REPORT TO THE CITY COUNCIL FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Director - Capital Projects Department JENNIFER K. CLARK, AICP, Director Planning and Development Department BY: FRANCISCO V. MAGOS II, PE, Assistant Director Capital Projects Department, Utilities and On-Site Project Management Division HARLAVPREET S. BRAR, Licensed Professional Engineer Capital Projects Department, Utilities and On-Site Project Management Division SUBJECT ..Title Actions pertaining to the Garage 9 Renovation Project (Bid File No. 12500982) (City Council District 3): 1. Adopt a finding of Categorical Exemption per staff's determination pursuant to section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines, Environmental Assessment No. HG00020, for the Garage 9 Renovation Project; 2. Approve substitution of the listed subcontractor Door Masters, Inc. with Katch Environmental Inc. dba Katch General to self-perform the work associated with doors, frames and hardware; 3. Award a construction contract in the amount of $3,462,279.00, to Katch Environmental Inc. dba Katch General of Fresno, California as the lowest responsive and responsible bidder for the Garage 9 Renovation Project. ..Body RECOMMENDATIONS Staff recommends the City Council (1) adopt a finding of Categorical Exemption per staff's determination pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines, Environmental Assessment No. HG00020, for the Garage 9 Renovation Project, (2) approve substitution of the listed subcontractor Door Masters, Inc. with Katch Environmental Inc. dba Katch General to self-perform the work associated with doors, frames and hardware, (3) award a construction contract in the amount of $3,462,279.00, to Katch Environmental Inc. of Fresno, California, as the lowest responsive and responsible bidder for the Garage 9 Renovation Project (Project), and authorize the Capital Projects Interim Director or designee to sign the standardized construction contract on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Capital Projects Department (CPD) seeks to award a construction contract to Katch Environmental Inc. following a competitive bidding process which identified them as the lowest responsive and responsible bidder in the amount of $3,462,279.00 for the Garage 9 Renovation Project. The scope of work includes upgrading the existing site to a "move-in-ready" building space that will accommodate offices, cubicles, reception area, conference room, staff lounge, storage, and restrooms. The project site shall be used to relocate the staff from Community Development, Housing Production, Housing Finance, Homeless Assistance Response Team (HART), and Homeless Divisions within the Planning and Development Department. The Project will be funded utilizing Fiscal Year 2025 appropriations from American Rescue Plan Act (ARPA) and revenue generated through the City's Homekey development projects. BACKGROUND The Planning and Development Department aims to use ARPA funds and revenue generated through the City's Homekey developments to remodel the existing project site located at 1255 Van Ness Avenue. On June 23, 2023, the City entered into an agreement with Temple-Andersen-Moore Architects, LLP for the design and preparation of construction documents for the Project. CPD now seeks to award a construction contract to construct the proposed improvements. The Notice Inviting Bids for the Garage 9 Renovation Project was previously advertised and published on the City's website, the Business Journal, and Planet Bids on May 23, 2023. One (1) sealed bid proposal was received and opened in a public bid opening on July 9, 2024, with a bid amount of $5,979,000. Upon Staff recommendation, the bid was rejected by City Council on August 15, 2024. In an effort to receive favorable bids, the Plans and Specifications were revised to identify the list of items that will be procured by the City. A Notice Inviting Bids was re-advertised and published on the City's website, Planet Bids and the Business Journal on October 21, 2024. The Project plans and specifications were distributed to 39 prospective bidders and posted at five (5) building exchanges. One (1) sealed bid proposal was received and publicly opened on December 03, 2024, with a bid amount of $3,462,279. Katch Environmental Inc. dba Katch General of Fresno, California, was determined to be the lowest responsive and responsible bidder. The bids will expire on February 05, 2025. If the bids are rejected or expire, the Project must be rebid which will result in a delay to the Project. Katch Environmental Inc. has not been able to contact Door Masters, Inc. who was originally responsible for installation of doors, frames, and hardware for the project. Katch Environmental Inc. will now self-perform the installation in place of the subcontractor. In accordance with section 4107 of the Public Contract Code, a Prime Contractor may substitute a listed subcontractor, with the consent of the awarding authority, when the listed subcontractor fails or refuses to perform his or her subcontract as set forth in section 4107. The Subletting and Subcontracting Fair Practice Act requires the Prime Contractor to secure the permission of the awarding agency before substituting a non-listed subcontractor for a listed subcontractor to protect the public and subcontractors from bid shopping and bid peddling. (Southern California Acoustics Co., Inc. v. C.V. Holder, Inc. (1969), 71 Cal.2d 719,726). Therefore, Katch Environmental Inc. dba Katch General has requested that they be allowed to substitute Door Masters, Inc. with Katch Environmental Inc. dba Katch General to self-perform the work associated with doors, frames and hardware. The replacement of the subcontractor will not increase the cost of the Project. This contract is subject to the Community Workforce Agreement (PLA), adopted by City Council in September 2021. The Contractor shall become signatory to the PLA by executing the Agreement To Be Bound. Staff recommends that City Council adopt a finding of Categorical Exemption per staff's determination, pursuant to section15301/Class1 of the CEQA Guidelines, Environmental Assessment No. HG00020, for the Garage 9 Renovation Project, award a construction contract in the amount of $3,462,279, to Katch Environmental Inc., as the lowest responsive and responsible bidder for the construction of the Garage 9 Renovation Project, and authorize the Capital Projects Interim Director or designee to sign a standardized construction contract on behalf of the City. The Project will be funded utilizing Fiscal Year 2025 appropriations from American Rescue Plan Act (ARPA) and revenue generated through the City's Homekey development projects. The City Attorney's Office has reviewed and approved the contract documents as to form. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this Project and determined that the Project is categorically exempt from the requirements of CEQA pursuant to Section 15301/Class1. 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 City Council, based upon its own independent judgment, adopt a finding of a Categorical Exemption per Staff determination, pursuant to Section 15301, Class 1 of the CEQA Guidelines for the Garage 9 Renovation Project. LOCAL PREFERENCE Local Preference was not implemented because of federal ARPA funding. FISCAL IMPACT Garage 9 is located in City Council District 3 and will have no impact to the General Fund. The Garage 9 Renovation Project is funded with Fiscal Year 2025 ARPA appropriations and revenue generated through the City's Homekey development projects. Attachments: Environmental Assessment Bid Evaluation Fiscal Impact Statement Standardized Contract Vicinity Map Location Map