SR-800-001-06 (9)
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Council Meeting: December 8, 1987
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Santa Monica, California
TO:
Mayor and City Council
FROM:
City Staff
SUBJECT:
Recommendation to Increase Appropriations for
Construction of the Airport Administration Building
and Specialty F.B.O. Hangar
Introduction
This report recommends that the City Council increase the amount
authorized for construction of the Airport Administration
Building and Hangar by $ 575,000.
These funds would be
transferred from the General Fund reserve to Capital Account No.
33-710-631-000-908 in the form of a loan to be repaid from
revenues from the airport residual land development during the
first full year that such revenues are available to the City.
The proposed loan repayment would include interest at the City's
interest earning rate.
Background
The project to design and construct a new Administration Building
and Specialty F.B.O. Hangar at Santa Monica Municipal Airport
began with a limited budget of $ 3,500,000 in order to secure
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favorable conditions for the issuance of certificates of
Participation by the City in 1986. Subsequent to that time,
additional costs have come to light as noted in the following
paragraphs. The $ 3,500,000 did not include a tenant improvement
allowance, the cost of unforeseen environmental conditions
on-site or any funds for unanticipated changes to the project.
The original hangar design included unique design features which
matched those of the Airport Administration Building. Bids were
originally due on July 21, 1986. The lowest bid received on that
date was $ 4,900,000 which is more than a million dollars above
the Architect's estimate of $ 3,500,000. In order to bring the
cost into line with the available funds, the plans and
specifications were revised to provide for a standard
prefabricated metal building in lieu of the original design
provided by the Architect. The project was then rebid and a
contract was awarded to Bernards Bros. Construction, Inc., the
lowest responsive bidder, in the amount of $ 4,003,000. The
prefabricated metal building which Bernards Bros. offered to
provide in accordance with the plans and specifications did not
include any of the architectural features of the original design.
City Staff has recognized the desirability of upgrading the
design of the hangar to make it more closely compatible and
consistent with that of the Administration Building, due to the
proximi ty of the proj ect to the Airport residual land
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development. The design upgrade would include a curved roof and
siding details which would resemble the adjacent Administration
Building. Bernards Bros. has quoted the amount of $ 107,000 for
this design improvement. staff estimates that the addition of
storefront glazing along the south face of the upper level of the
Hangar would cost an additional $ 20,000.
Both the Hangar and the lower level of the Administration
Building include tenant lease space. It is customary for the
landlord to make basic improvements such as dividing walls,
carpeting, painting and basic plumbing and electrical provisions
prior to occupancy by the tenant. The cost of these improvements
would be recovered from tenant rent charges as the spaces are
occupied. It is estimated that these basic tenant improvements
would cost $ 180,000.
At the time construction of the Administration Building
commenced, hydrocarbon contamination was discovered in the soil
below the site. The City Engineer has recommended an in-situ
soil aeration and vapor extraction system to mitigate this
contamination. Design and construction of this system is
estimated to cost $ 80,000. It is proposed that the City Manager
be authorized to apply for a CalTrans Division of Aeronautics
grant to fund this proj ect. As these funds will not become
available until Fiscal Year 1990-1991, an interim loan in this
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amount will be necessary.
There is also a continuing need for on-site inspection and
proj ect coordination services. staff estimates an amount of
$88,000 to be necessary for these purposes.
staff anticipates that an additional $ 100,000 will be required
to pay for future change orders and contingencies, including
several requests for quotation now outstanding.
Budget / Fiscal Impact
A detailed summary of budget and fiscal impacts follows. Staff
respectfully requests that:
1. The amount of $ 107,000 be encumbered to the Bernards
Bros. Construction, Inc. Contract No. 4791 (CCS) to
upgrade the design of the Hangar; and,
2. The amount of $ 180,000 be appropriated for the design
and construction of tenant improvements for the Airport
Administration Building and Hangar; and,
3. The amount of $ 80,000 be appropriated for the design
and construction of a system to mitigate the soil
contamination at the Airport Administration Building;
and,
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4. The amount of $88,000 be appropriated for inspection
and project coordination services; and,
5. The amount of $ 120,000 be encumbered to the Bernards
Bros. Construction, Inc. Contract No. 4791 (CCS) to
cover the costs of hangar glazing and anticipated future
change orders and contingencies; and,
6. The City Engineer be authorized to issue any change
orders necessary to complete the work, subject to the
availability of funds as noted above, in accordance with
the Administrative Instructions on Change Orders; and,
Recommendation
Staff respectfully recommends that the amount of $ 575,000 be
transferred to Account No. 33-710-631-000-908 from General Fund
reserves for purposes as outlined above in the form of a loan to
be repaid, including interest payments at the City's interest
earning rate, from revenues from the airport residual land
development during the first full year that such revenues are
available to the City. staff further recommends that the Airport
Director be authorized to present the revised design of the
Hangar to the Architectural Review Board for their information
and review.
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Prepared by: Hank Dittmar, Airport Director
Desi Alvarez, city Engineer
Dave Britton, civil Engineer
Frank Barnes, Airport Superintendent
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