November 18, 2025
Agenda Item No. 10
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 - 949-644-3315, [email protected] TITLE:
Fire Station No.2 HVAC Retrofit – Award of Contract No. 9959-1 (25R02) ABSTRACT:
The City of Newport Beach received construction bids for the Fire Station No.2 Heating, Ventilation, and Air Conditioning (HVAC) Retrofit project and requests City Council approval to award the construction contract to MEP Fusion, Inc. of Studio City. The project consists of retrofitting the existing HVAC system with a Dedicated Outdoor Air System (DOAS) unit that will improve air quality and reduce indoor humidity levels at Fire Station No. 2.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, 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. 9959-1 to MEP Fusion, Inc. for the total bid price of $126,000 for the Fire Station No.2 HVAC Retrofit project, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $19,000 (approximately 15% of total bid) to cover the cost of unforeseen work not included in the original contract.
DISCUSSION:
The existing Peninsula Fire Station No. 2 located at 2807 Newport Boulevard was constructed in 2022. The building has been experiencing issues with high indoor humidity affecting the function of the building. In 2025, the City contracted with IDS Group to assess the indoor humidity issues in the building. Their analysis revealed moisture resulting from two sources, unconditioned moist outside air and internal moisture from showers, wet clothes and staff. After evaluating the report, PBK Architects were hired to provide design and bidding documents for retrofitting the existing HVAC system. The HVAC retrofit added a DOAS. The DOAS pre-conditions outside air before it enters a building, removing excess moisture and air pollutants ahead of and separately from the main heating and cooling system. It is designed to work in conjunction with the existing equipment and will provide enhanced air quality and humidity control.
At 2 p.m. on October 30, 2025, the City Clerk opened and read the following bids for this project:
BIDDER
TOTAL BID AMOUNT
Low
MEP Fusion, Inc
$126,000
2nd
AC Pros, Inc.
$129,180
3rd
YMC, Inc.
$143,000
4th
EBSA Construction
$152,000
5th
Los Angeles Air Conditioning, Inc.
$163,085
6th
Allison Mechanical, Inc.
$176,000
7th
Southwest Mechanical, Inc.
$180,510
8th
Simco Mechanical, Inc.
$214,000
9th
Metro Builders & Engineers Group, Ltd.
$220,612
10th
Newbuild Construction and Restoration, Inc.
$294,000
11th
F.M. Thomas Air Conditioning
$328,858
The City received 11 bids for this project. The low bidder, MEP Fusion, Inc., possesses a California State Contractor’s License Classification “B”, as required by the project specifications. A review of references for MEP Fusion, Inc. shows satisfactory completion of similar contracts for other municipalities and the City.
The bid submitted by MEP Fusion, Inc. is 3% below the engineer’s estimate of $130,000.
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. The apparent low bidder provided a response letter which was reviewed as part of the recommendation process. Staff agreed that there was no merit to the protest and recommends awarding the contract to MEP Fusion, Inc. The protest letter and response are included as attachments to this report.
Pursuant to the contract specifications, the contractor will have 150 calendar days to procure the DOAS Unit and 15 consecutive working days to complete the project. Work is scheduled to start in January 2026.
The project plans and specifications will be available for review at the November 18, 2025, City Council meeting or upon request.
FISCAL IMPACT:
The adopted Capital Improvement Program budget includes sufficient funding for the award of this contract.
The following funds will be expended:
Account Description
Account Number
Amount
Facilities Maintenance Master Plan (FMMP)
57101-980000-26F02
$
148,000
Total:
$
148,000
Proposed fund uses are as follows:
Vendor
Purpose
Amount
MEP Fusion, Inc
Construction Contract
$
126,000
MEP Fusion, Inc.
Construction Contingency
$
19,000
Various
Printing & Incidentals
$
3,000
Total:
$
148,000
The FMMP includes a comprehensive condition assessment of all City facilities and prioritizes capital repairs and/or major maintenance based on a variety of factors including current condition. This program funds a variety of capital repair and maintenance projects to keep City facilities in good condition and is funded by the General Fund.
Staff recommends establishing $19,000 (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(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) 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.
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 – AC Pros Protest Letter
Attachment C – MEP Fusion Protest Response
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Fire Station No.2 HVAC Retrofit – Award of Contract No. 9959-1 (25R02) November 18, 2025
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