CITY OF SAN MATEO
5 8
7 8
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 13 Section Name: {{section.name}} Account Number: 82-4681 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: July 28, 2025
SUBJECT:
Poplar Creek Tenant Improvements – Agreement
RECOMMENDATION:
Approve and authorize the City Manager to execute an agreement with Jon K Takata Corporation d/b/a Restoration Management company to provide contractual services in an amount not to exceed $1,265,263.23; increase the construction contract contingency to $50,000; and authorize the Public Works Director to issue change orders within the contingency amount.
BACKGROUND:
Poplar Creek Golf Course has been in operation for over 90 years, with the current clubhouse built in 2000. The City and PAR3SM, LLC (PAR 3) entered into a lease agreement on April 3, 2019. In October 2024, an environmental hygienist conducted an air test which revealed high levels of bacteria, rendering the space unsafe for occupancy. Therefore, the restaurant tenant space was evacuated and has since remained closed to PAR 3 staff and the public during repairs.
In October 2024, the City engaged Jon K Takata Corporation dba Restoration Management Company (RMC) to develop the following phases of work:
Phase 1: Establish containment, decontaminate the area, remove and store equipment and furniture, and document existing building conditions. Investigate the source of water infiltration by removing finish materials and inspecting the drain lines. Identify the remaining tasks required to complete Phase 1 and incorporate them into a subsequent change order. Develop a detailed scope, schedule, and fee of repairs for Phase 2. Phase 2: Restoration work to remove contaminants, repair or replace structural components, and install new finish materials. Reinstall equipment and furniture.
Phase 3: Coordinate with County Health officials to recommission the restaurant for operations. Provide a plumbing report and remediation report.
On November 21, 2024, the City entered into a $79,606.90 construction contract with RMC to initiate Phase 1. Subsequent change orders totaling $1,185,656.33 were issued to cover Phases 2 and 3, bringing the overall contract amount to $1,265,263.23. This included Change Order No. 1 for $1,072,649.41 approved on February 3, 2025 by the City Council, which also authorized a construction contract contingency of $115,300. However, City staff inadvertently allowed the original construction contract to expire, thus necessitating the proposed agreement attached to this staff report in the amount of $1,265,263.23. This agreement will cover all work performed since January 1, 2025 and going forward.
Additionally, an increase in the remaining contingency from $2,292.18 to $50,000 is to address the additional work not in the original scope to ensure the project meets aesthetic standards.
CITY OF SAN MATEO
5 8
7 8
BUDGET IMPACT:
This work is funded by the Capital Improvement Program budget through the Poplar Creek Tenant Improvements Project (46f053).
ENVIRONMENTAL DETERMINATION:
This project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Agreement
STAFF CONTACT
Steve Wu, Facilities and Fleet Services Manager
[email protected]
(650) 522-7345