CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: CONSENT CALENDAR Account Number: 82-4681 File ID: 26-11517 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: August 17, 2026
SUBJECT:
Main Street Garage Remediation — Construction Contract
RECOMMENDATION:
Award a construction contract to OnPoint Construction for construction at the Main Street Garage in the amount of $1,649,000; establish a contingency reserve in the amount of $165,000; and authorize the Public Works Director to execute the contract in substantially the form presented and issue change orders within the contingency amount.
BACKGROUND:
The Main Street Garage is a five-story, post-tension parking structure constructed in 2001. The facility includes approximately 380 parking spaces, seven ground-floor tenant spaces, and a roof-level parking deck protected by an elastomeric traffic membrane. Water infiltration into the tenant spaces along the north side of the building has been an ongoing issue for several years, resulting in one tenant vacating the premises in 2024 due to the extent of the damage.
In Fiscal Year (FY) 2023–24, the City retained McGinnis Chen Associates, Inc. (MCA) to investigate the source of the water intrusion and develop repair recommendations. Based on its assessment, MCA identified deficiencies in the building envelope and parking deck waterproofing systems and recommended repairs to the windows, various areas on the exterior cladding, and the elastomeric membrane at the roof above the tenant spaces.
In 2025, the City authorized MCA to prepare construction documents and technical specifications for bidding. During the construction documentation phase in FY 2025-26, the City experienced unusually wet weather, resulting in significant water intrusion into the tenant spaces on the south side of the parking garage. The damage became severe enough that the City installed temporary building wrap on the exterior of the building to reduce water infiltration and allow the tenants to continue operating.
As the full extent of the facility's deficiencies became apparent, the City determined that the most cost-effective and efficient approach was to re-prioritize and consolidate the required south-side building envelope repairs with the installation of an elastomeric traffic membrane across the entire roof-level parking deck, a project originally planned for the following fiscal year. This consolidated approach reduces mobilization and administrative costs, minimizes disruption to tenants and the public, avoids reopening completed work, and provides a comprehensive, long-term solution to the facility's water intrusion issues while extending the structure's service life and protecting the City's investment.
The project was advertised for bid on June 9, 2026. Sixteen contractors attended the mandatory pre-bid conference on June 23, 2026, and one bid was received at the July 14, 2026, bid opening:
Company Bid Amount
OnPoint Construction $1,649,000
CITY OF SAN MATEO
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OnPoint Construction is the sole bidder and determined to be a responsible bidder. Although the bid exceeds the engineer's original estimate of $400,000, that estimate was prepared before the expansion of the project scope. Following receipt of the bid, the City undertook additional due diligence to validate the construction cost by obtaining an independent engineer's estimate based on the most current project scope. The updated estimate of $1,785,000 closely aligns with OnPoint Construction's bid of $1,649,000, confirming that the bid is reasonable and reflective of current market conditions and the expanded scope of work.
Staff anticipated the increased project costs associated with the expanded project scope and identified sufficient funding within the FY 2026–27 Capital Improvement Program using funds from projects within similar program categories. Given the extent of the existing water damage and the need to prevent further deterioration of the building and tenant spaces, staff recommends awarding the construction contract to OnPoint Construction in the amount of $1,649,000. Staff also recommends authorizing a construction contingency in the amount of $165,000 to address unforeseen conditions that may be encountered during demolition and construction, including dry rot, concealed water damage, and the potential presence of hazardous materials resulting from prolonged moisture intrusion.
BUDGET IMPACT:
There is sufficient capital budget in the Main Street Garage Waterproofing (46F046), Citywide Facility Roof Replacements (46F056) and Citywide Facility Waterproofing Improvements (46F059) project accounts to fund this construction contract and contingency reserve.
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 existing or former use. (CEQA Guidelines Section 15301.)
STRATEGIC INITIATIVE
This plan supports the Infrastructure and Public Safety initiatives.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Contract for Construction
STAFF CONTACT
Steve Wu, Facilities & Fleet Services Manager
[email protected]
(650) 522-7345