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The City of San José awarded an $11,094,935 contract to Applegate Johnston, Inc. to complete the second phase of construction on the San José Environmental Innovation Center Project Rebid. Other work will be performed to renovate an existing warehouse building, and add a new 10,000 square foot Household Hazardous Waste building, with associated parking, driveways, landscaping and site amenities, according to the city’s staff report.

The contracted company found lead paint and asbestos that must be properly removed before the project can continue. Asbestos Management Group of California, Inc. (“AMG”) entered into an agreement with the city previously, and will remove the dangerous elements from the building. The city established a contingency contract of $1,330,000 at the time of awarding the contract.

The purpose of this staff report is to authorize the Director of Public Works to use up to $250,000 of the existing construction contingency to place a work order for “AMG” to remove asbestos and lead paint from the San José Environmental Innovation Center Project.