CITY OF POMONA
COUNCIL REPORT
July 7, 2025
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted By: Beverly Johnson, Neighborhood Services Director SUBJECT: AWARD A CONSTRUCTION CONTRACT TO PUB CONSTRUCTION INC. IN THE AMOUNT OF $5,411,712 FOR THE “REHABILITATION OF 252 E. 4TH STREET,” PROJECT NO. 428-2590-XXXXX-71210 RECOMMENDATION:
It is recommended that the City Council take the following actions:
1) Award a construction contract to PUB Construction Inc. for the “Rehabilitation of 252 E. 4th Street,” Project No. 428-2590-XXXXX-71210, to include base bid items plus a 10% contingency, in the total amount of $5,411,712; 2) Award of contract to be contingent upon approval of the Environment Review Record and issuance of Authority to Use Grant Funds by the Department of Housing and Urban Development; and, 3) Authorize the City Manager, or her designee, to execute the construction contract and any subsequent change orders on behalf of the City of Pomona (City).
EXECUTIVE SUMMARY:
The Housing Successor Agency to the former Redevelopment Agency of the City of Pomona is the owner of a 12-unit, 9,312 square foot apartment building located at 252 E. 4th Street. Due to the age of the building, the property requires substantial interior and exterior improvements and upgrades. Once the work is completed, the property will be used to provide affordable rental housing to low-income households.
Staff is recommending approval by City Council to award the construction contract to PUB Construction Inc. in the amount of $5,411,712 and to authorize the City Manager to execute the construction contract and subsequent change orders.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $500 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $500 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
The project was adopted in the Capital Improvement Program (CIP) budget for Fiscal Year 2024-25. Approval of this action will award a construction contract in the amount of $5,411,712. The following table details the fiscal impact associated with the recommended actions:
Category
“Rehabilitation of 252 E. 4th St.,” Project No. 428-2590-XXXXX-71210 Beginning Project Budget (FY 24-25)
$8,378,211
Expenditures/Encumbrances
(As of June 17, 2025)
($486,657)
Construction Contract Award
($5,411,712)
Budget Remaining
$2,479,842
Funding for the rehabilitation and related costs for this project comes from the following sources: A) $3,327,690 Series AQ Housing Bond that were recently paid back to the City of Pomona from the sale of 1731 and 1752 W. Holt Avenue (Pomona Housing Partners Project – Tivoli Gardens); B) $2,464,601 Home Investment Partnership (HOME) – American Recovery Program (ARP); C) $1,785,920 HOME Program; and, D) $800,000 Permanent Local Housing Allocation (PLHA). The Construction Contract shall include terms for compliance applicable to the use of Federal and State funding.
The budget remaining in the CIP account will be utilized for future affordable housing projects. Staff will bring the affordable housing proposal to Council once the project has been finalized.
PUBLIC NOTICING REQUIREMENT:
In accordance with Section 2-1003 – Formal Procedure of the City’s Purchasing Ordinance, a Notice Inviting Bids for Rehabilitation of 252 E. 4rth Street, Pomona, CA Project No. 428-2590-XXXXX-71210 (12 units), was posted on the City’s electronic bidding platform, Planet Bids, on April 9, 2025 PREVIOUS RELATED ACTION:
On December 4, 2023, the City Council, sitting as the Governing Board of the City of Pomona Housing Authority, approved an award of Contract to RADAR, Inc. for the preparation of plans and specifications for the rehabilitation of 252 E. 4th Street, Pomona amounting to $350,725.
DISCUSSION:
The rehabilitation project will include: demolition; abatement for asbestos and lead based paint hazards; landscaping; flooring replacement for all units, including bathrooms and laundry area; guard railing for interior and exterior stairs; roofing and downspout; replacement of doors and windows including bedrooms, bathrooms and closets; ceiling repair; plumbing; electricals; interior re-paint; and, fire protection such as sprinkler and fire alarm.
On April 9, 2025, the City issued an Invitation for Bids (IFB) No. 2025-12 “Rehabilitation of 252 E. 4th Street, Pomona, CA (12 units)” Project No. 428-2590-XXXXX-71210 via the City’s electronic bidding platform, Planet Bids. The solicitation was disseminated to 213 potential bidders, with 93 of them downloading the bid specifications. A mandatory bid walk was held on April 24, 2025, with 14 bidders attending. Bids were due on May 28, 2025, with three (3) proposals received, as follows:
Contractor
Total Base Bid
10%
Contingency
Total
1 Socal Construction Inc.
$4,185,000
$418,500
$4,603,599
2 PUB Construction Inc.
$4,919,738
$491,974
$5,411,712
3 CalCity Construction, Inc.
$5,990,000
$599,000
$6,589,000
Architect’s Estimate (excludes repairs for fire damage, asbestos and lead based paint remediation) $4,500,000
Award of the base bid and 10% contingency to PUB Construction, Inc., as the most reasonable and responsible bid, is recommended. The proposal submitted by Socal Construction, Inc. is deemed non-responsible for the following reasons:
The base bid submitted by Socal Construction, is way below the architect’s cost estimate of $4,500,000, which did include repairs for fire damage, asbestos and lead based paint remediation; The line items provided in the proposal were too broad and did not allow comparison with the two other proposals received; and, The project provided in the reference was not comparable to the size and scope of the 252 E. 4th Street Project.
The anticipated schedule of construction shall begin on August 15, 2025, with a completion date of November 30, 2025.
COUNCIL PRIORITIES & GOALS:
This item supports the 2021-2022 City Council Priority 3: Increased Opportunity and Housing Stability – Goal J: Encourage the development and maintenance of quality housing opportunities for all.
Prepared by:
Maria A Siacunco
Housing Services Manager
Attachment No. 1 – Contract Between the City of Pomona and PUB Construction, Inc. for the Major Rehabilitation of 252 E. 4th Street Project No. 428-71210 428-2590-XXXXX-71210 PUB Construction – Award Construction Contract