Title
Airports, a division of the Chief Administrative Office, recommending the Board take the following actions pertaining to the installation of the New Automated Weather Observing System on Existing Tower Project at the Placerville Airport:
1) Award the Construction Contract for Bid 2025-0156 to Pacific Underground Services, the lowest responsive Bidder, contingent upon the Federal Aviation Administration awarding the County the construction grant for the Project;
2) Authorize the Board Chair to sign a Construction Contract, for a total compensation amount not to exceed $208,420, 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;
3) Authorize the Assistant 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;
4) Authorize the Assistant Chief Administrative Officer to accept and execute a United States Department of Transportation, Federal Aviation Administration Airport Improvement Program grant agreement, in an estimated amount of $280,649 with a maximum County match of $14,771, for a four-year term effective upon execution, contingent upon County Counsel approval;
5) Approve and authorize the Assistant Chief Administrative Officer to apply for, accept and execute a State of California, Department of Transportation, Aeronautics Division Airport Improvement Program Matching Grant, if successful, in an estimated amount of $14,032, contingent upon County Counsel approval; and
6) Authorize the Assistant 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 installation of the New Automated Weather Observing System (AWOS) on Existing Tower Project (Project) at the Placerville Airport includes removing AWOS sensors from the existing AWOS tower, installing new AWOS sensors on the existing AWOS tower and foundations, installing new cable in the existing duct from the electrical vault to the existing AWOS site, and installing new AWOS equipment in the Airport Manager’s Office.
A new AWOS is needed to update the existing facilities, which are over 16 years old and require extensive maintenance. Equipment maintenance provides only temporary solutions and is expensive. After replacement, maintenance is expected to be significantly reduced. The new AWOS will provide safety of aircraft operations at the Placerville Airport.
On April 22, 2026, the Chief Administrative Office (CAO) Procurement and Contracts Division (P&C) opened electronic bids for the Project. The Bid results and Award letter are attached (Attachments C & D). Three bids were received, ranging from $208,420 to $266,662. P&C issued the All Bidders Letter on May 1, 2026, notifying Bidders of the recommendation to the Board for award to Pacific Underground Services and initiating the five working-day bid protest period. The bid protest period ended at 5:00 p.m. on May 8, 2026. A formal protest was submitted by Shane Brown Electric on May 6, 2026, citing irregularities identified in the lowest bid (Attachment E). The County exercised its discretion and elected to waive the non-material irregularity identified in the lowest bid, therefore rejecting the protest and continuing with the bid award (Attachment F).
Find Pacific Underground Services the Lowest Responsive, Responsible Bidder and Award and Sign Construction Contract contingent upon the Federal Aviation Administration (FAA) awarding the County the construction grant for the Project and subject to review and approval by County Counsel and Risk Management:
The Engineer’s Estimate for the Project’s direct construction cost was $239,955. The bid received from Pacific Underground Services was $208,420 (13%) below the Engineer’s Estimate. A draft contract is included in the Bid Package (Attachment A).
Authorize the Assistant Chief Administrative Officer 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 Assistant Chief Administrative Officer to execute the Escrow Agreement. Upon satisfactory completion of portions of the Contract and upon written notification from the Assistant Chief Administrative Officer, 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 Assistant Chief Administrative Officer, these funds will be released to the Contractor.
Authorize the Assistant Chief Administrative Officer to Accept and Execute FAA Airport Improvement Program (AIP) Grant Agreement:
In accordance with Board Policy A-6, Grant Applications, the Airports Division submitted an application on May 1, 2026, 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, or approximately $14,771, rather than the normal 10% match.
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 Assistant Chief Administrative Officer to execute the documents for the FAA grant, contingent upon County Counsel review and approval, estimated at $280,649, with a County match not exceeding 5% of eligible project costs.
Airports Division staff will forward the FAA grant agreement to County Counsel for expedited review, and upon approval, the Assistant 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 the Assistant Chief Administrative Officer to Apply for, Accept and 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 2026-27 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 $14,032, will be replaced with the State matching funds, which would reduce the County’s General Fund contribution from $14,771 to $739. 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 Placerville Airport. To expedite this process and keep the Project on schedule, the Airports Division requests that the Board authorize the Assistant Chief Administrative Officer to apply for, accept and execute the documents for the State Caltrans 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 G).
ALTERNATIVES
The Board could choose to:
1) Not award the Construction Contract to Pacific Underground Services.
2) Cancel the Project. As a note, the Board has previously approved the Project in the Airport Capital Improvement Program 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, 2026.
PRIOR BOARD ACTION
Legistar file 08-0621- May 13, 2008 - Sign bid docs/Send out for bid on AWOS
Legistar file 09-0754 - June 30, 2009 - Notice of Completion for AWOS
Legistar file 24-0634 - August 13, 2024 - Approve FAA AIP design grant and Caltrans AIP matching design grant.
Legistar file 26-0394 - March 24, 2026 - Approve the Contract Documents and Plans and authorize advertisement for construction bids.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel, Risk Management, Facilities Division, and FAA
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The Project is included in the Airport Capital Improvement Program with an estimated construction phase budget of $286,000. The budget will be adjusted in the Fiscal Year 2026-27 Adopted Budget if the FAA grant is awarded for the full amount.
Estimated Costs Included in FAA Construction AIP Grant:
|
Total Construction Bid |
$208,420 |
|
Engineering During Construction & Final Project Closeout |
$30,000 |
|
Construction Management |
$43,000 |
|
Administration |
$14,000 |
|
Total Project Cost |
$295,420 |
|
|
|
|
FAA Participation 95% |
$280,649 |
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 $280,649 with the local match from the General Fund (5%) in the amount of $14,771.
If the County is successful in receiving a State Caltrans 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 $14,032, which would reduce the County’s General Fund contribution from $14,771 to $739.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Upon approval of the FAA grant funding and review 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 Facilities Division, Attention: Garrick Tung, for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Dale Lusby, Airport Operations Officer
Charles Harrell, Facilities Division Manager