City Council Agenda Report
June 2, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Deputy City Manager
Albert Mendoza, P.E., Director of Public Services/City Engineer Jana Stuard, Director of Finance/City Treasurer
Mario Mera, Engineering Division Manager
SUBJECT: PROJECT NO. 7859 – AWARD OF CONTRACT – CONTRUCTION SERVICES
FOR BUILDINGS DEMOLITION LOCATED AT NORWALK TRANSIT VILLAGE, 13200 BLOOMFIELD AVENUE / RESOLUTION NO. 26-24 BUDGET
AMENDMENT, ENGINEER'S REPORT NO. 26-17
Background:
On November 19, 2024, City Council approved the Norwalk Transit Village Specific Plan (NTV), which envisions opportunities for new economic development within the former Southern California Youth Correctional Reception Center and Clinic 30+ acre site located at 13200 Bloomfield Avenue (Subject Site).
On December 3, 2024, City Council adopted Resolution No. 24-61 approving the Purchase and Sales Agreement (“PSA”) by and between the State of California and the City for the Subject Site.
On December 17, 2024, City Council adopted Resolution No. 24-62 declaring the Subject Site exempt surplus land pursuant to Government Code §§54221(F)(1) and approving a Disposition and Development Agreement (“DDA”), by and between the City and Lewis Land Developers, LLC (“Developer”).
On April 15, 2025, a Development Agreement (“DA”) was adopted by City Council by and between the City and the Developer with the intent to coordinate and facilitate the successful and timely completion of all necessary improvements (public and private) identified in the NTV Specific Plan. It also found that DA No. 2025-0001 is within the envelope of the Final
City Council June 2, 2026
Project No. 7859 – Award of Contract and
Adopt Resolution No. 26-24
Page No. 2
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Environmental Impact Report (“FEIR”) prepared for the Norwalk Transit Village Specific Plan Project and no further environmental review was required.
Per the terms of the PSA on July 24, 2025, the City closed escrow on the property. As set forth in the DDA by and between the City and Lewis Land Developers, LLC (“Developer”), Section
2.13 “Demolition Work/Remediation Work”, the City is now required to demolish and clear all the structures on the site before turning the prepared site over to the Developer. As the demolition involves some abatement activities, the completion of the entire abatement, demolition, and remediation is expected to occur by December 2026.
The completed site will be turned over to Lewis Land Developers (“Lewis”) in early 2027 who will then commence site improvement activities pursuant to the DA in accordance with the NTV Specific Plan.
On February 6, 2026, staff solicited for construction bids for the Buildings Demolition Located at Norwalk Transit Village: 13200 Bloomfield Avenue – Project No. 7859. The scope of work includes demolition of all existing buildings, structures, foundations, paved surfaces and hardscapes, chain-link fencing, underground utility pipes, irrigation lines, and conduits.
On February 20, 2026, a mandatory pre-bid meeting was held to ensure bidders reviewed the project scope, assessed the site conditions, and understood the contract requirements. On February 23, 2026, a second, non-mandatory meeting was held to provide access to previously locked buildings and allow potential bidders to review existing conditions inside the buildings.
On March 19, 2026, the City received nine bids, which were publicly opened. Seven bids were found to be non-responsive. Due to the size of the site and the unknown history of the property that was previously controlled by the State, the City used a bid evaluation that included 30 base bid items (Contract Amount), 33-unit price items, and an overhead daily rate item. This methodology helped the City to obtain the combination of the lowest base bid plus the lowest unit pricing and extended daily overhead rate should the project run into unforeseen conditions during the course of the demolition project. Below are the responsive bid results:
Rank Contractor Contract
Amount
Unit Price
Total
Overhead Daily
Rate Total
Total Sum
Bid
1 Precision Works, Inc. dba
Precision Environmental $2,639,950 $455,360 $9,000 $3,104,310 2 Resource Environmental,
Inc. $2,877,000 $572,500 $3,000 $3,452,500
Staff conducted a bid analysis, including checks to the contractor’s state licensing, Department of Industrial Relations registration, state and federal debarment list, and reference checks. As a result, staff recommend awarding the project to the lowest responsive bidder, Precision Environmental.
City Council June 2, 2026
Project No. 7859 – Award of Contract and
Adopt Resolution No. 26-24
Page No. 3
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From issuance of the Notice to Proceed, the projected start date is late May 2026 and project completion is anticipated to be December 2026.
Environmental Assessment: On November 19, 2024, the City Council adopted the Norwalk Transit Village Specific Plan (NTV) and certified the Final EIR (FEIR) and approved a Mitigation and Monitoring and Reporting Program (MMRP) and adopted a Statement of Overriding Considerations in connection with the NTV through City Council Resolution No. 24-58 (SCH No. 2022070103).
The City Council action to award the demolition contract for Project No. 7859 which involves abatement, demolition, and remediation activities on the site were evaluated in the FEIR and relevant mitigation measures incorporated in the Council adopted MMRP. As such, no further CEQA review is required at this time. The contract award was continued from the meeting of May 5, 2026, to tonight’s meeting to allow for additional environmental activities to be completed.
Fiscal Impact:
The following is an estimated cost breakdown of the total project costs:
Construction Cost: $ 2,639,950
Contingency (25%): $ 659,988
Subtotal: $ 3,299,938
Administration (5%): $ 164,997
Total Estimated Cost: $ 3,464,935
There is no fiscal impact to the General Fund. A budget amendment from available Low-and Moderate-Income Asset bond proceeds in the amount of $1,385,974 and Former Redevelopment Agency Non-Housing bond proceeds in the amount of $2,078,961 is needed for the construction services.
Pursuant to the DDA, Lewis will be responsible for the payment of all third-party costs associated with the demolition and remediation activities on the site and the evidence of the site clean-up satisfactory to the City, Lewis, and state regulatory agency. This will occur upon the close of escrow between the City and Lewis which is anticipated in late 2026 or early 2027.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended actions will further the City’s 2023 Strategic Plan, Goal 2 Work in Partnership with Our Community to Achieve Safe and Livable Neighborhoods, Object 1, Re-invest in existing and aging infrastructure.
City Council June 2, 2026
Project No. 7859 – Award of Contract and
Adopt Resolution No. 26-24
Page No. 4
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Recommended Action:
Staff recommend City Council:
a. award a contract to Precision Environmental in the amount of $2,639,950 with a 25% contingency in the amount of $659,988 for construction services for Project No. 7859; and authorize the City Manager to execute the contract with any amendments within the contingency, on behalf of the City, in a form approved by the City Attorney. b. adopt Resolution No. 26-24, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK, AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2025/26 ADOPTED BUDGET TO APPROPRIATE $1,385,974 OF LOW AND MODERATE INCOME HOUSING ASSET FUNDS AND $2,078,961 OF FORMER REDEVELOPMENT
AGENCY NON-HOUSING BOND PROCEEDS FOR THE BUILDINGS DEMOLITION LOCATED AT THE NORWALK TRANSIT VILLAGE PROPERTY LOCATED AT 13200 BLOOMFIELD AVENUE, NORWALK, CA 90650, CITY PROJECT NO. 7859.
Attachments:
Resolution No. 26-24