Item Number: 23
City Council / Board of Directors
Written Communications
Meeting of: November 4, 2025
Submitted By:
James Murawski, Airport Director
Subject:
Building 694 Demolition, Standard Construction Agreement, Project #CC26-047 Recommendation:
That the Southern California Logistics Airport Authority Board of Directors approve the award of a Standard Construction Agreement with ADM Improvements Inc., for Building 694 Demolition, Project #CC26-047, with the total compensation not to exceed $240,868.
Fiscal Impact:
The award of this Agreement will result in the expenditure of budgeted operations funds from Airport Account 4501124A-52415 in the amount not to exceed $240,868. The current available budget amount is $360,000. The budget is outlined as follows:
Current Available Budget
Account Description Balance
4501124A-52415 Building 694 Demolition $360,000
Strategic Plan Goal:
Goal E. Invest in Infrastructure: Project #CC26-047 invests in infrastructure by removing a dilapidated building that will prepare the site for future development.
Background:
Building 694 at the Southern California Logistics Airport is located east of the current Airport Operations Area and west of Phantom West, and approximately equidistant between Cargo Lane and George Boulevard. Records indicate that this single story, 9,248 square foot structure, was constructed in February 1942, with renovations taking place in 1965 and 1977. The interior contains numerous offices that were likely a hive of activity in a bygone era as records indicate that this building was at one time used as the 4 4
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Flight Wing Headquarters. Due to lack of demand, this office building has not been occupied since it was abandoned by the Air Force in 1992.
Staff determined that Building 694 is an ideal candidate for demolition, given the lack of demand and the ideal location for future development of aeronautical support buildings, including the potential for additional wide body capable aircraft hangars. If demand existed to occupy the building, the cost to remedy the multitude of occupancy issues would be prohibitive given the relatively small size of the building. The entire HVAC system and ducting would need to be replaced. The entire roof, which staff estimates to be at least 40 years old, would need to be rebuilt. Abundant asbestos containing material estimated to be approximately 25,000 square feet, would need abatement. Restrooms would need to be upgraded to comply with modern building codes. A comprehensive fire suppression system may require installation, including pipes, sensors, sprinklers, backflow devices, and a fire panel. The building lacks modern energy efficient windows, with the entire building only having a total of eleven windows, all of which start about eight feet from the exterior ground level, rendering them a potential safety hazard in an emergency evacuation situation. The interior space of the building is built on a raised platform, accessible only by stairs, thus rendering the building non-compliant with modern ADA requirements. The entire interior of the building would need major modifications, including new paint, flooring, lighting fixtures, and electrical and communication upgrades to accommodate modern office equipment.
Given the lengthy and prohibitive repair costs needed to rehabilitate this building, the lack of demand since abandonment in the early 1990’s, the presence of asbestos containing material, and the prime location for future development, staff determined that the best remedy for this building is complete demolition.
Discussion:
The demolition of Building 694 will require abatement of approximately 25,000 square feet of asbestos containing material in accordance with local, state, and federal regulations by licensed contractors. All utilities for the building will be severed and capped according to applicable regulations. The entire building will be demolished and removed, including the concrete slab and footings. The harvested concrete will be stored on the Airport to be crushed for use as base material for future road and runway rehabilitation projects. The site will then be backfilled with clean dirt and compacted in preparation for asphalt to be installed as a separate project at a future date.
A project of this size and scope requires the skills of an experienced, licensed contractor.
To procure a contractor, staff worked with the City Purchasing team to develop a solicitation package in compliance with City Municipal Code §2.28.200. Staff advertised the Notice Inviting Bids on September 02, 2025, in the San Bernardino Sun and on September 10, 2025, in the Daily Press. The project announcement was emailed to four hundred seventeen (417) representatives of contractors in the demolition and construction industry. Staff conducted a formal, mandatory pre-bid meeting and Job Walk for Building 694 Demolition, Project #CC26-047 on September 16, 2025, which was 4 4
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attended by twenty (20) contractors. On October 07, 2025, staff received nine (9) bids for the project, which are listed as follows:
Company: Location: Bid:
AD Improvements, Inc. Downey, CA $240,868
NK Demolition Inc. San Bernardino, CA $249,399.20
Precision Environmental Ventura, CA $266,000
Integrated Demolition and Remediation Inc. Anaheim, CA $290,000 Interior Demolition Inc. Newhall, CA $299,750
Resource Environmental Inc. Cerritos, CA $303,958
Vertex Civil, LLC Anaheim, CA $347,631
Unlimited Environmental Inc. Santa Fe Springs, CA $357,604 KNC Construction Apple Valley, CA $401,093
Staff carefully evaluated each bid in accordance with City Municipal Code §2.28.040 and determined the best value bidder to be AD Improvements, Inc., on account of their experience, qualifications, and overall price. A minor discrepancy with a submitted document was observed and waived by staff in accordance with City Municipal Code §2.28.045.
The contract award presented herein has been competitively solicited in accordance with City Municipal Code §2.28.200. For the reasons presented herein, staff recommends that the Southern California Logistics Airport Authority Board of Directors approve the award of a Standard Construction Agreement to AD Improvements, Inc., for Building 694 Demolition, Project #CC26-047, in the amount not to exceed $240,868.
Staff remain available for any questions or comments you may have.
Prepared By:
Sam Evans, Airport Business Analyst
Jose Gutierrez, Airport Business Technician
Sisco Elekana, Airport Project Technician
Attachments: A. Site Map
B. Construction Agreement
C. AD Improvements, Inc., Bid Proposal Price Schedule
D. Municipal Code 2.28.200
E. Municipal Code 2.28.040
F. Municipal Code 2.28.045