AGENDA REPORT
Meeting Date: September 30, 2025
Item Number:
To: Honorable Mayor & City Council
From: Mandana Motahari, City Architect
Ji Kim, Project Manager
Subject: AWARD OF A CONTRACT TO PCL CONSTRUCTION
SERVICES, INC. FOR THE COMMUNITY DEVELOPMENT
DEPARTMENT INTERIOR IMPROVEMENT PROJECT; AND
APPROVAL OF A CORRESPONDING PURCHASE ORDER IN
THE NOT-TO-EXCEED AMOUNT OF $1,176,795; AND
APPROVAL OF PLANS AND SPECIFICATIONS THEREFOR
WITH RESPECT TO DESIGN CRITERIA; AND
PURSUANT TO THE PROVISIONS OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), CITY COUNCIL WILL
ALSO CONSIDER FINDING THE PROJECT EXEMPT FROM
FURTHER REVIEW UNDER CEQA
Attachments: 1. Contract
RECOMMENDATION
Staff recommends that City Council:
1. Approve the award of a contract to the lowest responsible bidder PCL Construction Services, Inc. for the Community Development Department Interior Improvement Project in the amount of $1,050,709; and
2. Approve a construction contingency in the amount of $126,086 (12%); and
3. Approve a purchase order in the not-to-exceed amount of $1,176,795; and
4. Approve the plans and specifications as detailed in the bid documents, which are adopted and approved with respect to design criteria; and
5. Consider finding the project exempt from further review under the California Environmental Quality Act.
BEVERL
HILLS
Meeting Date: September 30, 2025
INTRODUCTION
The first-floor office space in City Hall was initially created as part of the Civic Center complex masterplan in the 1980’s and was re-opened for services in June 1990. Then, in 2006, in an effort to create a one-stop permit center, the first floor of City Hall was extensively remodeled. The goal of the remodel was to accommodate the needs of most customers that do business at City Hall in a central location and improve the spatial needs of the departments supporting a one-stop shop. Since 2006, smaller space modifications and system furniture rearrangements have been made as needed to accommodate the growth and changes in the department’s operation. The north wing of the first floor at City Hall accommodates staff from three of the Community Development divisions, including Planning, Rent Stabilization, and the Administration Division. Due to continuing changes, this section has outgrown its available square footage within the first-floor north wing of City Hall.
Under the Fiscal Year 2024-2025 Capital Improvement Program (CIP #00650), a need has been identified to address the aging conditions of the finishes and system furniture and the growth and operational changes within the Planning, Rent Stabilization, and Administration Divisions module. The proposed 4,745 square foot remodel will address the needs by providing an efficient layout of office and open work area and improve work group adjacencies. The remodel will also include reconfiguration of the lunchroom to create an addition of a lactation room and remodel of the existing file room to expand its use as a shared work and storage room within the same square footage.
DISCUSSION
The services of the architectural firm of Van Tilburg, Banvard, Soderbergh Inc. were engaged to prepare construction documents for the remodel project. To meet state and federal regulations, a 72 square foot lactation room has been created by reconfiguring the existing lunch/work room. The scope of work also includes the remodel of the Planning, Rent Stabilization, and the Administration Divisions work area to accommodate a larger quantity of offices and new workstations plus a new conference room within the same area, plus converting the existing file room into a shared work room/file room by consolidating record documents into a built-in high density storage unit.
The City sought to obtain bids from experienced building contractors through a prequalification/qualified bidder’s process following State guidelines. A Request for Qualifications was advertised in the local Beverly Hills newspapers and construction trade publications, as well as the PlanetBids portal. The prequalification package was posted to the PlanetBids portal on July 7, 2025. Seven companies submitted their qualifications on July 25, 2025 as follows: Balfour Beatty Construction, LLC, Build Group, Global Builders, PCL Construction Services, Inc., So Cal Construction Inc, The Nazerian Group, and Waisman Construction Inc.
Three companies, Balfour Beatty Construction, LLC, PCL Construction Services, Inc., and Waisman Construction Inc, obtained passing scores and were qualified to submit bids.
On August 11, 2025, the bid documents (RFB 26-350-3) were issued to pre-qualified contractors, and all three pre-qualified contractors attended the mandatory bid walk held on August 15, 2025.
Meeting Date: September 30, 2025
The bid documents include one additive alternate and one allowance line item as follows:
ALTERNATE NO. 1 – Refer to Exhibit ‘A’ drawings, and Exhibit ‘C’ Specifications, provide an add alternate cost for enclosed frameless glass partition in lieu of framed hard walls at west side of Private Offices #115, #116, #117, #118, and #119.
ALLOWANCE NO. 1 – Include an allowance of $15,000.00 for required HVAC control modifications and integration to building management system. This work shall be performed by Air Conditioning Solutions (ACS).
Basis of Selection
The bid documents specify that the low bid is determined by the sum of the base bid, plus all the alternates, plus the amount per diem for compensable delay cost for 20 days.
Balfour Beatty PCL Waisman
Base bid $ 1,139,163 $ 958,309 $ 1,095,000
Additive Alternate #1 $ 47,478 $ 77,400 $ 90,000
Allowance #1 $ 15,000 $ 15,000 $ 15,000
20 days delay $ 22,000 $ 4,000 $ 20,000
Basis of Selection Total 1,223,641 1,054,709 1,220,000
After review of the bids, staff has determined PCL Construction Services, Inc. is the lowest responsible bidder and has submitted a responsive bid and, as reported by the State Contractors Licensing Board, maintains a license that is current and in good standing. Furthermore, checking PCL Construction Services, Inc. references has determined that they have successfully completed projects of similar scope. Therefore, staff recommends City Council approve an agreement with PCL Construction Services, Inc. for this work.
In the best interest of the City, staff recommend accepting alternate #1 since the cost is reasonable, and this alternate will result in a better work environment, allowing more natural light to reach further into the interior space.
A contingency of $126,086 (12% of the contract amount) is recommended for changes due to unforeseen conditions in order to successfully complete the work. Expenditures from the contingency will be made utilizing the Change Order process in the Beverly Hills Municipal Code and the Contract upon adequate written justification and substantiation.
Selected Bid
Base Bid $ 958,309
Additive Alternate #1 $ 77,400
Allowance $ 15,000
Subtotal $ 1,050,709
12% Contingency $ 126,086
Total $ 1,176,795
Meeting Date: September 30, 2025
The bid documents specify that all work under the contract shall be completed within 150 calendar days from the date of the notice to proceed, resulting in an estimated completion of approximately mid-April of 2026.
ENVIRONMENTAL REVIEW
Approval of the Community Development Department Interior Improvement Project was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines and the environmental regulations of the City. Staff believes the approval of the proposed improvements is exempt from CEQA pursuant to the ‘Existing Facilities’ Section 15301 of Title 14 of the California Code of Regulations because the work involves no expansion of use within the existing City Hall facility. Based on the foregoing, staff recommends City Council find that the project is exempt from further review under the provisions of CEQA pursuant to CEQA Guidelines Section 15301 Existing Facilities.
FISCAL IMPACT
The $1,176,795 for the Community Development Department Interior Improvement Project is available as part of Fund 405, Capital Improvement Project No. 00650, Office Reconfiguration and Furniture Replacement. No additional funding is requested at this time.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 CONTRACT
CITY OF BEVERLY HILLS
CONTRACT FOR
COMMUNITY DEVELOPMENT DEPARTMENT INTERIOR IMPROVEMENT PROJECT THIS CONTRACT (“Contract”) is made and entered this 30th day of September, 2025 (“Effective Date”), by and between the CITY OF BEVERLY HILLS, a California municipal corporation (“City”) and PCL Construction Services, Inc. (“Contractor”). Contractor’s license number is 474555.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference. In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.
2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as COMMUNITY DEVELOPMENT DEPARTMENT INTERIOR IMPROVEMENT PROJECT (“Project”), as described in this Contract and in the Contract Documents.
3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of One Million Fifty Thousand Seven Hundred and Nine Dollars ($1,050,709) in accordance with the prices as submitted in Contractor’s Proposal, attached hereto and incorporated herein by this reference.
4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability).
5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties.
6. Prevailing Wages. City and Contractor acknowledge that this Project is a public work to which prevailing wages apply. The provisions of Section 7.A of the General Provisions shall apply and are mandatory for this Project.
7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to under take self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 2 9. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
10. Entire Agreement. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Contract.
11. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
CITY OF BEVERLY HILLS
By:
SHARONA R. NAZARIAN, PsyD, Mayor
ATTEST:
By:
HUMA AHMED, City Clerk
Dated:
(“CONTRACTOR”)
By:
Printed Name:
Title:
By:
Printed Name:
Title:
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
By: By:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
By:
SHANA E. EPSTEIN
Director of Public Works
By:
MANDANA MOTAHARI
City Architect
By:
SHARON L’HEUREUX DRESSEL
Risk Manager
By:
ANTHONY RODSTEIN
Purchasing Services Manager