Loading...
SR-6-M (56) ~ . ~ ..g c Z -c;' ()S 6-,41 CD:PC:JM:aa (9/4) sr0910 Council Meeting: 09/10/91 Santa Monica, California SEP 1 0 199r TO: Mayor and city Council FROM: city staff SUBJECT: Recommendation to Award Contract for the Restoration of the Billiard Building on the santa Monica pier Introduction This report requests that the city Council award a contract for the restoration of the Billiard Building on the Santa Monica pier to Unique Builders, the lowest responsible bidder, in the amount of $604,250. Backqround The restoration of the Billiard Building is one of the first projects to be implemented as part of the Pier Restoration Corporation's (PRC) Santa Monica pier Development Program. The development program, which was adopted by the City Council in February, 1988, identified the Billiard Building as one of the key existing buildings that contribute to the historic fabric of the pier and that should be retained and restored. At that time, two long-term tenants, the Crown and Anchor Restaurant, and seaview Seafood, occupied two of the three lease spaces in the building. The third area, which had been previously leased by Beryl's Plaster Studio, was vacated in December, 1988. The development program recommended seeking an entertainment or retail operation for this 4,000 square foot portion. Funds for 6 -,+) - 1 - SEP 1 0 1991 ~ the renovation of this space were included in the 1988-1991 Capital Improvement Project (CIP) Program. As the PRC moved forward with the selection of a tenant for the vacant space, it also began the process of negotiating new leases with the long-term tenants to provide for the restoration of each of their respective portions of the building. New leases were executed in 1990 with both the Crown and Anchor Restaurant and Seaview Seafood which require a specified minimum expenditure on the part of each tenant to construct the interior and exterior improvements. The PRC's search for a viable retail or entertainment operation for the vacant space has proved difficult. The first Request for Proposals (RFP), issued in April, 1988, failed to yield a financially qualified tenant. Rather than delay the renovation of the entire building, the PRC recommended that the city proceed to restore the exterior and core of the vacant portion, while the PRC continued to search for a qualified operator. During this interim period, the PRC has leased this space to the Aresis Theatre Ensemble on a month-to-month basis. As the result of a second RFP process, issued in October, 1990, the PRe is currently considering two proposed uses for the space. The PRC Board of Directors is expected to make a selection later this month. The selected developer would be responsible for the construction of tenant improvements. staff would like to note that the proposed improvements under this contract are the same - 2 - " regardless of which use is selected. The award of this contract in no way prejudices the selection process. Design and Construction Process The PRC, along with the tenants of the Crown and Anchor and Seaview Seafood, selected Sam Tolkin AlA to design the restoration of the exterior and core of the building. Sam Tolkin has much experience in historic renovation including the restoration of several historic buildings in Pasadena. The tenants have also contracted with Sam Talkin for the design of the interior improvements. The pier Design Guidelines, adopted by the city council in February, 1988, provide direction for the rehabilitation of the historically significant buildings on the Pier. The project design is consistent with these guidelines and retains the Billiard Building's key architectural elements while incorporating new details that complement the building theme and provide differentiation among the storefronts. The design has been approved by the PRC, the Landmarks Commission, and the Architectural Review Board, and the project has received all other regulatory approvals. since the construction of the exterior improvements of each of the three leaseholds must be coordinated and performed by a single contractor, staff determined that the city was in the best position to construct the project. However, each tenant remains responsible for the costs of designing and constructing the exterior improvements, and for the cost and actual construction of the interior improvements. The method of payment for these - 3 - costs by the tenants will be discussed in the Budget/Fiscal Impact section. Although the PRC and city staff have not yet come to terms with one of the tenants, the Crown and Anchor, staff is recommending that the Council award the contract for the renovation of the entire building and delete the work related to the Crown and Anchor at a later time, if that becomes necessary. The seaview Seafood and the vacant portion mark the two ends of the building and the areas in greatest need of repair. Staff is recommending that the contract be awarded now to allow construction to begin in sufficient time to enable the businesses to be open for the 1992 summer season. The Crown and Anchor will be closed during the construction period unless agreement cannot be reached. In that case, it will remain open while work on the other areas is completed. Seaview Seafood will continue to operate in a temporary building, just west of the current location. A Notice Inviting Bids was published on June 24 and 25, 1991, in the Outlook and in ten (10) construction publications and minority business associations. Plans and specifications were issued to nineteen (19) contractors. Bids were opened and read publicly on July 23, 1991, by the City Clerk. Five bids were received as follows: Unique Builders $604,250 MS Construction and Electrical Contractor, Inc. $621,072 - 4 - Tricon, Inc. $694,600 IECS, Inc. $743,000 DTEC Construction, Inc. $750,000 Engineer's Estimate: $600,000 Unique Builders, the lowest responsible bidder, has good experience in renovation of public buildings. The firm has renovated parks buildings for the City of Glendale, classroom buildings for Glendale Community College, and maintenance and restroom buildings for the City of Burbank. Reference checks have revealed high quality work and a cooperative attitude. Budqet/Financial Impact Funds required are as follows: Contract Contingencies Total $604,250 $120,000 $724,250 Sufficient appropriation authority is available in Account Numbers 30-740-625-22488-8912-99097 and 30-740-625-22489-8912-99097, Pier commercial Development/Rehabilitation. A twenty percent (20%) contingency is recommended for this project since it is the renovation of a seventy-five year old building and the extent of structural deterioration is not known. In addition, the condition of the pier deck and substructure cannot be determined until the floor is removed. - 5 - The PRC and City staff determined that the revitalization of the pier could best be served by the city's payment up front for the cost of the exterior renovation of the entire building. The PRC has subsequently negotiated a modification to the lease for Seaview Seafood which provides for the repayment of its proportionate costs over a ten year period at an interest rate of eight percent per year. At this time, the PRC and City staff are still negotiating the lease modification with the Crown and Anchor. The lease modification requires the same repayment schedule as outlined for Seaview Seafood. The bid documents required that costs for each portion of the building be broken out. The cost for the vacant area is $189,800; therefore, if agreement may be reached with the Crown and Anchor, the two tenants will repay the pier Fund a total of $414,450 plus interest, as well as their share of any required change orders. However, if agreement cannot be reached with the Crown and Anchor, the City is recommending to proceed with the contract and delete the portion of the work related to the Crown and Anchor, which is $189,250. A minimal portion of this work would still be required in order to complete the exterior renovation of the entire building, ie., the roof and the exterior stucco, and would be added to the City's portion of the cost. The reduction in rent during the construction period has been included in the adopted FY 1991-92 rent revenue projections for the pier Fund. - 6 - . , Recommendation staff respectfully recommends that the City Council: 1. Award a contract for the restoration of the Billiard Building on the Santa Monica pier to Unique Builders, the lowest responsible bidder, in the amount of $604,250. 2. Authorize the City Engineer to issue any change orders necessary to complete additional work to the extent funds are available in accordance with the Administrative Instruction on Change Orders. Prepared by: Peggy Curran, Director of Community Development stan Scholl, Director of General Services Judith Meister, pier Manager Dave Britton, Acting City Engineer - 7 -