To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL Dale Foster

Subject: FIRE STATION NO. 4 UPGRADE Date: 08-19-03

District: 6

SNI: Burbank/Del Monte

REASON FOR SUPPLEMENTAL MEMO

To provide additional information after bids were opened.

RECOMMENDATION

Report on bids and award of contract for the Fire Station No. 4 Upgrade Project to the low bidder, D.L. Falk Construction, Inc., in the amount of $754,813, and approval of a contingency in an amount of $113,222.

CEQA: Exempt, PP02-12-389.

BACKGROUND

On March 5, 2002, San José’s voters passed the Neighborhood Security Act Bond Measure. This bond measure provides for the construction of 36 public safety projects including the upgrades of 20 fire stations. One of the first fire stations to be upgraded under this bond measure is Fire Station No. 4, located at 710 Leigh Avenue.

The project upgrades conform to the intent of the Neighborhood Security Act Bond Measure by incorporating operational and livability efficiencies that will maintain and extend fire and paramedic response times to established neighborhoods and planned developments within the City. The planned upgrades will also enable the fire station to meet the “Essential Facility” designation with the addition of a new emergency generator. Construction is scheduled to begin in October with completion in April 2004.

ANALYSIS

Bids were opened on August 12, 2003 with the following results:

			(Under)
Contractor	Total Bid	Amount	Percent
ESR Construction, Inc. (San Jose)	984,000	217,200	28
Chegwin Construction, Inc. (San Jose)	942,000	187,187	25
Rushford Construction Co., Inc. (Santa Clara)	892,000	161,400	22
D & K Painting Co., Inc. (Millbrae)	870,000	139,400	19
Tinney Construction Corp. (Redwood City)	857,000	126,400	17
Kin Wo Construction, Inc. (San Francisco)	854,800	124,200	17
Pencon (San Ramon)	836,000	105,400	14
R.C Benson & Sons, Inc.(Mountain View)	804,434	73,834	10
ICC General Contractors, Inc. (Sunnyvale)	768,000	37,400	5
HRB Construction, Inc. (San Jose)	766,800	36,200	5
D.L. Falk Construction, Inc. (So San Francisco)	754,813	$24,213	3
Engineer’s Estimate	$730,600	---	--

The low bid, submitted by D.L. Falk Construction, Inc., is three percent over the Engineer’s Estimate. Staff considers this reasonable for the work involved.

Council Policy provides for a standard contingency of 15 percent on public works projects involving building renovations. The standard contingency is appropriate for this project.

PUBLIC OUTREACH

To solicit contractors, this project was listed on the City’s Internet Bid Line and advertised in the San José Post Record and other Bay Area publications. Bid packages for all Department of Public Works construction projects are provided to various contractor organizations and builder’s exchanges.

COORDINATION

This project and memo have been coordinated with the Departments of Fire, Finance, General Services, Planning, Building and Code Enforcement, the City Manager’s Budget Office and City Attorney’s Office.

COST IMPLICATIONS

1.	AMOUNT OF RECOMMENDATION:				$754,813
2.	COST OF PROJECT:
		Project Delivery				$299,715
		Construction (Allocated)				$754,813
		Contingency				113,222
			TOTAL			$1,167,750
3.	SOURCE OF FUNDING:			475 - Neighborhood Security Bond
4.	FISCAL IMPACT: This project is consistent with the Council-approved Budget Strategy Economic Recovery section in that it will spur construction spending in our local economy. The proposed operating and maintenance costs of this project have been reviewed and it has been determined that the project will have no significant adverse impact on the General Fund operating budget.

BUDGET REFERENCE

Fund #	Appn #	Appn Name	RC #	Total Appn*.	Amt. For Contract	Proposed Budget Page	Last Budget Action (Date, Ord. No.)
475	4548	Fire Station Upgrades	122815	$7,327,000	$754,813	p. 246	Amended with MBA #23 and MBA #37, p. 24

CEQA

Exempt, PP02-12-389.

DALE FOSTER KATY ALLEN

Acting Fire Chief, Fire Department Director, Public Works Department