SR-904-005 (4)
EPWM: CP: AA: LF: VS: H:\Staff Reports In Process\5_10\cc1957 demolition.doc
City Council Meeting: May 10, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Amendment of Executed Construction Contract with Action Environmental
Enterprises, Inc. to include Demolition of the Former Police Building
Introduction
This report recommends that the City Council waive competitive bidding and amend the
executed construction contract with Action Environmental Enterprises, Inc. for
hazardous materials abatement to include demolition of the former Police building and
authorize a Guaranteed Maximum Price (GMP) of $559,035 with a contingency of
$55,904 (10%).
Background
On November 24, 1939, the Santa Monica City Hall was dedicated. The original U-
shaped structure included a courtyard at the rear and housed City administrative, police
and fire operations. In 1958 a three-story structure was added to the east enclosing the
central courtyard to provide space for expansion of the Police Department. Since 1958,
there have been several additions and renovations to the south wing of City Hall. In
September 2003, the Police Department relocated to the new Public Safety Facility
leaving the former Police Department additions to City Hall vacant.
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Costs and construction implications of reusing or demolishing the former Police building
were evaluated, and on December 16, 2003, Council approved demolition of the Police
additions to City Hall and installation of interim landscape and hardscape elements until
a permanent courtyard is designed and developed as part of the future rehabilitation of
City Hall. At that meeting, Council also approved a two-phase design-build agreement
with SKS Construction, Inc. for the project.
On January 12, 2005, the City terminated its agreement with SKS Construction, Inc.,
following notification that it could no longer honor its proposed Guaranteed Maximum
Price. Contingent assignment of subcontracts contained in the agreementwith SKS
Construction, Inc., allowed the City to retain providers identified in the SKS agreement
and the City has entered into individual agreements with those providers allowing the
project to proceed in a timely manner. Portions of the work required prior to actual
demolition have been performed.
On March 8, 2005 Council awarded a contract to Neubauer Electric, Inc. for electrical
power change-over of the old Police building in order to ensure continued power to the
City?s public safety operations during demolition of the former Police building. Without
it?s permanent electrical, water, heating and cooling supplies, the Police Building is no
longer a safely habitable structure.
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During the period of March 28 to April 19, 2005 Action Environmental Enterprises, Inc.
safely, thoroughly and in a non-disruptive and timely manner substantially completed
abatement of asbestos and lead hazardous materials from the former Police building.
On April 12, 2005 Council awarded a professional services agreement to Killefer
Flammang Architects for design services for the demolition of the former Police building
and restoration of associated City Hall facades.
Discussion
During Phase 1 design development, Action Environmental Enterprises, Inc. served as
the demolition subcontractor and had provided SKS Construction, Inc. with detailed
pricing figures for the demolition portion of the GMP. Action Environmental Enterprises,
Inc. thoroughly, safely and in a timely manner is conducting the abatement of hazardous
asbestos and lead from Police Building. The firm?s knowledge of the former Police
building make it highly qualified to perform the demolition work. Contingent assignment
of subcontracts contained in the agreementwith SKS Construction, Inc., allow the City
to retain Action Environmental Enterprises, Inc. as a sole source provider. Action?s base
bid is identical to its base bid given to SKS. The GMP includes an additional scope of
work identified after receipt of the base bid.
Santa Monica Municipal Code Section 2.24.071, allows the City Council to waive
competitive bidding procedures by a two-thirds vote when necessary to protect public
health, welfare and safety.
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Budget/Financial Impact
Additional Agreement $559,035
Amount
Additional Contingency $ 55,904
Total Additional Required $614,939
Funds in the amount of $614,939 are available in account C010739.589000, ?Old Police
Building Demolition.?
Recommendations
Staff recommends that the City Council:
1) Waive competitive bidding;
2) Amend the executed construction contract with Action Environmental
Enterprises, Inc. for hazardous materials abatement to include demolition of the
old Police building;
3) Authorize a GMP in the amount of $559,035 plus $55,904 (10%) in contingency ;
and
4) Authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Anthony Antich, P.E., City Engineer
Lauren Friedman, City Architect
Voneelya Simmons, Associate Project Manager
Reference Contract No. 8472 (CCS).
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