HomeMy WebLinkAbout _ 4.2(a)--Adopt Budget Resolution Allocating Funds to Runway Rehab Project GI �" Y C� F
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REPORT TO THE CITY COUNCIL
MEETING DATE: September 2,2025 FROM: Steve Bade, Assistant City
ITEM NO. 4.2(a) Manager
***APPROVED BY***
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sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(a)--Adopt Budget Resol�ution Allocating Funds to the Runway Rehabilitation
Pro'ect
Recommendation
Adopt Resolution approving and adopting the 9th Amendment to City Budget Resolution No.
2025-049 allocating the remaining, unappropriated funds to complete the Redding Regional
Airport Runway 16-34 Rehabilitation Project.
Fiscal Impact
Adopting the resolution would increase the Redding Regional Airport Runway 16-34
Rehabilitation Project (Project) appropriations by $11,687,990 for the construction phase and
$773,620 for the procurement phase (total $12,461,610). These appropriations supplement
previous appropriations to match the fu11 budget of $31,383,764 which is an updated figure of
the total anticipated cost presented to City Council (Council) in April 2025. The April 2025
presentation underestimated the actual grant received by FAA compared to what was in the
agreement accepted by the City of Redding (City) and also included costs from grants related to
design which are not included in this financial project because the preliminary design concept
study and the full design were accounted as separate projects in the years in which they were
carried out, respectively.
The total of $31,383,'764 is the sum of the awards of both FAA grants related to construction
only and the corresponding Passenger Facility Charges amount to account for local matching
funds (9.34%). There is no impact to the General Fund.
Alternative Actzon
Council may choose not to adopt the budget resolution appropriating the remaining funds and
provide alternative direction to staf£ Not adopting the resolution may impact the availability of
funds for the project and the City's ability to meet contractual payments as the project proceeds.
Report to Redding City Council August27,2025
Re: 4.2(a)--Adopt Budget Resolution Allocating Funds to Runway Rehab Project Page 2
Background/Analysis
The Airports Division originally appropriated $19,000,000 for the project in Fiscal Year 2023-24
and spent $77,838.46. In the interim, funding delays from the Federal Aviation Administration
(FAA), due to federal budget continuing resolutions, and scope changes to the project - inclusion
of shoulder work and high-intensity runway lights saw the total project budget increase to
$31,383,764. The subject budget resolution seeks to appropriate the difference between the
originally budgeted amount $19,000,000 and the actual budget of$31,383,764.
Council has previously approved execution of two grant agreements from the FAA - construction
phase and procurement phase - as well as authorized the City Manager to make changes
necessary to the Passenger Facility Charges program to fund the project at the fu11 amount
required. Adopting the resolution appropriates the remainder of the funds from these sources to
the project.
Funds to be A ro riated b Source
FAA Ca ital Grant Passen er Facilit Char es
Procurement Phase $ 701,359.00 $ 72,255.60
Construction Phase $10,596,330.35 $1,091,658.12
EnviNonmental Review
This action, the adoption of a budget resolution, is not a project as defined by the California
Environmental Quality Act (CEQA). On May 6, 2025, Council determined that the Runway 16-
34 Rehabilitation Project is categorically exempt from review under CEQA, pursuant to Section
15301, Existing Facilities; Section 15302, Replacement or Reconstruction; and Section 15303,
New Construction or Conversion of Small Structtzres. No further action is reauired.
Council Priority/City Manager Goals
� This is a routine operational item.
Attachments
^Budget Resolution
Previous Staff Report dated October 1, 2024
Previous Staff Report dated May 6, 2025
Resolution No. 2025 -
A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTiNG THE
9Tx AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 APPROPRIATING
$12,461,610 FOR THE REDDING REGIONAL AIRPORT RUNWAY 16-34
REHABILITATION PROJECT FOR FISCAL YEAR 2025-26.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING
THAT Budget Resolution No. 2025-049 be and is hereby amended as follows:
FUND DNISION DESCRIPTION 1NCREASE DECREASE
201 7101 Redding Regional Airport $12,461,610
THAT account titles and numbers requiring adjustments by this Resol�ution are as follows:
USE SOURCE
OF FUNDS OF FUNDS
Increase(Decrease)Revenue
201-7101-3616202-00000 Airport Passenger Facility Charges $ 1,163,920
201-7101-3609201-00000 Federal Grant Capital-Airports $ 11,297,690
Increase Expenditures
201-7101-7700002-00000-RARPT23032 Infrastructure-Procurement Phase $ 773,620
201-7101-7700002-00000-RARPT23025 Infrastructure-Construction Phase $ 11,687,990
Total $ 12,461,610 $ 12,461,610
THAT the purpose is to appropriate $12,461,610 for the Redding Regional Airport Runway 16-34
Rehabilitation Project for the fiscal year 2025-2026.
I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the
City Council of the City of Redding on the 2nd day of September, 2025 and was duly adopted at
said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
JACK MUNNS, Mayor
ATTEST: FORM APPROVAL:
SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney
GI �" Y C� F
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REPORT TO T�IE CITY COUNCIL
MEETING DATE: October 1, 2024 FROM: Steve Bade, Assistant City
ITEM NO. 4.2(a) Manager
***APPROVED BY***
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sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(a)--Authorize submittal of U.S. Department of Transportation Federal
Aviation Administration Grant Applications for the remaining phase of Redding Regional
Airport's Runway 16-34 Rehabilitation Project; and authorize changes to the Passenger Facility
Char e Pro ram to secure matching funds.
Recommendation
Authorize and approve the following:
(1) Authorize the City Manager, or designee, to execute the U.S. Department of
Transportation Federal Aviation Administration (FAA) grant applications for the
remaining phase of the overall Runway 16-34 Rehabilitation Project; execute any
resulting grant agreements or other documentation as necessary to obtain federal grant
funding for the project; and appropriate all grant funds received to the City of Redding's
Airports Fund; and
(2) Autharize the Assistant City Manager serving as Airports Director, or designee, to
amend, or otherwise make changes, to the Passenger Facility Charges Program, as
needed, to facilitate local match and as approved by the FAA for a11 phases of the
Runway 16-34 Rehabilitation Project.
Fiscal Impact
On September 6, 2024, the FAA Airport Improvement Program (AIP) provided the City a grant
offer of$'701,359 for Runway 16-34 Rehabilitation Phase I — Materials Acquisition Project at a
90.66% federal cost-share. The remaining $72,255.60 (9.34%) local match will be reimbursed by
the RDDs Passenger Facility Charges (PFC) program. No other local funding sources would be
necessary to complete the project.
In 2025, staff anticipates submitting an FAA AIP grant application for the remaining Runway
16-34 Rehabilitation Phase II project costs in an amount not to exceed$30 million.
Report to Redding City Council September25,2024
Re: 4.2(a)--Authorize FAA AIP GrantApplications and changes to Program Page 2
Alter�native Actzon
The City Council (Council) may choose to terminate the grant agreement and provide alternate
direction to staff which may jeopardize the runway project and de-obligate all federal funds for
the project. Any preliminary expenses which may have grant eligible will no longer be
reimbursable under the AIP grant.
Background/Analysis
RDD is owned and operated by the City of Redding (City) servicing both commercial aviation
and general aviation. As an airport sponsor organization, the City is obligated to maintain the
aviation facilities of the 1oca1 airports system through both regular maintenance and planned
capital improvement projects. Staff has identified that RDDs main runway, Runway 16-34, needs
rehabilitation as a result of age, regular use, and environmental conditions. While routine
maintenance has kept the runway in a safe and operable condition further intervention is
necessary in order to extend the useful life of the runway facility as it exists today.
The Runway 16-34 Rehabilitation Design Project conducted architectural, design, engineering,
and planning work necessary to conclude that a rehabilitation project spanning the complete
length of the runway will extend the life of the runway, update the facility to meet current
standards, and prepare for future planned facility layout changes to the runway and taxiway
network at RDD. The costs of the overall construction project are estimated to be approximately
$30 million, accounting for inflation due to project postponement to Federal Fiscal Year (FY)
2025 (October 2025 through September 2026) and variance in the costs of labor, materials, and
supplies.
On March 6, 2024, the City received a bid from Redding Airport Constructors (RAC), as the sole
bidder, for the Redding Regional Airport (RDD) Runway 16-34 and Taxiway Connectors
Rehabilitation and MAGVAR Improvements Project (Bid Negotiation No. 5451, Job No. 9944-
33) (Runway Project). Since that time, staff— Public Works and Airports - has been working
with the U.S. Department of Transportation Federal Aviation Administration (FAA), Mead &
Hunt, Inc., RDD's development consultant, and RAC to extend the bid and secure FAA funding
for the project. In August 2024, RAC extended their bid to J�une 6, 2025.
The complete Runway Project was intended to be funded and completed in City FY 2024,
however, due to lack of funding for the AIP program at the FAA the project could not be funded
entirely in City FY 2024. As a result, in order to access available FAA FY 2024 funds, the
project was divided in two phases: Runway 16-34 Rehabilitation Phase I—Materials Acquisition
and Runway 16-34 Rehabilitation Phase II — Construction. The FAA has awarded $701,359 at a
90.66% cost-share to the City for Phase I of the project. Should Council approve this proposed
action, staff would apply for Phase II — Construction in Federal FY 2025 beginning October 1,
2025 following consultation with the FAA San Francisco Airport District Office.
As previously mentioned, the City would provide the 9.34% match, as required in the agreement,
by utilizing funds collected from the Passenger Facility Charges (PFC) program. Passenger
Facility Charges are a $4.50 fee collected as part of ticket sales to commercial airline passengers
and is heavily regulated by the FAA. PFCs may only be used to pay for, or reimburse, expenses
on approved projects and applications. The complete Runway 16-34 Rehabilitation Project was
included in RDD's 7t�' (most recent) PFC application, however, due to the postponement and
resulting division of the project into phases, the City is now seeking authorization to make
amendments and other changes to the PFC program as required by FAA in order to continue
collecting PFCs (used to reimburse the required matching funds).
Report to Redding City Council September25,2024
Re: 4.2(a)--Authorize FAA AIP GrantApplications and changes to Program Page 3
Environmental Review
The administrative activities are not a project as defined by the California Environmental Quality
Act (CEQA). No further action is required at this time. Staff wi11 request Council approval for
the CEQA coinpliance document when a construction contract is awarded. Compliance with the
National Environmental Policy Act will also be provided at that time.
Council PNio�^ity/City Manager Goals
• Budget and Financial Management — "Achieve balanced and stable 10-year Financial
Plans for all funds."
• Economic Deveiopment — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
FAA Grant Agreement Part 1 for AIP Project No. 3-06-0194-055-2024
GI �" Y C� F
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REPORT TO THE CITY COUNCIL
MEETING DATE: May 6, 2025 FROM: Michael Webb, Public Works
ITEM NO. 9.11(c) Director
***APPROVED BY***
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mwebb@cityofredding.org btippin@cityofredding.org
SUBJECT: 9.ll(c)--Award Bid Negotiation No. 5451 Redding Regional Airport Runway 16-
34 and Taxiwa Connectors Rehabilitation and MAGVAR Im rovements
Recommendation
Authorize and approve the following regarding Bid Negotiation No. 5451 (Job No. 9944-33),
Redding Regional Airport Runway 16-34 and Taxiway Connectors Rehabilitation and
MAGVAR Improvements Project(Project):
(1) Award the Project to Redding Airport Constructors in the amount of$20,111,190 for the
Base Bid, and an additional $7,666,587 for Additive Alternate 1 for a total amount of
$27,777,777;
(2) A�uthorize the City Manager, or designee, to approve, execute, and appropriate funds for
amendments up to 15 percent of the �nal Federal Aviation Administration Airport
Improvement Program grant for contract change orders or other eligible contract
modifications;
(3) Approve $270,000 for the cost of City administration and $1,717,000 in construction
administration and inspection fees for Mead & I�unt Inc. for a total amount of
$1,987,000;
(4) Approve $1,573,336 for project development fees;
(5) Authorize City Manager, or designee, to sign and execute an Authorization of Services
(tentatively numbered 25-06) in the amount of $1,717,000 for the purpose of
Construction Administration Services for the Project with Mead & H�unt Inc. (G8976);
and
(6) Find that the Project is categorically exempt from environmental review under the
California Environmental Quality Act, pursuant to Section 15301, Existing Facilities;
Section 15302, Replacement or Reconstruction; and Section 15303, New Construction or
Conversion of Small Structures.
F'iscal Impact
The Redding Regional Airport (RDD) Runway 16-34 and Taxiway Connectors Rehabilitation
and MAGVAR Improvements Project (Project) is funded by federal transportation capital
improvement grants under the Federal Aviation Administration (FAA) Airport Improvement
Report to Redding City Council Apri130, 2025
Re: 9.11(c)--Award Bid RDD Runway 16-34& Taxiway Connectors Rehabilitation &MAGVAR
Improvements Page 2
Program at a rate of ninety-five percent with the remaining five percent City match funds coming
from revenues generated by the RDD Passenger Facility Charge (PFC) program. On October 1,
2024 City Council (Council) authorized the City Manager to appropriate all grants funds
received to the City of Redding's Airport Funds for this project - authorized funding includes
$29,938,491 in various FAA grant funds and $1,665,008 in City match funds for a total amount
of$31,603,499.
Cost Summar Table
Item Estzmated
Pro�ect Develo ment Costs $1,573,336
Construction Contract $27,777,777
Contract Administration, Inspection,Testing $1,987,000
Total Pro'ect Costs $31,338,113
Pro'ect Bud et $31,603,499
Alternative Action
The Council may choose not to authorize award of the bid for the project and provide staff with
alternate direction. If Council chooses not to award the project, the City would lose a fairly-
priced bid from a local contractor; risk increasing project costs due to escalation in materials and
labor pricing; and likely, if the project were to be rebid, it would delay critical runway
improvements incl�uded in this project to late 2026 or even 2027. In addition, the City may
potentially lose out on the FAA $30 million grant funding for the project by disrupting an
established timeline in which final bids are needed in order to submit a grant application.
Background/Analysis
The City is responsible for maintaining runways, taxiways, and other paved surfaces at RDD in
sufficient condition to meet federal regulations and airport certification reguirements while
facilitating safe use of the airport. The proposed project will extend the useful life of aeronautical
infrastructure at RDD by rehabilitating the runway pavement; reconstructing taxiway connectors
and blast-pads; replacing high intensity runway lighting (HIRL); addressing magnetic variance
on Runway 16-34; and updating airfield signage to meet the latest FAA standards. This project is
crucial for airfield operations as the most recent runway rehabilitation at RDD took place in
2001. Furthermore, replacement of HIRLs at RDD will increase the safety and efficiency of
night-time and low-visibility operations.
The City's Airports Division intended to ariginally complete the project in October of 2024 with
grant funding anticipated in Federal Fiscal Year (FFY) 2024. Ultimately, the FAA could not
award an FFY 2024 grant for the requested amount at the time because of an FAA administrative
error coupled with funding limitations resulting from the federal budget process ineluding the
repeated use of continuing resolutions which held in place previous funding levels. Due to the
FAA's inability to fund this project in FFY 2024, the City postponed the projeet into calendar
year 2025 with the intention of requesting an FFY 2025 grant from the FAA. At this time,
funding is awaiting disbursement into the FAA system - the FAA San Francisco Airport District
Office has indicated that this project is a top priarity far FFY 2025.
Attached is a tabulation of bids opened on March 5, 2024. The low bid amount of$2'7,777,'7'7'7,
eomprised of a Base Bid and Bid Alternative 1 of$20,111,190 and $7,666,587, respectively, was
received from Redding Airport Constructors, a Joint Venture of J.F. Shea Construction, Inc. of
Report to Redding City Council Apri130, 2025
Re: 9.11(c)--Award Bid RDD Runway 16-34& Taxiway Connectors Rehabilitation &MAGVAR
Improvements Page 3
Redding, California, and DeSilva Gates Construction LLC of Dublin, California. The contractor
has agreed to honor this bid so long as a notice to proceed is issued by June 5, 2025. The
engineer's estimate for the Base Bid was $16,361,895 and $7,670,140 for Bid Alternative 1 for a
total of amount of$24,032,035. Total project development costs are estimated to be $1,573,336.
Project development costs include engineering, surveying, environmental, and consultant
services.
The City has already selected Mead & Hunt Inc. for construction management and inspection
(CM) services due to their expertise in airport construction and regulations per the consulting and
professional services agreement (C-8976) executed on July 23, 2021 and attached to this report.
For AIP projects, the FAA requires the airport sponsors to competitively select from among
qualified consultants for various categories of AIP-related work including construction
management. As the selected qualified consultant, Mead & Hunt, Inc. has already been
contracted for engineering design and construction management for other phases of the project
including the Preliminary Design Concept Study, Design Phase 2, and Procurement. Under the
existing consulting and professional services agreement(C-8976) a new A�uthorization of Service
in an amount not to exceed $1,717,000 would be issued to Mead & Hunt, Inc. for construction
management on the upcoming project phase.
The project incl�udes the installation of storm drain pipe, cold milling the existing asphalt,
repairing cracks after cold milling, paving multiple courses and grade transitions on runway
shoulders, constructing runway grooving, constructing a blast pad, application of pavement
markings, and installation of signage and runway lighting.
Pr�oject Risks
Whi1e the FAA continues to reassure staff that the project at RDD is the number one priority for
funding at the district office and regional level, the FAA is unable to make any guarantees of
funding prior to announcing grant awards. Based on the level of communications and
reassurances made as to the priority of the project, staff is confident that this project will receive
an award by July 2025.
In order to meet the target construction period in late September and early October, the City
needs to award the project to RAC no later than June 6, 2025 - otherwise, the received bids may
expire as RAC has agreed to hold the bids to this respective date. By awarding the project prior
to June 6, 2025, the City will be awarding the project without receiving an FFY 2025 FAA AIP
grant which staff anticipates receiving before July 2025.
Conversely, if the FAA does not award the FFY 2025 FAA AIP grant to the City, staff have
conservatively identified approximately $2,000,000 in potential contract payments that could
likely be due to the contractor in the event that the City is forced to terminate the contract as a
result of not receiving the grant. Some of the potential contract payments likely due to the
contractor would be eligible for reimbursement by the FAA through grants already issued, RDD
FAA entitlement funds or, potentially, RDD passenger fare charge (PFC) funds in the amount of
approximately $3.6 million.
As a side note, the reimbursement eligibility of any contract payments is dependent on the
completion of ineasurable units of work - as decided by the FAA. Funding for any potential
required contract payments determined by the FAA to be ineligible for reimbursement would
Report to Redding City Council Apri130, 2025
Re: 9.11(c)--Award Bid RDD Runway 16-34& Taxiway Connectors Rehabilitation &MAGVAR
Improvements Page 4
need to be provided by other funding sources within the City. In the unlikely event of contract
termination, staff will present to Council the amounts owed to the contractor with the
recommended sources of funding as described above. Additionally, any RDD FAA entitlement
or RDD PFC funding utilized for reimbursement in the event of contract termination will likely
create a funding need for the project in the future.
Envir�onmental Review
Staff has determined that the project is categorically exempt from environmental review under
the California Environmental Quality Act, pursuant to Section 15301. Existing Facilities, Section
15302. Replacement or Reconstruction, and Section 15303. New Construction or Conversion of
Small Structures. Class 1 exemptions include the minor alteration of existing public structures
and facilities. Class 2 exemptions consists of replacement or reconstruction where the new
structure will be located on the same site and will have substantially the same purpose and
capacity. Class 3 exemptions consist of construction and location of new small facilities and
equipment, or conversion of existing structures. The existing airport facilities will be
rehabilitated and improved to better serve the public. The project will be located within the
existing airport facility and the project will result in a negligible expansion of use, as the project
does not increase airport capacity. The action area has been reviewed and it does not have
significant values for wildlife habitat or other environmental resources. The project has no
potential to have a significant effect on the environment.
On February 21, 2024 the FAA determined that the project is categorically excl�uded from
environmental review under the National Environmental Policy Act, pursuant to FAA Order
1050.1F
Council Prior�ity/City Manager Goals
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Attachments
^Bid Tab
^Location Map
NOE RDD Runway 16-34 Rehab & MAGVAR Imp
NEPA FAA Redding RDD Rwy 16-34 Phase 2 Improvements_ltr 2-21-2024
C-8976 -Agreement- 2021 -Mead&Hunt, Inc
Previous Staff Report