CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Protection of CREA Monitoring Wells during Deconstruction MEETING DATE: September 22, 2026
RECOMMENDATION:
Staff recommends that the City Council consider adopting a resolution authorizing and directing the Director of Public Works or his designee to inform Precision Works, Inc. dba Precision Environmental ("Precision Works") that they shall protect the monitoring wells during the Deconstruction of the Commerce Refuse-to-Energy Authority ("CREA") Facility and will not perform any of the monitoring well removal work.
BACKGROUND
The Commerce Refuse-to-Energy Authority ("CREA") Facility, located at 5926 Sheila Street, is a decommissioned industrial refuse-to-energy facility. The CREA Deconstruction Project includes deconstruction of the facility's mechanical, electrical, and plumbing systems, structural steel, foundations and footings, and hazardous-materials abatement.
On April 7, 2026, the City advertised the project for bids, and bids were received on May 5, 2026. The bid documents included a Total Base Bid Schedule for the principal deconstruction work and a separate Additive Bid Schedule that included abandonment or removal of two monitoring wells at the project site.
On June 23, 2026, the City Council awarded Precision Works a construction contract in the amount of $1,362,000 for the Total Base Bid Schedule only and subsequently on August 11, 2026, the City Council reconfirmed the award. The award excluded monitoring-well abandonment, removal, destruction, or related work.
ANALYSIS
To eliminate uncertainty regarding the authorized scope of the deconstruction contract, staff recommends that the City Council confirm that the monitoring-well work is excluded from Precision Works' contract and furthermore Precision Works and all persons acting through it are informed that they are prohibited from damaging, disturbing, abandoning, removing, filling, obstructing, or otherwise performing work on or affecting either monitoring well during the deconstruction.
The removal of the monitoring wells is anticipated to be incorporated into the construction of the new Transportation Facility. If the City elects to complete the work separately, the applicable procurement method will be determined based on the estimated cost and the monetary thresholds established under Public Contract Code section 22032. Any informal bidding will comply with the notice procedures under section 22034, and the work will not be divided into smaller projects or work orders to avoid competitive-bidding requirements, consistent with section 22033.
The proposed resolution authorizes and directs the Director of Public Works, or his designee, to issue written notice to Precision Works protecting the monitoring wells during the deconstruction work.
FISCAL IMPACT
There is no immediate fiscal impact associated with the recommended action. Any future costs related to the abandonment, removal, or modification of the monitoring wells will be evaluated and presented to the City Council for approval at a later date and as part of the construction of the new Transportation Facility.
ALTERNATIVES:
Approve recommendation
Reject recommendation
Provide staff with further direction
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