Clear Lake awards $113,200 demolition contract using $477,469 CalRecycle grant

The Clear Lake City Council authorized the city manager to execute a $113,200 contract with Case Excavating Inc. to demolish and abate a group of blighted properties after a staff report saying the work is covered by a $477,469 CalRecycle grant.

Lieutenant Peterson presented the item and said the project stems from code‑enforcement cases the city referred to CalRecycle. “In January of 2024, code enforcement applied for the CalRecycle grant for the demolition and abatement of real properties,” Peterson said. He told the council four contractor bids were received; the low bidder after removing one property that was brought into compliance was Case Excavating at $113,200.

The parcels listed for demolition included multiple addresses in Clear Lake (detailed in the staff report). Peterson and staff said one property — 3426 Twelfth Street — was sold and the new owner is abating violations, so that parcel was removed from this phase.

Staff described the bidding results: Action Sanitary Inc., about $170,050; Cal Inc., about $280,703; Resource Environmental Inc., about $420,000; Case Excavating had the lowest responsive bid. Peterson said the contract and abatement costs are funded through the CalRecycle legal disposal site grant program and that remaining grant funds — after the phase 2 contracts and testing/title costs — should support a third phase once CalRecycle approves the next set of properties.

Code enforcement staff explained the city places liens for abatement costs. “Whatever expenses for each property, then the city places a lien on that property,” staff said. Title reports and environmental testing for hazardous materials (asbestos/lead) add costs; staff estimated title reports at about $400 per property and said out‑of‑contract costs for the second round totaled about $50,035.69. After covering phase 2, staff estimated roughly $85,000 would remain for a third round, subject to CalRecycle approval.

Resident Margaret Garcia asked whether the city owns the properties and how liens are repaid; staff answered that the city typically places a lien and reimbursement flows back to CalRecycle if collected. City staff also noted the city does not take ownership of properties as part of this abatement process.

The council unanimously authorized the contract. The motion to authorize the city manager to execute a contract with Case Excavating Inc. in the amount of $113,200 was made by Vice Mayor Slotin, seconded by Council Member Wilson, and passed unanimously.

Staff said work will proceed after contract execution and CalRecycle approvals, and the city will submit the next set of properties for phase 3 once funds are confirmed.