Item 21 - Amendment to the Agreement with Bernards Bros, Inc.

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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 Page 5 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.