title
APPROVE RESOLUTION TO AUTHORIZE THE FIRE STATION NO. 2 BURN ROOM RESTORATION (PW1503)
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Approve the Notice of Exemption No. CE002-17 under the California Environmental Quality Act (CEQA) for the Fire Station No. 2 Burn Room Restoration (Project No. PW1503).
2. Reject the low bid from Haggerty Construction, Inc.
3. Approve the plans and specifications for the Fire Station No. 2 Burn Room Restoration (Project No. PW1503).
4. Award a Construction Contract in the amount of $106,140 to the second lowest bidder, Greentech Industry, Inc. of Concord, CA, for the Fire Station No. 2 Burn Room Restoration (Project No. PW1503).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
Fire Station No. 2 is located at 110 West Sonora Street and is home to the Training and Communications Divisions of the Fire Department. Fire Station No. 2 is the main training facility for Fire Operations. The training facility includes a “Burn Room” that is in need of repair. The burn room is a structure made of concrete walls and fireproof ceiling tiles where test fires are set and then extinguished in training exercises meant to simulate real situations a firefighter may encounter on the job. Funding to repair the Burn Room was included in the FY 2015-16 Capital Improvement Plan (CIP). The repairs will ensure that training fires in the room will not damage the concrete wall by installing new fire brick in front of the walls, fire resistant tiles on the ceiling, and metal doors in openings to help control the fire.
On August 18, 2016, the City received one bid for construction of the Fire Station No. 2 Burn Room Restoration (Project No. PW1503). The bid was non-responsive, and on November 15, 2016, Council rejected the bid (Motion No. 2016-11-15-1206).
The project was re-advertised, and on December 1, 2016, the City received six bids. The low bid received was from Haggerty Construction, Inc., in the amount of $99,986.90. It is non-responsive, as it subcontracts more than 70 percent of the work, which is prohibited by the bid specifications. The second lowest bid from Greentech Industry, Inc., in the amount of $106,140, is responsive.
Staff recommends adopting a resolution approving the plans and specifications for the project, approving the filing of Notice of Exemption No. CE002-17 under CEQA, rejecting the low bid from Haggerty Construction, Inc., and awarding a Construction Contract in the amount of $106,140 to Greentech Industry, Inc., of Concord, CA. Construction is anticipated to be completed by the end of August 2017.
DISCUSSION
Background
Fire Station No. 2 is located at 110 West Sonora Street and is home to the Training and Communications Divisions of the Department (Attachment A- Vicinity Map). Fire Station No. 2 serves as the main training facility for personnel training, recruitment, emergency medical services training, testing, and program development for its members. The types of training include Fire Operations, extrication, hazardous materials response, confined space, and basic fire rescue and operations. The structures contain kitchen, living, basement, attic, store, warehouse, and other spaces needed for firefighting training activities. One of the training scenarios is fighting fires within the basement space of the training facility known as the “Burn Room”. The burn room is a structure made of concrete walls and fireproof ceiling tiles where test fires are set and then extinguished in training exercises meant to simulate real situations a firefighter may encounter on the job. The Burn Room is in need of repair, and funding for this work was included in the FY 2015-16 CIP. The Fire Station No. 2 Burn Room Restoration project will repair a concrete wall damaged by multiple training fires. The repairs will ensure that future training fires in the room will not damage the concrete wall by installing new fire brick in front of the walls, fire resistant tiles on the ceiling, and metal doors in openings to help control the fire.
On August 18, 2016, the City received one bid from MGS Construction, Inc., in the amount of $174,496.80, for construction of the Fire Station No. 2 Burn Room Restoration (Project No. PW1503). The bid was 40 percent over the Engineer’s Estimate and non-responsive. On November 15, 2016, Council approved Motion No. 2016-11-15-1206 rejecting the bid. The project was subsequently re-advertised with additional outreach performed to attract more bidders.
Present Situation
The project was advertised for bids on October 27, 2016. On December 1, 2016, six bids were received for the Fire Station No. 2 Burn Room Restoration (Project No. PW1503).
|
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
|
Haggerty Construction, Inc. (Stockton, CA) |
$ 99,986.90 |
$ 94,987.56 |
|
Greentech Industry, Inc. (Concord, CA) |
$106,140.00 |
$106,140.00 |
|
Top Estate Construction, Inc. (Stockton, CA) |
$122,520.10 |
$116,394.10 |
|
Swierstok Enterprise, Inc. dba Pro Builders (Orangevale, CA) |
$139,400.00 |
$139,400.00 |
|
Patriot Construction, Inc. (Stockton, CA) |
$156,723.79 |
$148,887.60 |
|
Corporate Project Management, Inc. (Fresno, CA) |
$197,000.80 |
$197,000.80 |
|
Engineer’s Estimate |
$124,650.00 |
$124,650.00 |
The Local Business Preference Ordinance, Stockton Municipal Code (SMC) section 3.68.090, applies to this contract. Three of the bidders (Haggerty Construction, Inc., Top Estate Construction, Inc., and Patriot Construction Inc.) are located within the city of Stockton and are entitled to a five percent bid preference. The application of the local preference did not change the bid order.
The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
The bid from the lowest bidder, Haggerty Construction, Inc. is non-responsive. The bid subcontracts more than 70 percent of the work, which is not permitted by the bid specifications for the particular project. The bid from Greentech Industry, Inc., the second lowest bidder, is regular in all respects. Greentech Industry, Inc. has the proper license to perform the work. Staff recommends approving the plans and specifications for the project, rejecting the low bid from Haggerty Construction, Inc., and awarding a Construction Contract to Greentech Industry, Inc. in the amount of $106,140. Construction is anticipated to be completed by the end of August 2017.
The project is in conformance with the City’s General Plan, pursuant to California Government Code Section 65402, and is exempt from the requirements of CEQA as specified under Article 19, Section 15301, Class 1, of the CEQA Guidelines. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualify as a project that does not have a significant effect on the environment. Staff recommends Council adopt a resolution authorizing the filing of Notice of Exemption No. CE002-17 under CEQA.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. The CWTA was not applied to this project because the engineer’s estimate was under $1 million.
FINANCIAL SUMMARY
There are sufficient funds in the Fire Station No. 2 Burn Room Restoration project (Project No. PW1503), Account No. 301-3020-640, to award the Construction Contract to Greentech Industry, Inc. of Concord, CA, in the amount of $106,140. The unencumbered balance is $149,000. The remaining funding will fund contingency, staff costs, and inspection. This project is fully funded with the City’s General Fund.
There is no additional impact to the City’s General Fund beyond the amount of funds allocated in the current operating budget, or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map