Title
Airports, a division of the Chief Administrative Office, recommending the Board take the following actions pertaining to the New Beacon Tower and Beacon Project at the Georgetown Airport, Airport Capital Improvement Program Project 35402010:
1) Find that Vellutini Corporation (doing business as Royal Electric Company) is the lowest responsive, responsible Bidder;
2) Award the Construction Contract for Bid 24-0120 to Vellutini Corporation (doing business as Royal Electric Company) in the amount of $357,357, contingent upon the Federal Aviation Administration awarding the County the construction grant for the Project;
3) Approve and authorize the Chair to sign the Construction Contract, contingent upon the Federal Aviation Administration awarding the County the construction grant for the Project and subject to review and approval by County Counsel and Risk Management;
4) Authorize the Airports Director or the Chief Administrative Officer to sign an Escrow Agreement, if requested by the Contractor and in accordance with Public Contract Code Section 22300, for the purpose of holding Contract retention funds;
5) Approve and authorize the Airports Director or the Chief Administrative Officer to execute a United States Department of Transportation, Federal Aviation Administration Airport Improvement Program grant agreement, in an estimated amount of $469,639 with a maximum County match of $24,718, for a four-year term effective upon execution, contingent upon County Counsel approval;
6) Approve and authorize the Airports Director or the Chief Administrative Officer to execute a State of California, Department of Transportation, Aeronautics Division Airport Improvement Program Matching Grant, if successful, in an estimated amount of $23,482, contingent upon County Counsel approval; and
7) Authorize the Airports Director or the Chief Administrative Officer to execute and administer any subsequent administrative documents and required fiscal or programmatic reports related to the grants, including amendments, that do not increase Net County Cost, contingent upon County Counsel approval.
FUNDING: Federal Aviation Administration Grant (95%) and General Fund (5%) with the potential for a reduced General Fund contribution due to the potential for a Caltrans Airport Improvement Program State Matching Grant.
Body
DISCUSSION / BACKGROUND
The New Beacon Tower and Beacon Project (Project) at the Georgetown Airport includes the following:
• Construct a new tower foundation at the existing tower site.
• Erect a new 55-foot tip-down beacon tower.
• Replace old beacon system with a light-emitting diode (LED) medium intensity rotating beacon.
• Replace electrical service with new cable and required grounding.
• Disassemble and remove existing beacon tower, including disconnecting existing electrical power.
• Install new gates and a portion of fence at the Georgetown Airport entrance to provide security to the new beacon and beacon tower.
The new beacon tower is needed to modernize the existing facilities which may be over 50 years old, and which require extensive maintenance. The condition of the existing tower and the scarcity of replacement parts make maintaining the beacon difficult. Expensive beacon maintenance provides only temporary solutions and would be eliminated with the new beacon tower. The new beacon and beacon tower will improve safety of operations at the Georgetown Airport. The new gates will provide security and protection to the new beacon and beacon tower.
On April 23, 2025, the Chief Administrative Office (CAO) Procurement and Contracts Division (P&C) opened electronic bids for the Project. The All Bidders Letter and Abstract of Bids is attached (Attachment A). Five bids were received ranging from $176,644 to $357,357. CAO and P&C staff conferred with County Counsel who determined that the proposals from the four lowest bidders were non-responsive. P&C issued the All Bidders Letter on May 12, 2025, notifying Bidders of the recommendation to the Board for award to Vellutini Corporation dba Royal Electric Company and initiating the five working day bid protest period. The bid protest period ended at 5:00 p.m. on May 19, 2025, with no protests filed.
Find Vellutini Corporation (doing business as (dba) Royal Electric Company) the Lowest Responsive, Responsible Bidder and Award and Sign Construction Contract:
The Engineer’s Estimate for the Project’s direct construction cost was $235,230. The bid received from Vellutini Corporation dba Royal Electric Company was $122,127 (51.9%) over the Engineer’s Estimate.
Authorize Chief Administrative Officer or Designee to Sign Escrow Agreement:
Pursuant to Article 6.4, Withholding from Payments, of the Conditions of the Contract in the Contract Documents, the Airports Division will retain five percent (5%) of the value of each progress payment as security for the fulfillment of the Contract. Alternatively, Public Contract Code Section 22300 provides that the Contractor may request that payment of retentions earned be made directly to an Escrow Agent. The Contractor will receive the interest earned on the investment.
In accordance with these provisions, the Contractor may request in writing that the County make payment of retention funds directly into an escrow account, which would necessitate an Escrow Agreement. To help expedite this process, if requested by the Contractor, the Airports Division requests that the Board authorize the Chief Administrative Officer or Airports Director to execute the Escrow Agreement. Upon satisfactory completion of portions of the Contract and upon written notification from the Chief Administrative Officer or Airports Director, the Contractor will receive incremental releases from the Escrow Agent of retention paid into the account and any interest earned thereon. A portion of the retention and interest will be retained in the escrow account until 35 days after the recordation of the Notice of Acceptance of the Contract at which time, upon written notification from the Chief Administrative Officer or Airports Director, these funds will be released to the Contractor.
Approve and Authorize Airports Director or Chief Administrative Officer or Designee to Execute Federal Aviation Administration (FAA) Airport Improvement Program (AIP) Grant Agreement:
In accordance with Board Policy A-6, Grant Applications, the Airports Division submitted an application on April 25, 2025, for an FAA AIP grant for the construction phase of the Project. FAA grants normally fund 90% of eligible project costs; however, for Federal Fiscal Year 2025 and 2026, the FAA increased its funding to 95% of eligible project costs. Therefore, the County’s General Fund only needs to fund the required 5% match, rather than the normal 10% match, which is estimated at $24,718.
On July 11, 2025, the FAA posted on its website its third announcement of 2025 AIP grants and the AIP grant for the Project is on the list. The FAA will send the grant offer with the grant award letter and grant agreement to the County (sponsor) for signature, and these will include a firm date by which the grant agreement must be signed and returned. This is typically a very compressed time frame and has been as few as one or two days to return the grant agreement. The grant agreement is a standard federal grant agreement, and the County will be unable to make any changes. Due to this compressed time frame for completing the grant agreement, the Airports Division requests advance approval and acceptance of these funds and requests that the Board authorize the Airports Director or the Chief Administrative Officer to execute the documents for the FAA grant, contingent upon County Counsel review and approval, estimated at $469,639.
Airports Division staff will forward the FAA grant agreement to County Counsel for expedited review, and upon approval, the Airports Director or the Chief Administrative Officer will execute the original and sponsor copies of the grant agreement, and staff will forward the grant agreement back to County Counsel for the required attorney certification on the grant agreement, which must follow the sponsor’s authorized representative’s signature.
Approve and Authorize Airports Director or Chief Administrative Officer or Designee to Execute State AIP Matching Grant and Subsequent Administrative Documents:
In accordance with Board Policy A-6, Grant Applications, the Airports Division intends to apply for a State of California, Department of Transportation, Aeronautics Division (State) AIP Matching Grant for the FAA AIP grant, which, if received, would fund five percent (5%) of the FAA AIP grant amount for the Project.
State AIP Matching Grants were not programmed in the Fiscal Year 2025-26 budget as these funds have become unreliable; General Fund was included instead. If the County is awarded a State AIP Matching Grant, a portion of the General Fund County match, estimated at $23,482, will be replaced with the State matching funds, which would reduce the County’s General Fund contribution from $24,718 to $1,236. The Airports Division cannot apply for the State AIP Matching Grant until the FAA grant agreement is executed, which will compress the time frame for issuing the Notice to Proceed to start the construction of the Project at the Georgetown Airport. To expedite this process and keep the Project on schedule, the Airports Division requests that the Board authorize the Airports Director or the Chief Administrative Officer to execute the documents for the State AIP Matching Grant, contingent upon County Counsel review and approval.
The FAA grant application is attached (Attachment B). The State AIP Matching Grant Agreement for the design of the Project, administered under a similar process, is attached as an example (Attachment C).
ALTERNATIVES
The Board could choose to:
1) Not award the Construction Contract to Vellutini Corporation dba Royal Electric Company.
2) Cancel the Project. Note: The Board has previously approved the Project in the 2024 Airports Capital Improvement Program (ACIP) and annual budget processes.
Should the Board choose either of the above alternatives, it will result in the loss of FAA grant funds which expire at the end of the Federal Fiscal Year on September 30, 2025.
PRIOR BOARD ACTION
Legistar file 23-1228 - July 25, 2023 - Approve FAA AIP design grant and Caltrans AIP matching design grant.
Legistar file 24-1891 - November 5, 2024 - Approve the 2024 ACIP.
Legistar file 25-0341 - March 25, 2025 - Approve the Contract Documents and Plans and authorize advertisement for construction bids.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Risk Management, and FAA
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The Project is included in the 2024 ACIP with a construction phase budget of $338,000.
The Project budget in the 2024 ACIP also includes half of the cost for the development of the required FAA Disadvantaged Business Enterprise (DBE) Program (the other half is in Placerville ACIP Project 35401008) and the cost for the Georgetown Airport DBE calculations. These costs are eligible for 95% reimbursement in the FAA AIP grant for the construction of the Project.
Estimated Costs Included in FAA Construction AIP Grant:
|
Total Construction Bid |
$357,357 |
|
Project Formulation - DBE Program and Goals |
$9,500 |
|
Engineering During Construction & Final Project Closeout |
$48,500 |
|
Construction Management |
$63,000 |
|
Administration |
$16,000 |
|
Total Project Cost |
$494,357 |
|
|
|
|
FAA Participation 95% |
$469,639 |
Because the proposals from the four lowest bidders were non-responsive, the direct construction cost is higher than anticipated. The current construction phase costs have increased and exceed the budget by $156,357. The Airports Division will submit a request during the Adopted Budget Process to increase appropriations and increase the required General Fund AIP grant match in the Fiscal Year 2025-26 budget.
The requested Board actions to award, approve, and authorize the Chair to sign the Construction Contract are contingent upon the FAA awarding the County the construction grant for the Project. If awarded the FAA construction grant, funding will be provided by the FAA (95%) in the amount of $469,639 with the local match from the General Fund (5%) in the amount of $24,718.
If the County is successful in receiving a State AIP Matching Grant, a portion of the General Fund funding (5% of FAA AIP grant amount) will be replaced with the State matching funds, estimated at $23,482, which would reduce the County’s General Fund contribution from $24,718 to $1,236.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Upon approval by County Counsel and Risk Management, the Airports Division will forward the approved Contract Routing Sheet and two originals of the Construction Contract to the Clerk of the Board to obtain the Chair’s signature.
2) The Clerk of the Board will forward one original of the fully executed Construction Contract to the Airports Division, Attention: Sherrie Busby, for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Jennifer Franich, Deputy Chief Administrative Officer, Airports Director