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SR-906-000 (23)~_ . . City Counc~l Report ~ City of Santa Monica City Council Meeting: November 14, 2006 Agenda Item: ~ Q To: Mayor and City Council From: Craig Perkins, Director Environmental and Public Works Management Subject: Contract Award for Abatement of Asbestos and Lead and Selective Demolition at 415 Pacific Coast Highway Recommended Action Staff recommends that City Council award a contract with Midwest Environmental Control, Inc., (MEC) for the abatement of asbestos and lead containing materials and selective demolition associated with the 415 PCH Rehabilitation and Reuse Project in the amount of $679,133 plus a 10% contingency ($67,913), in the event unforeseen conditions should arise, for a total of $747,046. Executive Summary The site at 415 PCH is owned by the State of California. Pursuant to a long-term operating agreement with the State, the City of Santa Monica is responsible for all site improvements, maintenance, and operations. Midwest Environmental Controf, Inc., is recommended to perForm the abatement of asbestos and lead containing materials and selective demolition to prepare the site for the adaptive reuse and rehabilitation of the property. Funds in the amount of $747,046 are available in the existing capital project 1 for this agreement. Staff will return to Council to award a Guaranteed Maximum Price contract in December, 2006. Discussion Midwest Environmental Control, Inc., specializes in the abatement of hazardous materials and prior to commencement of the renovation and rehabilitation by the general contractor it is necessary to properly remove and dispose of asbestos and lead containing materials located at the Locker Building and historic North House. MEC's services will also include complete demolition of the Locker building and selective demolition of the North House as required for structural upgrade. In order for the proper abatement to occur, selective demolition is required at these locations. In addition, the Locker building has paint containing lead which will be encapsulated immediately prior to demolition, hauling and disposal by MEC who specializes in both abatement and demolition. Previous Council Actions On Februarv 28, 2006, Council reviewed and approved the refined schematic design plans, community use program, and financial projections for the project. On May 25, 2006, the City Council denied the appeals of the Planning Commission and Landmarks Commission actions, certified the Fina1 Environmental Impact Report and approved a Development Review Permit, Reduced Parking Permit, Fence/Wall Height Modification and Certificate of Appropriateness for the project. 2 Commission Actions Prior to Council's February 28, 2006, schematic design approval, presentations were made to the California State Parks, the State Office of Historic Preservation, City of Santa Monica Arts Commission, Landmarks Commission, Park and Recreation Commission, Commission for a Senior Cornmunity, Disabilities Commission, Social Services Commission, Pier Restoration Corporation, Santa Monica Convention and Visitor's Bureau, Caltrans, and the California Coastal Commission. Responses from these bodies were positive. On April 5, 2006, the Planning Commission certified the Final Environmental Impact Report, approved a Development Review Permit, Reduced Parking Permit, and a Fence/Wall Height Modification. On April 10, 2006, the Landmarks Commission approved a Certificate of Appropriateness with the condition that building materials, colors, landscape, lighting and signage return to them for approval. On October 9, 2006, the Landmarks Gommission approved building materials, colors, and landscape for the site. Environmental Analysis An EIR was prepared and certified by City Council on May 25, 2006, along with a Statement of Overriding Considerations. An Addendum has been prepared subsequent to the May 2006 certification of the Final EIR that provides new information relevant to the historic resources analysis of the Locker Building. The City Council should consider 3 the Addendum before taking action on this item; however, no formai action on the addendum is required by the Council. Contractor Selection A Notice Inviting Bids was published in the Los Anqeles Times on March 18 and 20, 2006. The City Clerk's office received five sealed bids, which were publicly opened and read aloud on May 5, 2006. The base bid amounts were adjusted for each vendor by deducting bid alternates related to extension of contract duration and use of heavy equipment for demolition of the Locker Building. Bidder Base Bid Add/Deduct 10% Total Alternates Reserve Action Environmental 1 675 246 -250 000 99 668 1 096 343 Enterprises, Inc. , , , , , , U.S. Construction, Inc. 770,918 -57,500 71,342 784,760 Midwest Environmental 871,833 -192,700 67,913 747,046 Control, Inc. MARCOR Remediation, Inc. 711,253 -194,654 51,660 568,259 Miller Environmental 429;300 000 -40 38 930 428 230 Incorporated , , , Midwest Environmental Control, Inc. is the recommended best bidder in conformance with Santa Monica Municipal Code Section 2.24.072. Per the Code, criteria for evaluating the best bidder include the capacity and skill of the bidder to perForm services promptly, price, quality of the services, the bidder's financial resources, experience, efficiency, reputation, ability to provide future service as needed, as well as any other factor which will further the intent set forth in the City Charter. Other criteria considered for contractor selection included consistent accuracy in bidding, minimal record of 4 change orders, repeat service for clients with highly sensitive projects, volume of projects involving historical structures, and exceptionally positive reference responses. Analysis of the two lowest bids revealed mathematical errors or omission of an allowance requirement. Additionally, references for MEC were positive. Applying the criteria for the determination of the best bidder to the bid, MEC is recommended as the best bidder. MEC has an extensive record of successful and timely completion of abatement and demolition projects for the U.S. Army Corp. of Engineers, the U.S. Air Force, and Lockheed Martin, including hazardous materials abatement at Edwards, Vandenberg and Charleston Air Force Bases. MEC's highly professional performance on projects resulted in repeated contract award from these same agencies. MEC's prolific record of projects invofving historical structures garnering highly positive feedback from owner and third party monitors include the Devils Island Lighthouse for the National Park Service, the National Chavez Center Memorial Project for the Stoneybrook Corporation, a 112-year-old Jail/Sheriff Office for Sandusky County, Ohio, and numerous projects for the United States Postal Service, Department of Justice Federal Prison System, and the Army Corps of Engineers. The contractor has resources to consistently perform demolition and abatement of hazardous material in-house with limited or no change order requests, has no history of project related litigation, and has a current, active and good standing State Contractor License. MEC's contractor history is repeatedly reported by references, including clients and independent third-party monitors, to be outstanding regarding overall quality, thoroughness, knowledge, experience, negotiation 5 fairness, skill with schedule management, attention to care in handling sensitive and/or historical materials, and accuracy in estimating job costs leading to no or significantly limited or no change order requests. Public Outreach A number of public workshops and meetings have convened since the summer of 2005 to discuss the 415 PCH Project and gather community input on the emerging design and programming for the site. The outreach included a public open house, two community workshops, and meetings with neighbors and community organizations. A dedicated website (http://415pch.smgov.net/main.html) for the project was established allowing members of the public to view the schematic design and submit comments. Budqet/Financial Impact Funds in the amount of $747,046 are available in account C240766.589000, "Annenberg Foundation Grant." Prepared by: Lauren Friedman, City Architect Approved: Forwarded to Council: ~ t ~ raig Perkins amont Ewell D ector - Environmental and Public ity Manager Works Management Department Attachment: Addendum to the 415 Pacific Coast Highway Final EIR 6 415 Pacific Coasf Highway E!R Addendum ~ ~ ADDENDUM TO T~E 415 PACIFIC COAST HIGHWAY FINAL ENV~RONMENTAL IMPACT REP4RT Prepared by: City v£ Santa Moxuca Community and Cultural Services Departmenf 1685 Main Sfreef ~ Santa Monica, CA 90407-2200 Prepared with the assistance of: Rincon Consulta.nts, Inc. 79Q East Santa Clara S#reet Venfixra, Calif ornia 93001 October 2006 ~ City of Sanfa Monica A-1 415 Pacific Coast Highway EIR Addendum ADDENDUM October 2006 This document is an Addendum to the Pinal Environmental Impact Report for the 415 Pacific Coast Highway project. The Pizial EIR was certified by the City Council of the City o# Santa Monica on May 25, 2006. In accordance with Section 151G4 of the State CEQA GuideIines, the Lead Agency shall prepare an Addendum to an EIR if changes or addifions to the project that will not have significant new impacts or substantially increase previously-identified significant impaets are expecfed. Specifically, the Guidelir~es state: The lead agency or responsibte agency shall prepare an addendum to a previously cert~fied EIR if some chrxnges or additzons are necessafy but none of the condifions described in Section 15162 catling for preparation of a subsequent EIR have occurred. (Section 15164 (a)}; an addendunz need not be circulated for public review but can be included in or attached to the final EIR... (Section Z5T 64 (c)); and the decisiQn making body s~eall consi.der the addendutn zvith the final EIR....prior to making a decision on the proJect (Secfion 15164 (d)). A-1 PROJECT DESCRIPTI~N The 435 I'CH project involves the rehabilita~ion and adaptive reuse of a hzstoric beachfront estate for use of the site as a public cornrnunity space that would ax~clud~ outdoor recreational areas and an event/meeting facility. A-2. SUMMARY OF THE 1VIAY 2~6 FINAL EIR The Final EIR ar-alyzed 10 environrnental issue areas identified as ~otentially significant enviroxunental impacts. These included aesthetics, air quality, construction ef~ecfis, geology, hazards and hazardous nnaterials, historic resources, hydrologq and water quality, neighborhood effects, noise, and traffic and circulation. Mitigation measures were applied through the Fixzal EIR in seven envirorunental issue areas: aesthetics, construction effects, geology, hazards and hazardous materials, historic xesources, hydrolagy and water qualaty, and fxaffic and circulation, In aII ofher enviro~unental issue areas, the Final EIR concluded that impacts were either less-tl~an-significant ar were addressed by zx~afi~gatian measures in related impact anaiysis seciioz~s. A-3. CHANGE OF CONDFTiONS Since the May 2006 certification of the Final EIR, new information relevant to the historic resources anatysis has become available. . As stated izi staff repoxts presez~ted to fhe City Council during the May 25, 2006 EIR ceriification hearing, the Locker Building was exroneously determined~ eiigible fax listing in the National ~ Cify of Santa Monica A-2 4't5 Pacii'ic Coast Fiighway E{R Addendum Register and therefore it was aufomatically on the California Register of Historical Resources in error. Specifically, the staff report included the following text: In 2001, the City of Sanfa Monica initiated discussion rvitli the California Deparfinent of Parks and Recreation {DPR} regarding the condition and status of certain buildings including tl~e Locker Building located on the red-tagged 41~ PCH site, Red-tagging is the term appIied to the process zvherehy tJ-te buiiding officiaTs designate damaged structures whereby entry would not permit~ed because of the extent of damage and the reiated safefij concerns. The City zoas interested in removing the cabanas, the banquet building and portions of the Lacker Suilding in part because they were becoming dangerous and a public nuisance. As r~ result of fhese discussions, DPR requested fhat a technical report and supporting docunzentation be prepared to pravide informafion on fhe history and condition of these structures, inetucling the Lacker Buitding. Research conducted in 20Q1 found that t~Ze buildings zoere buiit befzveen 1948 und 1967 (Locker Building: 1948; Banquet ,Buildzng: 1948-59; cabanas: 1948 and 1967). Joseph Drown, zvho purchased the property from Marion Davies, built the Locker, Sanquet and one Cabana Buitding us part of his ho~el cnmptex. In March 2002, the City transmitted the final T'echnical Report for the Marion Davies Estate at 415 Pacific Coast Highzuay and copies of tlie Project Evaluation Forrrc (PEF) and associated exhibits to DPR. On Ma~ 30, 2002, thz Cit~ of Santa Monicu received signecl PEF and 5024 docuanents from DPR with directio~z to complefe a CEQA exem~tian under Class 1{L)1530? for the proposed project. Qn August &, 2002, the CEQA Notice of Exemption zvas posted at the County Clerlc office in the Counfy of Los Angeles in accordance zoith Section 15062 of the CEQA ~uidelines. The signed 5Q24 docun~ents from. DPR concurred zoith the findings of the technical report and found that the Locker Building was not eligible for the Nafional, California or lacal registers due to lack of significance and integrit~. The 5024 Form confcrmed and concluded that the HRG survey "corrected a previous eYror in date of construction af fhe Sand and Sea Club to after Davies ozvnership and determined thaf these later buildings zoere designed by Iocal engineer TNitliarta Coffey...." (5024 Farm Log No: 41/02-A-50). This staff xeport text claxified information presented in the Final EIR. In particular, the staff report addressed a discrepancy between the "Iess than significant" conclusion zegarding the environmental iznpact of the project on historic resources (which included the demolition of the Locker Buziding), and in£ormati.on pxesented in Table 4.6-1, CalifoYnia State Inventory Lisfings for the Marion Davies Estate, which incorreetly listed the date of canstruction of the Locker Building as 1940 rather than 1948. Even though the 5024 form provided dixect evidence that khe Stafie no longer found histoxzc value in the Locker Building, the State had failed to formally remove the structure from the Cali.fornia Register of Historical Resaurces. Six~ce certification af the Fina2 EIR, the City formally submitted an application to the State Historical Resources Co~runission pursuant to the Califarnia Code of Regulations Chaptex 11.5, Section 4856 (b) (1} to de-list the Locker Buiiding £rom the California Register o£ Historical Resouxces. After a public hearing on Augus~ 4, 2006 , the State I~istorical Reso~urces Co7mmission removed the Locker Buiiding at 415 Paci~ic Coast Highway in Santa Monica from the California Register of Historical Resources an the grounds that the Locker Building was listed in the Califorzua ~ Cify of Santa Monica A-3 415 Pacific Caast Highway EfR Addendum Register in errar. The City received a letter dated September 13, 2006 from the State Historic Preservation Officer to docurnent this action (Exhi.bit A). A-~. N~ N~tN EIR IS NECESSARY The clarification of the i~n.formation presented in the Fix~aJ. EIR involves updating the admii~istrative record regarding CEQA documentation ~o formally include an acknowledgement of the error ta the State's Inventory Listiz~gs. Since the Fznal EIR already assumed this information ~vas accurate and correct based oan related State of California aciions, the new inforx~nation about the correc€ian of the Inventary Listings does not change concluszons about ~the environxnental affect o~ the project on historic resouzces. Therefore, the clarifying infoxmation does not require another EIR. When and Addendum is prepared, 5ection 15162 of the State CEQA Guidelines requires clarity re~arding the follo~ving: • no substantial changes are proposed in fhe project zohich urilt require rnajor revisions of the previous EIR due to the involvement of new significant environmentat effects or a substantial increase in the severity of prevreausly identi,fied significant effects (Guidetines Section 15162 {u} (I)); There are no changes proposed to the project. This Addendurn addresses technical information pertaining to the Historic Resources analysis. • no subsfantial changes have oecurred zvith respeet to the cireumstances under whick tl~e projecf is undertaken which iaiIl require major revisions of the EIR due to tl~re anvolvertzent of new significant enviromnental ejj`ects or a substantial increase in the severity of previously identified significanteffects (Guidelines Section 751b2(a)(2)); The circumsfiance of importance is that fihe State HisEorical Resources Commission acted to remove the Locker Bui~ding from the California Register of Historical Resources. This action.does not result an any new or ixiczeased enviuroxixnental. effects as discussed in the May 2006 Final EIR. • the nezv inforrnatian incIuc~ed in this Adc~endum zyould not (a) resulf in any new significant effects, .{h} no significant effects wouid be more. severe than shown in the Finat E.IR, and (c) no new mitigafion rneasures or alternatives found to be infeasible would in fact be feasible (Guidelines Section 15162 (a){3)), ~ In addition to the faregoing, no new mifigation measures were requixed nor wauld previously analyzed alternatives found to be infeasible now be considered feasible. The Locker Buildixig did nat £iguxe into any aXtexnatives analyzed in any substantive way, since it was always assumed that it was not the subject of a significant environmental effect caused by the projecfi. A-5. INTENDED USES OF THE ~TR ADDENDUM This Addenduzn, fiogethex with the May 200b Fi.xtal. BIR fax the 415 Pacific Coast Highway project, would be used by the City's Landmarks Com~.ni.ssion, the City Coizncil af the Ciiy of Cify of Santa Monica r A-4 4'!5 Pacific Coast Fiighway EIR Addendum Sa~tta Monica, and the Coastal Commission consideration of discretionazy aciions which would :Eorward the implementation o€ fihe project. Undear Section 1~154 (b) of the State CEQA Guidelines, an addendum to an EIR need not be circulated for public revie~v, ~iut ~an be aitached to or included within the Final EIR. A-6. REPORT PREPARERS This Addendum to the May 2006 Final EIR wvas prepared by Rincon Consultants, Inc., under contract to the City of Santa Monzca. Steph~n Svefe, AICI', Prinripal zn Charge and Project Manager far Rincon Consultants, prepared this Addendum. A-7. REFERENCES Bass, Ronald E. , Albert L Herson, and Kenneth M. Sogdan, {19R9). CEQA Deskbook. Solano Press Books. Point Arena,,CA California Publzc Resaurces Code. Sections 15097.98,15126.4 (b){3)(B)), 35221, 15406.5(a},15162,151fi4 (b) 21000 et. Seq., 21083.2 Santa Monica, Ciry of, FinaI EIR for the 415 Pacific Coast Highway (assisted by Rincon Cnz~sulfants, Inc, May 25, 2006j. Kazen Ginsberg, Assistan.t Direcfior, City of Santa Monica Connmunity & Cultuxal Services Departrnent (personal communication, September 2006) A-8. EXHIBIT A. September 13, 2006 letter from Milford VVayne Donaldson, FAIA, State Historic Preservation ~ff'icer regarding Loc~Cer Building at 415 Pacific Coast Highway, Santa Monica, California ~ City of Sanfa Monica A-5 415 Pacific Coasf Fi~ghway E!R Addendum Exhibit A September 13, 2006 Letter from Wayne Milford Donaldson, ~AIA, State Histaric Preservation Of£icer, Regarding Locker Suilding af 415 Paczfic Coast Highway, Santa Monica, CA ~ ' City of Sanfa Mon-ca A-6 ~ CALIFORNlA - THE RESOUFICES AGENCY OF HlSTOR1C PRESERVATION DEpARl'MENT OF PARKS ANp RECREATION A.O. 80X 942898 SACRANlENTO, CA 94296~0001 (916} 653~f'i624 Fax: (916) 653~9824 , v qtshpo~ot~.parks.ca.gov www.ahp.parks.ca.gov September 13, 2006 ~ ~ ~^ ~ ~ ~ ~ ~ ~ '~ S~P i 8 At2 :38 Barbara Stinchfieid, Direetar Communi#y & Cuiturai Services Cityof Santa Monica ~~S Ai~MIHfSTRATIc3N , 1685 Main Street, Room 210 Santa Manica, Catifornia 9040'f Subject: Locker Building at 415 Pacifia Coast Highway _._ __ Sant~...Moo.i~,..S~l~Qrnia _~ _ : _ .. . . Dear Ms. Stinchfiefd: I am writing to inform you that on August 4, 20t?6, the State Historica! Resources Commission rernoved the Locker Building at 415 Pacific Coast Highway in Santa Manica from the California Register of Historical Resources on the grounds that the Locker Building was listed in the Catifornia Register in error. Following the 1994 Northridge Earthquake, the Marion Davies Estate North House, p~l, fence and bulkhead, and principai beach club building (Lacker Buildir~g), were determined eligibte for fisting in the National Register of Historic Pfaces ("Idational Register"} as contributors to the Pal~sades B~ach Road "Gold Coast" District ("Dis#rict") through the Sectian 1 U6 p-ocess, . pursuant to 36 Code ofi Federal Regulations 800.4 (c) {2). As a result of the consensus determination of etigibility for the National Regis#er, the Locker Building was automaticaHy lisfed on the Cali~ornia Register pursuant to Caiifornia Public Resouraes Caie, Section 5024.1(d)(1) and Title 14, California Code of Regulations, Chapter i 1.5, Section 4851. Govemor A 2Q02 Technical R~port cstecl the building permit history of the Locker Building which established th~ Locker Buifding was constructed in 1948, after the Distrlct's period of significance, and was not, thereforef a contributor to the District. O~ July 12, 2006, pursuant to. Publia Resources Code Sectian 5024.6{n), the State Historic Preservation 4fficer ("SHPO") _ . _._ _._.__ .__ ~IT1if1~,~~lV~L C.~l$[1g~~..~~Br Bui~'~.St32i1S-lCL-S-~dlStt'ICt-dEt£CCnlY~ed~:ll~lbl6-#6K~'iB . .. . Nationai R~gister from contributor to no~contributor. The removal of the Locker Building from the Califomia Register requires Commission action, pursuant ta Titie 14, Califomia Code of Regulations, Chapter 11.5, Section 4856. If you have any qu ' ns, please li ri#hia Howse of my staff a# 916-653-9054. Sinc t , ~~~ V ~ Mifford Wayne naldson, FAIA State Historic Pr servation Qfficer e erence on rac o. .