City Council Agenda Report
October 20, 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 – CONSTRUCTION SERVICES
FOR BUILDINGS DEMOLITION LOCATED AT NORWALK TRANSIT VILLAGE, 13200 BLOOMFIELD AVENUE / RESOLUTION NO. 26-62 BUDGET
AMENDMENT, ENGINEER'S REPORT NO. 26-17
Background:
On November 19, 2024, City Council adopted the Norwalk Transit Village Specific Plan, certified the Final Environmental Impact Report, approved the 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 Norwalk Transit Village (“NTV”) Specific Plan 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 (“State”) and the City of Norwalk (“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, City Council adopted Development Agreement (“DA”) by and between the City and the Developer. The DA is intended to coordinate and facilitate the successful and timely completion of the public and private improvements identified in the NTV Specific Plan. The City City Council October 20, 2026
Project No. 7859 – Award of Contract and
Adopt Resolution No. 26-62
Page No. 2
Council also determined that DA No. 2025-0001 was within the scope of the Final Environmental Impact Report (“FEIR”) prepared for the Norwalk Transit Village Specific Plan Project and that no further environmental review was required.
On July 24, 2025, the City closed escrow for the Subject Site. Pursuant to the DDA, the City is responsible for demolishing and clearing the existing structures and preparing the site prior to turnover to the Developer. Because the demolition includes abatement and remediation activities, completion of the overall site preparation is anticipated to occur by mid-2027.
Following completion of the demolition, abatement, and remediation activities, the prepared site will be turned over to the Developer, who will commence site improvement activities pursuant to the DA and in accordance with the NTV Specific Plan.
On February 6, 2026, City staff solicited construction bids for the building demolition at Subject Site. The scope of work includes demolition of all existing buildings, structures, foundations, paved surfaces and hardscapes, chain-link fencing, underground utility piping, irrigation lines, and conduits.
On February 20, 2026, a mandatory pre-bid meeting was held to ensure prospective bidders had an opportunity to review the project scope, assess existing site conditions, and understand the contract requirements. On February 23, 2026, the City also conducted a non-mandatory site meeting to provide prospective bidders access to previously locked buildings and allow them to further evaluate existing interior conditions.
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 and complexity of the Subject Site, as well as limited historical information available regarding the property while it was under State control, the City developed a bid evaluation methodology designed to address potential unforeseen conditions during construction. The bid schedule included thirty (30) base bid items comprising the Contract Amount, thirty-three (33) unit price items, and a daily overhead rate. This methodology allows the City to evaluate not only the lowest base bid, but also the potential costs associated with additional work and extended project duration resulting from unforeseen conditions encountered during demolition, abatement, and remediation activities. The responsive bids are presented below:
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 comprehensive bid analysis, including verification of each bidder’s State contractor’s license, Department of Industrial Relations registration, State and federal debarment status, and references. Based on this review, staff recommend awarding the contract to City Council October 20, 2026
Project No. 7859 – Award of Contract and
Adopt Resolution No. 26-62
Page No. 3
Precision Environmental, the lowest responsive and responsible bidder.
Following the issuance of the Notice to Proceed, the project is anticipated to commence in late October 2026 and continue through mid-2027.
The City originally intended to award of the demolition contract at the City Council meeting of May 7, 2026. However, staff subsequently continued the item due to ongoing coordination with the California Department of Toxic Substances Control (“DTSC”) regarding appropriate measures and requirements to be incorporated into the Soil Management Plan. Staff has since received sufficient feedback and direction from DTSC to provide the necessary framework for the demolition contractor to proceed with the demolition, abatement, and remediation activities.
This coordination will allow the contractor to proceed with the Project while maintaining compliance with applicable regulatory requirements and site-specific environmental conditions.
On June 2, 2026, the City received a formal protest from Resource Environmental Inc., the second lowest apparent bidder, alleging procedural and analytical deficiencies in the City’s public bidding and procurement process. This bid protest is included as Attachment 1. City staff and the City Attorney’s Office reviewed the issues raised in the protest and determined that the allegations are without merit. Following a thorough review of the maters identified in the protest, staff maintain its recommendation that City Council award the contract to Precision Environmental. The City’s response to the bid protest is included as Attachment 2 and is incorporated as part of the record. Precision Environmental, as the apparent low bidder, has also submitted a response addressing the allegations raised by Resource Environmental in its bid protest, as is Precision Environmental’s right. Precision Environmental’s response is included as Attachment 3 and is incorporated as part of the record.
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 is necessary to appropriate available Low-and Moderate-Income Asset Bond Proceeds in the amount of $1,386,000 and Former Redevelopment Agency Non-Housing Bond Proceeds in the amount of $2,079,000 is needed for the construction services associated with the Project.
Pursuant to the DDA, the Developer will be responsible for the payment of all third-party costs associated with the demolition and remediation activities at the Subject Site. The Developer will also be responsible for providing evidence of the site cleanup satisfactory to the City, the Developer, and applicable State regulatory agencies.
City Council October 20, 2026
Project No. 7859 – Award of Contract and
Adopt Resolution No. 26-62
Page No. 4
Following completion of the demolition, abatement and remediation activities, and satisfaction of the applicable site cleanup requirements, the City anticipates completing such activities and transfer of the prepared site to the Developer in mid-2027.
Environmental Assessment:
The proposed City Council action to award the demolition contract for Project No. 7859, including the associated abatement, demolition, and remediation activities at the Subject Site was evaluated as part of the FEIR. Applicable mitigation measures were incorporated into the City Council adopted MMRP. As such, no further CEQA review is required at this time.
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.
Recommended Action:
Staff recommend City Council:
a. adopt Resolution No. 26-62, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK, AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2025/26 ADOPTED BUDGET TO APPROPRIATE $1,386,000 OF LOW AND MODERATE INCOME HOUSING ASSET FUNDS AND $2,079,000 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. b. 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.
Attachments:
1. Resource Environmental Protest Letter
2. City Response to Bid Protest Letter
3. Precision Environmental Letter
4. Resolution No. 26-62