SR-11-12-2013-3HCity Council Report
City of
Santa Monica'
City Council Meeting: November 12, 2013
Agenda Item: 3-1-1
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Contract Modification for Construction Services for the Office of
Sustainability and the Environment Tenant Improvements Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a first modification to
Construction Contract No. 2751 in the amount of $64,500 (includes a 10%
contingency) with Lee Capital Builders, Inc., a California -based company, to
provide additional construction services for the Office of Sustainability and the
Environment Tenant Improvements. This would result in an amended
construction contract with a new total not to exceed amount of $159,500 over a
one -year period.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
Executive Summary
This project would renovate and update commercial office space previously used by
CityTV to create offices for the Office of Sustainability and the Environment. On October
17, 2013, the City entered into a contract within budget authority with Lee Capital
Builders for construction services for $95,000. Additional construction services in the
amount of $64,500 (including 10% contingency) are necessary due to unforeseen
conditions encountered prior to construction and additional requests from the user
group.
Background
This project would renovate and update commercial office space previously used by
CityTV at 1717 0 Street for the Office of Sustainability and the Environment (OSE).
OSE offices are currently located in the Pier Carousel Building and must be vacated to
consolidate operations, therefore creating a tight project timeline. On October 17, 2013,
the City entered into Contract No. 2751 within budget authority with Lee Capitol
Builders, Inc. for the construction of the Office of Sustainability and the Environment
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Tenant Improvements Project for $95,000. Construction began on October 21, 2013,
with a target date for completion of December 31, 2013. Prior to construction, the
contractor encountered unforeseen conditions which have increased the project scope.
Contractor Selection
On July 23, 2013, the City published Notices Inviting Bids for construction services for
the Office of Sustainability and the Environment Tenant Improvements Project. The bid
was posted on the City's on -line bidding site in accordance with City Charter and
Municipal Code provisions. Over 750 vendors were notified and 47 prospective bidders
requested bid documents. Nine prospective bidders participated in the job walks. One
bid was received and publicly opened on August 8, 2013. The bid was evaluated based
on price, direct experience on similar projects, record performing public sector work,
hourly rates for services, understanding of the project's scope, approach to the work,
qualifications of proposed staff and scheduling of project activities. Based on these
criteria, Lee Capital Builders, Inc. was selected as the best bidder to provide
construction services for the Office of Sustainability and the Environment Tenant
Improvements Project.
Staff polled 15 of the prospective vendors who downloaded drawings or attended the
job walks to understand the limited response. Prospective vendors provided the
following reasons for withholding bids: insufficient bonding capacity, scheduling
difficulties with construction crews, lack of required LEED experience and the level of
bid preparation work required relative to the project size.
Discussion
Architecture Services worked closely with OSE to design functional office space while
minimizing impact to the environment and pursuing LEED certification. Products
sourced for the project meet strict requirements in off - gassing, recycled content and
local sourcing. The LEED requirements added a level of complexity unusual for small
(2,400 square feet) commercial interior projects.
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The proposed modification of $55,000 including a 10% project contingency is for
unforeseen conditions encountered prior to construction and user group requests,
including casework, HVAC ductwork, conduits for electrical and data, dropped ceiling
structure, wall systems, flooring, doors and windows, and soundproofing. Additionally,
staff recommends an additional $9,500 contingency for the originally scoped project
amount (not requested when the contract was approved). The total of this modification
plus non requested original contingency is not to exceed $64,500.
Financial Impacts & Budget Actions
The contract modification to be awarded to Lee Capital Builders, Inc. is $64,500
(includes 10% contingency), for an amended contract total not to exceed amount of
$159,500. Funds in the amount of $64,500 are available in the FY 2013 -14 Capital
Improvement Program budget in account C010162.589000; the contract modification
will be charged to account 0010162.589016 to track the expenditures associated with
the Office of Sustainability and the Environment Tenant Improvements Project.
Prepared by: Alex Parry, Senior Architect
Approved:
Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
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Reference:
Contract No. 9836
(CCS)