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Staff Report

Santa Ana City Council
September 16, 2025

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Staff Report
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September 16, 2025
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Santa Ana City Council
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Public Works Agency
www.santa-ana.org/pw
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 16, 2025
TOPIC: Construction Contract for the Santa Ana Zoo Hive Building

AGENDA TITLE
Award a Construction Contract to Optima RPM, Inc. for the Santa Ana Zoo Education Hub Building A – Phase 1 Project (No. 23-2601) (Non-General Fund)

RECOMMENDED ACTION

1. Approve an appropriation adjustment recognizing $166,000 in donations from Friends of Santa Ana Zoo into the PRCSA Fees & Donations (02213002-57081) revenue account and appropriate the same amount into the PRCSA Fees & Donations (02213200-66200) building expenditure account for the Santa Ana Zoo Education Hub Building A – Phase 1. (Requires five affirmative votes)

2. Approve an appropriation adjustment recognizing $750,000 in revenue collected in prior years into the Acquisition & Development-District 3 (31313002-50001) revenue account and appropriate the same amount into the Acquisition & Development-District 3 (31313260-66200) building expenditure account for the Santa Ana Zoo Education Hub Building A – Phase 1. (Requires five affirmative votes)

3. Approve an amendment to the Fiscal Year 2025-2026 Capital Improvement Program to include an additional $916,000 in construction funds for the Santa Ana Zoo Education Hub Building A – Phase 1 Project (No. 23-2601).

4. Approve the Project Cost Analysis for a total estimated construction delivery cost of $4,454,082, which includes $3,563,265 for the construction contract, $534,490 for contract administration, inspection, and testing, and $356,327 for unanticipated or unforeseen work.

5. Award a construction contract to Optima RPM, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $3,563,265, subject to change orders, for construction of the Santa Ana Zoo Education Hub Building A – Phase 1 Project (No. 23-2601), for a term beginning September 16, 2025 and ending upon project completion, and authorize the City Manager to execute the contract.

Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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6. Approve an Agreement with Berg & Associates, Inc., for Construction Management and Inspection services for the Santa Ana Zoo Education Hub Building A – Phase 1 Project, in an amount not to exceed $374,315 for a three- year term beginning September 16, 2025 and expiring September 15, 2028, with an option for two, one-year extensions.(Agreement No. A-2025-XXX)

7. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2025-62 will be filed for Project No. 23-2601.

GOVERNMENT CODE §84308 APPLIES: Yes

DISCUSSION
The Public Works Agency Engineering Services Division (PWA) is responsible for the administration and oversight of all Capital Improvement Projects in the City. The Santa Ana Zoo Education Hub Building A – Phase 1 (No. 23-2601) (Project) involves the construction of a new educational facility, known as the Hive, within the Santa Ana Zoo at Prentice Park. This Project is the first phase of a multi-phased initiative to expand and modernize the Zoo’s educational infrastructure. The Project includes the construction of the Hive building, which will serve as a flexible space for educational programming, community workshops, public events, and after-hours rentals. The Project location is immediately adjacent to the Zoo’s large event lawn and amphitheater space which will enhance the functionality of those spaces (Exhibit 1). The Hive building is designed to support both indoor and outdoor learning experiences and will incorporate sustainable building practices, Americans with Disabilities Act (ADA)-compliant access, and Zoo- compatible architectural elements.

This project supports the goals outlined in the Santa Ana Zoo Master Plan and aligns with the broader City vision of enhancing public spaces, promoting environmental education, and improving community-serving amenities. The Hive will strengthen the Zoo’s role as a regional attraction and a vital resource for students, families, and educators. The project is necessary to meet the growing demand for structured educational programming and to replace outdated facilities that no longer meet current or future needs.

The educational reach of the Zoo is broad, with nearly 500 school visits in 2024, representing over 33,000 students. The education team has led over 600 programs for the public, including 29 park pop-ups, 421 animal presentations, and 90 story time programs.

Construction is anticipated to begin in November 2025, with project completion expected by November 2026. The construction of this Project is coordinated with planned improvements at the Zoo including future development phases of the Education Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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Hub. Upon completion, the Hive will provide a welcoming, functional, and modern space that enhances the Zoo’s ability to deliver high-quality educational experiences. The final site will include supporting infrastructure improvements, with maintenance coordinated by PWA staff and Zoo management.

The Project reflects the City’s continued investment in public infrastructure, educational equity, and long-range community enrichment. It will directly benefit residents, visitors, and partner organizations by providing a dedicated space for lifelong learning and engagement.

Funding History
The City received funding from the State of California in the FY21-22 budget through the advocacy of Senator Tom Umberg, 34th District, in the amount of $2,000,000 towards the completion of this project. On May 3, 2022, Council adopted a resolution approving the acceptance of grant funds from the State of California Natural Resources Agency, and a contract for architectural services was advertised on February 22, 2023 and awarded on August 1, 2023 to LOC Architects. The original design concept proposed a single large building; however, site and subsurface investigations revealed the presence of mature trees and underground utilities, including a Southern California Edison easement, which conflicted with the initial design. As a result, a revised approach was necessary. On April 16, 2024, the City Council approved an amended agreement with LOC Architects, modifying the scope of work to include the design of two separate buildings and a layout compatible with the site constraints. To date, $350,000 of the grant funds have been spent on design and the deadline to expend the State funds is March 1, 2026. City staff has been in communication with the State throughout this process and provided updates as the project has moved along. Staff may need to request an extension to the spending deadline.

Project Advertisement and Contractor Procurement
To provide an opportunity for local vendors to submit bids, the City notified a total of 219 regional vendors via PlanetBids, many of which are Santa Ana based. Furthermore, staff specifically reached out to Santa Ana vendors to encourage their participation in bids. A total of 13 bids were received and deemed responsive. One bid was received from a Santa Ana contractor.

As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on May 7, 2025 and May 14, 2025. The project was also advertised in PlanetBids from May 7, 2025 to July 2, 2025. Bids were received electronically via PlanetBids on July 2, 2025. No bid protest was submitted by any of the bidders during the bid protest period. A copy of construction plans, contracts, specifications, and all related reference materials (such as The Greenbook) are available for public review at the City’s Public Works Agency, Central Files office located in City Hall.

Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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Construction Contract Bid Results
RANK BIDDER’S NAME LOCATION BID
1 Optima RPM, Inc. Irvine, CA $3,563,265
2 New Dynasty Construction Co. Tustin, CA $4,678,650
3 Armstrong Cal Builders Inc. Stanton, CA $4,727,200
4 FEC Future Contractors and
Engineers Inc. Irvine, CA $4,728,200
5 Newman Midland Corp Long Beach, CA $4,786,000
6 KYA Services LLC Santa Ana, CA $4,904,784
7 Loengreen, Inc. La Canada. CA $5,079,200
8 SS+K Construction Inc. Mission Viejo, CA $5,201,200
9 Pub Construction Inc. Diamond Bar, CA $5,322,200
10 Loghmani & Associates
Design Group, Inc. Playa Del Rey, CA $5,489,000
11 PCN3, Inc. Los Alamitos, CA $5,594,200
12 Klassic Engineering &
Construction Inc. Orange, CA $6,232,950
13 The Nazerian Group Encino, CA $6,614,123
Optima RPM, Inc. submitted the lowest responsive bid in the amount of $3,563,265 (Exhibit 2). Based on the bid analysis, reference checks, and evaluation against the bid criteria, staff finds Optima RPM, Inc. to be a responsible and qualified bidder and recommends awarding them the construction contract. Founded in 2011, Optima RPM, Inc. is a national general contractor with a proven track record of successfully completing projects across the country. The firm has completed multiple projects in both the private and public sectors, including city halls, park centers, gymnasiums, administration buildings, and tenant improvements throughout Orange County. Optima RPM, Inc. has demonstrated that they possess the stability and experience necessary to successfully complete this project in accordance with the City’s plans, specifications, and expectations. (Exhibit 3).

This will be the first project Optima RPM, Inc. will build in Santa Ana. Optima RPM, Inc. has done similar projects in the past for other public agencies. Most recently they completed construction of the Central Park Amphitheater for the City of Menifee and modernization of an existing motel for the City of Ontario. Based on a contractor’s reference check, staff was informed that Optima RPM, Inc. performed quality work for those agencies. Based on the bid analysis, staff recommends awarding the construction contract to Optima RPM, Inc.

Construction Management Bid Results
The RFP for Construction Management services was advertised on the City’s online procurement management and publication system, with Proposals due on July 3, Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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2025. Seven proposals were received and evaluated by a selection committee. Based on criteria outlined in the RFP, the following summarizes the seven responding firms and their ranking.

Firm City Rank
Berg & Associates, Inc. San Pedro, CA 1
TynanGroup, Inc. Newport Beach, CA 2
Transtech Engineers, Inc. Chino, CA 3
JS Held Newport Beach, CA 4
APSI Construction Management Santa Ana, CA 5
P2S, Inc. Long Beach, CA 6
Willdan Anaheim, CA 7
Staff recommends awarding an agreement to Berg & Associates, Inc. to provide the Construction Management and Inspection Services based upon the scope of work and selection criteria outlined in RFP 25-077 (Exhibit 4). Their proposal demonstrated the firm has the necessary capacity and expertise to complete the required services. The firm’s rates are reasonable and within industry standard, the team qualifications are appropriate for this project, and the proposal was determined to provide the best value for the city.

This will be the second time Berg & Associates has worked with the City. They have been the primary consultant on Projects Nos. 19-6438, 19-6439, 19-6440 SR- 55/Ritchey Street Water Improvements, where they demonstrated their ability to deliver quality results. They have consistently provided satisfactory work and shown a strong understanding of the City’s processes and expectations.

Project Delivery
To deliver a complete project, in addition to the construction contract, the estimated total project delivery cost includes a budget allocation for construction administration, inspection, and testing. Construction administration and inspection may be performed by either Staff or consultants and includes construction management, inspection of the Contractor’s work to ensure contract compliance, workmanship and quality, materials testing, and implementation of the labor requirements.

Any of the allocated construction administration funds not spent are considered project savings and are returned to the respective fund balances upon close out of the project.

As indicated in the Cost Analysis and as summarized in the table below, the estimated total construction delivery cost of the project is $4,454,082.

Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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Project Item Total
Construction Contract Bid Amount $3,563,265
Construction Administration $285,062
Inspection $178,163
Testing $71,265
Unforeseen Conditions $356,327
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $4,454,082
Project Schedule and Contract Time
The project completion is scheduled for November 2026, barring unforeseeable conditions such as rain, natural disasters, or other delays beyond the control of the City and of the Contractor. The contract time for this project is 250 working days, as specified in the bid documents. Working days are counted in accordance with the City’s Standard Specifications, which exclude weekends, City-observed holidays, and inclement weather days that prevent work.

The actual completion date will depend on the contractor’s schedule, material procurement timelines, and any unforeseen delays. Based on a typical project timeline, the estimated project completion is provided below:

Project Milestones
Milestone Estimated
Completion Date
Notes
Administrative Startup October 2025 Contract execution, bonds, insurance
Material Procurement October 2025 Procurement may take place concurrently with construction.

Contractor Mobilization November 2025 Start of construction activities Project Completion November 2026 Based on 250 working days The contractor will be constructing this project in a singular phase, fulfilling the scope of work as outlined in the contract documents. The contractor is responsible for determining the scheduling and sequencing of activities based on their proposed means and methods.

Public Outreach
This project was conceptualized as a part of the 20-year Master Plan for the Santa Ana Zoo approved by the City Council in 2018. Community surveys in 2020 and 2021 showed widespread support for the Zoo and the desire for additional educational opportunities and programming. Stakeholders were involved in the design process and the construction location is within the interior of the zoo campus, greatly reducing the impact on neighboring properties.

Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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Upon Council approval of recommended actions, prior to start of construction, Staff will notify Zoo Patrons of upcoming construction and post informational material including who to contact for additional information or to address issues of concern. Additionally, the contractor is required to install signage at the project site indicating project details and contact information.

ENVIRONMENTAL IMPACT
Pursuant to the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review pursuant to Section 15303(c) of the CEQA Guidelines for projects consisting of new building construction not involving the use of significant amounts of hazardous substances and up to four commercial buildings not exceeding 10,000 square feet in floor area. The proposed project continues to meet these parameters of the CEQA Guidelines and Categorical Exemption Environmental Review No. ER-2025-62 will be filed for Project 23-2601 (Exhibit 5).

FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $4,454,082. Funding for the project was partially allocated in prior years.

Funds appropriated in prior years will be included in the City’s Carry Forward of Unspent 2024-2025 Funds to be presented to the City Council for approval at the October 7, 2025 City Council meeting. The remainder of the funding for the project is included in recommended actions #1 and #2. Any remaining balances not expended at the end of the fiscal year will be carried forward into Fiscal Year 2026-2027 (Exhibit 6).

The proposed contract authorizes staff a maximum of 10% for construction contract change orders. Staff would return to City Council for authorization and appropriation of additional funding if necessary.

With the approval of the requested appropriation adjustment, a portion of the accumulated fund balance will be appropriated for spending in the Acquisition & Development Fund -District 3, Building Improvements Account (No. 31313260-66200).

The spendable portion of the fund balance is estimated to be $765,225 as of June 30, 2025, which is sufficient to allow for the recommended appropriation of $750,000. The funds will be budgeted and available for this item in the accounts below.

Fiscal
Year
Accounting
Unit – Account
No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount

CURRENT REMAINING BUDGET
2025-26 16113262-66200
(23-2601) State Grants
State Resources
Agency Grant-Building
Improvements
$1,649,880
Construction Contract for the Santa Ana Zoo Hive Building September 16, 2025

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Fiscal
Year
Accounting
Unit – Account
No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
2025-26 01113017-66200
(23-2601) General Fund
PRCSA-Service
Enhancement-Building
Improvements
$441,013
2025-26 05113263-66200
(23-2601)
Capital Outlay
Fund
Park Improvements-
Building Improvements $450,000
2025-26 01213020-66200
(23-2601)
Cannabis
Public Benefit
Fund
PRCSA Youth
Services-Building
Improvements
$873,759
2025-26 01113200-66200
(23-2601) General Fund PRCSA Administration-
Building Improvements $123,430

APPROPRIATION ADJUSTMENT
2025-26 02213200-66200
(23-2601)
PRCSA Fees
& Donations
Fund
PRCSA Fees &
Donations-Building
Improvements
$166,000
2025-26 31313260-66200
(23-2601)
Acquisition &
Development-
District 3
Acquisition &
Development-Building
Improvements
$750,000
TOTAL $4,454,082

EXHIBIT(S)

1. Location Map

2. Bid Proposal

3. Construction Contract

4. Agreement for Construction Management & Inspection Services

5. Environmental Determination

6. Capital Improvement Project Worksheet
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager

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