STAFF REPORT
Meeting Date:
October 28, 2025
CONSENT
11 SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR THE DEMOLITION OF THE DENTAL BUILDING AT 31796 S COAST HIGHWAY
RECOMMENDATION: It is recommended that the City Council:
1. Award and authorize the City Manager to execute a contract with Precision Environmental, Inc. in the amount of $110,000, for demolition of the Dental Building at 31796 S Coast Highway;
2. Authorize the City Manager to approve project-related expenses and contract change orders for unforeseen circumstances in an amount not to exceed $11,000; and
3. Find that the project has been reviewed under the California Environmental Quality Act, and that the City Council adopted the Final Initial Study/Mitigated Negative Declaration (SCH No. 2022090383) for the project on November 15, 2022.
SUMMARY OF THE MATTER
This report recommends that the City Council award a construction contract to Precision Works Inc., DBA Precision Environmental, Inc., (Precision) in the amount of $110,000 for the Demolition of the Dental Building at 31796 S Coast Highway. The project is the initial phase of construction for Fire Station 4. The cost is within the approved budget for the overall Fire Station project of $9,300,000. In accordance with the California Environmental Quality Act (CEQA) guidelines, an Initial Study/Mitigated Negative Declaration (State Clearinghouse No. 2022090383) was prepared and adopted by the City Council on November 15, 2022.
DISCUSSION
Background and Project Need
The City of Laguna Beach has an approved Design Review 25-0261, Coastal Development Permit 25-0260, Conditional Use Permit 25-0262, and Sign Permit 25-0401 (Entitlements) to construct a new fire station at 31796 S Coast Highway. The Entitlements include the demolition of the existing building and site improvements. The proposed scope of work under the proposed demolition contract will perform lead and asbestos abatement, demolish the existing building, building foundation, and removal of the existing parking lot improvements. The scope of work does not include the existing sidewalks so that the pedestrian circulation can remain in place until the new sidewalk and drive approaches are ready to be constructed. At the completion of the project, the site will remain fenced off with erosion control and water quality devices in place. The building and site demolition is scheduled to last 30 working days.
While the building demolition is taking place, the City’s consultant, PBK, will complete the design of the site retaining walls. The retaining walls are scheduled to be bid on their own. This will ensure a contractor specialized in constructing this type and size of wall is selected. Staff plans to return to the Planning Commission for final consultation as to final finishes and landscaping, then put the building construction and related site improvements out to bid. Then a final contract will be awarded to construct the building and all other site improvements. The overall project is estimated to be constructed over 12-14 months, starting in early 2026.
AWARD OF CONSTRUCTION CONTRACT FOR THE DEMOLITION OF THE DENTAL BUILDING AT 31796 S COAST HIGHWAY
October 28, 2025
Bid Process and Contractor Selection
Staff completed a public bid process for the project in accordance with California Public Contract Code requirements. On October 10, 2025, twenty-three (23) bids were received. Twelve (12) were deemed responsive and responsible and are listed below by bid amount:
Table of Bid Results
Bidder Bid Amount
1. Precision Environmental Inc. $110,000
2. Abajian Enterprise $112,500
3. Interior Demolition, Inc. $115,888
4. Diamond Construction $137,350
5. Elka Construction Inc. $155,000
6. Developers General Contracting, Inc. $174,580
7. Global Builders Inc. $198,888
8. Danny Ryan Precision Contracting, Inc.
dba ADEP Precision Contracting
$199,900
9. YMC $234,650
10. SFS Constructors & Builders, Inc. $239,880
11. Orangeblue General Contractors $262,000
12. Aza Construction $295,500
Following a review of the bids, staff determined that the lower bidder, Precision, is qualified, properly licensed, and their bid was determined to be responsive and responsible. Precision has successfully completed similar demolition projects for other municipalities in Southern California. Staff recommends that the contract be awarded to Precision in the amount of $110,000 (Attachment 1). It is also recommended that funding be provided to cover change orders due to unforeseen conditions. These costs are not expected to exceed $11,000; therefore, it is recommended that the City Manager be authorized to approve change orders for unforeseen circumstances in the amount not to exceed $11,000. Construction is anticipated to begin in December 2025 and be completed by January 2026.
NOTE: Precision Environmental is a different firm than Precision Concrete, which is also on this agenda for a different contract approval.
FINANCIAL ANALYSIS
There is an available budget of $9,300,000 for the larger Fire Station #4 project. This $110,000 allocation falls within the expected parameters for the Project’s demolition costs. No additional appropriation is requested.
ENVIRONMENTAL ANALYSIS
AWARD OF CONSTRUCTION CONTRACT FOR THE DEMOLITION OF THE DENTAL BUILDING AT 31796 S COAST HIGHWAY
October 28, 2025
In accordance with the California Environmental Quality Act (CEQA) guidelines, an Initial Study/Mitigated Negative Declaration (State Clearinghouse No. 2022090383) was prepared pursuant to CEQA, which analyzed the Project for any potential environmental impacts. A Final MND was prepared incorporating public comments received after the conclusion of public review comment period for the Draft MND and adopted by the City Council on November 15, 2022. Based on the Final Initial Study/Mitigated Negative Declaration, and evidence contained in supplemental reports and documents, it has been determined that the Project would not have a significant effect on the environment with the incorporation of Project mitigation measures.
ATTACHMENTS
1. Construction Contract with Precision Environmental (Pgs. 4-14) Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Thomas Perez, City Engineer