HomeMy WebLinkAbout05 - Central Library Air Handler Replacement — Award of Contract No. 9691-1 (25F02)Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
January 28, 2025
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Tom Sandefur, Assistant City Engineer - 949-644-3321,
tandefur@newportbeachca.gov
TITLE: Central Library Air Handler Replacement — Award of Contract
No. 9691-1 (25F02)
ABSTRACT:
The City of Newport Beach received construction bids for the Central Library Air Handler
Replacement project. Staff requests City Council approval to award the construction
contract to MEP Fusion Inc., of Studio City. This project replaces the aged air handlers
and hot water pumps of the Central Library, located at 1000 Avocado Avenue.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California
Code of Regulations, Title 14, Chapter 3, because this project has no potential to have
a significant effect on the environment;
b) Approve the project plans and specifications;
c) Award Contract No. 9691-1 to MEP Fusion Inc., for the total bid price of $1,199,500
for the Central Library Air Handler Replacement, and authorize the Mayor and
City Clerk to execute the contract; and
d) Establish a contingency of $180,000 (approximately 15% of total bid) to cover the cost
of unforeseen work not included in the original contract.
DISCUSSION:
As part of the Fiscal Year 2024-25 Facilities Maintenance Master Plan Program,
maintenance is needed at the Central Library facility, located at 1000 Avocado Avenue.
The library's original air handlers and hot water pumps are beyond their intended service
life and have become maintenance nuisances. The project replaces these aged
components ensuring smooth operation for decades to come.
At 2 p.m. on December 12, 2024, the City Clerk opened and read the following bids for
this project:
5-1
Central Library Air Handler Replacement Project —
Award of Contract No. 9691-1 (251`02)
January 28, 2025
Page 2
BIDDER TOTAL BID AMOUNT
Low MEP Fusion Inc. $ 1,199,500
2nd Seacliff Mechanical Services $ 1,445,075
3rd Simco Mechanical Inc. $ 1,597,001
The City received three bids for this project. The apparent low bidder, MEP Fusion Inc.,
possesses a California State Contractor's License Classification "C-20", as required by
the project specifications. A review of the contractor's references shows satisfactory
completion of similar contracts for other public agencies including the California
Department of State Hospitals, the City of Riverside, and the City of Torrance.
The apparent low bid received from MEP Fusion Inc. was approximately 9% over the
engineer's estimate of $1,100,000. The difference between the apparent lowest bid and
engineer's estimate is a reasonable margin appropriate for the extremely tight schedule
required for this project.
After the bid opening, the City received a bid protest claiming deficiencies in the apparent
low bidder's responsiveness and ability to perform the work. A similar bid protest claiming
deficiencies in the apparent 2nd lowest bidder's responsiveness and ability to perform the
work was also received. The apparent lowest bidder and apparent 2nd lowest bidder both
provided response letters which were reviewed. Staff is satisfied with the responses and
determined that the protests were without merit, and recommends the contract be
awarded to the lowest bidder. The protest letters and responses are included as
attachments to this report.
Pursuant to the contract specifications, the contractor shall have 180 consecutive days
for material and equipment procurement followed by six consecutive weeks
(34 working days) to complete the project. Work is scheduled to start in the fall of 2025.
The project plans and specifications will be available for review at the January 28, 2025,
City Council meeting or upon request.
FISCAL IMPACT:
The adopted Capital Improvement Program budget includes sufficient funding for this
contract. The contract will be expensed to the Facilities Maintenance Master Plan
(General Fund) Program Account in the Public Works Department, 57101-980000-25F02.
Account Description
Facilities Maintenance Master Plan
Facilities Maintenance Master Plan
Account Number
01201925-980000-25 F02
57101-980000-25F02
Total:
Amount
$ 999,147
$ 382,853
$ 1,382,000
5-2
Proposed fund uses are as follows:
Vendor
MEP Fusion Inc.
MEP Fusion Inc.
Various
Central Library Air Handler Replacement Project —
Award of Contract No. 9691-1 (251`02)
January 28, 2025
Page 3
Purpose
Construction Contract
Construction Contingency
Printing & Incidentals
Total:
Amount
$ 1,199, 500
$ 180,000
$ 2,500
$ 1,382,000
Due to the unique nature and location of the work (large and special -order equipment in
the basement of the Central Library), staff recommends establishing $180,000
(approximately 15% of total bid) for contingency purposes and unforeseen conditions
associated with construction.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the
CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential to have a significant effect on the environment.
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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).
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Simco Mechanical Inc. Protest Letter (MEP Fusion Inc.)
Attachment C — Simco Mechanical Inc. Protest Letter (Seacliff Mechanical Services)
Attachment D — Response to Protest (MEP Fusion Inc.)
Attachment E — Response to Protest (Seacliff Mechanical Services)
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ATTACHMENT A
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PROJECT
LOCATION
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CENTRAL LIBRARY ELEVATOR MODERNIZATION CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
LOCATION MAP -F-
IC-8939-1 23F02 04/23/24
ATTACHMENT B
SIMCO Mechanical, Inc.
787 W. Woodbury Rd, #12
Altadena, CA 91011
P: (818) 957-4994 / F: (818) 957-4804
CSLB No. 974288 (exp 06/30/26) DIR #1000005424 (exp 06/30/26)
December 20, 2024
Ellis Petersen
Associate Civil Engineer
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Re: Protest - MEP Fusion, Inc. - Bid Package and Qualifications
Project: Central Library Air Handler Replacement
Contract: 9691-1
Bid Date: December 12, 2024
Dear Ellis,
Simco Mechanical, Inc. ("Simco") submitted a bid for the above referenced project. The City of
Newport Beach ("City') has initially determined that MEP Fusion, Inc ("MEP") is the apparent low
bidder based upon preliminary bid results. The City also determined that Simco is the third
apparent low bidder. Please consider this letter as Simco's formal protest of award MEP based on
the following facts:
1. MEP's bid is non -responsive because it does not conform to the bid documents or Public
Contract Code due to their failure to list properly licensed subcontractors such as electrical,
plumbing/piping, insulation, and rigging on their Designation of Subcontractor(s) Affidavit
form. The document clearly references that "State law requires the listing of all
subcontractors who will perform work in an amount in excess of one-half of one percent of the
Contractor's total bid. If a subcontractor is not listed, the Contractor represents that he/she is
fully qualified to and will be responsible for performing that portion of the work. Substitution
of subcontractors shall be made only in accordance with State law and/or the Standard
Specifications for Public Works Construction, as applicable. "
2. Per the CSLB website, MEP has been in business as a licensed mechanical company since
October 23, 2023. Based on the stated date, MEP does not meet the three-year qualification
period as indicated on the "Contractor Industrial Safety Record" form within the bid package.
As such, Simco believes that MEP should be disqualified for lack of compliance in this
category as well.
Based upon these facts, Simco requests that the City grant Simco's bid protest by rejecting MEP's
bid as being non -responsive and awarding the contract to Simco Mechanical, Inc., the lowest
responsive and responsible bidder.
5-5
Please feel free to contact me with any questions or comments regarding this matter.
R e -sp e cj fully.
Cesar Ross
oli
CEO
5-6
ATTACHMENT C
SIMCO Mechanical, Inc.
787 W. Woodbury Rd, #12
Altadena, CA 91011
P: (818) 957-4994 / F: (818) 957-4804
CSLB No. 974288 (exp 06/30/26) DIR #1000005424 (exp 06/30/26)
December 20, 2024
Ellis Petersen
Associate Civil Engineer
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Re: Protest - Seacliff Mechanical Services - Bid Package and Qualifications
Project: Central Library Air Handler Replacement
Contract: 9691-1
Bid Date: December 12, 2024
Dear Ellis,
Simco Mechanical, Inc. ("Simco") submitted a bid for the above referenced project. The City of
Newport Beach ("City') has initially determined that Seacliff Mechanical Services ("Seacliff') is the
apparent lowest second bidder based upon preliminary bid results. The City also determined that
Simco is the apparent lowest third bidder. Please consider this letter as Simco's formal protest to
disqualify and remove Seacliff s bid based on the following facts:
1. Seacliffs bid is non -responsive because it does not conform to the bid documents or Public
Contract Code due to their failure to list properly licensed subcontractors such as electrical
and insulation on their Designation of Subcontractor(s) Affidavit form. The document
clearly references that "State law requires the listing of all subcontractors who will perform
work in an amount in excess of one-half of one percent of the Contractor's total bid. If a
subcontractor is not listed, the Contractor represents that he/she is fully qualified to and will
be responsible for performing that portion of the work. Substitution of subcontractors shall be
made only in accordance with State law and/or the Standard Specifications for Public Works
Construction, as applicable. "
Seacliffs references listed in the "Technical Ability and Experience Reference" form do not
meet the minimum requirements of $500,000 per project, performed per year, for the past
five years. As such, Simco believes that Seacliff should be disqualified for lack of compliance
in this category as well.
Based upon these facts, Simco requests that the City grant Simco's bid protest by rejecting Seacliffs
bid as being non -responsive and awarding the contract to Simco Mechanical, Inc., the lowest
responsive and responsible bidder.
5-7
Please feel free to contact me with any questions or comments regarding this matter.
Respect ly.�
Cesar Rossigno i
CEO
5-8
Ellis Petersen 12/30/2024
Associate Civil Engineer
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Re: Response to Protest — MEP Fusion, Inc. — Central Library Air Handler Replacement Project
Project No.: 9691-1
Dear Mr. Petersen,
This letter responds to the protest submitted by Simco Mechanical, Inc. ("Simco") regarding MEP
Fusion, Inc.'s ("MEP Fusion") bid for the Central Library Air Handler Replacement Project. Below,
we address the issues raised in Simco's protest:
Response to Issue 1: Subcontractor Desianation
Simco claims that MEP Fusion's bid is non -responsive due to an alleged failure to list
subcontractors for certain portions of work. This assertion is incorrect.
MEP Fusion holds both a "B" General Building Contractor license and a "C-20" Warm -Air Heating,
Ventilating, and Air -Conditioning Contractor license issued by the California Contractors State
License Board (CSLB). Under California law, a contractor holding a "B" license is authorized to
self -perform all work encompassed within the general scope of the project, provided it falls under
the permissible classifications for such a license. This includes electrical, plumbing, insulation, and
rigging work, as these tasks are incidental and necessary components of the general building
project.
In accordance with the bid documents and Public Contract Code requirements, MEP Fusion
represents that it is fully qualified and capable of self -performing the entirety of the work scope
under its "B" license classification without the need to subcontract. This is expressly permitted
under the Designation of Subcontractor(s) Affidavit, which states that failure to list a subcontractor
affirms the contractor's responsibility for performing the work.
As evidence of our qualifications, we have attached a copy of MEP Fusion's "B" General Building
Contractor license and "C-20" license. Both licenses are valid, and our experience in
self -performing such work is well -documented and consistent with state licensing laws and City
standards.
5-9
Response to Issue 2: Company License History
Simco further alleges that MEP Fusion fails to meet the three-year qualification period stated in
the bid documents due to the issuance date of our current CSLB license. This claim is based on
a misunderstanding of our licensing history.
The issuance of our current CSLB license (No. 1111182) in October 2023 resulted from an
administrative adjustment related to our company name. Specifically, a discrepancy existed
between the records of the CSLB and the California Secretary of State regarding the inclusion of
"Inc." in our company name. To resolve this, we requested a revision with CSLB to remove "Inc."
from our name, and CSLB issued us a new license number. This was a procedural matter and
does not reflect any lapse in our qualifications, business operations, or experience.
Conclusion :
Based on the above, MEP Fusion's bid is fully compliant with all applicable laws and bid
documents. Simco's protest lacks merit, and we respectfully request that the City dismiss the
protest and proceed with awarding the contract to MEP Fusion as the lowest responsive and
responsible bidder.
We are available to provide any further information or clarification as required.
Sincerely,
Adel Aziz
President
MEP Fusion
a J C, I a �, I Z,
12/30/2024
Attachments:
Copy of CSLB License — Classification B,C-20
5-10
CIcCaCONTFL;CTORS
STATE LICENSE BOARD
ACTIVE LICENSE
LIL.n.. Number 1111182 ---,CORP
a....... N.m. MEP FUSION
C20 B
a= bno..1 Oi31i2025 www.csib.ca.aov W=73
5-11
ATTACHMENT E
SEACLIFF
-�� MECHANICAL
SEQVISES
Ellis Petersen
Associate Civil Engineer
City of Newport Beach
100 Civic Center Dr.
Newport Beach, CA 92660
Re: Response to Protest - Seacliff Mechanical Services Bid
Project: Central Library Air Handler Replacement
Contract: 9691-1
Bid Date: December 23, 2024
Dear Ellis,
Seacliff Mechanical Services ("Seacliff") submits this response to the bid protest filed by
Simco Mechanical, Inc. ("Simco") regarding the above -referenced project. Seacliff maintains
that its bid fully complies with all requirements of the bid documents and applicable law,
and respectfully asserts that the protest lacks merit for the following reasons:
Proper Designation of Subcontractors
Seacliff's submission conforms to the requirements of the bid documents and the
Public Contract Code. The Designation of Subcontractor(s) Affidavit form explicitly
states that listing subcontractors is required only for those performing work
exceeding one-half of one percent of the total bid amount. Seacliff's decision to
perform certain portions of the work with in-house resources, rather than listing
subcontractors, complies with this provision. Seacliff is fully qualified to perform
these aspects of the work. Additionally, a list of Union trade partners is attached for
your reference if in fact outside Sub -contractors are required. All sub -contractors
are registered with the DIR, Licensed in California, and in good standing with CSLB.
Technical Ability and Experience
While we acknowledge that we do not meet the specific criterion of having $500,000
per project per year for five consecutive years in public works projects, we firmly
believe that our expertise, commitment to quality, and proven track record make us
an ideal partner for this endeavor. Seacliff Mechanical Services specializes in HVAC
installation and replacement, with extensive experience in commercial, industrial,
and institutional settings. While our portfolio may not reflect the exact $500,000 per
project per year threshold in public works, we have successfully completed
numerous projects of comparable scope and complexity, consistently exceeding
client expectations. Please reference Page 10 of the bid documents which states that
failure to comply with satisfactory references for multiple projects compliant with
Seacliff Mechanical Services, LLC 10661 Humbolt Ave. - Los Alamitos, CA 90720
5-12
the criteria "may be" considered non -responsive but it is not a single factor to deem
non -responsive since technical ability and experience can be proven otherwise. A
list of public agencies we conduct business with is attached for your review and
consideration. Reference letters are available upon request.
To further support our qualification, we have included a letter of recommendation from
Kevin Dupras, Facilities Maintenance Supervisor for the City of Huntington Beach. Over the
past five years, we have worked closely with Kevin and his team on various HVAC and
chiller replacement and repair projects throughout Huntington Beach. His Endorsement
highlights our reliability, attention to detail, and ability to deliver high -quality results on
time and within budget.
As a locally trusted service provider, we value the opportunity to contribute to Newport
Beach's public facilities. We understand the significance of the library as a community hub
and are dedicated to ensuring that the HVAC upgrade supports a comfortable, sustainable,
and welcoming environment for all patrons and staff.
Seacliff Mechanical has a robust financial foundation and a seasoned team of professionals
who ensure timely delivery and budget compliance. Our company's growth and success are
testament to our reliability, adaptability, and client satisfaction.
We approach every project with a tailored strategy, emphasizing collaboration with
stakeholders to address specific challenges and goals. For the library, this includes
minimizing disruption, optimizing system performance, and integrating energy -efficient
technologies to align with the city's sustainability initiatives.
Our reputation is built on long-term relationships and a client -first approach. References
from our past projects consistently highlight our transparency, responsiveness, and
dedication to achieving the highest standards of quality.
We respectfully request that the City of Newport Beach reject Simco's protest and confirm
Seacliff Mechanical Services as the lowest responsible and responsive bidder for this
project. Seacliff Mechanical Services would appreciate the opportunity to bring our
expertise and commitment to the Newport Beach Public Library HVAC replacement project.
We are confident that our team will deliver results that not only meet but exceed the
expectations of the city and its residents.
Thank you for your time and consideration. We would be happy to discuss our
qualifications further or provide additional documentation to support our proposal.
Sincerely,
(Ja
Seacliff Mechanical Services
Contractors State License Number: 1058395 (C4, C20, C36, C38)
Seacliff Mechanical Services, LLC — 10661 Humbolt Ave. — Los Alamitos, CA 90720
SFJ4LLIFF
ti ERV C rv-
Monday, December 23, 2024
List of Sub -contractors to Seacliff Mechanical Services
Please find list of trade partners Seacliff Mechanical Service conducts business with below:
- Electrical - Carol Electric (Lic # 493885) - $ 52,500
- Insulation - Preferred Insulation (Lic # 824373) - $ 13,500
- Air Balance - Hartmanaire (Lic # 534647) - $ 3,500
Reference contact information or letters available upon request.
Let me know if you have any questions.
Best regards,
Ja on Webber
--i3resident - Seacliff Mechanical Services, LLC
Contractors State License Number: 1058395 (C4, C20, C36, C38)
Seacliff Mechanical Services, LLC - 10661 Humbolt Ave. - Los Alamitos, CA 90720
2
SEACLIFF
MECHANICAL
SERVICES
Monday, December 23, 2024
Public Agency Projects Performed by Seacliff Mechanical Services
Please find list of Public Agencies Seacliff Mechanical Service is working
- OCTA
- City of Huntington Beach
- City of Pico Rivera
City of Glendale
- Orange County Fair Grounds
United States Coast Guard
- Military Sealift Command
- San Elijio Joint Powers Authority
- Santa Ana Unified School District
Montebello Unified School District
- Cypress Elementary School District
Long Beach City College
- SOCCD - Irvine Valley College
- Golden West College
- Metropolitan Water District - Helix General Contractors
Reference contact information or letters available upon request.
Let me know if you have any questions.
Best regards,
JJas �t_Sbber
deacliff Mechanical Services, LLC
Contractors State License Number: 1058395 (C4, C20, C36, C38)
Seacliff Mechanical Services, LLC - 10661 Humbolt Ave. - Los Alamitos, CA 90720
CITY OF HUNTINGTON BEACH
Public Works Department
Kevin Dupras
Facilities Maintenance Supervisor
Kevin Dupras
17371 Gothard Street
Huntington Beach, CA 92647
714-375-5035
Kevin. dupras@surfcity-hb.org
December 22, 2024
Ellis Peterson
Associate Civil Engineer
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Recommendation for Seacliff Mechanical Services
Dear Mr. Peterson,
My name is Kevin Dupras, and I am the Facilities Maintenance Supervisor for the City of Huntington
Beach. I am writing to express my confidence in Seacliff Mechanical Service's ability to handle the City
of Newport Beach Central Library Air Handler Replacement project. I have worked closely with Seacliff
Mechanical and their team for over five years on various ongoing HVAC and chiller replacement and
repair projects throughout our city. Their responsiveness and attention to detail have consistently been
exceptional, ensuring projects are completed efficiently and to a high standard.
In addition, I have had the pleasure of working with their owner, Jason Webber, for over 20 years. Jason
previously owned another HVAC company that serviced several facilities I managed. He has always
surrounded himself with the most talented professionals in the industry. His leadership and commitment
to excellence have been evident in every project.
If you have any questions or require further information about Seacliff Mechanical Services, please do not
hesitate to contact me at 714-951-7145 or kevin.dupras@surfcity-hb.org. I am confident they would be an
excellent choice for this important project.
Sincerely,
Kevin Dupras
Facilities Maintenance Supervisor
City of Huntington Beach
17371 Gothard Street, Huntington Beach, California 92647 • Phone 714-375-5035 0 www.huntingtonbeachca.gov 5-16