Item Number: 12
Board of Directors
Written Communications
Meeting of: April 02, 2024
Submitted By:
C. Eric Ray, Airport Director
Subject:
Award of a Standard Construction Agreement for Building 686 Interior Renovations, Project #CC24-061.
Recommendation:
That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors approve the Award of a Standard Construction Agreement to Bob Walters Jr.
Construction Inc., in the amount not to exceed $385,600 for Building 686 Interior Renovations, Project #CC24-061.
Fiscal Impact:
Funds of $1,200,000 are currently budgeted in Airport Operations Account 4501120A- 55060-95122 for Building 686 Rehabilitation. The amount of $607,997 is currently encumbered for Project CC24-013, Building 686 Roof Replacement, and Staff preparation work on Building 686 has cost $15,378.78, leaving an available budget amount of $576,624.22. The award of this Agreement will result in the expenditure of funds from the Airport Operations Account 4501120A-55060-95122 in the amount not to exceed $385,600. The budget is outlined below:
Current Budget
Revenue Expense
4501120A-55060-95122 $0 $576,624.22
Strategic Plan Goal:
Goal A. Financial Stability: The Project involves the rehabilitation of the interior of a building that will become a revenue generating asset for the Airport.
Background:
Building 686 was built in 1959 as a jet engine maintenance facility, comprising of 5 9
3 approximately 59,000 square feet of high ceiling interior space. It has remained vacant since the closure of George Air Force Base in 1992. Building 686 is located near multiple large hangars with active aviation maintenance ramps. The proximity to existing occupied aviation facilities, the plentiful ceiling height, and the overall size and design of Building 686 make it an ideal space for tenants to store aviation related equipment and parts and perform certain “back shop” maintenance.
Building 686 contains several bathrooms, office spaces, and special purpose work areas designed specifically for military jet engine repairs. The wear and tear from daily use by numerous mechanics in days gone by and the then roughly 30 years without occupancy has left the interior spaces in need of renovation. The leaky roof on Building 686 has significantly accelerated the deterioration in certain areas. The roof leaks will be remedied through the completion of Project CC24-013, Building 686 Roof Replacement, that Your Honorable Board of Directors approved on September 19, 2023. Furthermore, the interior office and bathroom spaces of Building 686 are not ADA compliant, do not contain modern lighting or sufficient electrical and communications wiring, and the plumbing systems have fallen into disrepair.
Staff have been approached by existing tenants requesting additional storage space near their large hangar operations and Building 686 is an ideal candidate to fulfill that market- driven need. Staff have determined that the renovation and conversion of Building 686 from an abandoned fighter jet maintenance facility to a warehouse is the most viable long- term option for this building.
Discussion:
The conversion of Building 686 from an abandoned maintenance facility to a warehouse will necessitate the demolition of approximately 7,000 sq. ft. of redundant interior offices, bathrooms, and special purpose spaces. The spaces that are to be demolished have outlived their purpose and are tying up valuable square footage that is not congruent with a warehouse or “back shop” environment. The remaining office spaces and bathrooms will be renovated to modern standards to provide the appropriate accommodation needed to repurpose the building.
Interior non-load bearing concrete masonry walls, one of which measures 12 feet tall by 121 feet long, will also be demolished, with the rubble being stored at the Airport to be recycled for future Airport projects as foundation base material. The removal of several obsolete large interior walls will allow access to additional warehouse space, making the property more valuable to the end users.
Staff believes that the total rehabilitation expenses for Building 686 will be recaptured within 4 years at currently established lease rates. Rehabilitating Building 686 will add yet another revenue-generating aviation asset to the Airport's diverse portfolio and it will further demonstrate the SCLAA’s commitment to the growth and success of the economic engine of the High Desert.
The demolition and renovation work on Building 686 will require the skills of an 5 9
3 experienced, licensed contractor. Hazardous materials, such as asbestos containing materials, have been confirmed in certain locations of the building, which abatement will require the expertise of trained personnel that are licensed to abate such materials.
Staff conducted a formal, competitive bid solicitation in compliance with City Municipal Code §2.28.200 for the purpose of procuring an appropriate contractor to perform the work. A Notice Inviting Bids was published in the Daily Press and San Bernardino Sun newspapers on February 07, 2024. The bid solicitation package was posted on the City website and was emailed to thirty one contacts in the construction and demolition industry to ensure the opportunity reached as many bidders as reasonably possible. A pre-bid meeting and job walk was conducted on February 22, 2024, which was attended by representatives from fourteen firms. Bids were due on March 07, 2024, at 2:30 pm, at which time the Authority Secretary publicly opened all four of the sealed bids received.
The bids received are summarized as follows:
Company: Location: Bid:
Bob Walters Jr. Construction Inc. Victorville, CA $385,600 KNC Construction Inc. Apple Valley, CA $580,868
Hands on Construction Hesperia, CA $750,000
Caltec Corp. Westminster, CA $776,060
Each bid submission was carefully reviewed by staff, who determined the best value bidder, in accordance with City of Victorville Municipal Code §2.28.040, to be Bob Walters Jr. Construction Inc., based on their submission of the lowest bid price and qualifications.
The contract award presented herein has been competitively solicited in accordance with City of Victorville Municipal Code §2.28.200, which defines the bidding requirements for Public Works contracts in excess of sixty thousand dollars, but not more than five hundred thousand dollars. For the reasons presented herein, staff recommends that the Honorable Southern California Logistics Airport Authority Board of Directors approve the award of a Standard Construction Agreement to Bob Walters Jr. Construction Inc., for Building 686 Interior Renovations Project #CC24-061, in the amount not to exceed $385,600.
Staff remains available for any questions or comments you may have.
CER/see
Attachments: Attachment A – Site Map
Attachment B – Construction Agreement
Attachment C – Bob Walters Jr. Construction Inc., Bid Proposal