DATE: April 15, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution1) Approving Plans and Specifications and Call for Bids, and 2) Authorizing the City Manager to Apply for and Execute Federal Aviation Administration Grant Application and Grant Offer, and California Department of Transportation Division of Aeronautics Grant Application and Grant Offer for the Taxiway Alpha 1 and Taxiway Zulu West Reconstruction Project, Project Nos. 06819, 06864, and 06890 at the Hayward Executive Airport
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) to:
(1) Approve the plans and specifications for the Taxiway A1 and Z West Reconstruction Project at the Hayward Executive Airport (Airport) and call for bids to be received on May 13, 2025; and
(2) Authorize the City Manager to execute referenced Federal Aviation Administration (FAA) and California Department of Transportation (Caltrans) grant applications and subsequent grant offers for the Taxiway A1 and Z West Reconstruction Project.
SUMMARY
This report seeks City Council’s approval of plans and specifications, and call for bids to be received on May 13, 2025 for the Taxiway A1 and Z West Reconstruction Project, followed by preparation and submission of grant applications to the FAA and Caltrans reflective of bids received. The estimated construction cost is $6,926,527 where 95% of the construction cost is expected to be funded by FAA grant and 2% from Caltrans grant along with a financial match from the airport capital fund. The City’s overall obligation may increase in the event that Caltrans does not fully participate. In addition, the report seeks City Council’s approval to authorize the City Manager to execute grant offers received from FAA and Caltrans for this project.
BACKGROUND
The Airport is obligated to preserve the safe, beneficial use of airfield facilities including runways, taxiways, aprons, and other features. Like city streets, pavement maintenance at the airport is an ongoing effort. Loose rocks and gravel generated from deteriorating airfield pavements can create serious hazards to the propellers or jet engines of aircraft, potentially contributing to catastrophic failure. This project focuses on pavement reconstruction of two specific taxiways within the airport’s circulation network: Taxiway A1 that provides a direct aircraft connection to the threshold of Runway 28L, and Taxiway Z that serves the airport’s south side. Identified in the 2024 Airport Pavement Management Program (PMP) as most deficient, the condition of these taxiways requires reconstruction, to bring them up to a state of good condition.
The Airport is a General Aviation (GA) airport within the National Plan of Integrated Airport Systems (NPIAS). As such, the Airport is eligible to receive federal grants administered through the FAA and Caltrans. Federal grant funding can be both entitlement and discretionary, with the latter being competitive, on a national level. At present, Airport Staff have received preliminary indications for several FAA grants in support of this undertaking, with Caltrans funding to proportionally occur relative to federal grants, up to a maximum amount of $150,000. Preserving and maintaining airfield pavements to industry- accepted levels without grant funding is cost prohibitive.
The City Council’s initial commitment to this undertaking occurred in June 2023, with the approval of a professional services agreement for the design of taxiway improvements. On June 20, 2023, City Council approved a resolution to award a Professional Services Agreement (PSA) to Tartaglia Engineering for Design Services for the Airport Pavement Rehabilitation Project in total not-to-exceed contract amount of $648,000. The action proposed in this report furthers the City Council’s commitment to Airport, and specifically the airfield pavement infrastructure.
DISCUSSION
As an essential effort in preserving the Airport’s eligibility for federal and state grant funding, it maintains a Capital Improvement Program in accordance with FAA and Caltrans, Division of Aeronautics standards and requirements. On the capital program for several years, the taxiway reconstruction project has moved to the top of the priority list. The design is now complete, and the project is ready to move forward with advertising for soliciting construction bids, grant preparation and filing.
In 2025, the Airport is qualified to receive federal grants up to 95% of eligible project costs and Caltrans match grants up to 2% of federal grant amounts to a maximum of $150,000, where applicable. Project cost estimate is in-line with anticipated grant funding, reflective of varied funding sources within FAA.
The estimated construction cost is $6,296,843 and with a 10% project contingency the total estimated construction cost is $6,926,527. The construction cost is expected to be funded by grants from the FAA in the amount of $5,982,000 which is 95% of the construction cost comprised of both FAA Airport Improvement Plan (AIP) funds and Airport Infrastructure Grant (AIG) funds. An estimated 2% or $150,000 maximum will be funded by Caltrans along with a financial match from the airport capital fund in the amount of $164,843. The City’s obligation may increase by $629,684 to an overall contribution of $779,684 in the event Caltrans does not fully participate and to fund the 10% project contingency.
Authorization at this time for preparation and submission of the federal and state grant applications at the conclusion of the bidding process will streamline and facilitate the grant procurement process, providing greater assurance for meeting submission deadlines.
Authorizations sought are “up to amounts” with actual bids and associated grant applications and city match obligations are expected to be lower.
Receipt of state and federal grant funding is never assured and the flow of grant funds can be sporadic. Through this action the city is moving forward with bidding and grant applications based on direction provided by the FAA with the understanding that funds will be available this fiscal year. Portions of the project that may not be awarded due to funding constraints will be re-packaged into a subsequent taxiway improvement project to follow.
Should this occur, Staff anticipates returning to Council for necessary direction and approval.
Staff is requesting that City Council approve the plans and specifications and authorize the call for construction bids to be received on May 13, 2025. Staff also recommends authorizing the City Manager to accept and execute the grant applications with FAA and Caltrans.
ECONOMIC IMPACT
Hayward Executive Airport provides both direct and indirect economic value to the City and surrounding areas. Maintenance and rehabilitation of airfield pavement, electrical systems, drainage improvements and the graded infield areas adjacent to and between runways and taxiways, preserving and enhancing these features to FAA design standards, are essential goals for the long-term functionality and safe use of the airport. The identified taxiway rehabilitation project is in line with those goals. Maintaining airfield facilities including runways, taxiways, aprons, and other airfield pavements, is cost prohibitive without grant funding. With indications that grant funding is available to support this undertaking, pursing this project now is prudent.
Projects identified in the taxiway’s rehabilitation projects will ultimately generate work for skilled and unskilled tradespeople during the construction phase.
On November 15, 2016, City Council adopted a resolution authorizing a Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC), which applies to City projects with construction costs of $1,000,000 or more. The
agreement requires contractors to use local union hiring halls, encourages contractors to employ Hayward residents or Hayward Unified School District graduates, and requires hired workers to pay union dues and other benefit trust fund contributions, etc. Because the construction cost estimate for this Project is more than $1,000,000, the CWA agreement does apply.
FISCAL IMPACT
With 10% contingency, the overall project budget is $6,926,5278. Should the airport be successful in receipt of both state and federal grants, the financial obligation of the airport capital fund will be $164,843. The City’s obligation may increase by $629,684 to an overall contribution of $779,684 in the event Caltrans does not fully participate and fund the 10% contingency.
The Project Estimated Cost & Source of Funding is as presented in the table below:
ESTIMATED PROJECT COST
Construction Estimated Cost $4,690,000
Construction Management Services
(including Inspection, Materials Testing & Related Tasks) $865,000 FAA Reimbursable Agreement $118,704
Staff Costs, 10% $469,000
Independent Fee Estimate (IFE) $5,000
TW Alpha 1 (Design Reimbursement) $149,139
Construction Sub-total $6,296,843
Project Contingency, 10% $629,684
Construction Sub-total $6,926,527
Design Cost (authorized in June 2023) $698,000
Total Project Cost $7,624,527
SOURCE OF FUNDS
Anticipated Funds from:
FAA, 95% of Construction Cost $5,982,000
Caltrans, 2% of Construction Cost $150,000
City Contribution, 3% of Construction Cost $164,843
Contingency, 10%, City Contribution if necessary $629,684 Construction Sub-total $6,926,527
Design Cost $698,000
Total Project Source of Funds $7,624,527
STRATEGIC ROADMAP
This agenda item supports Strategic Priority of Improve Infrastructure. Specifically, this item relates to the implementation of the following projects:
Project N12: Upgrade and Maintain Airport Infrastructure and facilities.
While the city’s airport was not contemplated in the Fiscal Year 2025 Strategic Roadmap, the proposed taxiway improvement aligns with the Invest in Infrastructure core priority, specifically:
Objective 1: Invest in multi-modal transportation.
Objective 2: Invest in City-owned facilities & property.
SUST AINABILITY FEATURES
The Airport is strongly committed to developing projects that are environmentally responsible. Therefore, staff will ensure that all plans proposed by future capital projects incorporate features that are in line with the City’s sustainability guidelines.
Project documents require the contractor to pulverize existing asphalt pavement and aggregate base in-place, blending this material and placing the recycled product back into the structural section as a sub-base material. In addition, all miscellaneous metals and ancillary concrete removed from the airport are to be directed to a certified recycling facility.
ENVIRONMENTAL DOCUMENT
The Project is subject to compliance from California Environmental Quality Act (CEQA) & National Environmental Policy Act (NEPA). It is anticipated that necessary environmental document in compliance of CEQA & NEPA will be obtained prior to the project bid advertisement date.
OTHER REGULATORY OR AGENCY REQUIREMENT
The Project is subject to C.3 Compliance and any drainage impacts are subject to Alameda County Flood Control Authority approval. It is anticipated that necessary C.3 & County compliance will be obtained prior to the project bid advertisement date.
The Project is anticipated to be administered during construction using outside source of support. Staff anticipates to approach Council for necessary authorization to seek & approval of a qualified Construction Management (CM) Services firm at a later date.
Solicitation for such CM Services will be undertaken in accordance with City Purchasing, FAA, & State procurement procedures and guidelines.
PUBLIC CONT ACT
The agenda and staff report for this item have been posted on the City’s website and distributed to interested parties.
Airport users and tenants have been made aware of the pending construction project and its short-term impacts to airfield use. In addition, airport and FAA staff including control tower representatives, along with all airport users and tenants will be invited to a pre- construction conference where the scope and schedule of improvements and activities will be presented.
NEXT STEPS
If City Council approves this request, the City Manager will authorize Staff to prepare and submit grant applications to the FAA and Caltrans and authorize the City Manager to execute the grant applications and grant offers.
Prepared by: Sundaresh Begur, Associate Civil Engineer
Reviewed by: Dave Hung, Acting Deputy Director of Public Works
Recommended by: Alex Ameri, Director of Public Works
Approved by:
______________________________________
Dr . Ana M. Alvarez, City Manager