Agenda Report
Fullerton City Council
MEETING DATE: MAY 20, 2025
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: DAISY PEREZ, DEPUTY CITY MANAGER
STEPHEN BISE, P.E., PUBLIC WORKS DIRECTOR
PREPARED BY: DAVID GRANTHAM, P.E., CITY ENGINEER
CHRISTIAN HERNANDEZ, PARKS AND RECREATION
MANAGER
SUBJECT: $1,845,775.95 CONTRACT WITH KASA CONSTRUCTION, INC. FOR UNION PACIFIC TRAIL P HASE II (Continued
from May 6, 2025)
SUMMARY
Award $ 1,845,775.95 construction contract to KASA Construction, Inc. for the Union Pacific Trail – Phase II Project.
PROPOSED MOTION
1. Approve Union Pacific Trail – Phase II Project plans and specifications.
2. Approve $300,000 Park Dwelling Funds (Fund 39) budget transfer and appropriation from available Fund Balance to Project 54271 Union Pacific Trail – Phase II Project within the Capital Projects Fund (Fund 74).
3. Award $1,845,775.95 construction contract for Union Pacific Trail – Phase II Project to KASA Construction, Inc. and authorize City Manager, or designee, to execute and administer the contract, in a form approved by the City Attorney.
4. Authorize Public Works Director, or designee, to approve construction and professional engineering construction support services change orders within the approved project budget.
ALTERNATIVE OPTIONS
• Approve the Proposed Motion
• Reject all bids
$1,845,775.95 Contract with KASA Construction, Inc. for Union Pacific Trail Phase II May 20, 2025 - Page 2
• Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
In reviewing the January 16, 2024 staff report, the report recommended that t he Council approve the $330,000 in Park Dwelling Funds to match the $1.78 Million State funding for the Union Pacific Trail. The $330,000 was the required match. This represented a $2,110,000 appropriation.
The report additionally estimated the total construction cost under option 1 (this option) was estimated to be $2.2 to $2.5 million.
The lowest responsive bid for the construction contract was $1,845,775.95. In addition to the bid amount, staff is asking for an additional $300,000 in Park Dwelling Funds for a total of $2,475,775. This amount is within the original project estimate, including all construction costs , that was brought to City Council in January 2024. The total cost includes a contingency and funding for the engineering services during construction.
The project will be fund ed from Park Dwelling Funds and grant funds with no impact to the General Fund.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
• Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year 2024-25 Adopted Capital Improvement Program (CIP) Budget includes $330,000 Park Dwelling Funds and a $1,777,200 California Natural Resources Agency Urban Greening Grant for the Union Pacific Trail – Phase II project. Staff recommends a $300,000 Park Dwelling Fund (Fund 39) budget transfer and appropriation from fund balance to Project 54271 Union Pacific Trail – Phase II Project within the Capital Projects Fund (Fund 74). Staff would transfer any unused contingency at the end of the project back to the Park Dwelling fund balance. This item generates no General Fund impact.
Staff attached a Budget Data Sheet / Summary of Bids and the Contractor Bid Schedule for reference (Attachments 1 and 2).
BACKGROUND AND DISCUSSION
This project would develop a new public recreational trail on a previous railroad spur track acquired by the City, connecting Independence Park to the Union Pacific Trail – Phase I Trail at Highland Avenue (Attachment 3). The improvements include an asphalt concrete paved multi-use trail, decomposed granite pedestrian path, landscaping and irrigation , solar lights, fencing and trail crossing at Richman Avenue. This portion of the trail would $1,845,775.95 Contract with KASA Construction, Inc. for Union Pacific Trail Phase II May 20, 2025 - Page 3
connect the Fullerton Train Station and Transportation Center to the Independence Park walkways and amenities.
The Parks and Recreation Department received a $1.78 million grant from the Urban Greening Program through the California Natural Resources Agency in 2020 t o fund the Union Pacific Trail Project Phase II project. The City executed the grant agreement in May 2022. The grant covers project elements such as irrigation, electrical, lighting, trail excavation and grading, recreational trail and landscaping (including 176 trees ) as well as a portion of design and construction management costs.
City Council approved an updated concept for trail improvements in January 2024 that included providing ten- foot-wide buffers along the segment between Richman Avenue and Highland Avenue for future c ommercial development use . Staff estimated total project cost at that time at $2.2 to $2.5 million.
Staff coordinated with the landscape architect, KTUA, and the granting agency throughout the design process to confirm the project met grant requirements while also following the updated concept design. Staff implemented value engineering of several items, such as increasing the spacing of shrub planting, simplifying the trail crossing at Richman Avenue and simplifying the connection at Independence Park to reduce the estimated project construction cost. Attachment 4 provides a rendering of the proposed trail improvements.
Early in the design phase, the construction cost was estimated at $4million. Because of City Council direction to keep within the estimate, staff simplified the trail crossing at Richman Avenue, and simplified the connection at Independence Park to reduce the total estimated cost prior to putting out to bid.
The City received f ourteen bids on April 22, 2025 . KASA Construction, Inc. of Chino submitted the $1,845,775.95 lowest responsible base bid which is approximately 23% lower than the $2,400,000 consultant e stimate. Staff reviewed the bid and found it acceptable. Staff recommends allocating an additional $300,000 Park Dwelling Funds to cover necessary construction administration cost and contingencies. T he attached budget data sheet shows the proposed project budget totals $2,407,200, which falls within the anticipated $2.2 to $2.5 million project budget presented at the January 16, 2024 City Council meeting. Staff would transfer all remaining budget at project closeout back to Park Dwelling Fund (Fund 39) fund balance.
Construction would tentatively start in late June 2025 with anticipated project completion in October or November 2025. Staff would notify impacted residents and businesses of upcoming project construction and potential impacts.
Staff prepared an environmental assessment in accordance with California Environmental Quality Act Guidelines and determined the project categorically exempt.
Attachments:
• Attachment 1 – Budget Data / Summary of Bids
• Attachment 2 – Bid Schedule
• Attachment 3 – Project Location Map
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• Attachment 4 - Renderings
• Attachment 5 – Draft Agreement
cc: City Manager Eric J. Levitt