Public Works Agency
www.santa-ana.org/pw
Item # 15
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 17, 2026
TOPIC: Award of a Construction Contract to Construct the Fire Station 71 Fuel Station Replacement Project
AGENDA TITLE
Award of a Construction Contract to GEMS Environmental Management Services, Inc. to Construct the Fire Station 71 Fuel Station Replacement Project (Project No. 24-6054) (General Fund)
RECOMMENDED ACTION
1. Approve an amendment to the Fiscal Year 2025-2026 Capital Improvement Program to include an additional $935,150 in construction funds for the Fire Station 71 Fuel Station Replacement Project (Project No. 24-6054).
2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $935,150, which includes $748,120 for the construction contract, $112,218 for contract administration, inspection, and testing, and $74,812 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 $748,120, subject to change orders, for construction of the Fire Station 71 Fuel Station Replacement Project (Project No. 24-6054), for a term beginning February 17, 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-2026-15 will be filed for Project No. 24-6054.
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). In coordination with OCFA, staff assessed all Santa Ana fire stations and prioritized repairs and improvements.
Construction Contract to Construct the Fire Station 71 Fuel Station Replacement Project February 17, 2026
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City and OCFA staff identified that the Fire Station 71 underground fuel storage tank at 1029 West 17th Street in Santa Ana 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 tank, and dispensing system.
The upgraded fueling system will comply with applicable fire and environmental regulations and support reliable fueling operations at Fire Station No. 71. Upon completion, the project will reduce environmental risk and improve operational reliability for OCFA emergency response services at this facility.
Project Advertisement and Contractor Procurement
To provide an opportunity for local vendors to submit bids, the City notified a total of 2,363 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 four bids were received. Zero bids were received from Santa Ana contractors.
The project was advertised in PlanetBids from January 13, 2026 to January 27, 2026.
Bids were received electronically via PlanetBids on January 27, 2026. 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 BID
1 GEMS Environmental
Management Services, Inc. Concord, CA $748,120
2 RE Chaffee Construction, Inc. Wrightwood, CA $931,000 3 Elegant Construction, Inc. Irvine, CA $959,000
4 AVA Engineering Huntington Beach, CA $979,395
A total of four responsive bids were received. GEMS Environmental Management Services submitted the lowest responsive bid in the amount of $748,120 (Exhibit 2).
Based on the bid analysis and a contractor’s reference check, staff recommends Construction Contract to Construct the Fire Station 71 Fuel Station Replacement Project February 17, 2026
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awarding the construction contract to GEMS Environmental Management Services, Inc. (Exhibit 3).
GEMS Environmental Management Services, Inc. has previously performed work as a prime contractor in the City of Santa Ana and successfully completed a project with a similar scope of work at Fire Station No. 74. In addition, GEMS Environmental Management Services, Inc. has completed similar projects for other public agencies, including 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, the contractor has confirmed its ability to mobilize resources locally and deploy personnel to Santa Ana for the duration of the project.
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 $935,150.
Project Item Total
Construction Contract Bid Amount $748,120
Construction Administration $59,850
Inspection $37,406
Testing $14,962
Unanticipated or Unforeseen Work $74,812
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $935,150
Project Schedule and Contract Time
The project is estimated to be completed in August 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 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 dates based on the submitted Construction Contract to Construct the Fire Station 71 Fuel Station Replacement Project February 17, 2026
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schedule is August 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.
Project Milestones
Milestone Estimated
Completion Date
Notes
Administrative Startup February 2026 Contract execution, bonds, insurance
Material Procurement February – May 2026 Procurement for long lead items (fuel storage,
tank/dispenser system,
transition sumps & vapor pot,
Veeder-Root TLS 45,
dispensing pump, etc.)
Contractor Mobilization May 2026 Start of construction activities Project Completion August 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 71, 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 to 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 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 Construction Contract to Construct the Fire Station 71 Fuel Station Replacement Project February 17, 2026
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proposed project continues to meet these parameters of the CEQA Guidelines, and Categorical Exemption Environmental Review No. ER-2026-15 will be filed for Project 24-6054 (Exhibit 4).
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $935,150. 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 2026-2027 (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 funding if necessary.
Fiscal
Year
Accounting
Unit – Account
No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
CURRENT BUDGET
2025-26 01115330-66200
(24-6054) General Fund
Fire Suppression/EMS,
Buildings & Building
Improvements
$935,150
TOTAL $935,150
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