To: Board of Supervisors
From: Aviation
Agenda Section: Consent
SUBJECT:
title
Second Amendment to the Professional Services Agreement with Mead & Hunt, Inc., for the Environmental Assessment for the ACV Airport Microgrid Project
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the second amendment to the professional services agreement with Mead & Hunt, Inc., for the environmental assessment for the ACV Airport Microgrid Project;
2. Authorize the Director of the Department of Aviation to execute the second amendment on behalf of the county; and
3. Authorize the Department of Aviation to pay the final invoice totaling $157,554.95 for additional services rendered by Mead & Hunt, Inc., as set forth in the second amendment.
Body
SOURCE OF FUNDING:
Aviation Enterprise Fund (3530)
DISCUSSION:
During the period from Oct. 15, 2018, through June 30, 2021, Mead & Hunt, Inc. (Mead & Hunt) worked closely with Humboldt County to prepare an environmental assessment (EA) to support a proposed Microgrid Project at the California Redwood Coast - Humboldt County Airport (ACV). The EA was necessary to support compliance with the National Environmental Policy Act of 1969 (NEPA), support the inclusion of the microgrid system on the County’s Airport Layout Plan (ALP), and support the Federal Aviation Administration’s (FAA) approval for the construction of the microgrid system at ACV.
The county’s original agreement with Mead & Hunt, project number 381142, totaled $44,844. However, the level of effort required to support federal NEPA compliance well exceeded the original scope and budget established for the project. Specifically, the FAA revised its regulations and documentation requirements for proposed projects involving the release of land from aeronautical to non-aeronautical use on airport property. These revisions required substantial additional work for Mead & Hunt and county staff to complete. Amendment 1 to the Agreement was executed, extending the term of the agreement to Dec. 31, 2020. However, Mead & Hunt remained engaged in the time-sensitive project beyond that date with the understanding the department would seek a ratified second amendment to cover the scope of services and budget not included in the initial agreement or Amendment 1. Now a second amendment is before your Board, which includes the additional services rendered, the additional timeline, and the budget for the additional services.
The second amendment includes a description of the additional tasks (set forth in Exhibit A1), and a final invoice (Exhibit B1) reflecting charges for all additional services and expenditures performed in support of the Microgrid system from 2019 through June 30, 2021, in the amount of $157,554.95. The Department of Aviation is now requesting approval of the second amendment and authorization to pay the final invoice.
FINANCIAL IMPACT:
The amount payable for services rendered, and costs and expenses incurred, pursuant to the scope of services provided in Attachment A and B is $157,554.95. There is no impact to the general fund. These expenses will be covered through Aviation Enterprise Fund (3530).
The operation of the Microgrid System will have a positive impact to the Department of Aviation’s revenues at a minimum of $44,643 per year initially. The minimum revenue during the 25-year lease for the Microgrid Project is more than $1.1 million. There are FAA required escalator clauses incorporated into the lease during the term that make the total potential revenue much higher than $1.1 million during the 25-year term of the lease.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by enforcing laws and regulations to protect residents.
OTHER AGENCY INVOLVEMENT:
Federal Aviation Administration; Mead and Hunt, Inc.; Schatz Energy Research Center (SERC)-Humboldt State University (HSU); Redwood Coast Energy Authority (RCEA)
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may decide not to authorize the second amendment to the agreement with Mead and Hunt. However, it is not recommended as Mead & Hunt has been a reliable partner who proceeded in good faith with efforts to streamline the projects as requested by the Director of Aviation and should be compensated for their services. Without the timely services of Mead & Hunt, the Microgrid Project would have fallen further behind original timelines, and ultimately the project would have failed and not been constructed.
ATTACHMENTS:
1. Original Professional Services Agreement with Mead and Hunt, Inc.
2. Second Amendment to the Professional Consulting Services Agreement
3. Mead & Hunt, Inc. Final Invoice for Humboldt County Project No 381142
PREVIOUS ACTION/REFERRAL:
Board Order No.: I-2; C-24;
Meeting of: Oct. 10, 2017; May 8, 2018; March 14, 2019
File No.: 17-2421; 18-406; 19-374