City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Kevin Werner, City Administrator
Date: 12/13/2022
Subject: Fleet Maintenance Facility Project
RECOMMENDED ACTION:
Award the contract for the Fleet Maintenance Facility Project to Diede Construction, Inc. in the amount of $11,156,000 and authorize staff to proceed.
BACKGROUND:
The current Corporation Yard located near the intersection of Doak Boulevard and Vera Avenue was constructed in 1976. When this facility was constructed, it included two vehicle maintenance bays, a small office, restroom, breakroom, and an area for small engine work. At the time of construction, the population of Ripon was 3,500 and there were 7 employees in the public works department. After being used as the City Corporation Yard for over 45 years, this facility has exceeded the normal lifespan of use and needs to be replaced with a new facility.
The City of Ripon purchased 7 acres of undeveloped property on Doak Boulevard that was to be the site of a new City Corporation Yard. LDA Architects was contracted to prepare a Corporation Yard Master Plan in 2019. The purpose of this plan was to (1) plan for the ultimate Corporation Yard at this new location that would be used to serve the buildout of Ripon’s general plan (population of 40,000 residents), (2) estimate the total cost of the ultimate facility so the AB1600 Corporation Yard Fee could be updated to ensure the City was collecting enough from new development to fund the new Corporation Yard, and (3) identify Phase 1 of the Corporation Yard based on the needs of public works operations while considering the funds available.
The Corporation Yard, Phase 1 improvements are focused on providing the fleet maintenance facility (see attached exhibits) that is planned to serve a population of 25,000 and includes the following elements:
A 12,500 square foot building that would include fleet maintenance working bays (6 stalls), machine shop, offices, restrooms, and locker rooms. The exterior of the building will be a mixture of various metal sidings in different orientations and colors along with concrete masonry block walls along the lower portion of the shop building. The building will be accented with metal awnings and canopies in varying spots around the building for architectural interest. Employee/visitor parking lot between the proposed building and Doak Boulevard that will provide 49 spaces.
Fenced in fleet parking located to the south of the visitor parking lot.
DISCUSSION:
On November 17, 2022, bids for the Fleet Maintenance Facility Project were opened. Nine bids were received as summarized below:
Contractor Total Base Bid
Diede Construction, Inc. $11,156,000
D.G. Granade, Inc. $11,769,377
Harris Builders, Inc. $11,769,470
Gowan Construction, Inc. $11,926,643
F&H Construction $12,083,000
Acme Construction Co., Inc. $12,105,000
Menghetti Construction, Inc. $12,700,000
Simile Construction Service, Inc. $12,945,834
Bobo Construction, Inc. $13,993,000
City staff has reviewed the bids and found Diede Construction, Inc. to be the lowest responsive bidder. The Contractor has submitted the bid bond and all required documents. I am recommending that City Council award the base bid contract for the Fleet Maintenance Facility Project to Diede Construction, Inc. in the amount of $11,156,000 and authorize staff to proceed.
In addition to the construction costs, additional expenses will be associated with the construction of this project, as summarized below:
Construction Contingency: $1,115,600
City Furnished Equipment: $500,000
Outside Development Fees: $30,053
Materials Testing: $85,513
Architect Services During Construction: $144,875
Total: $1,876,041
The total amount of projected expenses to complete the Fleet Maintenance Facility Project is $13,032,041.
FISCAL IMPACT:
The total cost of $13,032,041 for construction of the Fleet Maintenance Facility Project will be funded as summarized below:
Fund Allocation Fund Balance
(projected as of 6/30/23)
Corp Yard AB1600 $440,000 $440,000
Measure K Transit $970,000 n/a
ARPA Funds $1,800,000 n/a
RDA Bond Proceeds $1,741,000 n/a
Sewer Capital Enterprise $800,000 $1,545,000
Water Capital Enterprise $800,000 $7,114,000
Storm Capital Enterprise $456,500 $371,000
Corp Yard AB1600 Loan $5,687,300 n/a
General Fund – Dept Capital $337,241 $1,200,000
The loan to the Corp Yard AB1600 Fund is funded from Mitigation Fees collected from development projects (current balance of this fund is $8 million). The City Council policy for the use of these funds is to (1) transfer interest generated from this fund to the General Fund during an economic downtown and an operational deficit occurs and (2) leverage these funds to advance priority projects through a loan.
The term of this loan is projected to be 23 years, based on an interest rate of 1% and a residential growth rate of 1.5%, which would be around the time the population of Ripon is 23,000.
Attachments:
1. Exhibit A