For City Council Meeting [November 12, 2024]
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
AUTHOR: Tim Sullivan, Director of Public Works
Title
Request City Council to: 1) Award a Construction Contract to AEC Moreno Corporation in the Amount of $415,868 for the Construction of the Fire Station 203 Dormitory Improvements Project, City Project No. 220204; 2) Authorize a Contract Change Order in the amount of $88,566 with Fountainhead Corporation pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for Fire Station 203 Dormitory Improvements Project, City Project No. 220204 and 3) Authorize the City Manager or Their Designee to Execute all Related Documents.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1. Award a Construction Contract to AEC Moreno Corporation in the amount of $415,868 for the Construction of the Fire Station 203 Dormitory Improvements Project, City Project No. 220204.
2. Authorize a Contract Change Order in the amount of $88,566 with Fountainhead Corporation pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for Fire Station 203 Dormitory Improvements Project, City Project No. 220204.
3. Authorize the City Manager or Their Designee to Execute all Related Documents.
BACKGROUND
On December 14, 2021, the City Council accepted the Cal OES (Governor’s Office of Emergency Services) pass-through grant sub-award allocation of $400,000 for the Fire Station Dormitory Improvement Project. City Council concurrently adopted Resolution No 7804, amending the fiscal year 2021-2022 budget to account for these grant funds.
Staff coordinated with BOA Architecture to prepare the construction plans, specifications, and estimates per their On-Call Professional Architectural Services Agreement with the City.
On August 22, 2023, the City Council authorized the release of Request for Bids, RFB No. 24-006, for the Construction of the Fire Station 203 Dormitory Improvements Project, City Project No. 220204.
ANALYSIS/DISCUSSION
On September 3, 2024, the City released RFB No. 25-009 for the Construction of the Fire Station 203 Dormitory Improvements Project, City Project No. 220204, and published the Notice Inviting Bids in the San Bernardino County Sun Newspaper and on the PlanetBids.com website.
On October 8, 2024, the City received nine (9) bids, tabulated in Table 1 below:
Table 1
A complete bid summary is included in Attachment 1. The engineer’s estimate was $400,000. The lowest responsible and responsive bid was $415,868, submitted by AEC Moreno Corporation. The bid received by Rodriguez Corporation was found to be non-responsive to the contract documents. Rodriguez Corporation also confirmed the errors in their bid submittal and acknowledged their bid to be non-responsive. Staff reviewed the second lowest bid and found AEC Moreno Corporation to be properly licensed and qualified. AEC Moreno Corporation’s Disclosure Statement, Contractor’s License, and DIR Verification documents are included as Attachment 2. Staff recommends that the City Council accept the bid received from AEC Moreno Corporation as the lowest responsible and responsive bid. A construction contract with AEC Moreno Corporation is included as Attachment 3.
Construction Management, Inspection, and Materials Testing Services
On April 12, 2022, the City Council approved an on-call agreement with Fountainhead Corporation for on-call construction management, inspection, and materials testing services for “On-call” construction management, inspection, and materials testing services for an initial three (3) year term, with two (2) one (1) year optional extensions.
Staff has reviewed and recommends approval of the proposal provided by Fountainhead Corporation based on their experience overseeing projects of this magnitude similar in scope to the Project. Fountainhead has provided a fee proposal of $88,566 to provide the required construction phase services through the duration of the project. A copy of their proposal is included as Attachment 4. A copy of Fountainhead’s Disclosure Statement is included in Attachment 5.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental Quality Act (CEQA) include a list of classes of projects that have been determined not to have a significant effect on the environment and which shall, therefore, be exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with 14 CCR Section 15301 “Existing Facilities,” Class 1 projects consist of the repair, maintenance, or minor alteration of existing structures and facilities; therefore, the construction of the Fire Station 203 Dormitory Improvements Project, City Project No. 220204 is considered categorically exempt from CEQA. Staff has prepared and filed a Notice of Exemption for the project.
GENERAL PLAN CONSISTENCY
The City of Rialto General Plan establishes various guiding principles, goals and objectives through which the City looks to improve the community and protect the quality of life for our residents. This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 5-3.1: Provide for fire personnel, equipment, and fire stations to have adequate and appropriate resources to meet the needs and serve all areas of Rialto.
LEGAL REVIEW
The City Attorney’s Office has reviewed the staff report.
FINANCIAL IMPACT
On December 14, 2021, the City Council adopted Resolution No. 7804, which accepted the Cal OES Pass-Through Grant sub-award and allocated additional funding for a total allocation of $900,000 for improvements to the Fire Station dormitory project.
Funds for the construction contract award to AEC Moreno Corporation in the amount of $415,868 are available in the Grants Project Fund, Account No. 22235186-53001-220204-05.
Additionally, funds for the change order for construction management services with Fountainhead Corporation, amounting to $88,566, are available in the Grants Project Fund, Account No. 22235186-53001-220204-15.
Licensing
A Business License tax at the Professional Service rate in the amount of $479.00 based on the construction amount of $415,868.00 will be assessed against the project and paid by interoffice transfer.