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SR 03-14-2023 5H City Council Report City Council Meeting: March 14, 2023 Agenda Item: 5.H 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Bids for 3200 Airport Ave Renovation Hazmat Abatement and Adopt a Finding of Categorical Exemption Under Sections 15301, 15302, and 15308 of the California Environmental Quality Act Guidelines Recommended Action Staff recommends that the City Council: 1. Award Bid #SP2660 to Unlimited Environmental, Inc. for 3200 Airport Avenue hazardous material abatement services for the Public Works Department; 2. Authorize the City Manager to negotiate and execute an agreement with Unlimited Environmental, Inc., in an amount not to exceed $229,702 (including a $38,284 contingency); 3. Award Bid #SP2660 to Unlimited Environmental, Inc. for on-call hazardous material abatement services for the Public Works Department; 4. Authorize the City Manager to negotiate and execute agreements with Unlimited Environmental, Inc., in an amount not to exceed $1,500,000 for three years, with two-additional one-year renewal options in the amount of $500,000, on the same terms and conditions for a total amount not to exceed $2,500,000 over a five- year period, with future year funding contingent on Council budget approval. 5. Award Bid #SP2660 to Castlerock Environmental, Inc. for on-call hazardous material abatement services for the Public Works Department; 6. Authorize the City Manager to negotiate and execute agreements with Castlerock Environmental, Inc., in an amount not to exceed $1,500,000 for three years, with two-additional one-year renewal options in the amount of $500,000, on the same terms and conditions for a total amount not to exceed $2,500,000 over a five- year period, with future year funding contingent on Council budget approval. 7. Adopt a finding of Categorical Exemption pursuant to Sections 15301 (Existing Facilities), 15302 (Replacement/Reconstruction), and 15308 (Actions for Protection of the Environment) of the California Environmental Quality Act (CEQA) Guidelines. Summary The Santa Monica Airport seeks to renovate the 3200 Airport Avenue building to comply 5.H Packet Pg. 409 2 of 5 with current code regulations, address deferred maintenance issues, minimize ongoing maintenance costs, and maximize the building’s revenue potential. To properly and safely dispose of material generated from areas of demolition during the renovation, a certified hazardous material abatement contractor must be utilized. In addition, the City has identified a need to establish on-call agreements for hazardous material abatement services for similar Public Works projects Citywide. Therefore, Staff recommends awarding hazardous material abatement services for 3200 Airport Avenue to Unlimited Environmental, Inc. and hazardous material abatement on-call services to Unlimited Environmental, Inc and Castlerock Environment, Inc. Discussion Built between 1940 and 1947, the 3200 Airport Avenue building was constructed with materials that would no longer be utilized by today’s standards. In preparation for the 3200 Airport Avenue Renovation project, certain sections of the building will need to be abated and monitored for proper disposal. For this process, South Coast Air Quality Management District (SCAQMD) requires the use of a certified hazardous material abatement contractor. Staff recommends awarding hazardous material abatement services for 3200 Airport Avenue to Unlimited Environmental, Inc. and hazardous material abatement on-call services to Unlimited Environmental, Inc. and Castlerock Environmental, Inc. This selection is based on their proposed experience, quality of the teams, and cost of the proposed services. Recommendations Selection Criteria Evaluation Criteria The training, credentials and experience of the firms; the Recommended Vendors (Hazardous Material Abatement) Unlimited Environmental, Inc. Castlerock Environmental, Inc. 5.H Packet Pg. 410 3 of 5 demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; the capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; the sufficiency of the person’s or firm’s financial and other resources; and the character, integrity, reputation and judgment of the person or firm; the ability of the person or firm to provide such future service as may be needed; and the price which the person or firm proposes to charge, including the price being fair, reasonable and competitive. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The city is not required to select the proposal with the lowest price. Municipal Code SMMC 2.24.180 RFQual Data Date Posted Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Submittals Received Date Publicly Opened 10/28/2022 City's Online Bidding Site Santa Monica Daily Press 21 2 10/11/2022 Justification to Short-List Both firms have demonstrated competence, capacity, and the skill in performing hazardous material abatement. In addition, both firms have provided competitive pricing to the city. Based on these criteria, these vendors are recommended as the best qualified firms. Although the 3200 Airport Avenue Renovation abatement scope will be awarded to Unlimited Environmental, Inc., staff recommends awarding on-call agreements to both firms to address future City abatement needs. Multiple agreements will allow City staff to perform a competitive procurement process to award future projects. Environmental Review 5.H Packet Pg. 411 4 of 5 The project is categorically exempt from CEQA pursuant to Section 15301, Section 15302, and Section 15308 of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure will be located in the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Section 15308 exempts actions taken by regulatory agencies for protection of the environment (Class 8). The project would renovate and conduct hazardous materials abatement for the existing city facility at 3200 Airport Avenue, and therefore, it has determined that the project is categorically exempt pursuant to Section 15301, Section 15302, and Section 15308 of the CEQA Guidelines. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. Financial Impacts and Budget Actions Staff seeks authority to approve available funding from the Airport and various Funds to award agreements to Unlimited Environmental, Inc. and Castlerock Environmental, Inc. for hazardous material abatement. Future year funding is contingent on Council budget approval. Contract Request Vendor FY 2022-23 Request Amount Future Years Request Amount Various Departments/CIP Account # Total Contract(s) Unlimited Environmental, Inc. $229,702 $0 C5704690.689000 $229,702 Unlimited Environmental, Inc. $1,500,000 $1,000,000 Various $2,500,000 Castlerock Environmental, Inc. $1,500,000 $1,000,000 Various $2,500,000 $3,229,702 $2,000,000 Total $5,229,702 5.H Packet Pg. 412 5 of 5 Prepared By: Phillip Ticun, CIP Project Manager Approved Forwarded to Council Attachments: A. Oaks_Initiative_Disclosure_Form_Unlimited B. Oaks_Initiative_Disclosure_Form_Castlerock 5.H Packet Pg. 413 CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Unlimited Environmental, Inc. W. Scott Lange Jill Hunt-Dupleich W. Scott Lange Jill Hunt-Dupleich Executive Vice President 10/6/2022 jill@ueiteam.com (562) 981-6600 5.H.a Packet Pg. 414 Attachment: Oaks_Initiative_Disclosure_Form_Unlimited (5593 : 3200 Airport Ave Renovation Hazmat Abatement) 5.H.bPacket Pg. 415Attachment: Oaks_Initiative_Disclosure_Form_Castlerock [Revision 1] (5593 : 3200 Airport Ave Renovation Hazmat Abatement)