DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
2026-130
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
CONSTRUCTION CONTRACT WITH AD IMPROVEMENTS, INC. FOR PHASE 2 OF
THE NORTH MALL DEMOLITION PROJECT
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve the construction contract with AD Improvements, Inc. for the demolition and disposal of three commercial buildings, consisting of 13 commercial units, at the Corona North Mall.
RECOMMENDED ACTION:
That the City Council:
a. Adopt the Plans and Specifications for the North Mall Properties Demolition – Phase 2 Project (Project), Notice Inviting Bids 26-029SB. b. Award Notice Inviting Bids 26-029SB, to AD Improvements, Inc., the lowest responsive, responsible bidder, for the total bid amount of $682,189, and waive any and all minor irregularities in the bidding document as submitted by said bidder.
c. Approve the construction contract with AD Improvements, Inc. for the demolition of the North Mall Properties – Phase 2 Project in the amount of $682,189. d. Authorize the City Manager, or his designee, to execute the construction contract with AD Improvements, Inc. in the amount of $682,189, including any nonsubstantive extensions, change orders, purchase orders, and amendments up to 10% of total contract cost or $68,218 as authorized in Section 3.08.050 (H) of the Corona Municipal Code.
e. Authorize the City Manager, or his designee, to issue a purchase order to AD Improvements, Inc., in the amount of $682,189.
BACKGROUND & HISTORY:
The revitalization of the North Mall, in the heart of the downtown, is one of the catalytic projects in the Downtown Revitalization Plan. The site, located at 6th and Main, has long been underutilized. Over time, the City has acquired nearly all of the properties within the North Mall with the intent to redevelop the site as a mixed-use project.
Part of the redevelopment process is to prepare the site ready for development, which includes demolishing the City owned buildings that are no longer in use. On October 1, 2025, the City completed the first phase of the North Mall Demolition Project. Phase 2 of the demolition project consists of the demolition and disposal of three (3) buildings, consisting of thirteen (13) commercial units. Demolition activities include, but are not limited to, utility disconnection/removals, abatement of hazardous materials, teardown of existing structures, material removal, and fill and compaction to clear the site and leave the existing pad flush to surrounding asphalt/ grade surface elevations. On April 22, 2025, the City accepted Ninyo and Moore’s proposal for Hazardous Material Testing for Phase II of demolition of the North Mall properties.
ANALYSIS:
This Project was advertised for bids on January 27, 2026, pursuant to Corona Municipal Code Section 3.08.050, Public projects-formal bidding procedure requirements. On March 2, 2026, five (5) bids were received from pre-qualified contractors through the PlanetBids bidding service.
The following is a summary of the bid results, based on Bid Schedule A and the Engineer’s Estimate:
Contractor Location Bid Schedule
Amount
Engineer’s Estimate $850,000.00
1 AD Improvements, Inc. Wildomar, CA $682,189.00
2 GAMA Contracting Services South El Monte, CA $1,041,768.50 3 Resource Environmental, Inc. Cerritos, CA $1,051,000.00 4 American Integrates Services,
Inc.
Wilmington, CA $1,114,353.90
Contractor Location Bid Schedule
Amount
Engineer’s Estimate $850,000.00
5 Force Demolition Corona, CA $1,265,200.00
Staff reviewed all bids received and recommend awarding the contract based on the Bid Schedule for a total contract amount of $682,189 to AD Improvements, Inc., as the lowest responsive, responsible bidder. All licenses and references for AD Improvements, Inc., have been reviewed and verified by City staff, and all other documentation is in order.
Demolition is tentatively scheduled to commence in May/June 2026, with completion anticipated in October 2026.
FINANCIAL IMPACT:
Funding for the recommended actions is available in the North Corona Mall Acquisitions and Improvement, Operating and Maintenance Project No. 78390 within the Measure X Fund 120.
The estimated construction cost for this project is outlined as follows:
Construction
…………………………………………………………………………………………….
$682,189
City and Consultant Construction Support (10%) …………………………………………….. $68,218
Contingency (10%)
……………………………………………………………………………………… $68,218
Total Construction Cost
………………………………………………………………………… $818,625
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt if the project involves demolition or removal of individual small structures. In urbanized area, the exemption applies to the demolition of up to three such commercial buildings on sites zones for such use. A Notice of Exemption will be filed with the County of Riverside.
PREPARED BY: KEVIN HANNA, ASSOCIATE ENGINEER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Location Map
2. Exhibit 2 – Construction Contract