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SR-802-005 (10)~_ ~ c~cy of Santa Monica~ City Council Report City Council Meeting: October 10, 2006 Agenda Item: ~_ To: Mayor and City Council From: Martin Kennerly, Acting Director of Resource Management Department Subject: Amendment to Construction Contract with John S. Meek Company, Inc. for Pier Structural Rehabilitation & Repair Project, Phase III Recommended Action It is recommended that the City Council: 1. Waive competitive bidding requirements in compliance with Santa Monica Municipal Code Section 2.24.071(e); and 2. Approve Amendment No. 1 to the contract with John S. Meek Company, Inc. for Pier Structural Rehabilitation & Repair Project, Phase III, increasing the contract amount by $484,760, from $2,144,852 to $2,629,612, to complete additional work in the area of 370 Santa Monica Pier; and Executive Summary On August 8, 2006, the City awarded contract 8621 (CCS) to John S. Meek Company, Inc. to construct Phase III improvements on the Santa Monica Pier. The scope of work included improvements to an area on the Municipal Pier, improvements to portions of the Newcomb Pier, and other structural improvements under the Pier. The scope of work did not include improvements to the area of 370 Santa Monica Pier, the former Sinbad's site, because Phase III focused improvements in public areas. Staff is now 1 recommending that the scope of work be expanded to include improvements to 370 Santa Monica Pier in order to facilitate the City's efforts to secure a developer for this site and to enable temporary use of the site while a permanent development is being sought. With the contract amendment of $484,760, the total contract amount will be $2,629,612, including contingency. Funds are available in the FY 2006-07 adopted budget. Given the mobilization of John S. Meek Company, Inc. on the Pier with its significant cost savings to the City, the need for these improvements and repairs to be begun as quickly as possible and the difficulty of coordinating multiple contractors with their separate work crews and equipment within the confined limits of the Pier, the bidding procedures should be waived in accordance with Santa Monica Municipal Code section 2.24.071(e). Discussion Backqround In FY 2002-03, the Council allocated $6 million for capital improvements to the Pier's infrastructure. Phase I improvements, from the westerly end of the Pier Bridge to the beach access stairway, was completed in 2004. Phase II improvements extended along the Municipal Pier deck from the beach access stairway approximately 150 feet west, and included improvements to the Newcomb Pier. Phase II was completed in fall 2005. Planning for Phase III began in early 2006. A notice inviting bids was published beginning May 18, 2006, with a bid opening on June 14, 2006. On August 8, 2006, 2 Council awarded to John S. Meek Company, Inc. a contract in the amount of $1,949,865, plus a contingency of $194,987, for the Phase III project. Work is to begin in October 2006 and be complete by April 2007. The scope of work for Phase III, includes improvements to an area on the Municipal Pier that extends about 200 feet westerly from the Beachcomber to the waterline, improvements to portions of the Newcomb Pier, and other structural improvements under the Pier. 370 Santa Monica Pier is an 11,000 sq. ft. vacant site, located between Playland Arcade and Pacific Park. The Leasing Guidelines, approved by Council on August 8, 2006, establish the preferred use for this site as "mixed use specialty retail, non-formula food service (with or without alcohol) and possibly with a portion of the site open and accessible to the public". The site is in poor repair with caps, stringers and deck boards needing to be replaced. The area was not included in the scope of Phase III when the project was being planned in spring 2006 because staff's concern was to conserve the remaining available budget for areas of the Pier that experience the most visitor traffic and to get the project designed and bid in a timely manner. Subsequent to the project being bid, staff learned of the possibility for opportunities for temporary use of the area. However, the site cannot be used for even temporary uses until the structural work is done. Staff is now recommending the repair of 370 Santa Monica Pier as part of the Phase III project for several reasons: 3 1. The Leasing Guidelines, approved August 8, 2006, have now established a preferred use for the site and recruitment for a developer is in progress. 2. Repair of 370 Santa Monica Pier as part of the Phase III project will result in economies because the contractor is already on-site and equipment is mobilized. The direct cost to the City for completing this work will be lower than if a future developer completed the work at a later date and was repaid by the City through rent credits. Additionally, the limited space on the Pier makes it difficult for multiple contractors, each with its own personnel and equipment, to operate efficiently, making it more likely that the work will take longer to complete and be more costly to the City. 3. A project management team has already been assembled and is working on oversight of the Phase III work, and work for 370 Santa Monica Pier can be included without significant additional cost. 4. Repair of 370 Santa Monica Pier in advance of recruiting for a developer, will remove from future negotiations a potentially contentious cost factor. 5. Repair of 370 Santa Monica Pier will allow the area to be used for temporary short term events that could generate revenue to the Pier Fund while the City negotiates for the long term user. Without repairs, the area cannot be safely occupied. In response to a request from staff, John S. Meek Company submitted a proposal in the amount of $484,760 to repair 370 Santa Monica Pier. Repairs include replacing two caps, removing and replacing all stringers and blocking, and completion of other 4 required work including trimming piles and lowering braces, as necessary. Moffatt and Nichol, the City's consulting engineer for this project, has confirmed that the repairs would meet load requirements for future development of a new building on the site. If the contract amendment is approved, the work can be completed within the time frame allowed for the Phase III project. John S. Meek Company was able to bid this project at a lower unit cost than it bid the original Phase III project because equipment will already be mobilized and on-site and the work is consolidated in a concentrated area. Previous Council Actions Council authorized the agreement with John S. Meek Company, Inc. or Pier Structural Rehabilitation & Repair Project, Phase III, on Auqust 8, 2006. Budqet/Financial Impact Funds in the amount of $484,760 are available in account M300645.589000 for this contract amendment. Prepared by: Miriam Mack, Economic Development Manager Approved: Martin Kenn~rly Acting Director of Resource Management Department Forwarded to Council: ~'mont E ell Manager 5 e erence men e on rac o. .