AGENDA
ITEM
14 AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND MEXICO MEET
14 CITY COUNCIL
AGENDA STAFF REPORT
DATE: April 1, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin A. Martinez, City Manager
REVIEWED BY: Karla Chaparro, Finance Director Je
Jup
PREPARED BY: Jesus Villegas, Public Works Director/City Engineer SUBJECT: Community Center and Senior Hall Kitchen Upgrade Project No. 2025- Authorize City Manager to Sign Change Order No. 1 with LZ Construction, Inc. in the Amount of $15,000.00 for Community Center and Senior Hall Kitchen Upgrade Project No.2025-600. b) Adopt Budget Amendment Resolution for Fund No. 255 in the Amount of $15,000.00 for Community Center and Senior Hall Kitchen Upgrade Project No.2025-600.
2E22:= ==:
Recommendation:
It is recommended that the City Council of the City of Calexico approve the following:
c) Authorize City Manager to Sign Change Order No. 1 with LZ Construction, Inc. in the amount of $15,000.00 for Community Center and Senior Hall Kitchen Upgrade Project No.2025-600.
d) Adopt Budget Amendment Resolution for Fund No. 255 in the amount of $15,000.00 for Community Center and Senior Hall Kitchen Upgrade Project No.2025-600.
Background:
On November 5, 2025, the City Council of the City of Calexico approved the bid documents for Community Center and Senior Hall Kitchen Upgrade Project No. 2025-600 and authorized the Public Works Department to send the project out to bid.
On February 4, 2026, the City Council of the City of Calexico approved the following:
a) Award Bid Proposal and Authorize City Manager to Sign Construction Agreement between the City of Calexico and LZ Construction, Inc. in the amount of $92,800.00 for- Community Genter and Senior Hall Kitchen Upgrade Project No. 2025-600. b) Authorize City Manager to Approve Any Future Change Orders Not-to-Exceed $9,280.00 (10% of LZ Construction, Inc. Base Bid) as per City Ordinance No. 1218. c) Reject Bid Proposals from Andrade Construction and TB High Performance due to Non- Responsive Bid.
d) Adopt Budget Amendment Resolution for Fund No. 255 in the amount of $11,480.00 for Community Center and Senior Hall Kitchen Upgrade Project No. 2025-600.
Discussion and Analysis:
On March 16, 2026, LZ Construction, Inc. began work on the Community Center kitchen as part of the Community Center and Senior Hall Kitchen Upgrade Project. During the demolition phase, specifically while breaking the floor concrete to access plumbing, the contractor identified that the existing underground plumbing is in severely deteriorated condition. This condition was unforeseen and not identified prior to construction, making it necessary to address immediately to avoid delays and additional costs.
The Community Center and Senior Hall facilities have scheduled rentals beginning in April.
Staff is working to complete the project in a timely manner to avoid disruptions or cancellations of these reservations.
Due to the urgency of the situation and the active construction schedule, staff recommends that the City Council approve the following:
a) Authorize the City Manager to execute Change Order No. 1 with LZ Construction, Inc. in the amount of $15,000.00 for the Community Center and Senior Hall Kitchen Upgrade Project No. 2025-600.
b) Adopt a Budget Amendment Resolution for Fund No. 255 in the amount of $15,000.00 for the Community Center and Senior Hall Kitchen Upgrade Project No. 2025-600.
Fiscal Impact:
ARPA EXPENSE ACCOUNT
From 255-91-908-56000-002 - Local Assessment Center ($15,000.00) To 255-91-927-56000-030 - Recreation Kitchen Upgrades $15,000.00 TOTAL $ 15,000.00
Coordinated With:
City Manager's Office.
Finance Department.
Recreation Department.
2 Attachment(s):
1. LZ Construction Inc. Change Order No. 1.
Budget Amendment Resolution No. 2026- for Fund No. 255.
ATTACHMENT #1
CITY OF CALEXICO
PUBLIC WORKS DEPARTMENT
CHANGE ORDER NO. 1
Name of Project: Community Center and Senior Hall Kitchen Upgrade ABle Project No. 2025-600
CALEXICO Name of Contractor: LZ Construction, Inc.
Date: April 1, 2026
# Description Price Price Time
Increase Decrease Extension
Replacement of existing sewer line and concrete patch $ 15,000.00 Sub-Total $ 15,000.00
Total $ 15,000.00
Contract Amount $ 92,800.00
Total Contract Amount (Contract + Change Order No. 1) 107,800.00 Benjamin A. Martinez, City Manager
City of Calexico, 608 Heber Avenue, Calexico, California Julio Lainez, Chief Executive Officer
LZ Construction, Inc., 5247 Lack Rd., Brawley, CA 92227
PROJECT SCOPE
Project Summary
Replacement of an existing sewer line and concrete patch according to City of Calexico Specifications.
Procedural Expectations
All waste material will be removed appropriately and will be disposed according to California Laws and regulations.
Materials and Services Not Included
This proposal covers only the labor, services, materials, and goods outlined herein. This proposal does not cover additional work that may arise once work begins
EXISTING CONDITIONS
CONDITION NECESSARY ACTION PARTY RESPONSIBLE
In need of repairs Install new sewer line City of Calexico the scope of extra work, costs involved with remedying the existing conditions, and a date for payment through a written Change Order.
PROJECT COSTS
Bid Description Unit Quant
Item (Labor & Materials) lty Unit Price TOTAL
EA 1
1 Mobilization, including permits an associate fees. $3,000 $3,000
Trench/sawcut existing concrete to expose current EA 1
2 sewer line. $7,000 $7,000
3 Replace existing sewer line with new and patch EA 1 $5,000 $5,000 concrete.
ESTIMATE PROPOSAL
*This estimate is valid for a period of thirty (30) days from the date of issuance. Any revisions to the project scope, design, or site conditions may result in adjustments to the final cost.
Subtotal $15,000.00
TOTAL LABOR & MATERIAL
*Labor at Prevailing Wages $15,000.00
TAXES, PERMITS, BONDS, AND FEES: Bid estimate includes all applicable state taxes, bonds, and fees, as required by all legal authorities at the location of the project.
UNFORESEEN CONDITIONS: City of Calexico ngrees to pay all costs arising from unforeseen conditions encountered at the Site which are: (1) subsurface or otherwise concealed physical conditions which liffer materially from those indicated in the Contract Documents and were otherwise unknown or not letected by the Contractor prior to performance of the Work; or (2) unknown physical conditions of ar unusual nature, which differ materially from those ordinarily found to exist and generally recognized as inherent in the Imperial County Area. If such circumstances arise, L.Z, Construction, Inc will work with City of Calexico to determine the scope of extra work, costs involved with remedying the unforeseeable conditions, and a date for payment through a written Change Order.
PAYMENT TERMS
Payment Schedule: Milestone/ Progress Payments
Contractor will complete the deliverables and/or complete specified milestones, and Client will pay Contractor upon acceptance of Deliverables or timely completion of a milestone, according to the following schedule provide in the executed contract.
RELEVANT DOCUMENTATION
Construction projects are a big undertaking and include many different teams, processes, and moving parts.
As such, it's important to know who the point of authority is for any given process on the worksite. Below i a list of the necessary processes involved in the completion of the Project as well as the person in charpe of each team.
ESTIMATE PROPOSAL
TEAM POINT OF AUTHORITY CONTACT
Julio Lainez Chief Executive Office/Field Manager (760) 335-8479 Joey Imperial RMO/Secretary (760) 235-3675
Jaciel Lainez Chief Financial Officer (760) 235-3675
WORK SCHEDULE
LZ Construction, Ine has reviewed the specifications and necessary materials for the completion of the project and drawn up a proposed timeline of work that is as follows:
DEADLINE DATE
1-5 days to complete TBD
A. Commercial General Liability Insurance (CGL).
LZ Construction, Inc carries commercial general liability insurance written by:
Associated Industries Ins. Co.
P.O. Box 318004
Cleveland, OH 44131-0880
B. Workers' Compensation Insurance.
LZ Construction, Inc carries workers' compensation insurance:
Endurance Assurance Corporation
Policy: EAW00002450-00
C. Public Works Registration.
LZ Construction, Inc is register with the Department of Industrial Relations as a Public Contractors Registration Number: PW-LR-1000878077
LIMITED LIABILITY: Contractor will not be held liable for delays to work schedule caused by project owner, permit approvals, poor weather conditions, and/or any circumstances beyond the contractor's control.
ESTIMATE PROPOSAL
REFERENCES
Project: City of El Centro-Yard Improvement Project
Contact/Reference: Javier Villaverde (760) 337-4543 E-mail: [email protected] Description of Bidder's Work: Install new metal Carport, install new metal storage building. Install new concrete pads. Renovate existing yard maintenance building. Install new flooring, install new shower, install new kitchen, and paint.
Project: Department of Homeland Security- Utilities Installation Border Patrol Indio Office Contact/Reference: Jose Ramirez (760) 335-5911 E-mail: [email protected] Description of Bidder's Work: Install new electrical, plumbing, and concrete for Kennels according to plans & specifications.
Project: Osterkamp Ranches-Office Renovation
Contact/Reference: Erin Garcia (760) 344-3361 E-mail: [email protected] Description of Bidder's Work: Remodel existing bathroom, build new bathrooms, remodel existing kitchen.
Renovate office, renovate bathrooms, & renovate kitchen. Remove walls, insulate, drywall, texture, paint, install ADA accessories. Upgrade plumbing, electrical, sewer, and install mini split air conditioner.
Project: IV Housing Authority-Apartments Restoration
Contact/Reference: Rene Osuna (760)-351-7000 ext.113 E-mail: [email protected] Description of Bidder's Work: Restore four apartment buildings (destroyed by fire) by framing, installing new electrical, new plumbing, painting, flooring, fire sprinkles, and code upgrades.
Project: UCLA Health-Commercial Building Renovation
Contact/Reference: Jamie Wells (213) 742-1009 E-mail: [email protected] Description of Bidder's Work: Renovate commercial building including removing walls, building multiple consulting rooms, ADA compliant restrooms, break rooms, x-ray room, and reception area.
Project: San Diego State University- Concession Area Renovation Contact/Reference: Derek Grant (619)-518-2278 E-mail: [email protected] Description of Bidder's Work: Install new electrical, pony wall, drywall, texturc, paint, LVT flooring, and custom wall rack.
Project: New Home Construction
Contact/Reference: Keila Vanessa Verdugo (760) 508-9741 E-mail: [email protected] Description of Bidder's Work: Build a new 1,475SQFT home according to approved plans and specifications.
Project: New Home Construction
Contact/Reference: Alfonso Alvarez (760) 427-9767 E-mail: [email protected] Description of Bidder's Work: Build a new 3,200SQFT home according to approved plans and specifications.
ESTIMATE PROPOSAL
The undersigned, having carefully examined and thoroughly perused specifications for the above named project, and become fully familiar with all conditions affecting the work required by those specifications, hereby proposes to provide all materials, labor, services, etc. required thereby for the base bid sum of:
ESTIMATE PRICE: $15,000.00
JULIO LAINEZ Julio Lainez
CHIEF EXECUTIVE OFFICER 3/26/2026
LZ CONSTRUCION, INC
ESTIMATE PROPOSAL
ATTACHMENT #2
BUDGET AMENDMENT RESOLUTION NO.
BUDGET AMENDMENT RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF CALEXICO AUTHORIZING AN AMENDMENT
TO THE FINAL BUDGET FOR FISCAL YEAR 2025-26
WHEREAS, the Final Budget for Fiscal Year 2025-26 was adopted by Resolution No. 2025-24 of the City Council on June 30, 2025; and
WHEREAS, the City Council has authorized the amendment of the Final Budget, in accordance with proper governmental accounting and financial reporting practices; and NOW THEREFORE, the City Council of the City of Calexico hereby resolves and authorizes the following action(s) AMENDMENTS TO ADOPTED BUDGET:
1) Record Revenue Estimates(s)
Fund No. Department Division Account Sub-Account Amount Total $0.00
2) Record Appropiation(s)
Fund No. Department Division/ Project/ Account Name Account Sub-Account Amount Project
Total $ -
3) Record Transfer of Funds:
FROM:
Fund No. Department Division/ Project/ Account Name Account Sub-Account Amount Project
255 91 908 Local Assmt Center 56000 002 $ 15,000.00
Total $ 15,000.00
TO:
Fund No. Department Division/ Project/ Account Name Account Sub-Account Amount Project
255 91 927 Recreation Kitchen Upgrade 56000 030 $ 15,000.00 Total $ 15,000.00
cc: Finance Department
FORM FIN003(Revised 07/2016)
5)Purpose of Budget Amendment:
To cover for expenses related to the Community Center's Kitchen Improvements Project.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Calexico at the regular meeting this 1st of April, 2026.
Victor Legaspi, Mayor
ATTEST:
Veronica Alvarado, City Clerk
APPROVED AS TO FORM:
CARLOS CAMPOS, City Attorney
STATE OF CALIFORNIA)
CITY OF CALEXICO ) ss.
COUNTY OF IMPERIAL)
I, Veronica Alvarado, City Clerk of the City of Calexico, do hereby certify under the penalty of perjury, that the foregoing Resolution No. 2026- was duly adopted by the City Council at a meeting of said City Council held on the 1st day of April, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Veronica Alvarado, City Clerk
City of Calexico
cc: Finance Department
FORM FIN003(Revised 07/2016)