SR-6-Q (26)
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srl008.desk.pier
Council Meeting: 10/08/91
Santa Monica,
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. . OCT S i991
Ca11forn1a
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TO: Mayor and City Council
FROM: eity Staff
SUBJECT: Recommendation to Award eontract 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. The report also outlines the process for repayment
to the City of $414,450 of the above amount by the two long-term
lessees of the Billiard Building for their respective share of
the renovation costs.
Backqround
The restoration of the Billiard Building is one of the first
projects to be implemented as part of the pier Restoration
Corporation's (PRe) 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 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
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OCT () IS91
program recommended seeking an entertainment or retail operation
for this 4,000 square foot portion. Funds for the renovation of
this space were included in the 1988-1991 Capital Improvement
Project (elP) 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 PRe recommended that the eity proceed
to restore the exterior and core of the vacant portion, while the
PRe 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 PRC has selected the Ash Grove entertainment club for the
space. The PRe Board of Directors voted to proceed with lease
negotiations for this use at its September 11, 1991 board
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meeting. The Ash Grove would be responsible for the construction
of tenant improvements.
Design and Construction Process
The PRe, 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 PRe, the Landmarks Commission, and the
Architectural Review Board, and the project has received all
other regulatory approvals required at this stage of the process.
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.
The restoration of the building should be completed in May, 1992.
Efforts will be made to enable the construction of tenant
improvements in time for a 1992 summer opening.
The Crown and
Anchor will be closed during the construction period.
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 eity elerk.
Five bids were received as follows:
Unique Builders $604,250
MS eonstruction and
Electrical eontractor, Inc. $621,072
Tricon, Inc. $694,600
lEes, 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
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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 ($604,250) and
30-740-625-22489-8912-99097 ($120,000), 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.
The PRe 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 PRe
has subsequently negotiated, and the city has approved,
modifications to the leases for the Crown and Anchor and Seaview
Seafood which provide for the repayment of their proportionate
costs over a ten year period at an interest rate of eight percent
per year.
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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, the two tenants will repay the Pier Fund a
total of $414,450 plus interest. The reduction in rent during
the construction period has been included in the adopted FY
1991-92 rent revenue projections for the Pier Fund.
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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