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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
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SEP 1 0 1991
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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
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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
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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
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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.
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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.
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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
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