RESOLUTION NO. 26-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, DENYING THE BID PROTEST SUBMITTED BY RESOURCE ENVIRONMENTAL, INC. ("REI") AGAINST PRECISION WORKS, INC. LOWEST RESPONSIVE AND RESPONSIBLE BIDDER; AWARDING A CONSTRUCTION CONTRACT TO PRECISION WORKS, INC.; AND AUTHORIZING TRANSTECH ENGINEERS, INC. TO PROCEED WITH CONSTRUCTION MANAGEMENT AND INSPECTION SERVICE, PURSUANT TO THEIR EXISTING ON-CALL AGREEMENT FOR CONSULTANT SERVICES WHEREAS, The Commerce Refuse-to-Energy Authority (CREA) Facility, located at 5926 Sheila Street in Commerce, California, is a decommissioned industrial refuse-to-energy facility; and WHEREAS, The project involves the full deconstruction of the facility, including all mechanical, electrical, and plumbing (MEP) systems, structural steel, foundations and footings, as well as hazardous-materials abatement; and WHEREAS, On April 7, 2026, staff advertised the project for deconstruction, and bids were received on May 5, 2026; and WHEREAS, On May 12, 2026, Resource Environmental, Inc. (REI) submitted bid protest challenging the bids of Precision Works and R&R Demo and Grading Corp, requesting award to REI as the third-lowest bidder; and WHEREAS, Staff, with concurrence from the City Attorney, determined that Precision Works, Inc. dba Precision Environmental ("Precision Works") is the lowest responsible and responsive bidder for the Project pursuant to Public Contract Code §20162, and recommends denial of the bid protest submitted by Resource Environmental, Inc. ("REI"); and WHEREAS, Staff is recommending award of a deconstruction contract to Precision Works, Inc. in the amount of $1,362,000.00 for the total Base Bid Schedule Amount; and WHEREAS, Staff recommends approval of up to 15% of deconstruction contract for contingencies; and WHEREAS, Staff recommends approval of up to 15% of the total deconstruction contract and contingencies for Deconstruction Management, Inspection Services, and Material Testing; and WHEREAS, Staff recommends that Deconstruction Management and Inspection Services be authorized pursuant to the City’s existing on-call professional consulting services agreements; and WHEREAS, The total estimated cost of this project including construction contract, contingencies, construction management, inspection services, and material testing, is $1,801,245 of which will be covered by reimbursable Federal Transit Administration funds available in Account # 57-8338-60090.14151.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE, DECLARE AND DETERMINE AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. Finds that Precision Works, Inc. dba Precision Environmental ("Precision Works") is the lowest responsible and responsive bidder for the Project pursuant to Public Contract Code §20162, and denies the bid protest submitted by Resource Environmental, Inc. ("REI").
Section 3. Awards a construction contract to Precision Works, Inc. dba Precision Environmental as the lowest responsive and responsible bidder in the amount of $1,362,000 for the Total Base Bid Schedule and authorizes the Mayor to execute the contract in a form approved by City Attorney.
Section 4. Authorizes deconstruction contingencies of up to $204,300 (15% of construction contract) for unforeseen conditions.
Section 5. Authorizes Deconstruction Management, Inspection Services, and Material Testing for up to $234,945 (15% of the total deconstruction contract and contingencies).
Section 6. Authorizes Deconstruction Management and Inspection pursuant to the City’s existing on-call professional consulting services agreements.
Section 7. Authorize the Mayor to execute this Resolution for and on behalf of the City of Commerce.
Section 8. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED and ADOPTED this 23rd day of June 2026.
Kevin Lainez, Mayor
ATTEST:
Pat Jacquez-Nares, Interim City Clerk