 15301 and 15302. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Airport Fund to award agreements to Vellutini Corporation for replacement and maintenance of the airfield lighting control systems and fixtures. Construction Contract Request Vendor FY 2023-24 Request Amount Future Years Request Amount Account # Total Contract Amount Vellutini Corporation $647,758 $0 C5704710.689000 $647,758 Maintenance Contract Request Vendor FY 2023-24 Request Amount Future Years Request Amount Account # Total Contract Amount Vellutini Corporation $150,000 $100,000 C5704710.689000 $250,000 5.A Packet Pg. 20 5 of 5 Future year funding is contingent on Council budget approval. Prepared By: Phillip Ticun, CIP Project Manager Approved Forwarded to Council Attachments: A. Oaks Initiative Form - Vellutini 5.A Packet Pg. 21 5.A.a Packet Pg. 22 Attachment: Oaks Initiative Form - Vellutini (5738 : Award Contract to Vellutini Corp for Replacement and Maint of Airport Runway Lighting and