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
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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,
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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:
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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
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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
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