DATE: October 21, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR THE DESIGN-BUILD OF THE FIRE TRAINING CENTER MODULAR BUILDING REPLACEMENT PROJECT
RECOMMENDATION
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Staff recommends the City Council approve a Professional Services Agreement with Nielsen Construction California, Inc., in an amount not to exceed $698,907, for Phase 1 design-build services for the Fire Training Center Modular Building Replacement project; authorize the City Engineer to execute change orders up to a 15 percent contingency, in an amount not to exceed $104,837, for total compensation not to exceed $803,744, and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The Fire Training Center, located at 110 Jones Road, currently includes three modular buildings that serve as administrative offices, classrooms, indoor training spaces, and essential support functions. These existing structures have reached the end of their useful life and require full replacement.
In February 2026, the City procured a feasibility study prepared by FLINT, Inc. to evaluate the existing layout of the modular training buildings and reorganize support workflows for training personnel, firefighters, and support staff. The study also evaluated potential improvements to accessibility and mechanical, electrical, and plumbing (MEP) systems with consideration given to existing above- and below-grade utilities.
Of the options presented in the feasibility study, staff selected the option to maintain the general existing footprint of the modular training buildings while modifying the program and building arrangement to improve functional adjacencies, circulation, and daily operations, while remaining the most cost-effective solution (See Attachment 1).
To advance the selected option into implementation, staff elected to use a Progressive Design-Build (PDB) approach to accelerate delivery, reduce risk, and maintain cost transparency. The City issued the Request for Proposal (RFP) on May 28th, 2026, and received proposals by June 29, 2026. Evaluation followed the City’s Qualifications-Based Selection process. While six (6) firms attended the pre-bid meeting, only two (2) firms submitted a proposal. Although only two firms submitted proposals, both demonstrated strong qualifications, and staff determined that adequate competition existed under the City’s Qualifications- Based Selection process.
City staff found Nielsen Construction California, Inc. ranked the highest based on extensive modular building experience, proven public safety and operational facility delivery history, clear understanding of PDB processes and required milestones, and strong project schedule capability through 2027.
With the PDB delivery method, the project will be executed in two phases. Phase 1 includes design development through approximately 100-percent design and development of the Guaranteed Price Proposal. Phase 2 will include construction, start-up, and commissioning activities.
Phase 1 is being brought forward separately because the PDB delivery method requires establishing the Guaranteed Price Proposal (GPP) only after preliminary design, cost validation, and constructability review. Once the GPP is finalized, Staff will return to City Council with a proposed Phase 2 amendment that will establish the full construction cost and authorize completion of the design and construction.
Depending on market conditions and project constraints, Staff may return to City Council with a request for contract amendments. Potential early work may include, but is not limited to:
• Pre-purchase of materials and equipment to secure pricing to mitigate against potential market increases or supply chain impacts.
• Prioritization of construction of facilities that may be subject to extended permitting or agency review timelines and delivery.
As part of this action, Staff is requesting a 15-percent City-controlled contingency, as approved by the City Engineer. While staff does not anticipate the use of this contingency, its availability would allow for items including, but not limited to, design changes caused by unforeseen conditions, early procurements of materials due to supply chain issues, and other unforeseen requirements. All contingency use will remain City-controlled and require approval by the City Engineer.
FISCAL IMPACT
The contract amount for Phase 1 design-build services of the Fire Training Center Modular Building Replacement Project is $698,907. In addition, City staff requests authorization of 15 percent of the contract award contingency in the amount of $104,837, for total compensation not to exceed $803,744.
On March 13, 2024, the City Council accepted grant funding, in the amount of $500,000, from the California Governor’s Office of Emergency Services (“Cal OES”) for the Fire Department Training Center. Thus far, grant funding has been used for the feasibility study, training equipment, and staff time. Remaining grant funds (Fire Tower Pump Account) will be used for Phase 1 of the design-build services.
Table 1. Phase 1 Progressive Design-Build Project Cost
|
Description |
Account |
Available |
Amount |
|
Phase 1 - Design and Contingency |
Fire Tower Pump 817192523273.5305 |
$398,984 |
$398,984 |
|
|
Fire Training Facility Building 907185223503.5305 |
2,699,681 |
404,760 |
|
Total |
|
$3,099,615 |
$803,744 |
Phase 1 will be completed in FY 2026-27, and sufficient funds are available.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
end
Prepared by: Edwin Medina, Associate Engineer
Reviewed by: Lillian Doherty, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Feasibility Study
2. Proposal
3. Fee Proposal
4. Agreement