MEETING DATE:
June 23, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9617 - AWARDING A CONTRACT FOR CITY HALL RESTROOM RENOVATIONS TO FLOW BUILDERS
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract for restroom renovations at 1 Civic Center Dr (City Hall) to Flow Builders, and delegating authority to the City Manager to negotiate, finalize, and execute said contract.
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 City Hall building located at 1 Civic Center Dr, a majority of which consists of tenant-occupied suites on floors 1-4. The City Hall building is part of the City’s revenue-generating real estate portfolio, which contributes non-tax revenue towards the City’s General Fund. As part of upkeep and maintenance duties of being a commercial real estate operator, renovation work is required for 12 restrooms which service visitors, tenants, and City staff. The budget for the work has been included in the proposed FY 2026-27 Annual Operations & Capital Improvement Program Budget. The project will ensure compliance with lease terms as a landlord, maintain marketability of the spaces, and also ensure compliance with Americans with Disability Act (ADA) standards.
On behalf of the City, the City’s real property management consultant initiated a request for proposals (RFP) for the City Hall restroom renovations on April 3, 2026, which resulted in two (2) bids.
Staff reviewed the proposals and seeks City Council approval to award the contract to Flow Builders for restroom renovations at the City Hall building, 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. The City leases out portions of floors 1 and 2, and the entirety of floors 3 and 4, of the City Hall building, the net proceeds from which contribute 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, market competitiveness, and legal compliance.
A request for proposal (RFP) for restroom renovations was issued on April 3, 2026, for renovations of all restrooms at City Hall. The request for proposal was advertised by IDS Real Estate, as the City’s real property management consultant, on behalf of the City. Subsequently, two (2) proposals were received. Of the two (2) proposals, the proposal from Flow Builders resulted in significant cost savings as compared to the competing proposal, and Flow Builders was deemed by staff to be qualified to perform the work.
The proposal outlined the work that is needed, which includes renovations of 12 restrooms at the City Hall building. The renovations will fulfill the City’s obligations as the landlord to maintain restroom facilities that are safe, well-maintained, and free of any potential hazards. The renovations will also ensure the restrooms meet current accessibility standards outlined by the American with Disabilities Act (ADA), as well as the City’s ADA Transition Plan. The tenant share of the costs will also be recovered via tenant Common Area Maintenance (CAM) assessments, per the terms of each tenants’ lease.
Appropriation has been requested in the FY 2026-27 Operations and Capital Improvement Program budget as work is anticipated to begin after July 1, 2026. The requested budget, subject to City Council approval, is sufficient to cover the proposed contract with Flow Builders, 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 restroom renovations contract to Flow Builders in the amount of $1,684,004 for restroom renovations at the City Hall building, and to authorize the City Manager to negotiate, finalize, and execute an agreement with Flow Builders.
Environmental Review
Not applicable.
Fiscal Impact
The funding for the contract is requested in the Fiscal Year 2026-27 Annual Operations & Capital Improvement Program Budget as building improvement costs in the Real Property Management Fund (605). The contract award does not result in a change to the overall Fiscal Year 2026-27 Real Property Management Fund Budget.
Attachment(s)
Resolution
Prepared by: Janet Brotherton, Budget and Analysis Manager
Submitted by: Donna Apar, Finance Director
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager