CITY OF COMMERCE AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Approval of a Professional Services Agreement with SPECS Engineering Group Inc. for Construction Management and Construction Inspection Services for the CREA Deconstruction Project MEETING DATE: September 22, 2026
RECOMMENDATION:
Staff recommends that the City Council consider adopting a resolution approving a Professional Services Agreement with SPECS Engineering Group Inc. ("SPECS") to provide construction management and construction inspection services for the Deconstruction of the Commerce Refuse-to-Energy Facility Project in a total not-to-exceed amount of $154,100.
BACKGROUND:
The Commerce Refuse-to-Energy ("CREA") Facility, located at 5926 Sheila Street, is a decommissioned industrial refuse-to-energy facility. The CREA Deconstruction Project includes removal of the facility's mechanical, electrical, and plumbing systems; structural steel; foundations and footings; hazardous-materials abatement; and related site work.
On June 23, 2026, the City Council awarded the construction contract for the project and, on August 11, 2026, directed staff to proceed with the contract. To support the City during preconstruction, construction, and closeout, the City issued a Request for Proposals (RFP) on August 18, 2026, seeking a qualified firm to provide construction management and construction inspection (CMCI) services and federal compliance support.
ANALYSIS:
On September 1, 2026, the City received three proposals. The proposals were reviewed in accordance with the criteria established in the RFP, including project understanding and technical approach; relevant construction management, inspection, and deconstruction experience; qualifications, availability, and organization of the proposed team; and fee, level of effort, and overall value.
Interviews were held on September 14, 2026, with all three firms that submitted proposals. During the interviews, the firms were evaluated on their understanding of the project, proposed approach, qualifications and availability of key staff, ability to manage the construction schedule, field inspection and documentation procedures, and approach to FTA grant and federal compliance requirements.
Based on the combined proposal and interview evaluations, SPECS received the highest overall score. SPECS demonstrated a strong understanding of the deconstruction scope, proposed an experienced team, and presented a comprehensive approach to construction oversight, schedule and cost control, field documentation, hazardous-material and environmental coordination, federal compliance, and project closeout. Staff determined that the proposed staffing, level of effort, and fee provide the best overall value to the City and recommends approval of the Professional Services Agreement.
ALTERNATIVES:
1. Approve staff recommendation
2. Disapprove of staff recommendation
3. Provide further directions for staff
FISCAL IMPACT:
The total cost of the proposed agreement is not to exceed $154,100, including a 15% contingency. The agreement will be funded through existing FTA grant funds allocated to the new Transit Facility. Sufficient funding is available within Account No. 57-8338-60090.14151. No additional appropriation is required at this time.
Professional Services Contract Amount
$134,000
Contingencies (15%)
$20,100
Total
$154,100
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item relates to the 2016 Strategic Plan, Infrastructure and Facilities:
Guiding Principle 4: Develop and invest in infrastructure and beautification projects that support economic growth Approved and Recommended by: Andy Ramirez, Interim Director of Public Works Claude McFerguson, Director of Transportation
Fiscal Impact reviewed by: Alvaro Castellon, Director of Finance Approved as to form by: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager ATTACHMENTS:
Resolution