SR-205-003 (49)
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Council MeetIng 9/10/85
Santa MonIca, California
TO:
Redevelopnlent Agency/Cl ty CouncIL
FROM:
Agency/Clty Staff
SUBJECT: Award of Contract for ConstructIon of the Ocean Park
Beach Inlprovements
INTRODUCTION
ThIS report recommends that the CIty CounCIl award a contract to
TerraIn, Inc" the lowest responsIble bIdder I In the arTlount of
$5,166,417 for
the constructIon of the
Ocean Par~ Beach
Improvements.
BACKGROUND
On August 14, 1984 the City CouncIL and the Redevelopment Agency
approved the Ocean Park Beach Improve:!lents and dIrected staff to
proceed WIth ImplementatIon. The Beach Improvements conSIst of a
3.5 acre lInear park, a 4.9 acre central park, a new food conces-
Slon, a 1.5 acre park to be located at the southern end of the
beach a rea, chIldren' 5 pI ay areas I a redes 19ned pedestr Ian and
blke/skateway pron.enade and the redeSIgn of the e:ostJ.ng 2,4')"0
parkIng spaces.
On March 26, 1985, the Redevelopment Agency requested that the
CIty of Santa MonIca advertIse and SOLICIt bIds for construct~on
of the Beach Inlprovements and authorIzed reImburseme~t to the
CIty for Its share of constructIon costs. At the same tIme, the
CIty CounCIL authorIzed advertIsement and solICItatIon of bIds
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for the construction of the project, subJect to the reImbursement
from the Redevelopment Agency.
Staff has cOfilpleted all authorIzed and requlred actions and IS
now prepared to award a contract for constructIon In conformance
wIth prIor CIty Council and Redevelopment Agency approvals.
DISCUSSION
The Ocean Park ProJect IS a JOInt undertakIng of the Redevelop-
ment Agency and the CIty of Santa MonIca. CertaIn constructlon-
related actIVItIes, however, WIll be undertaken by the CIty,
SInce the Agency does not have the construction/technIcal staff
capabIlIty.
ConstructIon of the Beach Improvements IS mandated by the Amended
Sales Agreenlent between the Santa MonIca Redevelopment Agency,
the CIty of Santa Monica, PacifIC DomInIon Property Company, the
Call fornla Coastal COnlmI S5 Ion and other vat IOUS IndIVIdual set-
tlement agreements. All reqUIred actIons and schedules were In-
corporated In the bId package and have lIkeWIse been Incorporated
Into the award and constructIon contract.
A NotIce InvitIng BIds for constructIon of the Beach Improvements
was pUblIshed on July 26, 1985 and July 27, 1985 In the EvenIng
Outlook and In 9 constructIon Journals. NotIce was also sent to
4 mInorIty bUSIness aSSOCIatIons. Plans and speCIfIcatIons were
Issued to 33 contractors and subcontractors.
BIds were opened and read publICly on September 4, 1985 by the
Deputy CIty Clerk. BIds were receIved as follows:
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Beach Improvements
Brutoco Engineerlng
$7/2S0,797.00 Base BId
ConstructIon, Inc.
Recommended
4l3,757.0@ DeductIble Items
$6,837/040.00
TerraIn, Inc.
5,492,917.00 Base BId
Recommended
326,500.00 DeductIble Items
$5,166/417.00
Staff has contacted references for the contractor submIttIng the
lowest bId.
The submItted references were found to be satisfac-
tory.
Based upon the bIds tha t have been received, the above
reference check and the amount of funds ava 11 able lIt IS recom-
mended that the CIty CounCIl award a Beach Iiliprovement construc-
tlon cont.ract that defers the constructIon of certaln Items at
thIS tlIlLe.
Those Items that wIll be deferred untIl addItIonal
funds are avaIlable and that do not materIally affect the overall
IITLplemen ta tl on 0 f the Beach Improvements 1 nclude decoratl ve fenc-
Ing, pavllllons, pergolas, and repaIntIng of eXIstIng bUIldIngs.
In addItIon, the amount and SIze of plant materlal wlll be
reduced.
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FISCAL IMPACT
Based upon the lowest bId, the followIng funds wIll be requIred:
Beach ImprovenLents
Contract
$5,166,417.00
ContIngency and
ConstructIon
Manage~ent
40rJ,rJrJrJ.rJ0
$5,566/417.00
To tal
As recommended, the constructIon of the Beach Improvements wIll
requIre $5,566,417.
However I an addItIonal approprIatIon of
$109,800' must be made avaIlable to construct certaIn addItIonal
traffIc SIgnal Improvements that are to be awarded by separate
staff report and CouncIl actIon.
Therefore, a total conlblned
approprIatIon of $5,676,217 IS reqUired.
Appropr latIon authorl ty for constructIon of the Beach Improve-
ments was granted as part of the FY 1984-85 capital Improvements
budget.
Funds for constructIon of the Beach Inlprovenlents have
been budgetad In the Beach Irnprovenlen ts account nunlber 18-720-
263-0'00-936 ($3,510,104) and Off-SIte Improvements account number
0l-720-263-0@0-91J ($1,990,000) for a total current approprIatIon
avaIlable of 85,500,10'0'.
However $1.0 mIllIon of the approprl-
ated amount for Off-SIte Improvements had been set aSide for as-
slstlng In t~,e develo!?lILent of the 55 unlts of affordable hOUSIng
that IS reqUIred by the Coastal COmTItlSSIon.
It IS recommended
that these funds be used at thIS tInle for constructIon of the
Beach Improvements.
Together the funds from the Beach and Off-
Slte II'Lprovements accounts, plus $176,113 of interest earned froTIl
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Bond proceeds are avaIlable to fund the total of $5,676,217 re-
quired for constructIon. ThIs will reqUIre an Increase of
$176,113 In appropriation authorIty to account number 18-720-263-
535-906.
Any decrease In the amount of funds allocated for the 55 unIts of
Off-SI te Affordable HOUSIng WIll be restored from Tax Increment
Proceeds fronl the developnlent 0 f Sea Colony I I. Once the
developmen t of Sea Colony Phase I lIS underway and conlpleted I
addItIonal tax Increment receIpts WIll be avaIlable as WIll the
abIlIty to borrow addItIonal funds. ThIS amendment to the
fInanCIng plan WIll allow all mandated constructIon to renlaIn on
schedule pur suan t - to the Coastal Perml t and Anlended Sales
Agreement.
RECOMMENDATION
I t IS reconlmended tha t the Redevelopment Agency:
1. Increase approprIatIon authorIty In account number 18-
72@-263-535-906 In the amount of $176,113 from Ocean
Par~ Tax AllocatIon Bond Proceeds (~nterest earnlngs); and
2. 01 rect Agency staff to undertake all necessary pro-
cedural steps to allocate tax Increnlent proceeds fron.
the development of Sea Colony Phase II for the comple-
tIon of 55 unIts of off-SIte affordable hOUSIng.
It IS recommended that the CIty CounCIl:
1. Award a contract for the Beach Improvements construc-
tIon to TerraIn, Inc., the lowest responsible bIdder,
In the amount of $5,166,417; and
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2. Authorize the CIty Englneer to Issue any change orders
to complete addltlonal work to the extent of funds
available In accordance wlth the Administrative In-
structlons on Change Orders.
Prepared by: Stan Scholl; Director of General Servlces
Ernesto R. Flores; Manager
Sldney L. White; Sr. Admlnlstratlve Asslstant
Economic Development DIvIsion
Community and Economic Development Department
beachpl
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