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AWARD OF THE COSTA MESA FIRE STATION NO. 3 ABOVE GROUND STORAGE TANK INSTALLATION, CITY PROJECT NO. 25-12
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DEPARTMENT: PUBLIC WORKS DEPARTMENT/GENERAL SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: PATRICK BAUER, DEPUTY PUBLIC WORKS DIRECTOR, (714) 754-5029
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Award a Public Works Agreement (PWA) in the amount of $409,996 to Fleming Environmental, Inc., Fullerton, CA, to install a new above ground diesel storage tank, fuel management solution, and accompanying items at the Costa Mesa Fire Station No. 3.
2. Authorize an additional ten percent (10%) contingency in the amount of $41,000 as needed for any unforeseen costs related to the project.
3. Authorize the Interim City Manager and the City Clerk to execute the PWA and any future amendments to the agreement within Council authorized limits.
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BACKGROUND:
The Costa Mesa Fire Station No. 3, located at 1865 Park Ave., is utilized for 24-hour emergency response operations. The facility was built in 1979 and has a footprint of 6,486 square feet. This project consists of prepping the site and pouring a concrete pad, followed by the installation of a 2,000 gallon above-ground diesel storage tank. The storage tank will be accompanied by a comprehensive fuel management solution, sub panel and tank panel to monitor the tank and track fuel usage, as well as a metal canopy structure to cover and protect the tank and panels.
ANALYSIS:
There were seven (7) bids received for this project on August 22, 2025, however only five (5) bidders submitted a cashier’s check or bidders’ bond to the City Clerk by the required deadline.
Amali Engineering Contractors, Inc. was the apparent lowest bidder with a proposal of $350,000. However, due to requirements in the project specifications, Amali Engineering Contractors, Inc. was deemed to be non-qualified as they lack experience relating to fueling systems and not having a history of at least three (3) years of construction work. In addition, the owner of Amali Engineering Contractors, Inc. agreed that they were not qualified based on the project specifications. The next lowest bidder was Elegant Construction, Inc., which also did not qualify based on the project specifications, particularly lack of experience with the type of work requested.
The third lowest bidder was Fleming Environmental, Inc., satisfying all the requirements per the project specifications. The original bid from Fleming Environmental, Inc. came in at $417,996, but reduced by $8,000 to $409,996. The bid abstract is included as Attachment 1. The license and references of Fleming Environmental, Inc. were verified, and staff has found them to be in good standing.
Upon award of the PWA (Attachment 2), Fleming Environmental, Inc. will provide the necessary bonds and insurance, which will be approved as to form by Risk Management. After the award and subsequent execution of the agreement, a “Notice to Proceed” will be issued.
ALTERNATIVES:
The alternative to this Council action would be to reject all bids and rebid the project. Staff has determined that re-advertising and re-bidding the project will not result in lower bids and will delay the project.
FISCAL REVIEW:
The total funding for this project, inclusive of a ten percent (10%) contingency, in the amount of $450,996 is available in the Fiscal Year 2025-26 Capital Improvement Project (CIP) Fund 401.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this staff report, prepared the PWA, and approves them both as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This project works toward achieving the following City Council goals:
• Maintain and enhance the City’s facilities.
CONCLUSION:
Staff recommends the City Council:
1. Award a Public Works Agreement (PWA) in the amount of $409,996 to Fleming Environmental, Inc., Fullerton, CA, to install a new above ground diesel storage tank, fuel management solution, and accompanying items at the Costa Mesa Fire Station No. 3.
2. Authorize an additional ten percent (10%) contingency in the amount of $41,000 as needed for any unforeseen costs related to the project.
3. Authorize the Interim City Manager and the City Clerk to execute the PWA and any future amendments to the agreement within Council authorized limits.