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SR-04221986-11EGS:SES:JM:mh Council Meeting: 04/22/86 TO: Mayor and City Council FROM: City Staff Il--~ APR 2 2 1986 Santa Monica, California SUBJECT: Recommendation to Award Contract for Painting of Building Exteriors on the Santa Monica Pier Introduction This report requests that the City Council award a contract for the painting of the exteriors of the buildings on the Santa Monica Pier to The Expert Painting and Decorating Company, the lowest responsible bidder, in the amount of $14,585. The report also requests that the Council authorize the City Manager to execute a Promissory Note with each of the participating tenants to provide for repayment to the City of the cost of painting his or her respective building. Background This project has been planned and recommended by the Pier Restoration Corporation (PRC) as a means to complement other noticeable restoration activities on the Pier and to demonstrate visible progress on the Pier's revitalization. The completion and opening of the Carousel Park, the commencement of the reconstruction of the Pier, the renovation of a new restaurant at the end of the Pier, and the introduction of colorful pushcarts, all happening this spring, signal change and long-awaited improvements. Earlier this year, the PRC developed and adopted conceptual design guidelines which highlight the architectural - 1 - <"'/... APR 2 2 1986 and design flavor of the Pier during the 1920's. The Pier was in its heyday in the 1920's. The PRC is seeking to recapture the fun and excitement of that era through colors and graphics. The facade improvement program is a short-term project which will improve the drab and run-down look of the buildings. The PRC has selected light pastel colors for the building facades which will complement and enhance the distinct colors of the Carousel building and Sinbad's. The graphics will be in bolder colors; the specific lettering for the building graphics have been taken directly from old photographs of the Pier and surrounding area. This project has been enthusiastically approved by the Santa Monica Pier Lessees Association (January 9, 1986), the Landmarks Commission (February 13, 1986), and the Architectural Review Board (January 15, 1986). Both the Landmarks Commission and the ARB expressed pleasure at the presentation of a coherent plan rather than a piecemeal approach as was the practice in the past. A Notice Inviting Bids was published on April 2 and 3, 1986, in the Evening Outlook and in eleven (11) construction journals. The notice was also sent to three (3) minority business associations. Plans and specifications were issued to twelve (12) contractors. Bids were opened and read publicly on April 16, 1986, by the Deputy City Clerk. - 2 - Five (5) bids were received as follows: Expert Painting & Decorating Co. $14,585* Ilan Hanu $20,000* Heruco Contractors $29,400 A. J. Fistes Painting Co. $29,900 Hared Construction Co. $34,200 (*WMBE owned firms) Staff contacted the references submitted by the low bidder; those contacted stated that they were satisfied with the work performed by The Expert Painting and Decorating Company. Budget/Financial Impact At the Midyear Budget Review on February 11, 1986, the City Council approved the change in scope of the Pier Capital Project 30-740-625-000-918 from Exterior Building Lights to Exterior Painting and also tranferred $40,200 into this account from the Pier operating budget. A total of $60,000 appropriation authority is available in Account 30-740-625-000-918. The funds required for this contract are as follows: Contract $14,585 Contingencies $ 2,100 Total $16,585 Promissory Note and Tenant Repayment Plan The PRC and City staff determined that the most effective and efficient process to follow to implement this project is to handle it as a public works project, with the City hiring the contractor and paying the costs upfront. The tenants would then repay the City their respective costs over a two year period. No interest will be charged on the loan. The project was bid in such a way as to provide for the identification of the painting - 3 - cost of each building. The tenants will reimburse the City each month for two years an amount equal to the cost of painting their square footage, divided by twenty-four. The payback period is to begin July, 1986, and will end in June, 1988, or may be terminated earlier if the PRC/City terminates the lease for reasons other than the tenant's default. This action is not meant in any way to release tenants from their responsibility to maintain their leased premises. This report recommends that the Council authorize the City Manager to execute a Promissory Note with the tenants to implement the repayment plan. The Promissory Note will be executed prior to the commencement of painting. Under the repayment program, the City may be reimbursed all but $3,200 which is the cost of painting the public restrooms, walkway, and Plaster Shop. The Plaster Shop is not included in the tenant repayment program since that tenant is on a month-to-month tenancy and has agreed to vacate the leased premises at the time the PRC has released the building. All other tenants have agreed to participate. The monthly payment is to be made at the time of rent payment and will be deposited into Pier Fund Revenue Account 30-931-201-000-000. No adjustment to 1985-86 rent revenues is required at this time since repayment will begin in Fiscal Year 1986-87. - 4 - Recommendation Staff respectfully recommends that the City Council: 1. Award a contract for the painting of building exteriors on the Santa Monica Pier to The Expert Painting and Decorating Company, the lowest responsible bidder, in the amount $14,585. 2. Authorize the City Engineer to issue any change orders necessary to complete additional work to the extent of funds available in accordance with the Administrative Instruction on Change Orders. 3. Authorize the City Manager to execute a Promissory Note with each of the participating tenants to provide for repayment of the painting costs. Prepared by: Stan Scholl, Director of General Services Judith Meister, Pier Manager - 5 - Reference Contract No. 4676 (CCS).