Fremont City Council Meeting: 03/03/26 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5648) DOC ID: 5648
Updated: 2/27/2026 2:09 PM by Alberto Quintanilla Page 1 CENTRAL PARK COMMUNITY CENTER PROJECT - Approval of the Plans and Specifications and Award of Construction Contract to Zovich & Sons Inc. dba Zovich Construction for the Central Park Community Center Project (PWC9087), for the Base Bid, four Add Alternates, plus a 12% Construction Contingency, for a Total Construction Contract Amount of $37,475,200; and Authorization to Amend Professional Services Agreement with Kitchell CEM, Inc. for an Additional Amount Not to Exceed $460,000 (Including 15% Contingency).
Contact Persons:
Name: Hans Larsen Kim Beranek
Title: Public Works Director Community Services Director Div/Dept: Public Works Community Services
Phone: 510-494-4722 510-494-4330
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to initiate construction of the Central Park Community Center (CPCC) project, which includes a new community center building and an adjoining event hall. A larger than initially anticipated project to include the Event Hall has been possible due to a very favorable market for new building construction, and recent efforts and Council actions to secure additional project funding. If the construction contract is approved by the City Council, project construction is expected to start in Spring 2026 and complete by Spring 2028.
BACKGROUND: In March 2022, the City Council adopted a new Parks and Recreation Master Plan. A high priority identified, based on extensive public outreach, was the need to modernize and expand facilities for recreation and community activities citywide. A specific priority was to provide City residents with a new state of art community center in Central Park. Subsequently, and with funding support from a State of California grant (facilitated by Assemblymember Alex Lee), project planning, community outreach, environmental clearance, and final design activities have been completed. Notable milestones involving City Council approval actions have included:
• On July 18, 2023, Council approved an agreement with Group 4 Architecture Research + Planning, as the project architect, for completing the project planning and design. • On July 9, 2024, Council accepted the design concept and a multi-phase implementation plan consisting of a new 11,800 square foot Community Center (Phase 1, funded); a 9,400 square foot Event Hall (Phase 2, partially funded); and a Gymnasium and Outdoor Amphitheatre (Phase 3, unfunded). The City Council urged staff to try and implement Phases 1 and 2 together if possible.
• On February 11, 2025, Council approved the project environmental clearance, a public art program, and a contract with Kitchell CEM, for Phase 1 construction management services.
• On February 3, 2026, Council approved a $2.5 million lease agreement with LS Power for temporary use of the vacant Pacific Commons Sports Park site for storage of construction materials and equipment, with lease revenue funds appropriated to the Central Park Community Center project.
Council Staff Report (ID # 5648) Meeting of March 3, 2026 Updated: 2/27/2026 2:09 PM by Alberto Quintanilla Page 2 • On February 17, 2026, Council approved the transfer of $13.1 million from the City’s Capital Improvement Program (CIP) to the Central Park Community Center project from various sources, including an increased allocation of Park CIP funds (for development of landscaping and outdoors spaces near the new Community Center and Event Hall), a reduction in funding for the HVAC Systems Replacement program (dropping heat pump installations at the Family Resource Center and City Hall buildings due to cost feasibility issues) and a reduction in funding for the EV Charging Fleet program (due to a lack of EV police patrol cars currently being produced).
Project Scope
The specific features of the Central Park Community Center project now proposed for construction (Phase 1 and Phase 2) include:
• Demolition of the “Old” Teen Center Building, expansion and improvement of parking lot, and a new driveway access to Paseo Padre Parkway. • New Community Center with flexible indoor spaces for fitness, dance, arts, crafts, enrichment, and STEM learning; and a community meeting room. • New Outdoor Living Room with patios, furnishings, and shade features to provide social and relaxation spaces; and accommodations for a mobile coffee/snack cart and food trucks with electrical power hook-ups.
• New Event Hall, Outdoor Event Patio and Terrace with a commercial kitchen; indoor table seating capacity for 400 people and an adjoining outdoor patio with table seating capacity for an additional 200 people (600 total); and a ceremonial lawn for weddings and other events, featuring views of Lake Elizabeth and Mission Peak. • Green Building Features with solar panels, all electric energy systems, bicycle parking near front door, and EV charging at 13 parking spaces; together making it Fremont’s most environmentally sustainable facility and a “net zero” energy building.
Plans and visual renderings of the Central Park Community Center project are attached (see Exhibit A).
DISCUSSION/ANALYSIS:
Bid Results
Bids were received on February 5, 2026. The bidders with their respective bid amounts are shown below. The Engineer’s Estimate is $36,000,000.
Bidder Base Bid Amount
Zovich & Sons Inc. dba Zovich Construction $31,825,000
S.J. Amoroso Construction Co., LLC $31,837,000
Gonsalves & Stronck Construction Company Inc. $32,250,777 Roebbelen Contracting Inc. $32,641,717
Rodan Builders, Inc. $33,072,000
The low bidder, Zovich & Sons Inc. dba Zovich Construction submitted a responsive bid and all documents are in order. The contractor is experienced in this type of work and has Council Staff Report (ID # 5648) Meeting of March 3, 2026 Updated: 2/27/2026 2:09 PM by Alberto Quintanilla Page 3 satisfactorily completed contracts of similar nature. Zovich Construction was Fremont’s construction contractor for the Downtown Event Center, Housing Navigation Center, and Fire Station 2 (Niles).
The City received acceptable bids for four Add Alternates from the lowest responsible bidder, and staff recommends including these in the construction contract. The Add Alternates are as follows:
• Add Alternate #1 – Photo-voltaic (Solar) Panels - $725,000 • Add Alternate #2 – Event Hall & Lobby B Canopies - $485,000 • Add Alternate #3 – Event Lawn - $275,000
• Add Alternate #4 – Site Lighting (add eight site lighting poles) - $150,000
Project Costs and Funding
Estimated Project Costs
Design Consultants & Project Administration
Construction Contract – Base Bid
Construction Contract – Add Alternate #1
Construction Contract – Add Alternate #2
$
5,966,690
31,825,000
725,000
485,000
Construction Contract – Add Alternate #3 275,000
Construction Contract – Add Alternate #4
Construction Contingency (12%)
Construction Management Consultant – Phase 1
Construction Management Consultant – Phase 2
City Construction Administration/Inspections
Permit Fees/Special & Geotechnical Inspections
IT Equipment
Furniture, Fixture & Equipment (FF&E)
Public Art
Planning for Facility Programming & Staffing
150,000
4,015,200
1,437,500
460,000
1,000,000
900,000
400,000
1,500,000
470,000
200,000
Project Contingency 1,000,000
TOTAL ESTIMATED PROJECT COSTS $ 50,809,390
Source of Funding
PWC9087-Fund 501 – General Fund $ 31,137,478
PWC9087-Fund 525 – State Grant 9,000,000
PWC9087-Fund 539 – Park Land Replacement - Fire Impact Fee 909,811 PWC9087-Fund 540 – Park Facility Impact Fee
PWC9087-Fund 541 – Park Dedication Quimby Impact
PWC9087-Fund 543 – Park Dedication Impact Fee
8,465,472
1,389,354
70,864
TOTAL FUNDS AVAILABLE $ 50,972,979
Based on contract amount and the project cost, there are sufficient funds budgeted for the project.
Augmentation of Construction Management (CM) Services
On February 11, 2025, the City Council authorized the hiring of Kitchell CEM, Inc. for an initial amount of $1,437,500 (including 15% contingency) to provide construction management services for Phase 1 of the project (Community Center). At the time of this Council Staff Report (ID # 5648) Meeting of March 3, 2026 Updated: 2/27/2026 2:09 PM by Alberto Quintanilla Page 4 approval, staff had also negotiated a fee of $400,000 for Kitchell to provide CM services for Phase 2 of the project (Event Hall), subject to funding availability for construction. Kitchell’s agreement now needs to be amended to include the expanded scope of construction management services.
Project Schedule
As reported in the past, the goal for opening the new Central Park Community Center project was December 2027. With the expanded project scope to include the Event Hall, additional time is needed for construction. The project construction is expected to start in Spring 2026 and be substantially complete by December 2027, with subsequent work required to furnish and set up the building for public opening by Spring 2028.
Consideration of a Project Labor Agreement (PLA)
In 2020, the Fremont City Council approved an action directing staff to consider using a PLA for a future City building project. At the time, the City did not have any new building projects in its Capital Improvement Program. PLAs provide a mechanism for a city or other public agency to prioritize the use of local unionized labor for project construction and to facilitate a workforce development program for local jobs in the construction trades.
With the availability of funding for construction of the CPCC project, staff has followed up on the prior Council direction to consider a PLA. Staff conducted an evaluation of the benefits and issues associated with using a PLA. The scope of the research included a review of studies on the topic; a review of PLAs and experiences from other nearby government agencies (Hayward, Dublin, San Leandro, Fremont Unified School District, and Ohlone College); and interviews with construction management professionals.
Issues identified as part of the PLA consideration included the following:
• Higher contractor costs for having labor resources directed through Alameda County union halls, rather than allowing the contractor to select project workforce without limits on geographical area. Note that fair wages for construction workers are required by Fremont through prevailing wage policies, safe construction practices are required by Fremont’s standard construction project specifications, and quality construction is ensured through Fremont’s inspection program.
• Lack of evidence that workforce development programs are possible from a single project (success is more likely where funding is available for multiple projects over many years).
• Lack of benefit to Fremont residents, as the local population is not employed in the construction trades to a significant degree, and with employment interests being much more popular in the sectors of technology, advanced manufacturing, robotics, health care, and health sciences.
Taking into account prior input from the City Council regarding the desired outcomes of using a PLA and the priority goal of seeking to build an Event Hall as part of the initial construction phase for the CPCC project, it is viewed that not pursuing a PLA for the CPCC project is best aligned with the City Council’s overall direction and in the best interests of the Fremont community.
FISCAL IMPACT: The project will be funded through the Central Park Community Center Project (PWC9087) appropriated for this purpose through the CIP process.
Council Staff Report (ID # 5648) Meeting of March 3, 2026 Updated: 2/27/2026 2:09 PM by Alberto Quintanilla Page 5
ENVIRONMENTAL REVIEW: On February 11, 2025, the City Council found the greater Central Park Community Center project subject to no further environmental review pursuant to the streamlining provisions of California Environmental Quality Act (CEQA) Guidelines Section 15183, Projects Consistent With a Community Plan, General Plan, or Zoning. As substantiated by an Environmental Compliance Checklist prepared by LSA Associates, staff's CEQA consultant, the project was found to be consistent with the land use and intensity allowances for the site, to have no significant impacts peculiar to the project or its site, nor any cumulative or off-site impacts, or substantially more severe impacts, than those analyzed and disclosed in the General Plan Update Environmental Impact Report (State Clearinghouse No. 2010082060). As such, the provisions of CEQA Guidelines Section 15183 require no additional project analysis.
LINK: Link to information for Plans and Specifications
ATTACHMENTS:
• Exhibit A - Site Plan, Floor Plan, Architectural Design • Central Park Community Center Project Presentation
RECOMMENDATION: Approval of the following actions related to the Central Park Community Center Project (PWC9087):
1. Approve the plans and specifications for the project.
2. Accept the base bid and add Alternate Bids 1, 2, 3 and 4; award the construction contract to the lowest responsive and responsible bidder, Zovich & Sons Inc. dba Zovich Construction, in the amount of $33,460,000; allocate a 12% construction contingency in the amount of $4,015,200 for a total construction contract amount of $37,475,200 and authorize the City Manager or designee to execute the contract.
3. Authorize amendment of professional services agreement with Kitchell CEM, Inc. for an additional amount of $460,000 including 15% contingency.