AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO C. LUNA
PUBLIC WORKS DEPUTY DIRECTOR
SUBJECT:
title
PUBLIC WORKS CONTRACT WITH CABD CONSTRUCTION INCORPORATED FOR THE AMPHITHEATER PROJECT (PROJECT NO. 90.24013)
summary
Summary:
The City’s Civic Center Master Plan, adopted by the City Council on August 27, 2024, designates the Signal Hill Amphitheater as Phase I of the implementation plan. In alignment with this plan, on November 12, 2024, the City Council awarded SVA Architects, Incorporated (SVA) the Architectural and Engineering Design Services contract for the Amphitheater Project. SVA completed an 11-month design phase in collaboration with Public Works and the Parks, Recreation & Library Services Department. The design integrates the Amphitheater into the existing Civic Center environment, enhances visual continuity with City facilities, uses natural grade changes, and maintains full operations at the Community Center, the Signal Hill Library, and City Hall throughout construction. The Civic Center Master Plan (CCMP) is supported through a combination of funding sources, including the City’s General Fund and a $5 million grant from the California Arts Council (CAC).
The Public Works Department advertised the construction phase on October 8, 2025. Following a comprehensive competitive bidding process, staff recommends that the City Council award a Public Works Contract to CABD Construction, Incorporated, the lowest responsible bidder, for a contract amount of $9,677,000. This amount is a savings compared to the final engineer's cost estimate of $10.3 million. Staff also recommends an 18% contingency to align with industry standards for outdoor performance venues and multi-disciplinary civic infrastructure projects of similar complexity, bringing the proposed total construction budget to $11,418,860. Staff confirmed the contractor is qualified to perform the work and that its schedule aligns with the City’s required project timeline and CAC’s grant requirements. The proposed project duration would be 282 calendar days, with construction beginning in December 2025 and reaching completion by September 2026. Staff recommends a budget transfer of $4,259,004.58 from the CCMP Reserve to fully fund the construction phase of the project.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
1. Authorize the City Manager to enter into a Public Works Contract with CABD Construction, Incorporated for the construction of the Amphitheater Project (Project No. 90.24013), for a term of 282 calendar days and a not-to-exceed contract amount of $9,677,000, in a form approved by the City Attorney;
2. Authorize the Deputy Public Works Director to utilize a project contingency of up to 18% ($1,741,860) and to approve a 180-calendar-day term extension to accommodate unforeseen conditions, for a total construction budget of $11,418,860; and
3. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING THE ADOPTED BUDGET AND AUTHORIZING BUDGET APPROPRIATIONS FOR THE FISCAL YEAR 2025-26.
body
Fiscal Impact:
The City's adopted Fiscal Year 2025-26 Capital Improvement Program allocated a total project budget of $8,400,000 to the Signal Hill Amphitheater Project (Project No. 90.24013). To date, the City has expended and encumbered $1,240,144.58 for design services, geotechnical investigations, methane mitigation analysis, environmental review, and related consultant and on-call support required during the design phase. The remaining available project balance is $7,159,855.42. The total cost of the proposed contract with CABD Construction, Incorporated, is $9,677,000, plus an 18% contingency, for a total not-to-exceed compensation amount of $11,418,860.
To fully fund this initiative, staff requests an additional appropriation of $4,259,004.58 from the Civic Center Master Plan Reserve and the CAC Grant Fund to support the timely construction of the Signal Hill Amphitheater Project, which is part of the Civic Center Master Plan - Phase 1. This proposed appropriation would cover the construction contract costs and the recommended contingency necessary for unforeseen conditions during the construction phase and support the successful delivery of the project. The table below summarizes the project financials:
|
CCMP Total Project Budget |
$8,400,000.00 |
|
Expenditures & Encumbrances to Date |
($1,240,144.58) |
|
Remaining Available Budget |
$7,159,855.42 |
|
Proposed Contract Budget (Contract + 18% Contingency) |
$11,418,860.00 |
|
Budget Appropriation Request |
$4,259,004.58 |
The City's Purchasing Guidelines recommend a standard 10% contingency for Public Works contracts. However, due to the scale and complexity of the Amphitheater Project, staff recommends an 18% contingency. The project includes significant grading and earthwork; structural concrete improvements; methane mitigation requirements; utility coordination; high-voltage electrical work; and specialized audiovisual, lighting, and LED screen systems with long-lead procurement timelines. These components introduce greater construction risk than typical facility projects and require a higher contingency to address unforeseen conditions, design clarifications, and field adjustments that may arise during construction. The recommended 18% contingency aligns with industry standards for outdoor performance venues and multi-disciplinary civic infrastructure projects of similar complexity.
Background:
In March 2022, staff requested funding through Senator Lena Gonzalez’s office under the 2022-23 Senate District 33 Budget Request, included in the 2022-23 Budget Act. Following review and collaboration with the Senator’s office, Governor Gavin Newsom signed Assembly Bill 179 on September 6, 2022, directing $5,000,000 to the Signal Hill Amphitheater Project, with fund management assigned to the CAC. Section 19.56 of the 2022 Budget Act requires the City to use the funding by June 30, 2026. On March 28, 2023, the City Council accepted the funding and established the project timeline consistent with the State requirements.
To ensure integration with the existing Civic Center architecture and prepare for potential future developments, the City Council approved a contract with John Kaliski Architects, Incorporated (JKA) on July 25, 2023, to prepare the CCMP. JKA worked with staff and the community throughout conceptual design and outreach to develop a long-term, phased design framework that revitalizes the Civic Center as a central destination for community activities. On August 27, 2024, the City Council adopted the final CCMP.
The CCMP is a comprehensive conceptual design plan organized into three phases that prioritize meaningful improvements while limiting disruption to existing City facilities. The CCMP identifies the Amphitheater as part of Phase I of the project, along with adjacent improvements, including site seating, landscaping, and expanding the 21st Street parking lot to support event loading and visitor parking. The Amphitheater’s location within the Civic Center allows the construction to proceed without impacting the Community Center, Signal Hill Library, or City Hall.
On November 12, 2024, the City awarded SVA the Architectural and Engineering Design Services contract for the Amphitheater Project. Staff and SVA worked collaboratively throughout the design process to create a flexible, acoustically optimized outdoor venue capable of hosting concerts, cultural programs, theatrical performances, and community events. To reduce future construction risks and accelerate the schedule, Public Works also completed preliminary engineering, updated geotechnical studies, conducted methane mitigation analyses, and conducted environmental reviews during design.
On May 27, 2025, the Parks, Recreation & Library Services Department and Public Works Department presented a CCMP update to the City Council. Staff reported progress on the Amphitheater design, shared the 80% design construction estimate, and indicated that a future budget adjustment might be necessary due to market escalation, specialized audiovisual systems, and expanded programming requirements. After several design refinements, SVA completed the final Amphitheater design in September 2025 with a final cost estimate of $10.3 million. Public Works advertised the bid-ready plans on October 8, 2025. Key project features include:
• Seating for up to 280 attendees, with flexible lawn seating designed for clear sightlines and audience comfort.
• A 1,000-square foot stage and back-of-house facilities, including a green room, storage, and public restrooms.
• Audiovisual infrastructure includes essential systems and a multi-functional LED screen, with provisions for future upgrades.
• ADA-compliant pathways, connecting to park amenities and nearby parking.
• Sustainable design elements, including energy-efficient systems and environmentally conscious materials.
The current construction schedule targets project completion in September 2026. CAC initially required a June 30, 2026 completion date; however, Public Works submitted a time-extension request to CAC in May 2025 to align the grant with the updated design and procurement schedule. Staff continues working with CAC to secure the requested revised deadline and ensure the City retains the full $5 million allocation.
Analysis:
Consistent with the City's Purchasing Guidelines, contracts above a certain threshold require City Council approval. Upon completing design plans and specifications, on October 8, 2025, the City posted a Notice Inviting Bids at the City's public notice locations, sent the notice to subscribers through the City's website, and posted the information on PlanetBids via the City's portal. The City received the following bids by the November 13, 2025, 3:00 p.m. deadline:
|
Contractor |
Bid Total |
|
McKeown Plumbing |
$1,429,106.87 |
|
CABD Construction, Incorporated |
$9,677,000.00 |
|
Archico Design Build, Incorporated |
$9,995,000.00 |
|
Builders United, LLC |
$10,977,700.00 |
|
PCN3, Incorporated |
$12,870,000.00 |
|
RT Contractor Corp |
$13,500,000.00 |
During the initial review, Public Works identified McKeown Plumbing as non-responsive because the firm did not submit the required hard copy Bid Bond and did not provide documentation of a valid Class B Contractor’s License.
CABD Construction, Incorporated (CABD), the apparent lowest bidder, submitted a complete and timely bid package. CABD’s bid of $9,677,000 is also lower than the final engineer’s estimate of $10.3 million completed at the end of the design phase, providing cost savings compared to the anticipated construction cost. Staff reviewed CABD’s Statement of Qualifications, verified all required license classifications, and confirmed that CABD’s subcontractors also hold the appropriate specialty licenses for their respective scopes. Staff evaluated CABD’s listed previous projects and confirmed that its previous projects are comparable in nature, scale, and complexity to the Amphitheater construction. Staff completed reference checks for each project and confirmed satisfactory performance, adherence to schedules, and successful delivery of work. Staff also reviewed CABD’s preliminary construction schedule and confirmed that it aligns with the City’s required project timeline and CAC’s grant requirements. Based on this evaluation, CABD meets the City’s criteria as the lowest responsive and responsible bidder.
Given the scope and complexity of the Amphitheater Construction Project, including major grading and earthwork, extensive concrete and structural improvements, specialized audiovisual and electrical systems, methane mitigation requirements, utility coordination, and the likelihood of unforeseen site conditions, staff recommends an 18% contingency.
Although the City’s Purchasing Policy typically identifies 10% as the standard contingency for public works projects, the Amphitheater requires a higher contingency due to its multi-disciplinary technical systems, specialized components, and elevated field-risk profile. The recommended 18% contingency aligns with industry standards for multi-discipline outdoor venues and provides adequate capacity to address field conditions, design clarifications, or construction modifications that may arise. Staff would work diligently with the contractor to ensure that costs remain reasonable, and any funding not utilized would be returned to the Civic Center Master Plan Reserve Fund for future phases of the project.
On October 14, 2025, the City Council awarded a separate contract to Kitchell/CEM for construction management. Kitchell/CEM understands the bid documents, long-lead procurement requirements (including switchgear, audiovisual components, LED screen assemblies, and other items identified in the contract documents), schedule constraints, and key project milestones. Kitchell/CEM will manage construction scheduling, oversee procurement, and support Public Works throughout the construction phase. The proposed project duration targets substantial completion within eight months and completion within six weeks thereafter.
Staff recommends the City Council award CABD a Public Works Contract for construction services for the Signal Hill Amphitheater Project in the amount of $9,677,000 with an 18% contingency of $1,741,860, for a total not-to-exceed construction budget of $11,418,860. Subject to City Council approval, staff would issue a Notice to Proceed to CABD in December 2025, with final project completion scheduled for September 2026.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Administrative Services Officer/Finance Director
Attachments:
A. Contract with CABD Construction, Incorporated
B. Budget Resolution