Public Works Agency
www.santa-ana.org/pw
Item # 22
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 20, 2026
TOPIC: Award of a Construction Contract to Construct the Fire Station 74 Fuel Station Replacement Project
AGENDA TITLE
Award of a Construction Contract to GEMS Environmental Management Services, Inc. to Construct the Fire Station 74 Fuel Station Replacement Project (Project No. 24-6053) (Non-General Fund)
RECOMMENDED ACTION
1. Approve an amendment to the Fiscal Year 2025-26 Capital Improvement Program to include an additional $842,630 in construction funds for the Fire Station 74 Fuel Station Replacement Project (Project No. 24-6053).
2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $842,630, which includes $674,104 for the construction contract, $101,115 for contract administration, inspection, and testing, and $67,411 for unanticipated or unforeseen work.
3. Award a construction contract to GEMS Environmental Management Services, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $674,104, subject to change orders, for construction of the Fire Station 74 Fuel Station Replacement Project (Project No. 24-6053), for a term beginning January 20, 2026 and authorize the City Manager to execute the contract.
4. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2025-116 will be filed for Project No. 24-6053.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The Public Works Agency (PWA) is responsible for the maintenance and improvement of City facilities, including ten fire stations occupied by the Orange County Fire Authority (OCFA). Together with OCFA, staff assessed all Santa Ana fire stations and prioritized repairs and improvements.
Construction Contract to Construct the Fire Station 74 Fuel Station Replacement Project January 20, 2026
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City and OCFA staff identified that the Fire Station 74 underground fuel storage tank at 1427 South Broadway was in need of removal and replacement with a new above- ground fuel storage tank (Exhibit 1). Replacement of old subsurface tanks with new above-ground tanks allows for improved maintenance and reduces the potential for leaks that can contaminate the soil. The upgraded fuel system and tanks will meet South Coast Air Quality Management District requirements, with adherence to the most recent fire code related to setbacks and existing structures. The scope of work includes removing the existing 4,000-gallon diesel/gasoline fuel underground storage tank and corresponding dispenser and installing one 2,000-gallon diesel fuel storage tank on engineering reinforced slab, one new dispenser, installing a new diesel exhaust fluid (DEF) tank, and dispensing system. Once the project is completed, environmental risks will be mitigated and fuel system reliability will be significantly improved at this fire station.
Project Advertisement and Contractor Procurement
To provide an opportunity for local vendors to submit bids, the City notified a total of 2,337 regional vendors via PlanetBids, many of which are Santa Ana based.
Furthermore, staff specifically reached out to Santa Ana vendors to encourage their participation in bids. A total of seven bids were received. Zero bids were received from Santa Ana contractors.
As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on September 25, 2025 and October 1, 2025. The project was also advertised in PlanetBids from September 18, 2025 to November 10, 2025. Bids were received electronically via PlanetBids on November 10, 2025. No bid protest was submitted by any of the bidders during the bid protest period.
A copy of construction plans, contracts, specifications, and all related reference materials (such as The Greenbook) are available for public review at the City’s Public Works Agency, Central Files office located in City Hall.
Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID
1 GEMS Environmental Management
Services, Inc. Concord, CA $674,104
2 Premo Construction, Inc. Irvine, CA $680,650
3 Fleming Environmental, Inc. Fullerton, CA $687,582
4 Eastridge Engineering and
Construction Murrieta, CA $715,250
5 ACC & Engineering, LLC Anaheim, CA $757,240
6 MMC, Inc. La Palma, CA $938,000
7 Western Pump, Inc. San Diego, CA $961,762
Construction Contract to Construct the Fire Station 74 Fuel Station Replacement Project January 20, 2026
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A total of seven bids were received and all seven (7) were deemed responsive. GEMS Environmental Management Services, Inc. submitted the lowest responsive bid in the amount of $674,104 (Exhibit 2). Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to GEMS Environmental Management Services, Inc. (Exhibit 3).
While this will be GEMS Environmental Management, Inc.’s first construction project for the City of Santa Ana, the contractor has completed similar projects for other public agencies. Most recently, GEMS completed a diesel tank installation for the East Bay Municipal Utility District and an above-ground storage tank replacement for the City of Pittsburg. Although the firm is based in Northern California, GEMS Environmental Management Inc. confirmed that it has the resources to complete the project and will also deploy locally, relocating personnel to Santa Ana for the duration of the project.
Based on the contractor’s experience and positive contractor’s reference check, staff is confident that GEMS Environmental Management, Inc. can provide the same quality work to the City.
Project Delivery
To deliver a complete project, in addition to the construction contract, the estimated total project delivery cost includes a budget allocation for construction administration, inspection, and testing. Construction administration and inspection may be performed by either Staff or consultants and includes construction management, inspection of the Contractor’s work to ensure contract compliance, workmanship and quality, materials testing, and implementation of the labor requirements.
Any of the allocated construction administration funds not spent are considered project savings and are returned to the respective fund balance upon close out of the project.
As indicated in the Cost Analysis and as summarized in the table below, the estimated total construction delivery cost of the project is $842,630.
Project Item Total
Construction Contract Bid Amount $674,104
Construction Administration $55,120
Inspection $25,995
Materials Testing $20,000
Unanticipated or Unforeseen Work $67,411
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $842,630
Project Schedule and Contract Time
The project is to be completed in July 2026, barring unforeseeable conditions such as rain, natural disasters, or other delays beyond the control of the City and of the Contractor. The contract time for this project is 80 working days, as specified in the bid documents. Working days are counted in accordance with the City’s Standard Construction Contract to Construct the Fire Station 74 Fuel Station Replacement Project January 20, 2026
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Specifications, which exclude weekends, City-observed holidays, and inclement weather days that prevent work.
The contractor was required to submit a construction schedule as part of their bid to expedite delivery of the project. The projected completion date based on the submitted schedule is July 2026, which is within the allotted 80 working days. If the contractor fails to deliver on time, they will be assessed a penalty of $1,725 per calendar day as specified in the bid documents.
The actual completion date will depend on the contractor’s schedule, material procurement timelines, and any unforeseen delays. Based on a typical project timeline, the estimated project completion is provided below.
Project Milestones
Milestone Estimated
Completion Date
Notes
Administrative Startup January 2026 Contract execution, bonds, insurance
Material Procurement January – April 2026 Procurement for long lead items (fuel storage
tank/dispenser system,
transition sumps & vapor pot,
Veeder- Root TLS 450,
dispensing pump, etc.)
Contractor Mobilization April 2026 Start of construction work Project Completion July 2026 Based on 80 working days
Project Phasing
The contractor will be required to procure the materials and equipment prior to starting any work due to the long lead times involved. Once the materials are received and inspected, Staff will coordinate with OCFA and issue the contractor a notice to proceed with construction activities. The contractor will be constructing this project in a singular phase, fulfilling the scope of work as outlined in the contract documents. The contractor is responsible for determining the scheduling and sequencing of activities based on their proposed means and methods.
Public Outreach
Construction will be confined to Fire Station 74, ensuring that the community and neighborhoods remain unaffected. Staff routinely met with OCFA to discuss the impact on the fire station. The contractor and staff will continue coordinate with OCFA throughout the project construction and will install signage at the project site indicating project details and contact information.
The Contractor is required to issue construction notices to adjacent residents and businesses at least two weeks before construction begins. Additionally, the contractor is Construction Contract to Construct the Fire Station 74 Fuel Station Replacement Project January 20, 2026
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required to install signage at the project site indicating project details and contact information.
ENVIRONMENTAL IMPACT
Pursuant to the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review pursuant to Section 15301 (b) of the CEQA Guidelines for projects consisting of repairs and minor alterations of existing public facilities. The proposed project continues to meet these parameters of the CEQA Guidelines, and Categorical Exemption Environmental Review No. ER-2025-116 will be filed for Project 24-6053 (Exhibit 4).
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $842,630. All funds are available for expenditure in Fiscal Year 2025-26. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers into Fiscal Year 2026-27 (Exhibit 5). The proposed contract authorizes staff a maximum of 10% for construction contract change orders for unanticipated or unforeseen work. Staff will return to City Council for authorization and appropriation of additional contract authorization if necessary.
Fiscal
Year
Accounting
Unit –
Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
CURRENT BUDGET
2025-26 12015330-62300
(24-6053)
Fire Facilities
Fund
Fire Facilities Fund,
Contract Services -
Professional
$842,630
TOTAL $842,630
EXHIBIT(S)
1. Location Map
2. Bid Proposal
3. Construction Contract
4. Environmental Determination
5. Capital Improvement Project Worksheet
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director - Public Works Agency Approved By: Alvaro Nuñez, City Manager