Item Number: 14
City Council / Board of Directors
Written Communications
Meeting of: March 18, 2025
Submitted By:
James Murawski, Assistant Airport Director
Subject:
Award of a Standard Construction Agreement for General Electric Driveway Construction, Project #CC25-066
Recommendation:
That the Southern California Logistics Airport Authority Board of Directors:
(1) Approve the Award of a Standard Construction Agreement to Sol Construction, Inc., for a General Electric Driveway Construction, Project #CC25-066, with the total compensation not to exceed $339,982.00 and;
(2) Adopt Resolution No. SCLAA 25-007 amending the Fiscal Year 2024-2025 budget increasing budgeted capital expenditures in Fund 452 by $339,982.00 and reducing budgeted capital expenditures in Fund 450 by $250,000.00.
Fiscal Impact:
Funds of $250,000.00 have been budgeted in Fund 450 for this expenditure. However, Fund 450 is used for revenues and expenditures that occur on the airport, typically within the Airfield Operations Area. Fund 452 is utilized for revenues and expenditures that occur outside the Airfield Operations Area. At the time the current budget was adopted in June of 2024, the project location was “on-airport” according to the then current Airport Layout Plan. Recently, the Federal Aviation Administration (“FAA”) approved a new Airport Layout Plan that recognizes the project location as being located “off-airport”.
Ever mindful of strict FAA revenue diversion regulations that explicitly state that revenues generated through “on-airport” activities can only be used for “on-airport” expenditures, staff considers funds from “off-airport” Fund 452 to be the applicable FAA-compliant funding source for this project.
Resolution No. SCLAA 25-007 is presented herein for the purpose of requesting approval to reduce budgeted capital expenditures in Fund 450, account 4500125-55315-95083, by $250,000.00, and to increase budgeted capital expenditures in Fund 452, account 4520145-55315-95147, by $339,982.00. Cash reserves in Fund 452 are sufficient to accommodate the proposed budget amendment.
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The award of this agreement and approval of Resolution No. SCLAA 25-007 will result in the expenditure of budgeted capital improvement project funds from the Airport Account 4520145-55315-95147 in the amount not to exceed $339,982.00. The budget proposal is outlined below:
Current Budget
Balance
4500125-55315-95083 General Electric Driveway $250,000
4520145-55315-95147 General Electric Driveway $0
Proposed Budget
Balance
4500125-55315-95083 General Electric Driveway $0
4520145-55315-95147 General Electric Driveway $339,982
Strategic Plan Goal:
Goal E. Invest in Infrastructure: Project #CC25-066 invests in infrastructure by providing an official access road to the General Electric hangar, thus fulfilling a commitment made many years ago and providing for future development of the adjacent parcels.
Background:
General Electric Company (“GE”) leases a large hangar at the south end of the Southern California Logistics Airport that is used for engine testing. The hangar was constructed in the early 2000’s and has been in continuous use ever since. At the time of construction, uncertainty regarding additional development in the vicinity of the hangar postponed the construction of a proper access road to the facility. Presently, there is no direct access road to the hangar. Accessing the hangar requires the navigation of a labyrinth of small service roads, which presents challenges for large commercial trucks that are delivering jet engines and other equipment to GE. The construction of a proper access road to the GE hangar is long overdue.
Airport staff worked with the City Engineering team to design an access road on the south side of the GE hangar parking lot that would connect to Innovation Drive. Innovation Drive is a wide road that is designed to accommodate large commercial trucks, thus making it an ideal connection point to access the GE hangar. Furthermore, connecting the GE parking lot to Innovation Drive will not disrupt any existing businesses in the area, which is a desirable benefit. Additionally, the construction of the GE access road promotes access to adjacent parcels, thus providing further incentive for development.
The design of the access road required staff to address two main issues. First, commercial truck deliveries to the GE hangar require as flat a gradient as possible to 4 0
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accommodate lowboy trailers that carry large jet engines. A lowboy trailer is a specialized trailer that carries heavy equipment and cargo low to the ground, with some types allowing only a few inches of clearance. Second, appropriate stormwater drainage was designed into the project to allow stormwater to flow under the access road through drainage pipes without making the access road gradient too abrupt for lowboy trailers to traverse it.
Discussion:
A project of this size and scope requires the skills of an experienced, licensed contractor.
To procure a contractor, staff worked with the City Purchasing team to develop a solicitation package in compliance with Victorville Municipal Code (“VMC”) Section
2.28.200. The solicitation package was posted on the City of Victorville website on January 14, 2025, and emailed on January 15, 2025, to 20 representatives from various local and regional construction firms. Staff advertised the project in the Daily Press on January 22, 2025, and in the San Bernardino Sun on January 29, 2025. Staff conducted a formal, mandatory pre-bid meeting and job walk for GE Driveway Project #CC25-066 on February 11, 2025, which was attended by ten (10) contractors. On February 26, 2025, staff received and opened the following six (6) bids for this project:
Company Location Bid
Sol Construction, Inc. Riverside, CA $339,982.00
TSR Construction Rancho Cucamonga, CA $397,170.00
RE Chaffee Construction Wrightwood, CA $450,500.20
Pave-Tech Inc. Carlsbad, CA $480,109.20
Jergensen Construction Oak Hills, CA $533,648.07
KNC Construction Apple Valley, CA $541,141.00
Staff carefully evaluated each bid in accordance with VMC Section 2.28.040 and determined that the best value bidder was Sol Construction, Inc., on account of their experience, qualifications, and overall price. A minor bid discrepancy on a single line item from Sol Construction, Inc., was observed and waived by staff in accordance with VMC Section 2.28.045, which states that, “when it is in the best interests of the city to do so, the city manager and/or the city council, as applicable, shall have the discretion to waive any informalities or minor irregularities in any bid process described in this chapter.”
Therefore, staff requests and recommends that the SCLAA Board of Directors (1) approve the award of a Standard Construction Agreement by and between the SCLAA and Sol Construction, Inc., for GE Driveway Project #CC25-066, in the amount not to exceed $339,982.00, and (2) adopt Resolution No. SCLAA 25-007 reducing capital budget expenditures in account 4500125-55315-95083 by $250,000.00 and increasing budgeted capital expenditures in account 4520145-55315-95147 by $339,982.00.
Staff remains available for any questions or comments you may have.
JM/see
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Attachments: A. Site Map
B. Standard Construction Agreement
C. Sol Construction, Inc., Bid Schedule
D. Resolution No. SCLAA 25-007
E. VMC Section 2.28.200
F. VMC Section 2.28.040
G. VMC Section 2.28.045