SR-09-17-1985-CCRA6SEP 10 13b~
GS:SES:SW:am
Council Meeting 9/1U/85
T0: Redevelopment Agency/City Council
FROM: Agency/City Staff
SUBJECT: Award of Contract for Construction of the Ocean Park
Beach Improvements
INTRODUCTION
This report recommends that the City Council award a contract to
Terrain, Inc., the lowest responsible bidder, in the amount of
$5,166,417 for the construction of the Ocean Park Beach
Improvements.
BACKGROUND
On August 14, 1984 the City Council and the Redevelopment Agency
approved the Ocean Park Beach Improvements and directed staff to
proceed with implementation. The Beach Improvements consist of a
3,5 acre linear park, a 4,0 acre central park, a new food conces-
sion, a 1.5 acre park to be located at the southern end of the
beach area, children's play areas, a redesigned pedestrian and
bike/skateway promenade and the redesign of the existing 2,4~g
parking spaces.
On March 26, 1985, the Redevelopment Agency requested that the
City of Santa Monica advertise and solicit bids for construction
of the Beach Improvements and authorized reimbursement 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 completed all authorized and required 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 construction-
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 Agreement between the Santa Monica Redevelopment Agency,
the City of Santa Monica, Pacific Dominion Property Company, the
California Coastal Commission and other various 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 25, 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 Engineering
Construction, Inc.
Terrain, Inc.
$7,25H,797.80 Base Bid
Recommended
413,757.0 Deductible Items
$6,837,040.00
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 that have been received, the above
reference check and the amount of funds available, it is recom-
mended that the City Council award a Beach Improvement construc-
tion contract that defers the construction of certain items at
this time. Those items that will be deferred until additional
funds are available and that do not materially affect the overall
implementation of the Beach Improvements include decorative fenc-
ing, pavillions, pergolas, and repainting of existing buildings.
In addition, the amount and size of plant material will be
reduced.
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FISCAL IMPACT
Based upon the lowest bid, the following funds will be requirede
Beach Improvements
Contract $5,166,417.00
Contingency and
Construction
Management 400,000.00
Total $5,566,417.00
As recommended, the construction of the Beach Improvements will
require $5,566,417. However, 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 combined
appropriation of $5,676,217 is required.
Appropriation authority 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 Improvements have
been budgeted in the Beach Improvements account number 18-720-
263-000-906 ($3,510,104) and Off-Site Improvements account number
01-720-263-000-910 ($1,990,000) for a total current appropriation
available of $5,500,100, However $1.0 million of the appropri-
ated amount for Off-Site Improvements had been set aside for as-
sisting in the development of the 55 units of affordable housing
that is required by the Coastal Commission. It is recommended
that these funds be used at this time for construction of the
Beach Improvements. Together the funds from the Beach and Off-
Site Improvements accounts, plus $176,113 of interest earned from
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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-Site Affordable Housing will be restored from Tax Increment
Proceeds from the development of Sea Colony II. Once the
development of Sea Colony Phase II is underway and completed,
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 remain on
schedule pursuant to the Coastal Permit and Amended Sales
Agreement.
RECOMMENDATION
It is recommended that the Redevelopment Agency:
1. Increase appropriation authority in account number 18-
728-253-535-906 in the amount of $176,113 from Ocean
Park Tax Allocation Bond Proceeds (interest earnings); and
2. Direct Agency staff to undertake all necessary pro-
cedural steps to allocate tax increment proceeds from
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 Engineer to issue any change orders
to complete additional work to the extent of funds
available in accordance with the Administrative In-
structions on Change Orders.
Prepared by: Stan Scholl, Director of General Services
Ernesto R. Flores, Manager
Sidney L. White, Sr. Administrative Assistant
Economic Development Division
Community and Economic Development Department
beachpl
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CA:RMM:rmd073
City Council Meeting 9-17-85
Santa Monica, California
SUPPLEMENTAL STAFF REPORT
T0: Redevelopment Agency and City Council
FROM: City Attorney
SUBJECT: Award of Contract for Construction of Ocean
Park Beach Improvements
The CiY.y of Santa Monica is under a legal obligation to
"execute a public works contract and commence the construction
of the beach improvements within 120 days after the conveyance
of the Phase II land to Pacific." (Amended Sales Agreement,
Paragraph 8(e).) In order to carry through on these legal
obligations the Agency attd the City Council have taken a
variety of implementing actions, including:
1. The issuance of Ocean Park Redevelopment Project Tax
Allocation Bonds, Series 1984, dated October 1, 1984.
2. The adoption by the Agency of a resolution on
October 23, 1984, determining that certain public improvements
to be of benefit to the Ocean Park Redevelopment Project, and
a concurring resolution by the City Council on the same date.
3. On March 26, 1985, the Redevelopment Agency
authorized the City to undertake construction responsibility
for both the on-site park and beach improvements and to
reimburse the City for the Agency's share of such construction
cost. The City agreed to undertake such construction subject
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to reimbursement from the Redevelopment Agency for the
Agency's share.
Zn awarding the contract for the on-site park and the
off-site improvements, it is important that the City he in
legal compliance with the prior actions taken to implement the
various public improvements. As discussed below, the City
Attorney concludes that no legal barrier exists to the award
of the contract to Terrain, Inc.
1. Finding of Benefit. The Redevelopment Agency, in
finding that off-site beach improvements would be of benefit
to the Ocean Park Redevelopment Project, adopted Resolution
Number 394 (RAS) on October 23, 1984. In Section 3 of this
Resolution, the Agency authorized and approved the payment of
$4,743,600.00 "for the value and cost of the installation and
construction of the public improvements Although the
costs of .these improvements is $5,676,217.00 (including
traffic improvements), -it is important to note that the
authority contained in Resolution Number 394 (RAS) has not
been exceeded. The purpose of this Resolution was to indicate
the amount of the Agency's contribution for the improvements.
The Agency's share of this total cost is $3,686,217.00. The
remaining 51,990,000.00 is being paid for by the City from the
Dominion contribution required by the Amended Sales Agreement.
(Under the Amended Sales Agreement, the developer payment is
City revenue and not Agency revenue.)
2. Reimbursement. The March 26, 1985 action of the
Agency and City authorized the City to undertake the public
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works cpnstruction subject to reimbursement from the
Redevelopment Agency. The Staff Reports presented to the City
Council at its meeting on September 10, 1985, did not reflect
this action. Pursuant to this action, the City of Santa
Monica is responsible for the public works contract and the
paying of the contractors. The Redevelopment Agency is
responsible for the reimbursement of these expenses by payment
to fhe City. A proper reflection of the budgetary accounts to
reflect the action is as follows:
On-Site Park.
Funds for the Agency's reimbursement to the City have
been budgeted in Account Number 18-720-263-000-904.
Funds for the City's payment to the contractor have been
budgeted in Account Number 01-720-253-000-904 with
reimbursement from the Agency to the General Fund through
Account Number 01-720-695-000-904.
Beach Improvements.
Funds for the Agency's reimbursement to the City have
been budgeted in Account Number 18-720-263-000-906.
Funds for the City's payment to the contractor have been
budgeted in Account Number 01-720-263-000-906 (Agency's
contribution), with reimbursement from the Agency to the
General Fund through Account Number 01-720-695-000-906, and
Account Number 01-720-263-000-910 (City's contribution).
PREPARED BY: Robert M. Myers, City Attorney
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