TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Crawford, Municipal Services Director
PREPARED BY: Garrett Strang, Capital Projects Program Manager
SUBJECT:
title
Award a Construction Contract for the Fire Station 1 Living Quarters Improvement Project, CIP No. 21037, MSD Project No. 26-001
end
ABSTRACT
The purpose of this item is to award a construction contract for the Fire Station 1 Living Quarters Improvements Project to the lowest responsible bidder, find the project to be exempt from CEQA, and amend the Capital Improvement Plan (CIP) budget to appropriate additional funding necessary to fully fund CIP No. 21037.
RECOMMENDATION
recommendation
Amend the Capital Improvement Plan Budget for Fiscal Year 2025/26 and establish an appropriation of $1,174,719.74 using Measure T Fund Unassigned Fund Balance into CIP No. 21037;
Find the Fire Station 1 Living Quarters Improvement Project, CIP No. 21037, MSD Project No. 26-001, to be exempt from CEQA and award the construction contract to DeArk E&C, Inc. in the amount of $1,450,000;
Authorize a 15% construction contingency of $217,500;
Authorize the Director of Municipal Services, and/or his designee, to approve contract change orders not to exceed 15% of the contract amount; and
Authorize the Mayor to execute the construction contract.
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PRIOR ACTION/VOTE
On June 3, 2025, the City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Year 2025/26 to 2029/30 Capital Improvement Plan, which included the Fire Station 1 Living Quarters Improvement Project, CIP No. 21037 (Vote: 5-0).
On July 1, 2025, the City Council approved a purchase order with TR Design Group, Inc., in the amount of $174,129, plus a 15% contingency, for a total amount of $200,248 to perform architectural and consultant services related to the remodel of Fire Station 1 under the terms of their existing on-call Professional Services Agreement with the City (Vote: 4-0-1).
On March 17, 2026, the City Council awarded the construction contract for the Temporary Modular Living Quarters Fire Station 1 in association with CIP No. 21037 to CSLM Construction Inc. in the amount of $217,822.74, and authorized the City Manager to execute the contract on behalf of the City (Vote: 5-0).
On May 5, 2026, the City Council approved a Purchase Order for Construction Management Services for the Fire Station 1 Living Quarters Improvement Project, CIP No. 21037, to Griffin Structures in the amount of $247,160 under the terms of their existing on-call General Services Agreement with the City (Vote: 5-0).
STRATEGIC ALIGNMENT
This item aligns with the City Council goal of: providing a high level of innovative public safety relating to priority Tier 1. This project includes a full remodel of the existing living quarters at Fire Station 1.
DISCUSSION
The Murrieta Fire and Rescue Station 1 Living Quarters is a 38-year-old facility that is due for renovations to address aging infrastructure and deferred maintenance affecting both the interior and exterior of the building, as well as to provide quarters for female staff that could be assigned to the station in the future. The existing amenities and layout no longer fully support the size of modern apparatus or current staffing needs, making a comprehensive overhaul of the living quarters imperative to the Fire Department’s operations. The proposed remodel will address critical needs, including spatial constraints, modernize living accommodations, update the facility’s outdated mechanical, electrical, and plumbing equipment, modernize the living quarters (bedrooms, common areas, patio, office spaces, kitchen, restrooms, showers, etc.), address safety concerns, ADA Improvements, accessibility, and address the current and future needs of the Fire Department.
During construction, on-duty firefighters will be relocated to temporary modular living quarters on site at Fire Station 1. Normal operations of the Fire Station will remain unchanged, and emergency response capabilities will not be impacted.
PROJECT BIDDING AND DETERMINATION
The City of Murrieta (City) advertised the project on March 26, 2026, and received a total of 13 construction bids on April 28, 2026. The basis for determining the low bidder was defined in the specifications as the sum of the Base Bid. The bid results are as follows:
|
|
Bidder |
Total Base Bid |
|
1. |
DeArk E&C, INC |
$1,450,000.00 |
|
2. |
Tovey/Shultz Construction, Inc. |
$1,670,026.73 |
|
3. |
R.C. Construction Services |
$1,670,537.00 |
|
4. |
SWCS Inc |
$1,874,737.00 |
|
5. |
Blackstone Builders Inc. |
$1,976,899.00 |
|
6. |
Coelho Inc |
$1,998,360.00 |
|
7. |
R. Dependable Construction Inc. |
$2,185,000.00 |
|
8. |
Caliba Inc. |
$2,251,443.40 |
|
9. |
M. Brey, Inc |
$2,376,050.07 |
|
10 |
MLC Constructors, Inc. |
$2,464,817.00 |
|
11 |
AA Modern General Contractors Inc. |
$2,487,000.00 |
|
12. |
First Trade |
$2,575,000.00 |
|
13. |
Leonida Builders Inc |
$2,733,000.00 |
The City received a formal bid protest from the number two (2) bidder, Tovey/Shultz Construction, Inc. (Tovey/Shultz), protesting the bid submitted by the apparent low bidder, DeArk E&C, Inc. (DeArk). Staff, including the City Attorney’s Office, reviewed the bid protest and determined that the noted deficiencies in DeArk’s bid proposal were either informalities, immaterial to the outcome of the bid, or were otherwise deemed not to be valid and did not provide DeArk with a competitive advantage in the bidding process. Therefore, DeArk is not subject to disqualification from being awarded the construction contract. A formal response was provided to Tovey/Shultz outlining the City’s position on the bid protest.
Staff reviewed the bids and determined that the item prices are consistent with today’s construction market. Staff recommends that the construction contract be awarded to the lowest responsible bidder, DeArk E&C, Inc., in the amount of $1,450,000 for the total Base Bid, plus a 15% construction contingency of $217,500, for a total of $1,667,500.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
Staff recommends exemption of this project from the California Environmental Quality Act (CEQA) pursuant to section 15302 (Class 2 Categorical Exemption) of the CEQA Guidelines because this project involves “replacement or reconstruction” of existing infrastructure or facilities and is on the same site serving the same purpose and capacity as the facility being replaced without expanded use.
FISCAL IMPACT
The fiscal impact for approval of the construction contract is $1,450,000, plus an additional 15% contingency amount of $217,500, for a total not to exceed amount of $1,667,500. The total estimated project costs, including associated soft costs such as design, inspection, permits, purchase of temporary modular living quarters, construction management, and other administrative costs for the Fire Station 1 Living Quarters Improvement Project, are $2,674,719.74. Funding will be available in CIP No. 21037 upon approval of the requested amendments to the Operating Budget and Capital Improvement Plan Budget for Fiscal Year 2025/26.
As part of the prior-year Capital Improvement Plan budget development, City Council approved $1,500,000, in funding for this project (CIP No. 21037). Based on total project cost estimates, staff recommends an additional appropriation of $1,174,719.74 from the Measure T Unassigned Fund Balance into CIP No. 21037, bringing the total project budget to $2,674,719.74, to fully fund the Fire Station 1 Living Quarters Improvement Project, including contingency. CIP No. 21037 is funded by Measure T (Fund 111).
ATTACHMENTS
ATT 1 - Contract between the City of Murrieta and DeArk E&C, Inc.
ATT 2 - Proposal from DeArk E&C, Inc.
ATT 3 - Bid Results Summary
ATT 4 - Vicinity Map