MEETING DATE:
SEPTEMBER 9, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9491 – AWARDING A CONSTRUCTION CONTRACT TO HSCC, INC., FOR THE APPARATUS STORAGE: FIRE STATION 3 PROJECT (CIP# FC006), AUTHORIZING THE CITY MANAGER TO NEGOTIATE, FINALIZE, AND EXECUTE CONSTRUCTION DOCUMENTS RELATING TO THE SAME, AND APPROPRIATING ADDITIONAL FUNDS FOR THE PROJECT
Body
Recommendation
Recommendation
ADOPT a resolution awarding a construction contract to HSCC, Inc., for the Apparatus Storage Fire Station 3 Project (CIP# FC006), and authorizing the City Manager to negotiate, finalize and execute construction documents relating to the same, and appropriating additional funds for the project.
Body
Board or Commission Action
Not Applicable
Executive Summary
The Fire Department has a need for an additional apparatus storage facility at Station 3 (Project). This storage site will provide space to keep reserve apparatus appropriately housed and in ready condition when those vehicles are needed. The area will also supply needed space at the Fire Station 3 site for storage and future growth to support Fire Station 3 as demand on services increase. Fire Station 3’s site was chosen due to limited availability of space at other stations.
The City originally bid the Project in 2021. The then-lowest responsive and responsible bidder was awarded the contract. Subsequently the contractor was unable and did not perform the work. The City terminated the contract with the originally awarded contactor in 2022, and engaged with the surety to secure the difference of cost between the original bid and the expected increase in costs associated with re-bidding the Project. To date the City has not come to a suitable resolution with the Surety.
To eliminate further delay the City updated the plans to meet current code and re-bid the Project. The resulting low bids were reviewed by City staff and have identified HSCC, Inc. as the lowest responsive and responsible bidder in an amount of $1,218,785.80.
Discussion
The current low bidder represent an increase of $524,387.80 from the same bid received in 2021. The cost increases since 2021 are reflective of increasing construction costs seen throughout the construction industry. Should the City continue to delay the Project until it has successful resolution with the surety, it is expected that costs will continue to increase and the Fire Department’s needs will continue to grow. City staff has reviewed the current budget, and has determined that insufficient funding is available to award the contract to HSCC and would require additional appropriations. The increased bid amount, construction support, and contingency were considered as part of staff’s review of the budget. An increase in the budget of $700,000 is recommended to be appropriated, some or all of which may be recouped as part of resolution of the action against the surety which remains ongoing.
Therefore, staff recommends that the contract be awarded to HSCC Inc. as the lowest responsive and responsible bidder, that the City Manager be authorized to negotiate, finalize, and execute the same, and appropriate an additional amount of $700,000 the Project budget (CIP# FC006).
Environmental Review
The Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15303 Class 3 (New Construction or Conversion of Small Structures). The Project consists of the construction of a pre-manufactured garage structure on the site of an existing fire station. The Project is located on a fully disturbed and developed site in an urban area of the City of San Marcos.
Even if a project is ordinarily exempt under any of the potential categorical exemptions, CEQA Guidelines section 15300.2 provides specific instances where exceptions to otherwise applicable exemptions apply. The Project or its circumstances would not result in any exceptions identified in CEQA Guidelines section 15300.2 and, as noted above, the Project qualifies for a CEQA Exemption as identified in CEQA Guidelines section 15303 Class 3 (New Construction or Conversion of Small Structures). It can be determined with certainty that there will be no impact to the environment as a result of the Project.
Fiscal Impact
Staff recommends and appropriation of $700,000 into the FY 2025-2026 Capital Improvement Program budget for CIP# FC006. The City will continue to pursue settlement with the surety to recoup increased costs associated with the Project.
Attachment(s)
Resolution
Revised CIP Budget Sheet for FC006
Prepared & Submitted by: Isaac Etchamendy, City Engineer
Approved by: Michelle Bender, City Manager