TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Garrett Strang, Civil Engineering Assistant
SUBJECT:
title
Award Construction Contract for the Fire Station 1 Site Improvements Project, CIP No. 21019, City Project No. 22-452
end
RECOMMENDATION
recommendation
Amend the Capital Improvement Plan Budget for Fiscal Year 2025/26 and appropriate $1,849,060.30 from the Measure T Fund Unassigned Fund Balance into CIP No. 21019;
Amend the Capital Improvement Plan Budget for FY2025/26 and appropriate $35,000 from the Measure T Fire Fund Facility Reserve into CIP No. 21019;
Award the construction contract for the Fire Station 1 Site Improvements Project, CIP No. 21019, City Project No. 22-452, to DEARK E&C, INC in the amount of $2,777,760;
Authorize a fifteen percent construction contingency of $416,664;
Authorize the City Engineer to approve contract change orders not to exceed fifteen percent of the contract amount; and
Authorize the Mayor to execute the construction contract.
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PRIOR ACTION/VOTE
On September 6, 2022, City Council approved a purchase order with Rick Engineering Company in the amount of $104,722 for Engineering Design Services for the Fire Station 1 Site Improvements Project, CIP No. 21019 (Vote 5-0).
On June 3, 2025, City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan which included the Fire Station 1 Site Improvements Project, CIP No. 21019 (Vote 5-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
DISCUSSION
The Fire Station 1 Site Improvements Project, CIP No. 21019, located at 41825 Juniper Street, will modernize, reconstruct, and upgrade the existing exterior site conditions, which have deteriorated after many years of use. General items of work consist of site and driveway concrete pavement removal and replacement, asphalt concrete paving, site demolition, survey, onsite sewer improvements and sewer lateral connection (abandonment of septic), ADA modifications, new gates and fencing, landscaping improvements, miscellaneous electrical modifications, signing and striping, gas line installation, existing natural gas generator relocation, mechanical sump pumps and wet wells, storm drain improvements, water quality improvements, underground storm chamber detention basins, modular wetland systems, and other ancillary work.
The scope of work has expanded since the initial project concept, based on the current needs of the Fire Department, as well as water quality requirements necessary when remodeling project sites. This expanded scope, along with general inflation, has increased the overall project construction cost considerably. Notably, the new concrete pavement to be constructed must have the structural capacity to withstand an 80,000-pound fire truck, which requires an engineered and reinforced structural section. Additionally, the project Water Quality Management Plan requires all on-site stormwater be captured, treated, and released systematically. This requirement is satisfied utilizing on-site water quality devices known as modular wetland systems to capture and treat the on-site stormwater which is then stored using underground storm chamber detention basins and finally released systematically into the street using two automatic, mechanical sump pumps. Other additional items of work that have increased the overall project cost consist of relocating the existing onsite natural gas generator; installation of a new gas line to connect to the relocated generator; installation of a new automatic gate and fence along B Street, including a new integrated gate control system; associated electrical modifications; landscape improvements; and other ancillary work.
Project Bidding and Determination
The City advertised the project on August 18, 2025, and received a total of 15 construction bids on September 23, 2025. The basis of the bid for determining the low bidder was defined in the specifications as the sum of the total Base Bid Items and the Additive Bid Items. The bid results are as follows:
|
|
Bidder |
Base Bid + Additive Bid Items |
|
1. |
DEARK E&C, INC |
$2,777,760.00 |
|
2. |
Riverside Construction Company, Inc. |
$2,875,927.27 |
|
3. |
Van Engineering Inc. |
$2,903,927.25 |
|
4. |
Spec Construction Co. Inc. |
$3,061,715.00 |
|
5. |
Act 1 Construction |
$3,158,283.00 |
|
6. |
R2BUILD |
$3,266,825.50 |
|
7. |
Aster Construction Services |
$3,442,855.00 |
|
8. |
CT&T Concrete Paving Inc. |
$3,661,817.00 |
|
9. |
Los Angeles Engineering, Inc. |
$3,703,420.00 |
|
10. |
Elegant Construction Inc |
$3,746,651.00 |
|
11. |
Loghmani & Associates, Inc. |
$3,765,255.00 |
|
12. |
Kunzik and Sara Construction, Inc |
$3,839,546.12 |
|
13. |
Newman Midland Corp. |
$3,933,793.63 |
|
14. |
Hillcrest Contracting, Inc. |
$5,226,167.10 |
|
15. |
CJ Concrete Construction, Inc. |
$5,761,210.00 |
Staff has elected to utilize Additive Bid Items 56 through 61. Bid items 56 through 61 were advertised on the bid sheet as Additive Bid Items in order to allow the City the option to analyze the bid items’ cost and either accept or reject any or all of the additive bid items based on the final cost of the overall project and availability of funding.
The City received a formal bid protest from the number two (2) bidder, Riverside Construction Company, Inc. protesting the bid submitted by the apparent low bidder, DEARK E&C, INC. Staff, including the City Attorney’s Office, reviewed the bid protest and determined that the noted deficiencies in DEARK E&C, INC’s bid proposal were informalities that were immediately corrected and did not provide DEARK E&C, INC. with a competitive advantage in the bid. Therefore, DEARK E&C, INC. is not subject to disqualification from being awarded the construction contract. A formal response has since been provided to Riverside Construction Company, Inc., outlining the City’s position on the bid protest.
Staff has reviewed the bids and determined that the item prices are consistent with today’s construction market. Staff recommends that the contract be awarded to the lowest, responsible bidder, DEARK E&C, INC, for $2,777,760, for the Total Base Bid and Additive Bid Items 56 through 61, plus a fifteen percent (15%) contingency of $416,664, for a total of $3,194,424.
FISCAL IMPACT
The construction contract amount to be awarded is $2,777,760, plus an additional fifteen percent (15%) contingency amount of $416,664, for a total not to exceed $3,194,424. The total estimated project costs, including associated soft costs such as design, inspection, permits, and related fees for Fire Station 1 Site Improvements Project is $3,529,191.30. Funding will be available in CIP No. 21019 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 $1,645,131, in funding for this project (CIP No. 21019). Based on total project cost estimates, staff recommends an additional appropriation of $1,884,060.30, bringing the total project budget to $3,529,191.30, to fully fund the Fire Station 1 Site Improvements Project including a contingency. CIP No. 21019 is funded by General Fund (Fund 110) and Measure T (Fund 111).
ATTACHMENTS
1. Contract between the City of Murrieta and DEARK E&C, INC
2. Proposal from DEARK E&C, INC
3. Bid Results Summary
4. Vicinity Map