HomeMy WebLinkAbout _ 4.11(a)--Retention Reduction Bid Neg. 5451 RDD Airport Runway 16-34, Taxiway and MAGVAR Improvements GI �" Y C� F
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REPORT TO THE CITY COUNCIL
MEETING DATE: December 16, 2025 FROM: Michael Webb, Public Works
ITEM NO. 4.11(a) Director
***APPROVED BY***
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mwebb@cityofredding.org sbade@cityofredding.org
SUBJECT: 4.ll(a)--Approve a Partial Retention Reduction Release for Bid Negotiation No.
5451 Redding Regional Airport Runway 16-34 and Taxiway Connectors Rehabilitation and
MAGVAR Im rovements Pro�ect
Recommendation
Authorize staff to reduce the retention by five percent, thereby releasing $1,208,464.75 to
Redding Airport Constructors, the contractor, for Bid Negotiation No. 5451 (Job No. 9944-33)
Redding Airport Runway 16-34 and Taxiway Connectors Rehabilitation and MAGVAR
Improvements Project.
Fiscal Impact
There is no fiscal impact to the Redding Regional Airport Runway 16-34 and Taxiway
Connectors Rehabilitation and MAGVAR Improvements Project (Project) as release of these
retention funds will be used to pay subcontractors for work that was already completed.
Retention is withheld from progress payments on all Public Works construction projects for
numerous reasons, most often to reserve for any claims that may arise from underpayment to the
subcontractors and materials suppliers. The release of these retention funds will satisfy this
condition. There have been no claims from subcontractors or materials suppliers on this project
with sufficient funds remaining to complete the project.
Alternative Actzon
The City Council (Council) may choose not to reduce the retention to Redding Airport
Constructors (Contractor), and provide staff with alternate direction. Without this release, the
City of Redding (City) would continue to withhold five percent r�tention on previous and
forthcoming project progress payments until project completion which is currently unknown due
to weather conditions being unfavorable to perform final runway striping and final grading. This
would cause Redding Airport Constructors (Contraetor) and its subeontractors, to eontinue
carrying the burden of covering costs without compensation.
Report to Redding City Council December 12, 2025
Re: 4.11(a)--Retention Reduction Bid Neg. 5451 RDD Airport Runway 16-34, Taxiway and
MAGVAR Improvements Page 2
Background/Analysis
At its regular meeting on May 6, 2025, the Council awarded the construction contract for the
project to the low bidder, 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. The contractor began work on June 13, 2025, and the work was nearly completed
in November 2025.
As of the end of November 2025, the remaining work includes runway signage, taxiway
reflectors, runway striping/markings and minor punch list items. As stated above, sufficient
funds remain to complete the project. The contractor has requested, in the attached
correspondence, a partial release of retention funds that would reduce monies withheld on all
completed and partially accepted bid items as per the contract specification section 90-06 (a.l),
"Contractor may request release of retainage on work that has been partially accepted by the
Owner in accordance with section 50-14". Additionally, Per Public Contract Code (PCC)
section 9203, "at any time after 50 percent of the work has been completed, if the legislative
body finds that satisfactory progress is being made, it may make any of the remaining progress
payments in full for actual work completed." As 95-percent of the contract has been completed,
staff is requesting, in accordance with the Contract Documents and in accordance with the PCC
to release retention on all partially accepted bid items of work withheld and be released to the
contractor.
EnviNonmental Review
On May 6, 2025, Council 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
ar Conversion of Small Structures. No further action is required.
On February 21, 2024, the FAA determined that the project is categorically excluded from
environmental review under the National Environmental Policy Act, pursuant to FAA Order
1050.1F
Council Priority/City Manage�^ Goals
This is a routine operational item.
Attachments
Redding Airport Constructors Request for Retention Letter(with revised address)
May 6, 2025 Staff Report
.
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/�IRRORT GQNST�UCTORS ''
11555 Ll�ahlis�Banlevard
P:{�Box 2�1�9
I�ublisi,Cal�faiYi�a 94568-2909
CONTRAGTORS LI�'E�ISE NO.I 116768
December 2, 2025
RAC Letter Number 724101-174
Mead&Hunt
1360 19`h Hole Dr, Ste. 200
Windsor, CA 95492
Attention: Edoardo Barber,PE
Subject: Redding Regional Airport Runway Rehabilitation
RAC Job No. 724101
Request for Information No.48-Section 90-06—Partial Payments—Reduction in Retention
Mr. Barber,
Reference is made to Section 90-06,Partial Payments, of the FAA General Contract Provisions and to previous
discussions between Redding Airport Constructors(RAC) and the City of Redding (City)regarding reducing the
overall amount retained on the contract.
Please find this correspondence as RAC's formal request to reduce the current retention on the contract from 5%to
a percentage equaling the amount of$41,400.
We look forward to the City's favorable response to this request and the processing of this on the December
estimate.
Should you have any questions regarding this matter,please contact our Project Of�ce.
Respectfully,
REDDING AIRPORT CONSTRUCTORS
�
Brian O'Rourke
Project Director
Cc: R.Peterson, T. McGrew,B. Brown,P. Davos,RFI 48
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F�EPORT TO TFIE 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: 9.11(c)--Award Bid Negotiation N�o. 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,'7'7'7,777;
(2) Authorize the City Manager, or designee, to approve, execute, and appropriate funds for
amendments up to 15 percent of the final 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 & Hunt Inc. for a total amount of
$1,987,000;
(4) Approve $1,5'73,336 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,'71'7,000 for the purpose of
Construction Administration Services for the Project with Mead & Hunt Inc. (C-8976);
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.
Fiscal Impact
The Redding Regional Airport (RD:D) Runway 16-34 and Taxiway Connectars 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)--Awara'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 l,
2024 City Council (Council) authorized the City Manager to appropriate all grants �unds
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 Estimated
Pro�ect Develo ment Costs $1,573,336
Construction Contract $27,777,777
Contract Administration, Ins ection, Testin $1,987,000
Total Pro'ect Costs $31,338,113
Pro'ect Bud et $31,603,499
Alter�native 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 1oca1 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 included 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 requirements 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 I�IRLs at RDD will increase the safety and efficiency of
night-time and low-visibility operations.
The City's Airports Division intended to originally 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 far the requested amount at the time because of an FAA administrative
error coupled with funding limitations resulting �rom the �ederal budget process including 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 project 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 priority for FFY 2025.
Attached is a tabulation of bids opened on March 5, 2024. The low bid amount of$2'7,777,'7'7'7,
comprised 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)--Awara'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-89'76) 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 & I�unt, 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-89'76) a new Authorization of Service
in an amount not to exceed $1,717,000 would be issued to Mead & I�unt, Inc. �or construction
management on the upcoming project phase.
The project includes 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.
Project Risks
While 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 AIl'
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 o� the potential contract payments likely due to the
contractor would be eligible for reimbursement by the FAA through grants already issued, RD:D
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)--Awara'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.
Environmental 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, ar 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 excluded from
environmental review under the National Environmental Policy Act, pursuant to FAA Order
10501F
Council Priority/City ManageN Goals
• Government of the 21 st 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
G8976 - Agreement- 2021 - Mead & Hunt, Inc
Previous Staff Report