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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Preservation and Reuse of the Former Rockhaven Sanitarium Project.
1. Motion authorizing the City Manager or his designee to execute a construction contract with ARC Construction, Inc. for the Preservation and Reuse of the Former Rockhaven Sanitarium Project in the amount of $6,422,796, plus a 10% contingency of $642,000 (Option 1).
2. Motion authorizing the City Manager or his designee to execute a construction contract with ARC Construction, Inc. for the Preservation and Reuse of the Former Rockhaven Sanitarium Project in the amount of $6,730,025 plus a 10% contingency of $673,000 (Option 2).
3. Resolution of appropriation to appropriate funds for the Preservation and Reuse of the Former Rockhaven Sanitarium Project for Tier 1 (Option 1)
4. Resolution of appropriation to appropriate funds for the Preservation and Reuse of the Former Rockhaven Sanitarium Project for Tier 1, 2 and 3 (Option 2)
COUNCIL ACTION
Item Type: Action Item
Approved for July 15, 2025 Calendar
EXECUTIVE SUMMARY
Following a formal competitive bidding process, ARC Construction. Inc., (ARC) was the lowest bidder for the Preservation and Reuse of the Former Rockhaven Sanitarium Project. The project aims to renovate the Pines Cottage for use as a museum, along with accessibility improvements to the Rockhaven grounds, and the establishment of off-site parking, which represents a comprehensive effort to enhance the site’s historical and functional value.
The purpose of this item is to seek City Council's approval to award a construction contract to ARC for their base bid amount, or their base bid amount plus their alternate bid amount, both of which will require a resolution of appropriation to appropriate additional funds. The total cost of the proposed project will vary based on the alternative chosen.
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RECOMMENDATION
Approve a motion authorizing the City Manager to either execute a construction contract with ARC for the Preservation and Reuse of the Former Rockhaven Sanitarium Project in the amount of $6,422,796 plus a 10% contingency of $642,000, and a resolution of appropriation providing adequate funding for this project or a motion authorizing the City Manager to execute a contract in the amount of $6,730,025 plus a 10% contingency of $673,000, and a resolution of appropriation providing adequate funding for this project.
ANALYSIS
The Rockhaven Sanitarium is a 3.4-acre site with 15 buildings located at 2713 Honolulu Avenue. The former women’s sanitarium was acquired in April 2008 and listed on the National Registry of Historic Places in 2016. There have been three attempts since 2014 to partner with private entities to renovate the site. The last effort ended in January 2020 when Avalon Investments terminated their boutique hotel proposal.
In June 2021, State Senator Anthony Portantino announced an $8,000,000 state grant to preserve Rockhaven and provide for a museum. The grant agreement was executed in March 2023. Per the agreement the project must be completed by March 1, 2026.
SWA Architects was retained in October 2022 and in July 2023 provided a scope of work focused on three objectives: (1) renovate Pines Cottage building for a museum; (2) renovate the Rockhaven grounds (focused on landscape, accessibility, and pathway improvements); and (3) address feasibility of off-site parking improvements. The strategy was to maintain the existing buildings and focus on the improvements required to re-open Rockhaven to the public until an operational plan and funding strategy could be developed.
Of the $8,000,000 state grant, a portion was allocated to the planning and design phase of the project with SWA Architects under purchase orders 62500556 and 62502572. A portion, $434,506, from these purchase orders can be released to help fund the construction contract.
In August 2024, the City Council approved a conceptual design for the Pines Cottage and directed staff to proceed with the preparation of construction and bidding documents. The approved plan outlines site improvements including the renovation of the Pines Cottage building. Due to the site’s uneven terrain and lack of ADA accessible pathways, public access is currently limited. To address this, the plan identifies a network of renovated and new walkways, ramps, and hardscape improvements to ensure full ADA compliance.
Additional enhancements include upgrades to site drainage, landscaping and irrigation systems. The scope also identifies typical interior and exterior repairs for the Pines Cottage. All proposed improvements comply with the Secretary of Interior Standards for the treatment of a historic property.
The improvements were divided into three tiers. Tier 1 addresses baseline conditions to allow public access to the site by creating the accessible path while addressing drainage issues and providing landscaping and irrigation. Tier 2 adds landscaping and irrigation 9d3
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along Hermosa Avenue and west of the Honolulu Avenue main gate. Tier 3 adds further accessibility improvements by rehabilitating remaining hardscape to provide access to the remaining buildings.
On December 16, 2024, a Request for Proposals (RFP) was issued for construction management services. After extensive interview sessions with the two candidates and a comprehensive evaluation process, staff selected Maestro as the most qualified due to their comprehensive knowledge of historic preservation projects and their extensive experience with similar work.
On March 11, 2025, the City Council adopted the plans and specifications for the project, directed City Clerk to advertise for bids, and approved a motion authorizing a Professional Services Agreement (PSA) with Maestro in the amount of $304,730.
On April 8, 2025, the Public Works Department hosted a mandatory job walk and ten contractors attended.
On May 7, 2025, the city received two bids as follows, which includes the Base Tier 1 price, and alternate Tier 2 and Tier 3 pricing:
1. ARC Construction, Inc. $6,730,025
2. Dorado Design and Construction, Inc. $8,490,458
After an extensive review, Public Works staff found that ARC submitted a responsive bid and is deemed a responsible bidder. ARC has a current State of California General-A and B Contractors License that is active and in good standing.
Including all project construction costs (the base construction contract, contingency, permit fees and construction management services), the amount of funding needed for Tier 1 alone exceeds the amount remaining in the state grant. Additional funding for this project would have to come from the General Fund undesignated fund balance. Because of this project funding shortfall and in light of recent General Fund adjustments in the adopted FY 2025-26 Adopted Budget, staff examined all options for reducing and eliminating the General Fund impact of this project.
Specifically, since permit fees are paid to the General Fund, staff proposes to waive permit fees projected to cost $195,268. Additionally, it is staff’s assessment that $400,000 in savings could be achieved by having the Parks crews install new landscaping in collaboration with community groups during the construction phase. This $400,000 is needed for the award of the construction contract but would be released to the Capital Improvement Fund balance at the end of the construction phase, if savings are realized.
As a result of this analysis, the following two options for the construction phase of the project are presented for consideration by the City Council. 9d4
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Option 1: Award Tier 1 to ARC
This option total $6,422,796, with a 10% contingency of $642,000. This contingency is requested for unforeseen conditions that may arise due to the historic nature of the site and the Pines Cottage Building.
Preservation and Reuse of the Former Rockhaven Sanitarium Project Construction Bid $ 6,422,796
10% Contract Contingency $ 642,000
Total Construction Cost $ 7,064,796
Construction Management Services and Permit Fees $ 499,998 Permit Fee Credit $ (195,268)
Total Project Cost $ 7,369,526
Option 2: Award Tiers 1, 2, and 3 to ARC
This option totals $6,730,025, with a 10% contingency of $673,000. This contingency is requested for unforeseen conditions that may arise due to the historic nature of the site and the Pines Cottage Building.
Preservation and Reuse of the Former Rockhaven Sanitarium Project Construction Bid $ 6,730,025
10% Contract Contingency $ 673,000
Total Construction Cost $ 7,403,025
Construction Management Services and Permit Fees $ 499,998 Permit Fee Credit $ (195,268)
Total Project Cost $ 7,707,755
The construction of this project is anticipated to begin in September 2025 and is scheduled for completion by March 2026.
STAKEHOLDERS/OUTREACH
The work will be coordinated with the contractor and Community Services & Parks Department (CSP) staff to minimize any disruptions to operations and the public.
FISCAL IMPACT
Option 1: Award Tier 1 to ARC
The contract, contingency, construction management and permitting fees for the Project will cost $7,369,526, of which $6,928,066 was included as a part of the FY 2025-26 budget. Therefore, if the City Council selects this option, staff requests an appropriation of $441,460 from the General Fund undesignated balance, as outlined below:
Existing Appropriation
Amount Account String Funding Source
$6,928,066 GL: 43110-4090-CDD-0020-P0000 CIP Reimbursement 9d5
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PL: CDD00921AG Fund
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$441,460 GL: 25300-1010-000 GL: 52100-4010-
CDD-0020-P0000
PL: CDD00921BN
General Fund
As previously stated, there is $400,000 in anticipated savings from the construction phase—resulting from staff and community groups completing the landscaping. If these savings are realized, the funds will be released to the Capital Improvement Fund fund balance and will be available for future General Fund CIP projects. Additionally, if the contingency amount is not used in its entirety, up to $642,000, any remaining balance can also be used to offset the costs in the Capital Improvement Fund.
Option 2: Award Tiers 1, 2, and 3 to ARC
The construction contract, contingency, construction management and permitting fees for the Project will cost $7,707,755, of which $6,928,066 was included as a part of the FY 2025-26 budget. Therefore, if the City Council selects this option, staff requests an appropriation of $779,689 from the General Fund undesignated fund balance as outlined below:
Existing Appropriation
Amount Account String Funding Source
$6,928,066 GL: 43110-4090-CDD-0020-P0000
PL: CDD00921AG
CIP Reimbursement
Fund
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$779,689 GL: 25300-1010-000 GL: 52100-4010-
CDD-0020-P0000
PL: CDD00921BN
General Fund
Similar to Option 1, there is $400,000 in anticipated savings from the construction phase—resulting from staff and community groups completing the landscaping. Once these savings are realized at the end of construction, the funds will be released to the Capital Improvement Fund fund balance and will be available for future General Fund CIP projects. Additionally, if the contract contingency is not used in its entirety, up to $673,000, any remaining balance can also be used to offset the costs in the Capital Improvement Fund.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The Project is categorically exempt from environmental review pursuant to CEQA Guidelines §§ 15331 which exempts projects that are limited to the maintenance, repair, stabilization, rehabilitation, restoration, preservation, conservation or reconstruction of 9d6
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historical resources in a manner consistent with the Secretary of Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES
1. Approve the attached motion authorizing the City Manager or his designee to execute a construction contract with ARC Construction, Inc. for the Preservation and Reuse of the Former Rockhaven Sanitarium Project in the amount of $6,422,796 plus a 10% contingency of $642,000 and approve the resolution to appropriate funds for the project.
2.Approve the attached motion authorizing the City Manager or his designee to execute a construction contract with ARC Construction, Inc. for the Preservation and Reuse of the Former Rockhaven Sanitarium Project in the amount of $6,730,025, plus a 10% contingency of $673,000 and approve the resolution to appropriate funds for the project.
3. The City Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Director of Public Works
Prepared by:
Arthur Asaturyan, Senior Project Manager
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
None.