REPORT TO THE CITY COUNCIL
FROM: Randall W. Morrison, PE, Director
Capital Projects Department
AARON A. AGUIRRE, Director
Parks, After School, Recreation, and Community Services Department
BY: francisco V. magos II, PE, Assistant Director
Capital Projects Department, Utilities and On-Site Project Management Division
MIKE MOONEYHAM, PE, Licensed Professional Engineer
Capital Projects Department, Utilities and On-Site Project Management Division
SUBJECT
Title
Award a construction contract in the amount of $249,800 to MAG Engineering, Inc of Fresno, CA, as the lowest responsive and responsible bidder for the Demolition of Existing Building and Parking Lot at 4343 Blackstone Avenue project (Bid File No. 12302820) (Council District 4)
Body
RECOMMENDATION
Staff recommends that Council award a construction contract to MAG Engineering, Inc. in the amount of $249,800, as the lowest responsive and responsible bidder, for the demolition of an existing building and parking lot at 4343 Blackstone Avenue to clear the parcel for construction of the new Senior Activity Center and authorize the Capital Projects Director or designee to sign a standardized construction contract on behalf of the City of Fresno.
EXECUTIVE SUMMARY
In July 2022, Council approved the purchase of the property located at 4343 Blackstone Avenue for the construction of the new Senior Activity Center. A vacant 40,000 square-foot building currently occupies the property, which must be demolished for the development of the Senior Activity Center.
The construction contract award is for $249,800 and is fully funded through Community Development Block Grant (CDBG) funding, which was included in the adoption of the 2023-2024 Annual Action Plan.
BACKGROUND
On July 25, 2022, Council adopted the 2nd amendment to the Annual Appropriation Resolution No. 2022-154 appropriating $4,993,300 in CDBG funds for the acquisition of 4343 Blackstone Avenue (APN 426-253-17) and 4323-4333 Blackstone Avenue (APN 426-253-19) and approved the agreement for purchase and sale of the two parcels totaling 5.51 acres for the development of the new Senior Activity Center and Affordable Housing project, also utilizing $1,466,800 of Measure P funds to complete the $6,460,100 acquisition.
The development of the new citywide Senior Activity Center will allow the City to expand services to the community by connecting seniors to vital resources that have been requested, including but not limited to the senior hot meals program, health and fitness programs, wellness programs, transportation services, volunteer opportunities, educational and arts programs, and technology programs. The proposed 30,000 square foot facility will consist of specific features and amenities that will be determined through a community engagement process and may include features such as community education rooms, aquatic facilities, a commercial kitchen, multi-purpose spaces, and indoor and outdoor recreational and fitness facilities. In order to develop the new Senior Activity Center, the existing 40,000 square-foot building and adjacent parking lot at 4343 Blackstone Avenue must be demolished.
On April 27, 2023, Council adopted Resolution 2023-134, adopting the 2023-2024 Annual Action Plan in application to the U.S. Department of Housing and Urban Development (HUD) Office of Community Planning and Development (CPD) entitlement grant programs, which recommended the allocation of $1 million in CDBG funds for the demolition of the building occupying the land acquired for the development of the Senior Activity Center. On June 22, 2023, upon completion of the required 45-day HUD review period, a Notice of Grant Authorization (NOGA) was issued to the Parks, After School, Recreation, and Community Services (PARCS) Department by the Planning and Development Department and staff began the process of soliciting bids for the demolition of the building.
The development of demolition plans and specifications was completed by City staff. On July 14, 2023, staff published a Notice Inviting Bids, which was advertised on Planet Bids and in The Business Journal. Project plans and specifications were distributed to 40 prospective bidders. Nine sealed bid proposals were received and opened in a public bid opening on August 8, 2023, with bids ranging from $249,800 to $848,916.99. MAG Engineering, Inc. of Fresno, CA, with their bid of $249,800 was determined to be the lowest responsive and responsible bidder. The apparent low bid price was 67% below the Engineer’s Estimate. The expiration date of the bids is October 11, 2023. If the bids are rejected or expire, the project must be rebid which will result in a delay of approximately 120 days.
The Community Workforce Agreement (PLA), adopted by Council in September 2021, does not apply to this contract because the engineer’s estimate for this project was less than $1 million, pursuant to the terms of the PLA.
Staff recommends approval of the construction contract with MAG Engineering, Inc. in the amount of $249,800, as the lowest responsive and responsible bidder, and authorization of the Capital Projects Director or designee to execute the contract on behalf of the city of Fresno.
The City Attorney’s Office has reviewed and approved as to form the construction contract.
ENVIRONMENTAL FINDINGS
NEPA
Pursuant to the National Environmental Policy Act (NEPA) guidelines, a Phase I Environmental Site Assessment was completed and summarized in a report dated January 27, 2022. The NEPA review concluded a Finding of No Significant Impact. The Housing and Community Development Division received authorization to use grant funds from the U.S. Department of Housing and Urban Development on May 27, 2022.
CEQA
Council adopted an addendum to the Mitigated Negative Declaration as prepared for Environmental Assessment No. P23-02319, dated April 21, 2023, for the Senior Activity Center and Affordable Housing Project on July 20, 2023. The Project Description included demolition of the grocery store building and was environmentally assessed in the initial study resulting in the finding of a Mitigated Negative Declaration. Staff has performed an analysis pursuant to CEQA Guidelines § 15162 and determined that no substantial changes have occurred with respect to the circumstances under which an addendum to the Mitigated Negative Declaration as prepared for Environmental Assessment No. P23-02319 was adopted, and that no new information, which was not known and could not have been known at the time an addendum to the Mitigated Negative Declaration as prepared for Environmental Assessment No. P23-02319 was adopted has become available. Based upon these findings, it has been determined that no further environmental documentation is required for this project.
LOCAL PREFERENCE
MAG Engineering, Inc. is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
The proposed demolition contract will have no impact to the General Fund. Funding for this project is provided by the CDBG grant program and all funds required for the contract award are included in the current fiscal year budget, as previously adopted by the Council.
Attachment(s):
Sample Contract
Bid Evaluation
Fiscal Impact Statement
Vicinity Map
Location Map