REPORT TO THE CITY COUNCIL
April 27, 2017
FROM: BRIAN R. MARSHALL, Director
Department of Transportation
BY: JIM SCHAAD, Assistant Director
Department of Transportation
SUBJECT
Title
Reject all bids for design, build, and lease with option to purchase public safety fleet facility (Bid File 3491)
Body
RECOMMENDATION
Staff recommends Council reject all proposals for design, build, and lease with option to purchase public safety fleet facility.
EXECUTIVE SUMMARY
The Department of Transportation is seeking to reject all proposals received for the design, build, and lease with option to purchase public safety fleet facility. Three (3) proposals were submitted, with the lowest bid 48 percent above the estimated cost.
BACKGROUND
The City of Fresno owns and operates a fleet of over 2,200 units. The City’s fleet is comprised of a variety of light and heavy equipment, used by multiple departments including Police, Fire, Public Utilities, Public Works, PARCS, and others. The Fire Department currently maintains its equipment in a 5,000 square foot facility that is over 100 years old. This building is grossly undersized for the maintenance performed on the department’s fleet of over 72 apparatus, 57 light vehicles, and a multitude of other equipment, such as SCBA gear, chainsaws, jaws of life, etc. The City’s Police Department operates approximately 37 heavy vehicles and 715 pieces of light equipment.
As part of the FY 2017 budget process, the City made a decision to reorganize the maintenance of vehicles and equipment. A Public Safety Fleet Management Division was created to consolidate the maintenance of nearly 900 pieces of public safety equipment. This will allow additional fleet management resources to be focused on the public safety fleet. In conjunction with the restructure, staff intended to construct a new maintenance facility to maintain the public safety fleet, providing a facility adequate for the growing needs of the Fire and Police Departments.
Bid specifications were prepared for the project. A Notice Inviting Bids was published on November 21, 2016, and posted on the City’s website. The specifications were distributed to 19 prospective bidders and faxed to six builder exchanges. Three sealed bid proposals were received and publicly opened on January 16, 2016. The bid proposals ranged from $7,411,655.00 to $15,600,000.00. The lowest proposal price is 48 percent above the estimated cost. Therefore, staff recommends all proposals be rejected. City staff is currently researching more cost-effective alternatives that will meet the facility needs of the public safety fleet.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the rejection of all bids does not qualify as a “project” for the purpose of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because this item is rejecting all bids received for the design, build, and lease with option to purchase public safety fleet facility.
FISCAL IMPACT
The rejection of all bids will result in no financial impact to the General Fund.
Attachment:
Bid Evaluation