HomeMy WebLinkAboutStaff Report 2509-5193CITY OF PALO ALTO
CITY COUNCIL
Monday, November 03, 2025
Council Chambers & Hybrid
4:30 PM
Agenda Item
11.Approval of Seven Items to Support the Automated Weather Observation System
Project, AP-19000, at Palo Alto Airport: 1) Approval of Construction Contract No.
C26194026 with Vellutini Corporation DBA Royal Electric Company, in an Amount Not to
Exceed $1,699,810; 2) Authorization for the City Manager or Designee to Negotiate
Change Orders Up to a Not-to-Exceed Amount of $254,971; 3) Approval and
Authorization for the City Manager or Designee to Execute Contract Amendment 3 to
Contract No. C21178372C with C&S Engineers, Inc. for a Not-to-Exceed Amount of
$464,613 and a Contract Extension Through December 31, 2026; 4) Authorization and
Approval for the City Manager or Designee to Execute Contract Amendment 1 to
Contract No. C21178372B with Burns & McDonnell for a Contract Extension Through
December 31, 2026; 5) Approval and Authorization for the City Manager or Designee to
Execute Contract Amendment 1 to Contract No. C211783782A with Centurion Planning
& Design LLC to extend the contract term through December 31, 2027; 6) Adoption of a
Resolution Authorizing the Submittal of Applications and Execution of Grant Agreements
with the California Department of Transportation for Airport Improvement Program
Matching Grants; and 7) Approval of a Budget Amendment in the Airport Enterprise
Fund; CEQA Status - Exempt Under CEQA Guidelines Section 15302
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: November 3, 2025
Report #:2509-5193
TITLE
Approval of Seven Items to Support the Automated Weather Observation System Project, AP-
19000, at Palo Alto Airport: 1) Approval of Construction Contract No. C26194026 with Vellutini
Corporation DBA Royal Electric Company, in an Amount Not to Exceed $1,699,810; 2)
Authorization for the City Manager or Designee to Negotiate Change Orders Up to a Not-to-
Exceed Amount of $254,971; 3) Approval and Authorization for the City Manager or Designee to
Execute Contract Amendment 3 to Contract No. C21178372C with C&S Engineers, Inc. for a
Not-to-Exceed Amount of $464,613 and a Contract Extension Through December 31, 2026; 4)
Authorization and Approval for the City Manager or Designee to Execute Contract Amendment
1 to Contract No. C21178372B with Burns & McDonnell for a Contract Extension Through
December 31, 2026; 5) Approval and Authorization for the City Manager or Designee to Execute
Contract Amendment 1 to Contract No. C211783782A with Centurion Planning & Design LLC to
extend the contract term through December 31, 2027; 6) Adoption of a Resolution Authorizing
the Submittal of Applications and Execution of Grant Agreements with the California
Department of Transportation for Airport Improvement Program Matching Grants; and 7)
Approval of a Budget Amendment in the Airport Enterprise Fund; CEQA Status - Exempt Under
CEQA Guidelines Section 15302
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute construction
contract No. C26194026 with Vellutini Corporation DBA Royal Electric Company, in the
amount not to exceed $1,699,810 for the Airport Automated Weather Observation
Project (AP-19000);
2. Approve and authorize the City Manager or their designee to execute one or more
change orders to the contract with Vellutini Corporation DBA Royal Electric Company for
related, additional but unforeseen work that may develop during the project, the total
value of which shall not exceed $254,971;
3. Approve and authorize the City Manager or their designee to execute Amendment 2 to
Contract No. C21178372C with C&S Engineers Inc. to increase compensation by
$464,613 and extend the contract term through December 31, 2027 to provide
construction administration and management services related to the Airport Automated
Weather Observation Project;
4. Approve and authorize the City Manager or their designee to execute Amendment 1 to
Contract No. C21178372B with Burns & McDonnell to extend the contract term through
December 31, 2027 to provide construction engineering services;
5. Approve and authorize the City Manager or their designee to execute Amendment 1 to
Contract No. C211783782A with Centurion Planning & Design LLC to extend the contract
term through December 31, 2027 to provide construction environmental services;
6. Adopt a Resolution authorizing the submittal of an application and execution of grant
agreements with the California Department of Transportation, for Airport Improvement
Program matching grants; and
7. Amend the Fiscal Year 2026 Budget Appropriation for the Airport Fund by (requires a
2/3 vote):
a. Increasing the estimate for revenue from the Federal Government by
$1,140,739;
b. Increasing the estimate for revenue from the State of California by $70,239;
c. Increasing the Advanced Weather Observation System Project (AP-19000)
expenditure appropriation by $1,164,157; and
d. Increasing the fund balance in the Airport Fund by $46,821 (reimbursement of
expenses already incurred).
EXECUTIVE SUMMARY
The Palo Alto Airport Automated Weather Observation System Project will install new weather
monitoring equipment and replace aging navigational aids to enhance flight safety and
operational reliability. The project includes constructing a 24/7 AWOS to provide continuous
real-time weather data, as well as replacing the Precision Approach Path Indicators and Runway
End Identifier Lights, both of which have reached the end of their useful life. The City has
received three grants from the Federal Aviation Administration totaling $2,431,789 for the
project.
Staff recommends the City Council approve multiple contracts totaling $2,504,394, including
the construction contract with Vellutini Corporation DBA Royal Electric Company1, consultant
contract extensions, and a resolution allowing the City Manager to apply for California
1 Vellutini Corporation DBA Royal Electric Company Construction Contract Contract for AWOS C26194026;
https://www.paloalto.gov/files/assets/public/v/1/public-works/palo-alto-airport/c26194026-awos-final-contract-
revised-10.21.25.pdf
Department of Transportation matching grants in the amount of $70,239. With the FAA and
CalTrans funding, the Airport Fund’s contribution to the project is $104,460.
BACKGROUND
ANALYSIS
eProcurement system. The City received two bids from qualified contractors on April 21, 2025,
as listed on the attached Bid Summary (Attachment A).
Bid Summary
Table 1: Summary of invitation for Bids
Project Bid Name/Number Automated Weather Observation System
Installation IFB #194026
Proposed Length of Project 296 days
Number of Bid Packages Downloaded by Contractors 21
Total Day to Respond to Bid 31
Pre-Bid Meeting (Non-mandatory) Yes
Number of Company Attendees at Pre-Bid Meeting 1
Number of Bids Received 2
Public Link to Solicitation https://procurement.opengov.com/portal/palo-
alto-ca/projects/154303
Bid Range $1,699,810.00 - $1,979,900.00
The bid was $1,699,810, which is 20% above the engineer’s estimate of $1,416,264. Staff has
reviewed the bid submitted and recommends acceptance of the base bid submitted by Vellutini
Corporation DBA Royal Electric Company in the amount of $1,699,810, and that Vellutini
Corporation DBA Royal Electric Company be declared the responsible lowest bidder. The
construction contingency amount of $254,971, which equals 15% of the contract value, is
requested for related, additional, but unforeseen work which may develop during the project,
implemented via City-approved Change Order. A contingency amount of 15% is the maximum
allowed contingency by the FAA, and is requested for this project to maximize eligible funding
beyond the City’s standard 10% contingency.
Consultant Services
Consultant services are critical to the successful delivery of Airport Capital Improvement
Program (ACIP) projects, providing on-call design services, construction administration,
environmental studies, and planning support. On December 7, 2020, the City executed3 the
original contracts with C&S Engineers, Burns & McDonnell, and Centurion Planning and Design.
All of the contracts are set to expire on December 31, 2025 and require extensions to allow for
the completion and closeout of the project with the FAA. The FAA permits contract extension
beyond five years if the project was included in the ACIP at the time of the original Request for
Qualifications; these projects were included.
C&S Engineers, who have been closely involved in the project, will provide construction
management and grant administration services. Contract Amendment 2 (Attachment B) to
3 City Council, December 7, 2020, Agenda Item #10; SR#11654;
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=80946
Contract No #C21178372C will add additional funds to cover the costs and extend the contract
to December 31, 2027 to allow time for closeout of the grant.
FISCAL/RESOURCE IMPACT
Contracts and Awarded
Grants
Recommended
Total Amount
Included in FY 2026
Adopted Budget
Recommended
Budget Adjustment
Federal Grants $2,431,789 $1,291,050 $1,140,739
State Grants $70,239 $ - $70,239
Total Revenue $2,502,028 $1,291,050 $1,210,978
Recommended Contracts $2,504,394 $1,340,237 $1,164,157
Total Expenditure $2,504,394 $1,340,237 $1,164,157
Net Impact ($2,366)($49,187) $46,821
The Airport Enterprise Fund previously pre-funded $241,357 for design, engineering, and
environmental services due to limited federal funds at the time. These costs are eligible for
reimbursement and are included in the FAA grant agreements. The total FAA grant funding for
the project is $2,431,789 through three (3) grants:
Airport Infrastructure Grant (AIG): $1,027,000
Airport Improvement Program (AIP) Grant #1: $677,822
Airport Improvement Program (AIP) Grant #2: $726,967
Caltrans Match Agreement for AIP Grant #1: $33,891
CalTrans Match Agreement for AIP Grant #2 $36,348
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
requirements for the AWOS Project. Since the project involves only the replacement of existing
facilities, it qualifies as a Categorical Exclusion (CATEX) under FAA Order 1050.1: Environmental
Impacts, Policies, and Procedures.
California Environmental Quality Act
The project is exempt from CEQA review per Guideline Section 15302 (Replacement or
Reconstruction).
ATTACHMENTS
APPROVED BY:
Automated Weather Observation System (AWOS) Project IFB 194026
IFB Post Date: 3/10/2025
IFB Due Date: 4/21/2025
UNIT PRICE TOTAL ITEM PRICE UNIT PRICE TOTAL ITEM PRICE UNIT PRICE TOTAL ITEM PRICE
115-1 1-2”C or 1-4”C PVC CONDUIT, CONCRETE ENCASED IN DIRT OR NON-PAVED EARTH
DESCRIPTION, WITH UNIT PRICE IN WORDS (EACH BID ITEM SHALL INCLUDE ALL
APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD)
ENGINEERS ESTIMATE
Vellutini Corporation DBA Royal
Electric Company
BID
ITEM
APPRO
X.QTY.UNIT
LOWEST BIDDER
Engineers Estimate Estate Design and Construction
Vellutini Coorporation DBA Royal
Electric Company
Estate Design and Construction
% above Engineers Estimate 40%20%
1 Revision July 20, 2016
AMENDMENT NO. 2 TO CONTRACT NO. C21178372C
This Amendment No. Two to Contract No. C21178372C (“Contract”) is entered
into [Date] by and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and C & S ENGINEEERS, INC., a New York corporation, located at 499 Col.
Eileen Collins Boulevard, Syracuse, New York 13212 (“CONSULTANT”).
A. The Contract was entered into between the parties for the provision of
On-call engineering services including planning, design engineering,
environmental analyses, grant management and construction management.
B. The parties wish to amend the Contract to extend the term.
C. The parties wish to amend the Contract to increase the compensation to
cover additional anticipated task order for Phase III of the Airport Apron Reconstruction Capital
Improvement Project; to increase the total not-to-exceed amount of the Contract by an amount
not to exceed Four Hundred Sixty Four Thousand Six Hundred Thirteen Dollars ($464,613.00)
from One Million Seven Hundred Fifteen Thousand Twenty Three Dollars ($1,715,023.00)to a
new total not-to-exceed amount of Two Million One Hundred Seventy Nine Thousand Six
Hundred Thirty Six Dollars (2,179,636.00); as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 2. TERM is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through
December 31, 2027.”
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION is hereby amended to read
as follows:
“The compensation to be paid to CONSULTANT for performance of services
described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not
exceed Two Million One Hundred Seventy Nine Thousand Six Hundred Thirty Six
Dollars (2,179,636.00)
SECTION 2. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
2 Revision July 20, 2016
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this
Amendment effective as of the date first above written.
_________________________
City Manager or Designee
APPROVED AS TO FORM:
_________________________
City Attorney or Designee
_________________________
Director of Public Works
:
By:
Name:
Title:
By:
Name:
Title:
1 Revision July 20, 2016
AMENDMENT NO. 1 TO CONTRACT NO. C21178372B
This Amendment No. One to Contract No. C21178372A (“Contract”) is entered
into [Date] by and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and BURNS & MCDONNELL ENGINEERING COMPANY, INC, a Missouri corporation,
located at 9400 Ward Parkway, Kansas City, MO 64114 (“CONSULTANT”).
A. The Contract was entered into between the parties for the provision of
On-call engineering services including planning, and design engineering.
B. The parties wish to amend the Contract to extend the term.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 2. TERM is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through
December 31, 2027.”
SECTION 2. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full
force and effect.
2 Revision July 20, 2016
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this
Amendment effective as of the date first above written.
_________________________
City Manager or Designee
APPROVED AS TO FORM:
_________________________
City Attorney or Designee
_________________________
Director of Public Works
:
By:
Name:
Title:
By:
Name:
Title:
1 Revision July 20, 2016
AMENDMENT NO. 1 TO CONTRACT NO. C21178372A
This Amendment No. One to Contract No. C21178372A (“Contract”) is entered
into [Date] by and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and CENTURION PLANNING & DESIGN, LLC, a Texas Limited Liability Company, located
at 69 N. Chadbourne St, San Angelo, TX 76903 (“CONSULTANT”).
A. The Contract was entered into between the parties for the provision of
On-call engineering services including planning, and design engineering.
B. The parties wish to amend the Contract to extend the term.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 2. TERM is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through
December 31, 2027.”
SECTION 2. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full
force and effect.
2 Revision July 20, 2016
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this
Amendment effective as of the date first above written.
_________________________
City Manager or Designee
APPROVED AS TO FORM:
_________________________
City Attorney or Designee
_________________________
Director of Public Works
:
By:
Name:
Title:
By:
Name:
Title:
Page 1
Resolution No.
Resolution of the City Council of the City of Palo Alto Authorizing the City Manager to
Execute Grant Agreements Offered to the City of Palo Alto by the California Department of
Transportation for Airport Improvement Program (AIP) Matching Grant Funds to be Used for
Automated Weather Observation System (AWOS), for the Palo Alto Airport; and Authorizing the
City Manager or his Designee to Execute, on Behalf of the City, any Other Documents Associated
with the Application and Acceptance of Grant Funds from the California Department of
Transportation; and Certifying that the Airport Enterprise Fund has Sufficient Local Matching Funds
to Finance One Hundred Percent (100%) of the California Department of Transportation Grant
Funded Projects
R E C I T A L S
A. The City of Palo Alto (“the City”) and the Federal Aviation Administration are parties
to federal Airport Improvement Program (AIP) grants 3-06-0182-23-2025 & 3-06-0182-25-2025 for
Apron Reconstruction, Phase II, at Palo Alto Airport.
B. The California Department of Transportation (“DOT”), pursuant to Public Utilities
Code Section 21683.1, is authorized to provide AIP matching grants of up to five percent (5%) of
FAA grant amounts.
C. The DOT requires a local agency, as a condition of receiving these AIP matching
grant funds, to adopt a resolution authorizing the submittal of an application and the execution of
grant agreements for the acceptance of said grant funds and to certify the availability of the local
matching funds for AIP grants.
D. The Council wishes to authorize the City to receive the maximum of available DOT
grant funds for Apron Reconstruction, Phase II, for the Palo Alto Airport.
E. The Council has recommended that grant agreements offered to the City by DOT for
the Palo Alto Airport be executed by the City Manager or his designee on behalf of the City.
F. This Council has considered the recommendation of the City Manager.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE, as follows:
SECTION 1. Authorizes the City Manager to execute AIP Matching Grant agreements
offered to the City by the California Department of Transportation to be used for Apron
Reconstruction, Phase II, for Palo Alto Airport.
SECTION 2. Authorizes the City Manager or his designee to execute on behalf of the City
any other documents associated with the application and acceptance of the allocation of AIP
Matching grant funds from the California Department of Transportation.
Page 2
SECTION 3. Certifies that the Airport Enterprise Fund has sufficient local matching funds
to finance one hundred percent (100%) of the California Department of Transportation grant
funded projects.
SECTION 4. The Council finds that the adoption of this resolution does not constitute a
‘project’ under Section 21065 of the California Public Resources Code and Sections 15378(b)(4) and
9b)(5) of the California Environmental Quality Act (CEQA) and the CEQA Guidelines, and therefore,
no environmental assessment is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ____________________________
Chief Assistant City Attorney City Manager
____________________________
Director of Public Works