January 28, 2025
Agenda Item No. 5
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
David A. Webb, Public Works Director - 949-644-3311, [email protected] PREPARED BY:
Tom Sandefur, Assistant City Engineer - 949-644-3321,
[email protected]
TITLE:
Central Library Air Handler Replacement – Award of Contract No. 9691-1 (25F02)
ABSTRACT:
The City of Newport Beach received construction bids for the Central Library Air Handler Replacement project. Staff requests City Council approval to award the construction contract to MEP Fusion Inc., of Studio City. This project replaces the aged air handlers and hot water pumps of the Central Library, located at 1000 Avocado Avenue.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications;
c) Award Contract No. 9691-1 to MEP Fusion Inc., for the total bid price of $1,199,500 for the Central Library Air Handler Replacement, and authorize the Mayor and City Clerk to execute the contract; and
d) Establish a contingency of $180,000 (approximately 15% of total bid) to cover the cost of unforeseen work not included in the original contract.
DISCUSSION:
As part of the Fiscal Year 2024-25 Facilities Maintenance Master Plan Program, maintenance is needed at the Central Library facility, located at 1000 Avocado Avenue. The library’s original air handlers and hot water pumps are beyond their intended service life and have become maintenance nuisances. The project replaces these aged components ensuring smooth operation for decades to come.
At 2 p.m. on December 12, 2024, the City Clerk opened and read the following bids for this project:
BIDDER
TOTAL BID AMOUNT
Low
MEP Fusion Inc.
$ 1,199,500
2nd
Seacliff Mechanical Services
$ 1,445,075
3rd
Simco Mechanical Inc.
$ 1,597,001
The City received three bids for this project. The apparent low bidder, MEP Fusion Inc., possesses a California State Contractor’s License Classification “C-20”, as required by the project specifications. A review of the contractor’s references shows satisfactory completion of similar contracts for other public agencies including the California Department of State Hospitals, the City of Riverside, and the City of Torrance.
The apparent low bid received from MEP Fusion Inc. was approximately 9% over the engineer’s estimate of $1,100,000. The difference between the apparent lowest bid and engineer’s estimate is a reasonable margin appropriate for the extremely tight schedule required for this project.
After the bid opening, the City received a bid protest claiming deficiencies in the apparent low bidder’s responsiveness and ability to perform the work. A similar bid protest claiming deficiencies in the apparent 2nd lowest bidder’s responsiveness and ability to perform the work was also received. The apparent lowest bidder and apparent 2nd lowest bidder both provided response letters which were reviewed. Staff is satisfied with the responses and determined that the protests were without merit, and recommends the contract be awarded to the lowest bidder. The protest letters and responses are included as attachments to this report.
Pursuant to the contract specifications, the contractor shall have 180 consecutive days for material and equipment procurement followed by six consecutive weeks (34 working days) to complete the project. Work is scheduled to start in the fall of 2025.
The project plans and specifications will be available for review at the January 28, 2025, City Council meeting or upon request.
FISCAL IMPACT:
The adopted Capital Improvement Program budget includes sufficient funding for this contract. The contract will be expensed to the Facilities Maintenance Master Plan (General Fund) Program Account in the Public Works Department, 57101-980000-25F02.
Account Description
Account Number
Amount
Facilities Maintenance Master Plan
01201925-980000-25F02
$
999,147
Facilities Maintenance Master Plan
57101-980000-25F02
$
382,853
Total:
$
1,382,000
Proposed fund uses are as follows:
Vendor
Purpose
Amount
MEP Fusion Inc.
Construction Contract
$
1,199,500
MEP Fusion Inc.
Construction Contingency
$
180,000
Various
Printing & Incidentals
$
2,500
Total:
$
1,382,000
Due to the unique nature and location of the work (large and special-order equipment in the basement of the Central Library), staff recommends establishing $180,000 (approximately 15% of total bid) for contingency purposes and unforeseen conditions associated with construction.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Location Map
Attachment B – Simco Mechanical Inc. Protest Letter (MEP Fusion Inc.) Attachment C – Simco Mechanical Inc. Protest Letter (Seacliff Mechanical Services) Attachment D – Response to Protest (MEP Fusion Inc.)
Attachment E – Response to Protest (Seacliff Mechanical Services) 5-1
5-1
Central Library Air Handler Replacement Project –
Award of Contract No. 9691-1 (25F02)
January 28, 2025
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