MEETING DATE:
May 13, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9432 - AWARDING A CONTRACT FOR CREEKSIDE MARKETPLACE RE-PAVING WORK AND DELEGATING AUTHORITY TO THE CITY MANAGER TO NEGOTIATE, FINALIZE, AND EXECUTE THE CONTRACT WITH CITY SERVICE CONTRACTING, INC.
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract for re-paving at 553-595 Creekside Drive and delegating authority to the City Manager to negotiate, finalize, and execute the contract with City Service Contracting, Inc.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Good Governance
Relevant Department Goal
Not Applicable
Executive Summary
The City of San Marcos owns and operates the Creekside Marketplace shopping center located at 553-595 Grand Avenue as part of an Enterprise Real Estate Portfolio, which contributes non-tax revenue towards the City’s General Fund. As part of the upkeep and maintenance duties of a commercial real estate operator, re-paving work is required at several large portions of the parking lot around buildings 553-563 located within the shopping center, and has been included in the FY 2024-25 Adopted Annual Operations & Capital Improvement Program Budget. The project will ensure compliance with lease terms as a landlord, and will maintain safety of the shopping center.
On behalf of the City, the City’s real property management consultant initiated a request for proposal (RFP) for re-paving work at the parking lot of Creekside Marketplace on February 28, 2025, which resulted in three bids.
Staff reviewed the proposals and seeks City Council approval to award the contract to City Service Contracting, Inc. for re-paving of the Creekside Marketplace parking lot, and to authorize the City Manager to negotiate, finalize, and execute contract documents.
Discussion
The City operates a real estate portfolio as part of the fulfillment of Section 203 of the San Marcos Charter, which emphasizes enterprise activities designed to produce non-tax revenue sources. Operation of the Creekside Marketplace on 553-595 Grand Avenue is one such revenue source, which contributes revenue towards the City’s General Fund each year. As a commercial real estate operator, the City is required to maintain the buildings and common spaces patroned by tenants and customers for safety, aesthetic, and legal purposes.
A request for proposal (RFP) was issued on February 28, 2025 for re-paving of various sections of the parking lot of Creekside Marketplace by IDS Real Estate, as the City’s real property management consultant, on behalf of the City. Subsequently, 3 bids were received, of which the response from City Service Contracting, Inc. was determined to be the most qualified and responsive bidder.
The proposal outlined the work needed, which includes re-paving of large sections of the parking lot pavement around buildings 553, 555, 561, and 563 Grand Avenue. The re-paving will also include the freight lane behind the buildings, which will ensure tenant delivery and customer pickup access for stores such as Crate and Barrel Outlet is safe and in compliance with accessibility standards. The re-paving work will fulfill requirements of the City as the landlord.
The FY 2024-25 budget for the project is sufficient to cover the proposed contract with City Service Contracting, Inc., as well potential change orders, additional support work, labor compliance, and other project-related items. Staff reviewed the proposal for the project and seeks City Council approval to award the re-paving contract to City Service Contracting, Inc. in the amount of $651,229 for re-paving work, and to authorize the City Manager to negotiate, finalize, and execute an agreement with City Service Contracting, Inc.
Environmental Review
Not applicable.
Fiscal Impact
The funding for the contract is budgeted in the Fiscal Year 2024-25 Adopted Annual Operations & Capital Improvement Program Budget as building improvement costs in the Creekside Marketplace Enterprise fund (601). The contract award does not result in a change to the overall Fiscal Year 2024-25 Adopted Annual Operations & Capital Improvement Program Budget.
Attachment(s)
Resolution
Prepared by: Janet Brotherton, Budget and Analysis Manager
Submitted by: Janet Brotherton, Budget and Analysis Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager