TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
Jon Cicirelli
SUBJECT: Actions Related to the
10242 - Park: Elia Park
Project
DATE: October 5, 2026
Approved Date:
10/15/2026
COUNCIL DISTRICT: 7
RECOMMENDATION
(a) Report on bids and award of a contract for the construction of 10242 - Park: Elia Park Project to the lowest responsive, responsible bidder, QLM, Inc., in the amount of $2,767,903; and
(b) Approve a 10% contingency in the amount of $276,790.
SUMMARY AND OUTCOME
This memorandum summarizes the bids received and requests for the award of a contract for the construction of 10242-PARK: Elia Park Project (Project). Award of the contract to QLM, Inc. will enable the Project to proceed into construction. Approval of the 10% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the Project.
BACKGROUND
The proposed Elia Park is located at the southwest corner of West Alma Avenue and Sanborn Avenue, adjacent to the Alma Community Center (Attachment A – Project Location Map). The 0.33-acre site consists of two parcels formerly owned by Rocco Elia and Louise Scaglione-Elia and was donated to the City of San José (City).
On December 23, 2020, ownership of the properties was formally transferred to the City. On January 31, 2023, the City Council approved the Alma Park Master Plan, adopted “Elia Park” as the park’s name, and approved associated funding adjustments.
COUNCIL AGENDA: 10/27/26
FILE: 26-1109
ITEM: 2.13
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: Actions Related to the 10242 - Park: Elia Park Project
Adoption of the park name fulfilled a donation condition of the Elia Family Revocable Living Trust for the City to obtain the land needed for development of a children’s park, per the wishes of Rocco Elia and Louise Scaglione-Elia.
The Project’s scope of work includes the following:
• Demolition and removal of two single-story structures and soil remediation; • Removal and replacement of existing sidewalk, driveway, curb ramp, and curbs and gutters in the public right-of-way; and
• Construction of new play equipment, a shade structure, perimeter fencing and walls, paving, seat walls, furnishings, park lighting, signage, irrigation and plantings.
Construction is anticipated to begin in December 2026 with substantial completion expected in September 2027.
ANALYSIS
Bid Results
A competitive Request for Bids was conducted in accordance with San José Municipal Code Chapter 27.10. Bids were opened on July 30, 2026, with the following results:
Contractor Bid Amount Variance
Amount
Over/
(Under)
Percent
QLM, Inc.
(San José) $2,767,903.00 ($427,097.00) (13)
Suarez & Munoz Construction, Inc.
(Hayward) $2,936,004.00 ($258,996.00) (8)
Guerra Construction Group
(Santa Clara)
(Non-responsive)
$3,093,010.00 ($101,990.00) (3)
Interstate Grading and Paving, Inc.
(South San Francisco) $3,159,177.50 ($35,822.50) (1)
Engineer’s Estimate $3,195,000.00 --- ---
Robert A. Bothman, Inc.
(Santa Clara) $3,708,586.00 $513,586.00 16
S&H Construction, Inc.
(Danville)
(Non-responsive)
$4,367,695.00 $1,172,695.00 37
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: Actions Related to the 10242 - Park: Elia Park Project
Procurement
As with all Public Works procurement, bidders were required to meet certain requirements, including but not limited to: possessing a valid contractor’s license in the type identified in the Request for Bids; submitting a list of completed past projects that met stated experience requirements; and holding a valid California Air Resources Board In-Use Off-Road Diesel-Fueled Fleets Certificate of Reported Compliance for certain fleets. After reviewing the bids, the Public Works Department deemed the bid from Guerra Construction Group non-responsive for failing to meet the stated experience requirements and deemed the bid from S&H Construction, Inc. non-responsive for both failing to meet the stated experience requirements, and for failing to possess a valid California Air Resources Board Certificate of Reported Compliance for its vehicle fleet.
The Public Works Department issued a notice of intent to award on August 4, 2026, stating the City’s intent to award the contract to the lowest responsive, responsible bidder, QLM, Inc. On August 6, 2026, Suarez & Munoz Construction, Inc. submitted a timely written protest (Attachment B – Protest Submitted by Suarez & Munoz Construction, Inc.) requesting that the City deem QLM, Inc.’s bid non-responsive and award the contract to Suarez & Munoz Construction, Inc. QLM, Inc. provided a written response to the protest (Attachment C – Response Letter from QLM, Inc.) on August 7, 2026.
After reviewing both letters and the project plans and specifications, on August 18, 2026, the Public Works Department responded to Suarez & Munoz Construction, Inc. by declining its request and stating that the department would continue to recommend award to QLM, Inc. (Attachment D – City’s Response to Suarez & Munoz Construction, Inc. Bid Protest).
Bid Price Analysis
The low bid submitted by QLM, Inc. is 13% below the Engineer’s Estimate. Its bid amounts for several work items, such as mobilization, water pollution control, drainage, trees, and landscape maintenance are significantly lower than the Engineer’s Estimate.
These differences may reflect the bidder’s means and methods, subcontractors, and material pricing. The bid is considered acceptable for the work involved.
Contractor Prior Experience
QLM, Inc. has successfully completed several park projects for the City in recent years, including the 9110 - PARK: Pellier Park Project, which was accepted in 2024, and the 10248 - PARK: All Inclusive Playground: Almaden Lake Park Project, which was accepted in 2025. QLM, Inc, is currently working on the 10225 - PARK: Doerr Park Renovation Project as well as the 10400 - PARK: BUNDLE - 9111 North San Pedro Park and 9102 Bassett Park Project.
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: Actions Related to the 10242 - Park: Elia Park Project
Contingency
San José Municipal Code Section 27.04.050 provides for a standard contingency of 10% on all public works contracts except those involving the renovation of a building or buildings. The standard 10% contingency is appropriate for this project.
Wage Theft Prevention Policy Check
The Office of Equality Assurance reviewed bidders for compliance with the City’s Wage Theft Prevention Policy on July 30, 2026, and again on August 31, 2026. No wage theft issues were identified.
Project Labor Agreement Applicability
The Citywide Project Labor Agreement between the City of San José and the Santa Clara and San Benito Counties Building and Construction Trades Council is applicable to this contract because the Engineer’s Estimate exceeded $730,000.
Local and Small Business Analysis
QLM, Inc. is a Local Business Enterprise but not a Small Business Enterprise. Two local companies are listed as subcontractors. Bear Electrical (San José) will be performing electrical work valued at approximately $232,000. Cal West Fence (San Martin) will be performing fencing work valued at approximately $109,500.
EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.
FISCAL IMPACTS
This Project supports the Neighborhood Services City Service Area goal to create safe and clean neighborhoods and public spaces. Funding for this project is provided by the Construction Tax and Property Conveyance Tax Fund: Parks Purposes Council District
7. This project will have $22,000 in net operating and maintenance costs per year.
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: Actions Related to the 10242 - Park: Elia Park Project
1. TOTAL COST OF PROJECT:
Project Delivery* $1,613,108
Construction 2,767,903
Contingency 276,790
TOTAL PROJECT COSTS $4,657,801
Prior Years’ Expenditures & Encumbrances 593,353
TOTAL REMAINING PROJECT COSTS $4,064,448
*Project delivery includes $692,358 for design services and bidding and $920,750 for construction management and inspection services.
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
Mobilization, Demolition, Grading, Drainage $730,000
Concrete and Paving 445,825
Playground and Shade Structure 809,400
Site Electrical 232,000
Other Construction Costs 550,678
TOTAL CONTRACT AMOUNT $2,767,903
BUDGET REFERENCE
The table below identifies the funds and appropriations to fund the contract recommended as part of this memorandum and remaining project costs, including project delivery, construction, and contingency costs.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Amount for
Contract
2026-2027
Proposed MidBiennial
Capital Budget
Page*
Last Budget
Action (Date,
Ord. No.)
385 440J Elia Park
Development $4,194,000** $2,767,903 212 6/16/2026,
31336
*The 2026-2027 Proposed Mid-Biennial Capital Budget was approved on June 9, 2026, and adopted on June 16, 2026 by the City Council.
** An additional $6,000 in unspent 2025-2026 appropriations will be proposed for rebudget as part of the Annual Report that will be presented to the City Council in October 2026. ** The remaining $135,552 will be retained in budget for potential additional scope or unforeseen construction needs that may arise during construction.
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: Actions Related to the 10242 - Park: Elia Park Project
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, and the Planning, Building and Code Enforcement Department.
PUBLIC OUTREACH
Community meetings were held in April, May, and August 2021 as part of the master planning process. This memorandum will be posted on the City Council Agenda website for October 27, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
The Parks and Recreation Commission considered the Master Plan and park name on December 1, 2021. Commissioner Ames moved to accept the Master Plan and park name. The motion was seconded by Commissioner Barocio. The motion carried (8-0-1 with Commissioner Villareal absent.)
CEQA
Categorically Exempt, File No. ER21-153, CEQA Guidelines Section 15303. New Construction or Conversion of Small Structures.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution. /s/
MATT LOESCH
/s/
JON CICIRELLI
Director of Public Works Director of Parks, Recreation and Neighborhood Services
For questions, please contact Richard Chiu, Deputy Director, Public Works Department, at [email protected].
HONORABLE MAYOR AND CITY COUNCIL
October 5, 2026
Subject: Actions Related to the 10242 - Park: Elia Park Project
ATTACHMENTS:
Attachment A – Project Location Map
Attachment B – Protest Submitted by Suarez & Munoz Construction, Inc.
Attachment C – Response Letter from QLM, Inc.
Attachment D – City’s Response to Suarez & Munoz Construction, Inc. Bid Protest
ATTACHMENT A
Project Location Map
`
Suarez & Muñoz Construction, Inc.
General Engineering and Landscape Contractors
2490 American Ave., Hayward, CA 94545
Lic. No. 873996, Class A, B, C8, C27
(510) 782-6065
(510) 782-6078 FAX
August 6, 2026
Attn: CIP Procurement Manager Via Email: [email protected] City of San Jose - Department of Public Works – CIP Procurement 200 E. Santa Clara Street, 5th Floor, San Jose, CA 95113 Re: Bid Protest – PW 10242, “PARK: Elia Park” – Notice of Intent to Award to QLM, Inc.
Dear CIP Procurement Manager:
Suarez & Munoz Construction, Inc. (SMC) (second-lowest responsive and responsible bidder) protests the City’s August 4, 2026, Notice of Intent to Award PW 10242 to QLM, Inc. QLM’s bid is nonresponsive on two independent grounds: it fails to list a subcontractor (see exhibit G) for the asbestos abatement required by Appendix C (see exhibit A), and it fails to list a subcontractor for the hazardous soil off-haul, and disposal required by Appendix F section
2.1.1”Contractor Licensing and Training” (see exhibit B). QLM holds neither the asbestos abatement credential (C-22/ASB) nor the hazardous substance removal credential (HAZ) (see exhibit C). Therefore, cannot self-perform these scopes. 1 ATTACHMENT B
Protest Submitted by Suarez & Munoz Construction,
Inc.
QLM's bid proposal lists only four subcontractors: Creative Builders (play structure), Robertson Recreational Surfaces (play surfacing), Bear Electrical, and Cal West Fence. The value of the omitted asbestos abatement scope alone confirms this is not a minor or immaterial omission.
SMC obtained two independent quotes for that scope: Hilltop Asbestos Abatement Corp. (C-22) at $135,000, and Penkor Wrecking at $100,000. Both quotes exceed $100,000 for the asbestos abatement scope alone (see exhibit F), well above the $13,839.52 listing threshold under California Public Contract Code Section 4104. By failing to list a subcontractor for these scopes, QLM has an unfair material advantage by preserving the ability to shop for these bids after award that no other bidder had. Award of this project to QLM undermines the integrity and violates the competitive bidding process and the California public contract code.
Conclusion:
Suarez & Munoz Construction submitted the second-lowest bid at $2,936,004.00, properly listing a licensed asbestos abatement subcontractor (Hilltop Asbestos Abatement Corp. – see exhibit D) and a HAZ-certified hazardous soil subcontractor (Pacific States Environmental Contractors – see exhibit E) for these scopes. The City must not ignore the California public contract code and its own requirements set forth in the project specifications. We respectfully ask the City to reject QLM's bid and award the contract to Suarez & Muñoz Construction, the lowest responsive and responsible bidder.
Sincerely,
John Suarez, P.E.
Suarez & Munoz Construction, Inc.
2024 APWA NorCal Contractor of the Year
Cc: Mr. Darrell Qualls, [email protected]
2 Exhibit A - Appendix C - Asbestos Abatement
Exhibit B - Appendix F - Summary of Environmental Conditions and Preliminary Soil Management Protocols
Exhibit C - QLM CSLB Info
Exhibit D - Hilltop CSLB
Exhibit E - Pacific States CSLB
Exhibit F - Asbestos Abatement Quotes
Exhibit G - QLM List of Subs
3 APPENDIX C
ASBESTOS ABATEMENT MATERIALS SPECIFICATION
-
AEI Consultants
Asbestos Abatement Materials
Specification
REPORT DATE: February 11, 2026
PROPERTY INFORMATION
100 104 West Alma and 1413 Sanborn Avenue
San Jose, California 94621
PROJECT INFORMATION
AEI Project No. 523682
Site Assessment Date: May 4, 2023
PREPARED FOR
Callander Associates
2025 Gateway Place, Suite 285
San Jose, California 95110
PREPARED BY
AEI Consultants
710 Campus Square W, Suite 723A
El Segundo, California 90245
1.800.801.3224
www.aeiconsultants.com
February 11, 2026
Ms. Maria Mai
Callander Associates
2025 Gateway Place, Suite 285
San Jose, California 95110
Subject: Asbestos Abatement Materials Specification
Dear Ms. Mai,
AEI Consultants is pleased to provide the Asbestos Abatement Materials Specification for the referenced property. This assessment was authorized and performed in accordance with the scope of services engaged.
We appreciate the opportunity to provide services to you. If you have any questions concerning this report, or if we can assist you in any other matter, please contact me at (562) 235-6654 or [email protected].
Sincerely,
David Gengenbacher CAC, CDPH I/A, CIEC, RMP,
LEED Green Associate
Vice President, Industrial Hygiene
AEI Consultants
701 Campus Square, Suite 723A
El Segundo, California 90245
Phone # (562) 235-6654
[email protected]
3.1 Verification of Site Conditions/Quantities
All materials and quantities provided are estimates based on the best available information available at the time of the specification and shall be verified by the Contractor before bidding the project. The drawings, reports, analyses and sketches provided are for informational purposes only and may differ from the actual field conditions.
Please refer to the Pre-Demolition Asbestos Survey, Lead-Based Paint Screening and Polychlorinated Biphenyls Sampling located in Appendix A.
Any quantities or dimensional information are for information/estimating purposes only and must be verified by Contractor should discrepancies be suspected. Upon award of the contract, any deviations from the quantities provided will not result in a change in conditions affecting the bid price.
All bidders must conform to the RFP in their base bid. This does not exclude the submission of voluntary alternatives, but any alternatives must be submitted in addition to the base bid. 100-104 West Alma, San Jose
100 W. Alma Avenue
• 9” x 9” Beige/Tan Vinyl Floor Tile located at Main Sales Floor – approximately 2,200 sq. ft. • Tan Compound associated with Fiber Reinforced Panel located on Southeast Wall of Main Sales Floor and Backroom - approximately 50 sq. ft.
102 W. Alma Avenue
• Joint Compound associated w/Gypsum Wallboard throughout – approximately 2,000 sq. ft. 104 W. Alma Avenue
• Joint Compound associated w/Gypsum Wallboard throughout – approximately 2,000 sq. ft. 1413 Sanborn Avenue, San Jose
• Joint Compound associated w/ Gypsum Wallboard throughout – approximately 2,000 sq. ft. • Beige Vinyl Sheet Flooring w/Fibrous Backing located in the Dining Room, Kitchen and Laundry – approximately – 500 sq. ft.
• Black Pipe Mastic located on Roof – approximately 5 sq. ft.
Should Contractor find discrepancies in the Contract Documents, including discrepancies with regard to conflicts between the Contract Documents and applicable federal, state, or local regulations or requirements, or should they be in doubt as to the meaning or intent of any part thereof, they must, no later than five days prior to the bid receipt, request in writing clarification from The Owner and its’ authorized representative(s). Failure to request such clarification is a waiver to any claim by the Bidder for an adjustment to the Lump Sum Price made necessary by reason of later interpretation of the Contract Documents by The Owner and its’ authorized representative(s).
3.2 Owner’s Contract Conditions
Any failure by the Contractor to become acquainted with the available information shall not relieve the Contractor from the responsibility for estimating properly the difficulty or cost of successfully performing the Work. Owner and their representatives for this project are not responsible for any conclusions or interpretations made by the Contractor on the basis of the information presented in the RFP available with this bid.
The Contractor, in order to avoid labor disputes, shall employ such labor as will, to the satisfaction of Owner, work in harmony with other individuals employed by Owner and shall not use materials or means which might cause strikes or other disputes by any person employed in or about the Owner’s buildings. A sufficient force of skilled workers, acceptable to Owner shall be employed on this work at all times.
The owner reserves the right to increase or decrease the scope of work as covered by this RFP. If this action happens prior to bid award, bidders will be so notified and be allowed to revise their bid. If this happens after the contract award and execution of the contract document, an equitable Price adjustment will be negotiated between the Owner and the Contractor.
7 | P a g e
The asbestos abatement workers shall:
1. Be licensed in accordance with Cal/DOSH and follow the Bay Area Air Quality Management District requirements;
2. Comply with OSHA personal air monitoring;
3. Wear the appropriate protective clothing and respiratory protection throughout the project.
Containerization and placarding of the vehicles hauling ACM waste shall be performed in accordance with this work plan. Generator stickers and hazard labels will be applied to each liner before the trucks leave the decontamination location. All trucks leaving the area will have proper DOT placards.
A decontamination area will be installed for the asbestos workers or other workers leaving the work area.
The asbestos workers will exit the site through a decontamination facility consisting of a “dirty room” and a “clean room.” Potable water will be available for the workers at all times. All water used during decontamination will be filtered using a 5-micron system.
Asbestos workers shall wear (minimum required protection) half-face respirators and the proper protective clothing during the project. The Contractor is responsible for evaluating respirator selection. All workers will remove their outer layer of PPE on a double 6-mil poly changing station, and place the PPE in a disposal bag prior to entering the decontamination facility.
8. DEMOLITION
Should any work or material be required which is not detailed in these specifications either directly or indirectly but which is nevertheless necessary for the proper performance of the required services, the demolition contractor is to understand the same to be implied and required and shall perform all such work and furnish any such materials as fully as if they were particularly delineated or described therein.
Verifying the structural integrity of the building roofs and other building components (e.g., floor slabs, walls, floor grates, stairs, ladders, and equipment) is the sole responsibility of the Contractor. Contractor shall implement measures if necessary (i.e., supports, catwalks, platforms and man-lifts) to provide safe working conditions in all areas of the Owner’s property where access is necessary to remove ACMs and/or regulated-hazardous materials.
8.1 Staging Areas
The General Contractor and Contractor (if applicable) shall maintain staging areas at a designated section of the property. All staging areas shall be maintained in a clean and orderly condition. Security and management of the equipment staging areas and stockpile areas are the responsibility of the Contractor.
8.2 Electrical
Contractor is responsible for connecting and conveying power to Contractor facilities utilizing licensed electricians. The Contractor shall ensure safe installation of temporary power sources and equipment per applicable electrical code requirements. No electrical outlets will be allowed on the Site unless ground faulted. Any equipment with loose or faulty wiring will be required to be repaired or removed by the Contractor from the Site. The Contractor shall coordinate proper hookups of for all power to be utilized by the Contractor for all Contractor facilities, lighting, heat, and abatement or demolition activities at the start of the project.
The Contractor shall install their own electrical panels via a licensed tradesman, as well as supply a sufficient amount of GFCI-protected electrical power to meet the operating needs of the project, including the Consultants needs without additional cost to the Owner.
The Contractor shall be responsible for the proper connection of ground fault circuit interrupter (GFCI) panels using qualified and licensed tradespersons for each of the power connections. 18 | P a g e
8.3 8.4
9. Waste Transportation and Disposal
Contractor will provide the name/location and certifications for proposed disposal facilities for ACM and waste from the site for approval by The Owner. The Contractor is responsible for contacting the intended waste disposal site to confirm the site’s ability to accept materials in the volumes and duration of the intended project. Changes in waste disposal sites due to the inability of the planned waste disposal site to accept further material during the project will not be grounds for a change in Lump Sum Project Price.
Contractor shall provide the names of their waste transporters for each disposal facility for The Owner’s approval.
All waste containers must be in accordance with applicable regulatory requirements and accepted by all regulatory agencies. Changes in waste container requirements mandated by a regulatory agency shall not be grounds for a Change in Conditions or Change Order to the Contractor.
The Bid amount for waste transportation and disposal on the bid form includes all construction debris, hardfill, identified asbestos, and recyclables.
All roll-off containers used for disposal of asbestos waste will be double lined with approved plastic liners and labeled according to all regulations.
Demolition debris and any other debris resulting from the Contractor’s work, unless specified otherwise, shall become the responsibility of the Contractor for proper removal from the site to designated disposal destination, with appropriate transportation and disposal arrangements as specified herein.
Contractor will be responsible for properly sizing the waste materials to meet the requirements of the disposal facilities.
Decontamination/Demobilization
All equipment, materials and personnel shall be removed from the site following completion of the activities included in the Contract Documents.
Non-disposable equipment that has been used during implementation of the Work and has come in contact with impacted materials, if encountered, shall be cleaned in accordance with the Contract Documents before being removed from the site.
Following completion of the equipment cleaning activities, the Contractor shall remove the temporary staging area(s), decontamination area(s) and other temporary areas constructed to support on-site activities and shall dispose of all materials as described in the contract documents.
A final visual inspection and sign-off shall be implemented by the Owner and Owner’s Representative(s) to insure the complete cleanup and demobilization from the site by the Contractor.
MONITORING (AIR AND ENVIRONMENTAL), ABATEMENT CLEARANCE This section describes air monitoring conducted by Owner’s Consultant to verify that the building beyond the work area and the outside environment remains uncontaminated. This section also sets forth airborne fiber levels both inside and outside the work area as action levels, and describes the action required by the Contractor if an action level is met or exceeded.
Personal Air monitoring of Contractor's employees as required by OSHA will be the responsibility of the Contractor.
Work Area Isolation: The purpose of the air monitoring is to detect faults in the work area isolation such as:
• Contamination of the building outside of the work area with airborne asbestos fibers, • Failure of filtration or rupture in the differential pressure system, • Contamination of air outside the building envelope with airborne asbestos fibers. 19 | P a g e
review and approval. The final approved scope of work may vary based on SCCDEH comments.
The final SMP will include the SCCDEH-approved scope of work for the project. ▪ Following building demolition, removal of the building foundations, and removal of the asphalt parking lot and driveway, Cornerstone will collect soil samples from the underlying material to determine if the soil is suitable for on-Site reuse in accordance with Section 2.2.3. Soil that does not meet the reuse requirements will require off-Site disposal ▪ The areas of the Site outside of the building footprint and parking lot / driveway will be excavated to a depth of approximately 2 feet, placed into approximately 100 cubic yard stockpiles, and sampled for disposal profiling purposes. ▪ The areas around former sample locations SS-2A and SS-5/SS-5A will be excavated to a total depth of 3 feet (1 additional foot beyond the Site-wide excavation). Soil from these locations will be separately stockpiled and sampled for disposal profiling purposes. ▪ Cornerstone will collect bottom confirmation samples from the two deeper excavation locations to determine if additional excavation appears to be required. ▪ After removal of all soil with COC concentrations that exceed the residential ESL or hazardous waste criteria, the contractor will source clean fill material for import to the Site.
This material will meet the requirements specified in Section 2.2.2.
As discussed, the SCCDEH-approved SMP will be transmitted to the contractor when available.
2.1 PRELIMINARY RISK MANAGEMENT DURING CONSTRUCTION
This section presents the preliminary risk management protocols to be implemented during construction. These preliminary protocols may be revised or amended in the SCCDEH-approved SMP.
2.1.1 Contractor Licensing and Training
Work activities will be performed by a contractor with a hazardous substance removal and remediation action certificate (“A-Haz Contractor”) and using personnel with training in hazardous waste operations (40-hour OSHA Training). Contractors transporting soil off-Site shall possess the appropriate licensing and certifications through the Department of Transportation (DOT) for transporting hazardous waste. The Contractor and their subcontractors are responsible for knowing and maintaining the required licensing, certifications, and training for the project, and maintaining the required paperwork in accordance with local, state, and federal laws.
2.1.2 Dust Control and Track-Out Prevention Measures
The contractor and their subcontractors are required to implement measures to prevent airborne dust emissions and track-out onto paved public roads. Dust control measures shall be modified, as needed, if dust emissions are observed during construction. The contractor and their subcontractors shall clean all track-out at locations where vehicles exit the Site using wet sweeping methods or a High Efficiency Particulate Air (HEPA) filter-equipped vacuum.
2.1.3 Health and Safety
The contractor and their sub-contractors are responsible for the health and safety of their own workers, and are required to prepare health and safety plan (HSP) their own injury and illness prevention plan (IIPP). The purpose of the HSP and IIPP is to provide general guidance regarding the work hazards that may be encountered during construction activities. Based on the COC and Project Number 459-37-1 Page 3 May 4, 2026
Exhibit B
Exhibit A: QLM - CSLB Information
Exhibit D - Hilltop Asbestos Abatement Corp. CSLB Info
Exhibit E - Pacific States - HAZ Soil Transportation
Ricky Munoz
Exhibit F: Asbestos Abatement Quotes Hilltop Quote for Asbestos Abatement From: Santiago Delgadillo <[email protected]>
Sent: Thursday, July 30, 2026 8:24 AM
To: Ricky Munoz
Subject: Re: Elia Park
[CAUTION: This email originated from outside of the organization. Do not click links the sender and know the content is safe]
or open attachments unless you recognize
Ricky For the Asbestos Abatement you can
abatement quantities called out on Appendix C.
carry about $135,000.00. This is for only the asbestos
Thank you
3230 Arden Rd.Hayward, CA 94545
Office:510.750.1903 Ext. 102
Direct: 510.880-6833
Cell: 510.760.1296
Email: [email protected]
Web: www.hilltopasb.com
Santiago Delgadillo|Project Manager/Estimator
Hilltop Asbestos Abatement Corporation
1 CSLB LICENSE #1094975 DIR 1000964194 SBE #2036661
Penkor Quote for Asbestos Abatement Exhibit F: Asbestos Abatement Quotes QUOTE# 26177
7/30/2026
Project: 100 W Alma Ave, San Jose (Elia Park)
Penkor Wrecking proposes to furnish necessary labor, equipment, T&D required to perform the demolition, by mechanical means, of the buildings and site at above address per below scope of work.
Inclusions
1. Abatement
2. Building removal including slab and foundations to 5’ below adjacent grade (crawl space included)
3. Slab on grade thickness not to exceed 5” thick
4. Site concrete removal including walkways, curbs, gutters, walls, signage
5. Asphalt removal; thickness not to exceed 3” as shown on Geotech report
6. Saw cut concrete/asphalt at demolition limits
7. Trees and bushes removal; chasing roots to 3” cross section
8. Underground utilities removal; limited to 5’ below adjacent grade
9. Dust control, based on using on-site water source (ie hydrant) provided by GC/Owner
10. Work to be complete in 1 mobilization
11. BAAQMD notification (requires 10 workdays before demolition)
12. Traffic control for our own work (a flagman and signage)
13. Rough grade site after demolition so there are no pits left from footings/utilities/stump removals Exclusions
1. Installation of fencing, barricades, pedestrian walkways, etc.
2. Safe-off dry utilities, cut/cap wet utilities
3. Adjusting and relocating utility structures
4. Layout, testing, inspections, engineering, and surveying
5. Permits (demolition, encroachment, tree removal, etc.), fees, recycling deposit fee
6. Vibration and noise prevention (quote is based on demolition by mechanical means)
7. Relocating/replacing and salvage for others
8. Removal of foundations below 5’ below adjacent grade
9. Structural wall bracing and shoring
10. Structural excavation and fine grading
11. Off-haul grass/weeds, soil, sand, gravel, and base rock
12. Import, backfill and compaction
13. Sub-surface items not shown or expected (ie second slab, mat slab, piles, foam, waterproofing, etc)
14. Removal of asphalt with reinforcing fabric/petromat (non-recyclable)
15. Dewatering
16. Patchwork or repair work
1791 ViaHermana, San LorenzoCA94580
Phone: (341)208-8911 www.penkorwrecking.com
Qualifications
1. Buildings assumed to be empty (free of loose furniture and debris)
2. Equipment access to be provided by GC/Owner
3. Proposal valid for 90 days from date of this proposal
4. Work is subject to availability of crews. Two weeks notice must to given prior to mobilization date.
5. In the event work is delayed through no fault of Penkor Wrecking, GC to pay for either 1) equipment to be remobilized at a later date or 2) equipment on standby per T&M Rate Sheets.
6. Underground Service Alert will be notified prior to demolition
7. Safe off (air gap) of utilities to be complete by GC/Owner prior to demolition
8. Payments to be received within 30 calendar days from invoice date Base Total: On-site demolition $99,000 LS 12 DAYS
Alternate 1: Asbestos and Lead Abatement including Universal Wastes $100,000 LS 10 DAYS Alternate 2: Offsite demolition (saw cut, demolition of asphalt & concrete) $31,000 LS 3 DAYS
1. As separate contract if remobilized at end of project (so retention is not held up) Alternate 3: Cut and Cap wet utility line (EA) at property line $1,000 EACH
1. Not to exceed 4’ below adjacent grade
Thank you,
Khaleel Obaidi
Khaleel Obaidi, Estimator | Mobile (341) 208-8911 | Email [email protected] 1791 ViaHermana, San LorenzoCA94580
Phone: (341)208-8911 www.penkorwrecking.com
Exhibit G - QLM List of Subs
LIST OF SUBCONTRACTORS
The bidder must list all subcontractors who will perform work amounting to more than one half of one percent of the bidder’s total bid or $10,000 (whichever is greater) in accordance with Section 2-1.15A and Section 2-1.17 of the City of San Jose Standard Specifications Use additional pages as necessary.
SUBCONTRACTOR LOCATION DIR REGISTRATION
NUMBER
STATE SUBCONTRACTOR
LICENSE NUMBER
PORTION (DESCRIPTION)
OF WORK
Prj Id: 10242 37SUBCONT - Revised On May 23, 2025
Dear City of San Jose Representative:
The protest claims that QLM, Inc. was required to list an asbestos subcontractor because it does not hold an asbestos license. Respectfully, that conclusion is not supported by the Contract Documents.
QLM is a licensed California Class A General Engineering Contractor and intended to self-perform the demolition work with its own forces. QLM did not intend to subcontract the demolition portion of the project. If environmental services were required during construction, QLM intended to retain a qualified environmental consultant to perform inspections, sampling, testing, surveys, and any required regulatory reporting. Those services are professional consulting services and are separate from the demolition work.
The Contract Documents require the Contractor to comply with all applicable federal, state, and local laws related to asbestos and hazardous materials. They identify known asbestos-containing materials and require the Contractor to comply with applicable regulations if asbestos is encountered. The specifications also recognize that additional investigation may be necessary before the full extent of any abatement work can be determined. However, the Contract Documents do not require bidders to identify an asbestos subcontractor or environmental consultant as part of their bid.
Because QLM intended to perform the demolition work itself, there was no demolition subcontract to list. The protest's reliance on third-party asbestos quotations does not establish that QLM intended to subcontract the demolition work or that the solicitation required the listing of an environmental consultant.
The protest also asserts that QLM was required to list a hazardous soil subcontractor.
Appendix F establishes the licensing and certification requirements for the contractor and any subcontractors performing hazardous soil management and transportation during construction. It also recognizes that the final Soil Management Plan had not yet been approved and that the extent of hazardous soil handling would depend on regulatory review, post-demolition sampling, and whether excavated material could be reused on site or would require off-site disposal. Until those determinations were made, the final scope of hazardous soil work could not be known.
ATTACHMENT C: Response Letter from QLM, Inc.
QLM intended to comply with all applicable licensing, certification, and regulatory requirements for any hazardous soil work ultimately required during construction.
Nothing in the solicitation expressly required bidders to identify a hazardous soil subcontractor before the final scope of that work had been determined.
For these reasons, QLM's bid complied with the solicitation requirements. The protest does not identify any provision of the Contract Documents requiring QLM to list either an asbestos subcontractor or a hazardous soil subcontractor under these circumstances. QLM respectfully requests that the City deny the protest and proceed with the award.
Respectfully,
QLM, Inc.
August 18, 2026
Ricky Munoz
Suarez & Munoz Construction, Inc.
2490 American Avenue
Hayward, CA 94545
[email protected]
SUBJECT: PW 10242 – Elia Park Bid Protest
Dear Mr. Munoz,
This letter is to inform you that City staff has evaluated your letter dated August 6, 2026, entitled “Bid Protest – PW 10242, “PARK: Elia Park” – Notice of Intent to Award to QLM, Inc.”, and will be making the following recommendation to the City Council. Pursuant to the San Jose Municipal Code, the City Council has the authority to resolve bid protests made during this procurement.
RECOMMENDATION:
City staff will recommend upholding the intent to award the construction contract to QLM, Inc.
BACKGROUND:
On July 30, 2026, bids were opened for the PW 10242 – Elia Park Project. Six bids were submitted, with QLM, Inc. submitting the apparent lowest bid ($2,767,903.00) and Suarez & Munoz Construction, Inc. submitting the apparent second lowest bid ($2,936,004.00).
On August 4, 2026, the City issued a Notice of Intent to Award the contract to QLM, Inc. as the lowest responsive, responsible bidder.
PROTEST:
On August 6, 2026, the City received a timely written protest from Suarez & Munoz Construction, Inc. The protest asserted that QLM, Inc.’s bid should be deemed non-responsive for failing to list an asbestos abatement subcontractor and a hazardous soil off-haul subcontractor. The protest requests that the City award the construction contract to Suarez & Munoz Construction, Inc.
ATTACHMENT D
City’s Response to Suarez & Munoz Construction, Inc. Bid Protest
SUBJECT: PW 10242 Protest
ANALYSIS: SUAREZ & MUNOZ CONSTRUCTION, INC.’S PROTEST IS BASELESS A. QLM, Inc. was not required to have or list a subcontractor with a “C-22” specialty contractor’s license to perform asbestos abatement work.
As Suarez & Munoz Construction, Inc. correctly points out, subcontractor listing requirements stipulate that work valued at more than 0.5% of the bid must be assigned to a designated subcontractor or self-performed. Per Section 2-1.15 of the City’s Standard Specifications1 “if the Contractor fails to specify a subcontractor…the Contractor agrees that it is fully qualified to perform that portion itself, and that the Contractor shall perform that portion of the work.” By declining to list a subcontractor to perform asbestos abatement work, QLM, Inc. has agreed to perform that work.
However, Suarez & Munoz Construction, Inc. is incorrect when it says that bidders were required to list a subcontractor with a C-22 specialty license to perform asbestos abatement work or, if selfperforming the work, possess a C-22 specialty license themselves. Section 2-1.10 of the City’s Standard Specifications requires that bidders have a valid Contractor’s license in the class specified in the Notice to Contractors at the time of bid opening. In the case of PW 10242 – Elia Park, the Notice to Contractors specified a class A license. There is no mention in the Notice to Contractors – or anywhere else in the project Specifications – that a bidder must have a C-22 license or list a subcontractor that possesses one. Had the City wanted to require a C-22 license, it could have and would have done so.
Therefore, contrary to Suarez & Munoz Construction, Inc.’s claim, QLM, Inc. was not required to have or list a subcontractor with a C-22 license on its List of Subcontractors and, therefore, its bid was not non-responsive.
B. QLM, Inc. was not required to have or list a subcontractor with a “HAZ” certification to perform hazardous soil off-haul work.
Again, Suarez & Munoz Construction, Inc.’s protest correctly states that bidders are required to list subcontractors that will perform work valued at more than 0.5% of the bid. Work that is not assigned to a subcontractor must be self-performed. QLM, Inc. did not list a subcontractor to perform hazardous soil off-haul work and, as such, has agreed to self-perform that work.
Suarez & Munoz Construction, Inc.’s protest also correctly states that Section 2.1.1 of Appendix F of the project Specifications requires that the contractor performing the hazardous soil off-haul work possess a hazardous substance removal and remediation action (“HAZ”) certification.
However, as noted above, the Notice to Contractors only required bidders to have a valid class A license at the time of bidding because hazardous soil off-haul work may not be required for this project. QLM, Inc. was not required to have or list a subcontractor with a HAZ certificate on its List of Subcontractors and, therefore, its bid was not non-responsive. 1 The protest incorrectly cites the Public Contract Code as an authority over the City’s procurement process. As a Charter City, the City of San Jose has adopted Title 27 of the San Jose Municipal Code to “control over the California Public Contract Code except wherein it expressly incorporates the California Public Contract Code” (SJMC 27.04.010).
SUBJECT: PW 10242 Protest
It should be noted that if hazardous soil off-haul work is necessary during the course of the project, the City will ensure that it is conducted in accordance with the licensing requirements included in the project Specifications as well as all applicable federal, state, and local laws.
As stated above, the City Council has the authority to resolve bid protests made during this procurement. Suarez & Munoz Construction, Inc. will be afforded the opportunity to formally present its case to the City Council when this item is agendized for City Council action.
Alternatively, Suarez & Munoz Construction, Inc. may withdraw its protest.
Thank you,
Lauren Profeit
CIP Procurement Manager
San José City Hall, 5th Floor
200 E. Santa Clara Street
San José, CA 95112
[email protected]