SR-913-000 (6)
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City Council Meeting: January 25, 2005 Santa Monica, California
TO: Mayor and City Council
Chairperson and Redevelopment Agency
FROM: City Staff
SUBJECT: Award of Contract for the Demolition of the Rear Portion of 1657 Ocean
Avenue and Authorization for the City Council and Redevelopment
Agency to Execute a Cooperation Agreement for the Project
Introduction
This report recommends that the City Council award a contract to Gonzalez
Construction Company, the best bidder, in the amount of $149,996, plus a contingency
of $15,000 (10%) for the demolition of the rear portion of 1657 Ocean Avenue,
specifically the structure located behind the Chez Jay restaurant formerly used as a
motel.
This report also recommends that the City Council and Redevelopment Agency
authorize the City Manager and Executive Director to execute a Cooperation Agreement
between the two entities for payment of the costs associated with the removal work.
Background
The City of Santa Monica Redevelopment Agency (Agency) acquired the building at
1657 Ocean Avenue on April 11, 2000, as part of the 11.3 acre acquisition of the RAND
property. The front portion of the structure houses Chez Jay restaurant and four former
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motel units. The rear section, to be demolished, includes single and two story portions
that housed six former motel units.
The Agency has a lease agreement with Chez Jay for the front portion of the building
(the restaurant and four adjacent former motel units). The Chez Jay restaurant and four
units attached to the restaurant, which Chez Jay currently leases and maintains, are not
to be removed. In 1986 a Notice of Intent to Apply Restrictions Withdrawal No. 103W (a)
was recorded, which removed the property from the rental housing market. There are
no existing Rent Control restrictions preventing the alteration of structures on this
property.
The rear portion of the building to be demolished is dry-rotted, water damaged and has
lost some structural integrity. This dilapidated portion of the building is unsanitary,
unsafe, a public health hazard, and dangerous for fire fighters to enter in case of a fire.
The two story portion is unfit for human habitation. It can be demolished without
disturbing the restaurant and related tenancies.
Discussion
A Notice Inviting Bids for the removal of the structure at 1657 Ocean Avenue was
published in the Los Angeles Times on Thursday, August 26, and Saturday, August 28,
2004. The bid package was sent to eleven public plan rooms including five
women/minority business enterprise associations. Four contractors and one potential
subcontractor requested bid packages and the City Clerk?s office received one sealed
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bid, which was publicly opened and read aloud on September 20, 2004, by the Deputy
City Clerk. The bid result was as follows:
CONTRACTOR AMOUNT
Gonzales Construction $149,996
The Engineer?s estimate for the project was $130,000 to $150,000.
Other contractors who purchased bid packages were contacted and indicated that they
did not submit bids because the project was too small. One of the non-bidding
contractors, who declined due to bonding details, reported that their estimate would
have been $162,060, $12,064 higher than the bid submitted by Gonzalez Construction.
As the scope of work will not be expanded, there is no evidence that re-bidding the
project would result in more bids being submitted.
The best bidder, Gonzalez Construction, supplied the City with the names of previous
similar projects. City staff contacted the agencies and companies representing these
projects and all respondents reported that the Contractor's work quality was satisfactory
and that work was completed in a timely and cost-efficient manner. Staff also contacted
the Center for Contract Compliance and found Gonzalez Construction in good standing
and capable of handling labor compliance issues. The California Contractors State
License Board verified that the Contractor's license is active and in good standing.
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The project will provide five parking spaces through paving and striping of the site
following the demolition of the rear portion of the building.
Budget/Financial Impact
FUNDS REQUIRED:
Contract $149,996
Contingency $ 15,000
Total Required $164,996
Funds in the amount of $164,996 are available from the Earthquake Recovery
Redevelopment Fund in account H170743.589000.
Redevelopment Considerations
The Redevelopment Agency, as the owner of the property at 1657 Ocean Avenue, is
authorized by Health and Safety Code Section 33400 to maintain, manage, operate,
repair and clear such real property. The Cooperation Agreement delegates to the City
the Agency?s authority to repair and alter structures on the property and provides for the
Agency?s funding of these costs.
Recommendations
Staff recommends that the City Council:
1. Award a construction contract for the demolition of the rear portion of the
structure at 1657 Ocean Avenue to the best bidder, Gonzalez Construction
Company, in the amount of $149,996, plus $15,000 in contingency;
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2. Authorize the City Engineer to issue any necessary change orders to
complete additional work within budget authority; and
3. Authorize the City Manager to execute a Cooperation Agreement between the
City and the Redevelopment Agency for payment of the costs associated with
the alteration of the structure at 1657 Ocean Avenue.
Staff recommends that the Redevelopment Agency:
1. Authorize the Executive Director to execute a Cooperation Agreement
between the City and the Redevelopment Agency for payment of the costs
associated with the alteration of the structure at 1657 Ocean Avenue.
See Contract No. 8442 (CCS) (Gonzalez Construction) and Contract No. 8443
(CCS/RAS) (Coop Agreement).
Prepared by: Craig Perkins, Director, Environmental & Public Works Management
Jeff Mathieu, Director, Resource Management
Bob Moncrief, Housing and Redevelopment Manager
Tina Rodriguez, Redevelopment Administrator
Tony Antich, City Engineer
Lauren Friedman, City Architect
Alex Parry, Architecture Associate
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