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SR-906-000 (12) EPWM: CC: AA: LF: SL; F:\DATA\SPFILES\SP1917\CC1917.DOC City Council Meeting: January 14, 2003 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT:Authorization of a Selective Demolition and Stabilization Agreement with Westport Construction for the Marion Davies Estate Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute a pre-construction services agreement with Westport Construction, Inc., in an amount not to exceed $35,160 and approve a contingency of $5,274 for the Marion Davies Estate project located at 415 Pacific Coast Highway. Background Formatted The Marion Davies Estate, a beach home built in 1928-29, originally featured a Georgian Formatted revival mansion, a large North House and a swimming pool. After World War II, the property was sold, the mansion was demolished and three buildings were added. In 1959, the site was purchased by the State of California, who leased the site to the City, who in turn leased it to the Sand and Sea Club from 1960 to 1990. The site was severely damaged in the 1994 Northridge earthquake requiring the closure of all structures. The site continues to be the responsibility of the City under an operating agreement with the State of California. 1 The only remaining building from the original estate is the North House, designed by Julia Morgan and built in 1929. The locker building, the swimming pool and bulkhead are also contributing elements to the site?s historic significance. The estate has been formally determined eligible for listing in the National Register of Historic Places, structures and elements located on the property are also listed in the California Register of Historical Resources and the North House has been designated a City of Santa Monica Landmark. In July, 1999, following an extensive public process, the City Council approved a reuse plan for the site that called for the preservation of key structures on the property including the North House, portions of the former Locker Building and the swimming pool. The plan also identified structures for removal. Given the deterioration that has occurred and significant problems with vandalism, combined with the current funding constraints for the project, staff worked with the State Department of Parks and Recreation over the past year to obtain approval including a categorical exemption under the California Environmental Quality Act, to proceed with targeted demolition of buildings on the site that do not contribute to the historic character, have been determined to be severely deteriorated, were structurally unsound and were identified for removal in the Council-approved reuse plan. The buildings include the two cabana structures located on the western side of the property, the banquet building and portions of the Locker Building as identified in Attachment A. In accordance with the approval from the State, these buildings will be demolished, the site will be secured and the contributing historic site elements including the North House, swimming pool and bulkhead will be stabilized. 2 Since the City Council approved the reuse plan for the site, staff efforts have focused on assembling adequate funding for the project?s implementation. Total capital costs for the reuse plan have been estimated at $17 million based upon a cost estimate prepared in 2001. Staff has engaged State and Federal agencies to develop a partnership to preserve the site, which is State property and serves as a gateway to the Santa Monica Mountains National Recreation Area. With this approach in mind, staff submitted a grant application to the State requesting $5 million from Proposition 12 funds allocated to locally operated units of the State Park system and $1 million in Federal Economic Development Initiative grant funding. To date, there has been limited success. The State Department of Parks and Recreation has awarded the City a grant of $350,000 from Proposition 12 funding for EIR preparation and development of a site survey and plans for the North House. The United States Department of Housing and Urban Development identified special project grant funding totaling $275,000 for the visitor center (gateway needs at the Santa Monica Mountains National Recreation Area) in the VA-HUD-Independent Agencies Appropriation Act of FY2002. Staff has also applied for funding from the Getty Preserve LA grant program to fund the preparation of a Historic Structures Report for the North House and anticipates that grant awards will be announced in early 2003. Given the overall $17 million project cost, it is unrealistic to assume that the project will be 3 fully implemented in the short term, necessitating the targeted demolition and stabilization of the site as recommended in this staff report. As part of its FY2002-03 budget objectives, the Community and Cultural Services Department has begun to reexamine the reuse plan to identify possible alternatives and will return to Council to discuss possible options including but not limited to phasing the approved reuse plan or amending the plan to better address financing issues. These options will be developed with consideration given to the future negotiations with the State Department of Parks and Recreation concerning renewal of the Santa Monica State Beach Operating Agreement that expires in 2006. CEQA Status The proposed project is categorically exempt under the California Environmental Quality Act (Class 1(L) 15301) since it involves the demolition and removal of individual small structures. This categorical exemption has been approved by the State of California Department of Parks and Recreation in that the work will comply with the Secretary of Interior's Standards for Historic Property Treatments and if archeological resources are uncovered through subsurface work, the work shall stop in the area until a State Park archaeologist can determine how to proceed. Discussion An Invitation for Bids was issued on October 2, 2002. On November 4, 2002, three proposals were received and subsequently reviewed and rated by a staff committee, under a competitive process. Westport Construction, Inc., in collaboration with M2A Milofsky and 4 Michali Architecture was selected as being the best qualified for the work. The Contract Documents require the submission of a Guaranteed Maximum Price (GMP) for completion of the project, which will be submitted to Council for approval once adequate funds are identified for the project. Westport Construction, Inc., has successfully completed many historical construction projects such as the El Centro, in Hollywood, the Sycamores in Altadena, a craftsmen home restoration in Pasadena, the Freedom House in Los Angeles, the Whitley Bungalow Court in Hollywood and the Bugsy Segal Home in Altadena. M2A Milofsky and Michali Architecture has successfully designed restorations of the Pergola at Crescent Bay Park in Santa Monica, the John C. Fremont Library in Los Angeles, the Fine Arts Theatre in Beverly Hills, Engine House No. 18 in Los Angeles, the North Hollywood Branch Library, the Lankershim Southern Pacific Depot in North Hollywood, and the French American Building in Los Angeles. Budget/Financial Impact FUNDS REQUIRED: Contract $35,160 Contract Contingency $5,274 Total Required $40,434 The contractor may encounter unforeseen conditions while conducting on-site investigations, due to the age and condition of the property, that are not included in the 5 original scope of work. Therefore, staff recommends a 15% contingency amount. Funds are available in the following Beach Fund accounts: Contract Contingency Total C11052094.589000 ?Rehab 415 PCH? $35,160 $3,802 $38,962 C11052099.589000 ?Rehab 415 PCH? $ 0 $1,472 $ 1,472 Total Available: $35,160 $5,274 $40,434 Recommendation Staff recommends that the City Council: 1. Award a contract in the amount of $35,160 plus $5,274 contingency for design of the demolition and stabilization and pre-construction services to Westport Construction, Inc.; and 2. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Barbara Stinchfield, Director of Community and Cultural Services Karen Ginsberg, Assistant Director of Community and Cultural Services Elaine Polachek, Open Space Manager Anthony Antich, P.E., City Engineer Lauren Friedman, City Architect Susan Lowell, P.E., Civil Engineer Encl: Attachment A, Site Sketch 6 Attachment B, Photographs 7