City Council Agenda Report
November 18, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Albert Mendoza, Director of Public Services/City Engineer Mario Mera, Engineering Division Manager
Allan Perdomo, Director of Recreation and Park Services Run Chen, Principal Civil Engineer
SUBJECT: RESOLUTION NO. 25-56 BUDGET AMENDMENT FOR PROJECT NOS. 7359 AND 7607 - HERMOSILLO PARK GUARANTEED MAXIMUM PRICE
AGREEMENT
Background:
On October 3, 2023, City Council adopted Resolution No. 23-61 approving Progressive Design Build Procurement methods for the City’s Capital Improvement Projects. Progressive Design-Build (PDB) allows project owners to advertise the request for qualifications (RFQs) from potential design-build entities earlier in the procurement process with less defined project scope and preliminary design. Utilizing PDB, project owners can contract with design- build entities on a shorter timeline, reduce procurement cost, and encourage higher degree of collaboration between project stakeholders resulting in a more transparent risk allocation between the owner, designers, and builders.
After a competitive solicitation process consisting of a pre-qualification of potential design builders, followed by a formal RFQ, on January 16, 2024, City Council authorized the execution of a Progressive Design Build Agreement for Hermosillo Park Project, Project Nos. 7359 and 7607, with Reyes Construction, Inc.
The design-build agreement for the Hermosillo Park Project was executed on March 12, 2024, and a project initiation meeting to kick off the project was held on the same day. The design-build team submitted 100% design plans on October 30, 2025, with a revised Guaranteed Maximum Price (GMP) of $49,631,712.
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Resolution No. 25-56 – Budget amendment
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The 65% GMP exceeded the project’s 2018 budget which underestimated the project costs due to a significant increase in prices in the entire economy following the 2020 worldwide COVID pandemic. City staff submitted requests for funding to state and local agencies to pursue additional funds to complete the Hermosillo Project.
On March 11, 2025, the Lower San Gabriel River Watershed Area Steering Committee approved an additional $9.9 million funding to be included in its 2025/26 Stormwater Investment Plan recommendations to the Safe Clean Water Program Regional Oversight Committee and Los Angeles County Board of Supervisors.
To date, $2,011,000 of the $2,660,668 budget for design have been expended to develop the 100% design plans.
The total project cost estimate and funding are as follows:
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With City Council’s approval of an agreement for construction, the phase 2 agreement to the initial design-build agreement will be executed and a notice to proceed with construction will be issued to the contractor. The City scheduled a ground-breaking ceremony to be held on December 6, 2025, to commemorate the start of the construction phase of the project.
Construction duration is projected to be 24 months with project completion scheduled for December 2027.
Environmental Review:
On May 28, 2024, the City adopted Resolution 24-23, which adopted the Mitigated Negative Declaration and approving the Mitigation Monitoring and Reporting Program. The Notice of Determination for the MND was filed on June 18, 2024.
Fiscal Impact:
Total estimated cost of the project is $51,432,600. Funding is secured from Measure W, regional and local allocations to cover the cost of stormwater capture component of the project ($35,040,013). Hermosillo Park renovation portion of the project is funded from Proposition 68 ($8,500,000); Measure A ($5,946,264) and City’s Park Renovation Fund ($1,946,323).
City’s existing budget already includes $41,028,437 of those funds, additional $10,404,163 will be added to the budget to reflect the funding for the entire project.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 2: Work in partnership with all of our communities to achieve safe and livable neighborhoods.
Recommended Action:
Staff recommends City Council:
a. adopt Resolution 25-56, A RESOLUTION OF THE CITY COUNCIL OF THE CIY OF
NORWALK AUTHORIZING AN AMENDMENT TO THE ADOPTED FISCAL YEAR 2025/2026 BUDGET INCREASING THE AMOUNT OF $10,404,164 FOR THE CONSTRUCTION OF HERMOSILLO PARK PROJECT.
b. approve a Design-Build Agreement to establish a Guaranteed Maximum Price provided by Reyes Construction, Inc., in the amount of $49,631,712 for construction of the Hermosillo Park Project, Project Nos. 7359 and 7607; and authorize the City Manager to execute any future amendments, provided there is funding in the budget and it is within his signing authority, on behalf of the City, in a form approved by the City Attorney.
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Resolution No. 25-56 – Budget amendment
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Attachments:
1. Resolution No. 25-56
2. Campaign Contribution Form