REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Frank Drevdahl, Capital Projects Administrator
Subject:
title
Accept Lowest Responsive and Responsible Bid and Award a Construction Contract to Newbuild Construction and Restoration, Inc. in the amount of $628,600 for the Newland House Museum & Water Tower Restoration, CC1788
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Statement of Issue:
At the September 15, 2026 City Council Meeting, staff was directed to return with updated information regarding the Newland House Museum & Water Tower Restoration Project (CC1788) for consideration at the October 6, 2026 City Council Meeting.
Bids for Newland House Museum & Water Tower Restoration, CC1788 were publicly opened on May 20, 2026. Staff recommends that the City Council accept the lowest responsive and responsible bid and award a construction contract to Newbuild Construction and Restoration, Inc. in the amount of $628,600.
Financial Impact:
The total project cost for the Newland House Museum & Water Tower Restoration is $673,080.40, as itemized below:
|
Item |
Amount |
|
Base Bid submitted by Newbuild Construction and Restoration, Inc. |
$589,600.00 |
|
Additive Bid Amount (Newland Barn Painting) |
$39,000.00 |
|
Construction Contract Amount: |
$628,600.00 |
|
5% Contingency |
$31,430.00 |
|
Supplemental Project Costs (Architectural Historian) |
$10,000.00 |
|
Supplemental Project Costs (Material Testing) |
$3,050.40 |
|
Total Project Cost: |
$673,080.40 |
The available funding for this project is $571,965.60 from the Infrastructure Fund (314) in Account No. 31440023.82200. Staff is requesting that City Council appropriate additional funding in the amount of $101,114.80 from the Infrastructure Fund (314) to cover the total project cost. The requested appropriation will be funded from FY 2025-26 carryover funds creating a net zero impact to the Infrastructure Fund Balance.
Recommended Action:
recommendation
A) Authorize the appropriation of $101,114.80 from the Infrastructure Fund (314) balance to Account 31440023.82200; and,
B) Accept the lowest responsive and responsible bid submitted by Newbuild Construction and Restoration, Inc. in the amount of $589,600 and the optional additive costs associated with painting the Newland Barn in the amount of $39,000 for a total bid price of $628,600; and,
C) Authorize the Director of Public Works to approve construction change orders within the approved contingency amount of five percent (5%) of the contract amount; and,
D) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney.
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Alternative Action(s):
Reject all bids and provide staff with direction.
Analysis:
The Newland House Museum (the “Newland House”) is the oldest surviving residence and the only Queen Anne Victorian structure in the City of Huntington Beach (the “City”). Constructed in 1898 by William and Mary Newland, the Newland House now serves as a museum adjacent to Bartlett Park. The FY 2024-25 Capital Improvement Program includes exterior restoration of both the Newland House Museum and Water Tower.
Preliminary material testing identified elevated levels of lead-based paint and asbestos-containing window putty. A third-party remediation cost estimate exceeded $100,000. Staff then referenced The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring & Reconstructing Historic Buildings (the “Standards”) for best practices regarding rotten wood, paint and putty removal, window removal, preparation, and finish. The Standards require that materials be removed and replaced only as necessary, with replacements matching the original materials; intact materials, including paint, must be protected in place; and surface preparation methods must be minimally invasive and within prescribed boundaries. To ensure full compliance, staff hired Architectural Resources Group to provide guidance on adherence to the Standards, as well as field directives for removals, replacements, and material selection.
With elevated costs, staff sought out grant opportunities at the local, state, and federal levels and inquired about fundraising opportunities from local nonprofits. The only grant discovered and available for submission was the federal Historic Preservation Fund Grant. Staff submitted a grant application; however, due to National Historic Registry status recognition at the local level only, the application was denied. Staff reached out to the Huntington Beach Historical Society, who have an MOU with the City to manage the interior of the building and curate tours; however, they were unable to take on additional fundraising efforts.
Due to the age and condition of the building, extensive restoration work is required. There are also unknown conditions of unexposed portions of the Newland House. In general, large portions of the wood siding is rotten or damaged; the asbestos containing window putty was hard and removal posed risk of window breakage; and many of the detailed wooden features are custom and require craftsman woodwork to replace, if needed. These details raised the project cost significantly.
The proposed project then consisted of scraping and preparing existing siding, fascia, window frames, molding, and putty; restoring historically significant architectural features; and safely removing lead-based paint and asbestos-containing putty in accordance with professional and regulatory standards. Where necessary, deteriorated wood will be removed and replaced in a manner consistent with historic preservation guidelines. All restored surfaces will be cleaned, primed, and finished with ultra-premium exterior paint. The project includes a one-year maintenance bond.
Staff conducted targeted outreach to qualified contractors, advertised the project in the Huntington Beach Wave, and administered the bid process through PlanetBids. A publicly advertised job walkthrough was held April 28, 2026, with twelve (12) firms in attendance.
The engineer’s estimate for the project was $500,000. On May 20, 2026, staff publicly opened four (4) bids ranging from $589,600 to $877,000:
|
Bidder’s Name |
Submitted and Verified Bid |
|
Newbuild Construction and Restoration, Inc. |
$589,600 |
|
Aza Construction |
$732,000 |
|
Norse Corporation |
$784,238 |
|
Painting & Décor, Inc. |
$877,000 |
Newbuild Construction and Restoration, Inc. submitted the lowest responsive and responsible bid in the amount of $589,600. Staff reviewed the bid submission, contractor qualifications, licensing, and references and determined that Newbuild Construction and Restoration, Inc. is capable of successfully performing the work required under the contract. Although the bid has expired, the Contractor has agreed to honor the bid price. Therefore, staff recommends awarding a construction contract to Newbuild Construction and Restoration, Inc. in the amount of $589,600 and the optional additive costs associated with painting the Newland Barn in the amount of $39,000 for a total bid price of $628,600. Staff also recommends a construction contingency of five percent (5%) to address unforeseen field conditions and necessary modifications that may be identified during construction.
The total project cost of $673,080.40 includes the construction contract amount of $628,600, a five percent (5%) construction contingency of $31,430, $10,000 for Architectural Historian oversight and preparation of compliance report, and $3,050.40 for materials testing.
The Newland Barn is located directly behind the Newland House and is rented nearly every Friday, Saturday, and Sunday, fifty-two (52) weeks per year. In FY 2024-25 the Newland Barn generated revenues of approximately $130,000, increasing to approximately $170,000 in FY 2025-26, a direct result of City Council approving Saturday peak rental rates. In FY 2025-26, annual estimated expenditures total $83,000, including $59,000 for full and part-time staffing, as well as $24,000 for annual supplies and maintenance.
Both facilities should be painted approximately every 10-15 years. Continued fee restructuring adjustments, as well as the scheduled turf and paver improvements at the Newland Barn included in the FY 2025-26 Capital Improvement Program, will allow for increased mid-week use, and thereby further increase the Newland Barn‘s revenue generating potential and enhanced capacity to fund ongoing maintenance and future capital projects.
Environmental Status:
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1 - Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the project consists of repair and restoration of an existing public facility involving negligible or no expansion of the existing use.
Strategic Plan Goal:
Non-Applicable
Attachment(s):
1. RCA Contract Agreement Summary
2. Construction Contract
3. PowerPoint Presentation