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Home My WebLink About _ 4.11(d)--Award BS No. 5621 REU Power Plant Maintenance Office Building CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize and approve the following actions relative to Bid Schedule No. 5621, Redding Electric Utility Power Plant Maintenance Office Building: (1) Award to Gifford Construction Inc., in the amount of $3,152,000; (2) Approve an additional $513,000 to cover the cost of administration and inspection fees; (3) Approve $345,000 for project development costs; (4) Approve $162,000 for furniture, fixtures, and equipment; (5) Approve $315,000 to provide construction contingency funding; (6) Authorize the City Manager, or designee, to approve additional increases in either the construction management or construction contingency amounts up to a total of $50,000; and (7) Find that the Project is categorically exempt from review under the California Environmental Quality Act, pursuant to Section 15301 – Existing Facilities and Section 15303 – New Construction or Conversion of Existing Structures. Fiscal Impact The Power Plant Maintenance Office Building (Project) was initially budgeted in the Fiscal Year (FY) 2023–25 Biennial Budget in the amount of $3 million. During the development of Redding Electric Utility’s (REU) FY 2025–27 Biennial Budget, an additional $2.14 million was requested and approved for FY 2026 to support the project. This brings the total approved and appropriated funding to $5.14 million, which covers all aspects of the project, including engineering, design, and construction, ensuring the facility meets operational and maintenance needs. MEETING DATE: September 16, 2025 ITEM NO. 4.11(d) FROM: ***APPROVED BY*** mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.11(d)--Award Bid Schedule No. 5621 REU Power Plant Maintenance Office Building Michael Webb, Public Works Director Report to Redding City Council September 10, 2025 Re: 4.11(d)--Award BS No. 5621 REU Power Plant Maintenance Office Building Page 2 Cost Summary Item Estimated Project Development Costs $ 345,000 Construction Contract + Contingency $ 3,467,000 Furniture, Fixtures, and Equipment* $162,000 Contract Administration, Inspection, Testing $ 513,000 Additional City Manager Authority $ 50,000 Total Project Costs $ 4,537,000 Project Budget $ 5,140,000 * Will be procured separately, in accordance with City of Redding procurement and solicitation procedures, outside of the recommended construction contract. Alternative Action The City Council (Council) may choose not to award the project or provide alternate direction to staff. If the project does not move forward, REU power plant staff will continue to maintain mobile office trailers, which have nearly reached the end of their useful life and will require ongoing maintenance. Background/Analysis This project includes the construction of a new office building for the REU power plant maintenance operations. The building is a single-story structure, approximately 5,075 square feet in size. In addition, site improvements will be constructed, including but not limited to utility demolition and installation, site grading and paving, and carports with and without solar facilities. Attached is a tabulation of the bids opened on August 28, 2025. The low bid in the amount of $3,152,000 was received from Gifford Construction Inc. of Redding. The engineer’s estimate for the project was $3,159,000. Total project development costs for this project are estimated to be $345,000. Project development costs include engineering, surveying, environmental, and consultant services. On August 29, 2025, the City of Redding (City) received a formal bid protest from Michael A. Roberts Construction, the apparent second-low bidder for the project. The protest states that the apparent low bidder should be deemed non-responsive because they failed to include one page of the proposal packet with their bid, and that this missing page would have provided them with an advantage over other bidders. The missing page was labeled as P6, "In -Use Off-Road Diesel- Fueled Vehicle List." The California Code of Regulations requires contractors to obtain and retain a Certificate of Reported Compliance for their fleet. Per the Instruction to Bidders contained in the project’s Special Provisions, bidders must submit these Certificates of Reported Compliance to the City no later than 4:00 PM on the fifth calendar day after the bid opening, or their bid may be deemed non-responsive and rejected. Gifford Construction understood this to mean that not only did they have five calendar days to submit the certificates, but also to submit page P6 of the proposal packet. Gifford Construction submitted the certificates within the five- calendar day window. Report to Redding City Council September 10, 2025 Re: 4.11(d)--Award BS No. 5621 REU Power Plant Maintenance Office Building Page 3 Staff provided the bid protest, proposal packet, and the Instructions to Bidders from the project Special Provisions to the City Attorney’s office for review and evaluation to determine the next steps. After reviewing all of the documentation, the City Attorney’s office determined that the missing page can be waived as inconsequential and as a non-material irregularity. Therefore, staff believes that proceeding with awarding the project to the apparent low bidder, Gifford Construction Inc., is in the best interest of the City. Environmental Review Staff has determined that the project is categorically exempt from environmental review under the California Environmental Quality Act Guidelines, per Section 15301 – Existing Facilities and Section 15303 – New Construction or Conversion of Existing Structures. Class 1 exemptions include the minor alteration of existing public and private facilities, equipment, and topographical features. Class 3 exemptions consist of construction, conversion, and location of new small facilities, structures, and equipment. The new office building will be constructed within the existing Power Plant facility to support maintenance operations. The facility modification will result in a negligible expansion of use, while providing a modern facility to support reliable service. The action area does not have significant values for wildlife habitat or other environmental resources and the project has no potential to have a significant effect on the environment. Council Priority/City Manager Goals • This agenda item is a routine operational item. Attachments ^Location Map ^Bid Tabulation ^Notice of Exemption CO W A N C T CLEAR C R E E K R D AM E R I C A N R D CLEAR CREEK R D TEXA S S P R I N G S R D TEX A S S P R I N G S R D TE X A S S P R I N G S R D CITY OF REDDING LOCATION MAP EXHIBIT A Power Plant Maintenance Office Building Project 17120 Clear Creek RoadPUBLIC WORKS DEPARTMENT PROJECT LOCATION BID TABULATION FOR: REU POWER PLANT MAINTENANCE OFFICE BUILDING ENGINEER'S EST 8/28/2025 UNIT UNIT UNIT ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Water Pollution Control LS 1 $15,000.00 $15,000.00 $9,000.00 $9,000.00 $4,000.00 $4,000.00 2 Prepare Water Pollution Control Plan LS 1 $3,500.00 $3,500.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 3 Power Plant Maintenance Office Building LS 1 $3,140,500.00 $3,140,500.00 $3,142,000.00 $3,142,000.00 $3,642,167.00 $3,642,167.00 TOTAL - CONTRACT ITEMS $3,159,000.00 $3,152,000.00 $3,647,167.00 Average UNIT UNIT ITEM DESCRIPTION UNIT QTY PRICE TOTAL PRICE 1 Water Pollution Control LS 1 $0.00 $0.00 $6,500.00 2 Prepare Water Pollution Control Plan LS 1 $0.00 $0.00 $1,000.00 3 Power Plant Maintenance Office Building LS 1 $0.00 $0.00 $3,392,083.50 Average Bid Total TOTAL - CONTRACT ITEMS $0.00 $3,399,583.50 **Contractor did not submit bid per special provisions instructions and is therefore deemed non-responsive Bid Schedule No.: 5621 Gifford Construction, Inc Michael A Roberts Construction **Thompson General Construction ]