REPORT TO THE CITY COUNCIL February 16, 2017 FROM: SCOTT L. MOZIER, P.E., Director Public Works Department BY: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department - Capital Management Division DEBBIE BERNARD, Project Manager Public Works Department - Facilities Management Division SUBJECT ..Title Actions pertaining to an award of a construction contract to Strategic Mechanical, Inc. of Fresno, CA, for $211,520 for the Police Department Headquarters Boiler Replacement Project (Bid File 3514) (Council District 3) 1. Adopt finding of a Categorical Exemption pursuant to Section 15303 of the California Environmental Quality Act (CEQA) Guidelines 2. Award a construction contract with Strategic Mechanical, Inc. of Fresno, CA, for $211,520 for the Police Department Headquarters Boiler Replacement Project ..Body RECOMMENDATIONS Staff recommends that Council adopt a finding of a Categorical Exemption and award a construction contract with Strategic Mechanical, Inc., for $211,520 for the Police Department Headquarters Boiler Replacement project and authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno. EXECUTIVE SUMMARY On August 28, 2014, Council approved an Agreement for Consultant Services to conduct Facility Condition Assessments. During the on-site portion of one of these condition assessments, it was determined that the Police Department Headquarters boiler had well surpassed its useful life and required replacement. This construction contract with Strategic Mechanical, Inc. will allow the replacement of the original boiler with a new code compliant energy efficient boiler. BACKGROUND On August 28, 2014, Council approved an agreement with EMG Engineering and Environmental Consulting to conduct Facility Condition Assessments. The Police Department Headquarters was one of those facilities under the original contract contingency amount. During the on-site investigation portion of the Police Department Headquarters condition assessment, it was determined that the boiler had more than surpassed its useful life. Therefore staff prepared and entered into an agreement for consultant services on behalf of the City of Fresno for the design and preparation of construction documents for the boiler replacement project. Plans and specifications were prepared. A Notice Inviting Bids was published on December 21, 2016, distributed to ten building exchanges and posted on the City's website. The specifications were distributed to twelve prospective bidders. Four sealed bid proposals were received and opened in a public bid opening on January 24, 2017, with the bid amounts ranging from $211,520 to $330,458. Staff is recommending that Council adopt finding of a Categorical Exemption and award of a construction contract to Strategic Mechanical, Inc. of Fresno, CA, for $211,520 for the Police Department Headquarters Boiler Replacement and to authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno. ENVIRONMENTAL FINDINGS Staff has determined that a Categorical Exemption is appropriate, based on Class 3 Section 15303 of the CEQA Guidelines, which exempts installation of new equipment. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. Staff recommends that the Council, based upon its own independent judgment, adopt a finding of a Categorical Exemption per Staff determination, pursuant to Section 15303, Class 3 of the CEQA Guidelines for the Police Department Headquarters Boiler Replacement Project. LOCAL PREFERENCE Local preference did not come into effect on this determination as the apparent lowest responsive and responsible bidder is a local business. FISCAL IMPACT The Police Department Headquarters Boiler Replacement project was included in the approved FY17 Repair and Replacement Budget for Facilities Management. Attachments: Bid Evaluation Fiscal Impact Statement