Public Works Agency
www.santa-ana.org/pw
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 5, 2026
TOPIC: Amendment to the Agreement with Bernards Bros, Inc., for Construction Management at Risk Services for the State Building and Plaza Demolition Project, Land Transfer Agreement with County of Orange to Acquire Plaza of the Fountains Parcel, and Granting a Future Access Easement to the County on Said Parcel
AGENDA TITLE
Amendment to the Agreement with Bernards Bros, Inc. for Construction Management at Risk Services for the State Building and Plaza Demolition Project, Land Transfer Agreement with County of Orange to Acquire Plaza of the Fountains Parcel, and Granting a Future Access Easement to the County on Said Parcel (Project No. 24-9002) (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute an amendment to the agreement with Bernards Bros, Inc. to provide Construction Management at Risk services for the State Building Demolition project in the amount of $839,160, with $83,916 for unforeseen conditions, for a total amount of $923,076 and a new total contract value of $1,773,076, for a two-year term beginning May 5, 2026, and expiring May 4, 2028, with an option for two, one-year extensions (Agreement No. A- 2026-XXX).
2. Authorize the City Manager to execute a Land Transfer Agreement between the City of Santa Ana and the County of Orange, a political subdivision of the State of California, for transfer of the Plaza of the Fountains parcel in the Civic Center (Agreement No. A-2026-XXX).
3. Authorize the City Manager to execute an easement deed to convey access rights to the County of Orange over the Plaza of the Fountains parcel.
GOVERNMENT CODE §84308 APPLIES: Yes
Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026
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DISCUSSION
Executive Summary
On May 2, 2023, the City of Santa Ana received a $9 million grant from the State of California to support modernization of the Civic Center area, including acquisition and demolition of the former State Building located at 28 Civic Center Plaza. The City subsequently acquired the property on December 28, 2023 with the intent to demolish the building and prepare the site for future development opportunities.
On August 20, 2024, at the conclusion of a competitive procurement process, the City Council approved a Construction Manager at Risk (CMAR) service contract to Bernards Bros., Inc. (Bernards). The CMAR delivery method allows the construction manager to serve as a consultant during the design phase and subsequently transition into the role of general contractor during construction. The Scope of work included the preparation of engineering plans to remove portions of the surrounding Plaza of the Fountains affected by the demolition of the former State Building. As described in the August 2024 staff report, the scope of work would progress in phases allowing staff to control costs and City Council to approve subsequent work efforts.
During pre-construction planning for the project, it was determined from a structural analysis that the entirety of the Plaza of the Fountains must be demolished due to loss of structural integrity and safety concerns if only partial demolition occurs. The demolition work would impact all portions of the Plaza including County of Orange owned lands and would necessitate modifications to access routes serving the County’s Law Library and coordination with County property interests.
To complete the pre-demolition scope of work and associated engineering and construction planning requirements, staff recommends approval of a contract amendment with Bernards to provide Phase 2 CMAR services. The amendment increases the contract amount by $923,076, for a total contract value of $1,773,076, to support preparation of detailed construction documents, development of a Guaranteed Maximum Price (GMP), and construction planning associated with the complex demolition of the elevated Plaza of the Fountains and required site improvements.
These services will be fully funded by the State grant. As the project scope will now include the full demolition of the Plaza of the Fountains and access modifications to the Law Library, the project now requires development of plans and supporting materials to address the revised scope. The contract amount requires a corresponding increase to perform this work and complete construction/demolition plans.
Additionally, staff recommends approval of a Land Transfer Agreement with the County of Orange to transfer approximately 0.7 acres of County-owned land within the Plaza to the City and an access easement to the County of Orange for ingress and egress to the modified Law Library. The transfer will allow the City to complete the demolition and facilitate long-term redevelopment opportunities within the Civic Center.
Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026
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Background
On May 2, 2023, the City accepted a $9 million grant award from the State of California to support modernization of the Civic Center area. The funding was intended to facilitate acquisition of the State Building located at 28 Civic Center Plaza, assist with demolition of the structure, and modernization of the surrounding area to support future development opportunities.
On December 28, 2023, the City completed the purchase of the State Building property at a cost of $3,826,000 using grant funds. The project originally contemplated demolition of the building to prepare the site for redevelopment within the Civic Center area. The grant funds currently have an expenditure deadline of June 30, 2026. The State is processing the City’s request to extend the expenditure deadline to March 31, 2028 to allow sufficient time to complete the project.
The City’s long-term objective remains the demolition of the State Building and preparation of the site to support future development opportunities that will modernize and revitalize the Civic Center area (Exhibit 1).
Construction Manager at Risk Agreement
On August 20, 2024, following completion of a competitive Request for Proposals process, the City Council approved an agreement with Bernards Bros., Inc. to provide Construction Manager at Risk (CMAR) services for the project in the amount of $850,000.
The CMAR delivery method allows the construction manager to serve as a consultant during the design phase and subsequently transition into the role of general contractor during construction. This project delivery approach provides enhanced cost control, schedule certainty, and constructability review during design, while transferring certain project risks to the construction manager. At the conclusion of the design phase, the construction manager provides the City with a Guaranteed Maximum Price (GMP) for construction. If the City accepts the GMP, Council approval is sought to amend the contract to authorize the construction phase.
The Scope of work included the preparation of engineering plans to remove portions of the surrounding Plaza of the Fountains (Plaza) to accommodate the demolition of the former State Building. As described in the August 2024 staff report, the scope of work would progress in phases allowing staff to control costs and City Council to approve subsequent work efforts.
The initial phase scope included pre-demolition planning services associated with the State Building and the City-owned portion of the Plaza. These services included environmental analysis, preliminary site investigations, coordination with stakeholders, and development of preliminary project documentation leading toward preparation of a Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026
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Guaranteed Maximum Price. Work has included completion of environmental documentation, geotechnical investigations, underground utility exploration, survey work, and coordination associated with the proposed land transfer with the County of Orange discussed later in this report.
Phase 2 CMAR Services
During implementation of the initial phase planning activities, additional structural analysis conducted by the County of Orange determined that demolition of the State Building cannot occur while the elevated Plaza structure remains in place. The study concluded that the Plaza is structurally vulnerable to vibration and would not withstand demolition activity occurring beneath or adjacent to the structure.
Because the elevated Plaza spans both City and County property, demolition of only the City-owned portion is not feasible. As a result, the entire elevated Plaza must be demolished prior to demolition of the State Building (Exhibit 3 and 4). City and County staff subsequently coordinated to develop an approach that would allow for the demolition of the entire Plaza structure and reconfiguration of pedestrian and accessibility connections throughout the Civic Center area.
An additional complexity associated with this work involves maintaining access to the County’s Law Library, which currently relies on the elevated Plaza for primary access.
Removal of the Plaza therefore requires design and construction of new accessible routes, ramps, walls, and pathways to maintain safe public access to the facility.
Recognizing these impacts, the Orange County Civic Center Authority approved an allocation of $500,000 on April 22, 2025 to support the costs associated with modifying access to the Law Library. These funds will be utilized as part of the construction/ demolition phase of the project. Approval of an Appropriation Adjustment for these funds will be presented for Council consideration along with the approval of construction/demolition contract at a future date.
The remaining scope requires final engineering, coordination, and construction planning prior to proceeding with demolition activities. Phase 2 CMAR services will support the development of detailed construction documents and cost estimates necessary to safely execute the demolition of the Plaza and associated site improvements.
Phase 2 services will include preparation of architectural, structural, plumbing, mechanical, and electrical engineering plans and specifications necessary to remove the elevated Plaza structure while protecting adjacent Civic Center facilities. The work will also include design of new access routes to the Law Library and other Civic Center areas previously connected by the Plaza. Scope of work will also include processing permits with both the City and County, development of the Guaranteed Maximum Price for construction, and providing procurement and bidding support.
Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026
5 7
0 2
Staff recommends approval of a contract amendment with Bernards Bros., Inc. in the amount of $923,076, increasing the total contract value to $1,773,076, to provide these Phase 2 CMAR services. This next phase of work will be funded by the existing State grant funds allocated for the Project.
Demolition Cost Estimate
Due to construction sequencing and estimated demolition construction costs, the current recommendation is to proceed first with demolition of the elevated Plaza structure in preparation for the future demolition of the State Building. The consultant’s current planning estimate for demolition of the Plaza of the Fountains is approximately $8.5 million. The demolition effort is complex due to the structural configuration of the elevated plaza, its proximity to active civic facilities, and the need to maintain access to adjacent buildings. Key components of the work include:
Carefully staged demolition of elevated structures while protecting adjacent buildings and public spaces
Construction of new ramps, retaining walls, and access routes to maintain entry to the Law Library and surrounding Civic Center areas
Removal of structural foundations associated with the elevated plaza Capping, relocating, and protecting underground utilities serving Civic Center facilities
Construction of new retaining structures and site stabilization elements Based on current planning estimates, the total cost to demolish both the Plaza of the Fountains and the State Building is expected to exceed $20 million.
Land Transfer Agreement and Future Access Easement
Because portions of the Plaza are located on County-owned property and must be demolished as part of the project, City and County staff have coordinated to pursue a land transfer that would allow the City to fully control and redevelop the site. The proposed transfer includes approximately 0.7 acres of County-owned property located beneath the Plaza structure. Transfer of this property will allow the City to complete the demolition and provide additional land area for future Civic Center redevelopment.
On July 31, 2025, the City and the County entered into a non-binding Letter of Intent outlining the framework for the proposed property transfer (Exhibit 5). The terms of that agreement have been incorporated into the proposed Land Transfer Agreement (Exhibit 6). Under the agreement, the County will transfer the property to the City for a nominal consideration of $1. In exchange, the City will assume responsibility for modifying, maintaining, and improving access to the County’s Law Library from the former plaza area following demolition.
Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026
5 7
0 2
The agreement and associated quitclaim deed also include a permanent reservation allowing the County continued access to the Law Library. In addition, a reversionary clause provides that if the City does not commence demolition activities within five years of execution of the agreement, the County may reclaim the property.
Approval of the Land Transfer Agreement and Quitclaim Deed must also be considered by the Orange County Board of Supervisors, along with any necessary Surplus Land Act documentation. The Board is scheduled to consider these actions at its meeting on April 28, 2026. Based on discussions with County staff, it is anticipated that the Board will authorize execution of the agreement contingent upon completion of any required Surplus Land Act processes.
Following completion of the property transfer and final design of the Law Library access improvements, City and County staff will identify and legally describe a conditional access easement allowing the County continued access across the property and include the provision for the City to make future modifications to the easement as required for the future development of the Civic Center.
Staff recommends approval of the Land Transfer Agreement and authorization for the City Manager to execute the future access easement deed necessary to facilitate the transfer and maintain access to the Law Library.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action. A Categorical Exemption will be filed in the future upon City Council approval to proceed with the demolition and construction work.
FISCAL IMPACT
Grant funds are budgeted and available in the following account for Fiscal Year 2025- 2026. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers into Fiscal Year 2026-2027.
Fiscal
Year
Accounting
Unit – Account
No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
ORIGINAL BUDGET
2025-26 41818833-66200
(24-9002)
CDA Capital
Projects
Modernization of SA
Civic Center, Buildings
and Building
Improvements
$850,000
ADDITIONAL BUDGET
2025-26 41818833-66200
(24-9002)
CDA Capital
Projects
Modernization of SA
Civic Center, Buildings $923,076
Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026
5 7
0 2
Fiscal
Year
Accounting
Unit – Account
No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
and Building
Improvements
TOTAL $1,773,076
EXHIBIT(S)
1. Location Map
2. Consultant Agreement with Bernards Bros, Inc. Amendment
3. Plaza Property Map
4. Plaza Property Photos
5. Letter of Intent
6. Land Transfer Agreement
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director, Public Works Agency Approved By: Alvaro Nuñez, City Manager