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SR 07-25-2023 5A City Council Report City Council Meeting: July 25, 2023 Agenda Item: 5.A 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Award Construction Contract for the 2800 Airport Avenue Renovation Project Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities), of the California Environmental Quality Act (CEQA) Guidelines. 2. Award Bid #SP2686 to Olympos Construction, Inc., for construction services for the 2800 Airport Avenue Building Renovation Project for the Public Works Department. 3. Authorize the City Manager to negotiate and execute a contract with Olympos Construction, Inc., in an amount not to exceed $3,312,100 (including a $301,100 contingency). 4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. 5.A Packet Pg. 951 2 of 5 Summary The Santa Monica Airport seeks to renovate the building at 2800 Airport Avenue, a permanent concrete structure. This project would upgrade the structure to comply with current code regulations, address deferred maintenance issues, minimize ongoing maintenance costs, provide additional office spaces, and maximize the buildings’ revenue potential. If approved, staff anticipates construction would commence as soon as fall of 2023 and be completed in spring of 2024. Staff recommends awarding the construction services to Olympos Construction, Inc., to renovate and structurally retrofit the building and prepare the buildings for new tenants, including the Ruskin Theater currently at 3000 Airport Avenue. Discussion The concrete structure was originally constructed in 1953 as an armory for the Organized Reserve Corps. It is a 22,000 sq. ft. single story (with basement) concrete structure, with wood infill walls and roof. This building was occupied by Santa Monica College (SMC) until April of 2023. The proposed building improvements have led to lease negotiations with the Ruskin Theater for one third of the building and the east side courtyard for an upgraded theater and office facility. The remainder of the building will be made available for lease as office space. This project would upgrade all areas of the building to be able to rent spaces for the best lease rates. Vendor Selection Bidder Recommendation Best Bidder Olympos Construction, Inc. Evaluation Criteria Experience/Technical Competence, Ability to Meet Work Plan/Timelines, Quality Control, Cost Control, Stability/References, and Value Add/Breadth of Service. Municipal Code SMMC 2.24.180 Submittals Received 5.A Packet Pg. 952 3 of 5 Swinerton Builders $3,136,181 Olympos Construction, Inc. $3,011,000 Bid Data- Phase 1 – Request For Qualifications Date Posted Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Submittals Received Date Publicly Opened 03/01/23 City's Online Bidding Site Santa Monica Daily Press 87 2 03/20/2023 Bid Data- Phase 2 – Request for Bids Date Posted Posted On Vendors Downloaded Date Publicly Opened 05/08/2023 City's Online Bidding Site 2 06/05/2023 Best Bidder Justification Olympos Construction, Inc., provided the lowest bid and have provided quality services while working within specified timelines. Based on these criteria and the criteria listed in SMMC 2.24.180, staff recommend Olympos Construction, Inc., as the lowest and best bidder. 5.A Packet Pg. 953 4 of 5 Environmental Review The project is categorically exempt from CEQA pursuant to Section 15301 and Section 15302 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. The project would renovate the existing city facility at 2800 Airport Avenue, and therefore, it has been determined that the project would fall within the Class 1 categorical exemption. 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 funding from the Airport Fund to award a contract to Olympos Construction, Inc., for construction services. Contract Request FY 2023-24 Budget Request Amount CIP Account # Total Contract Amount $3,312,100 C5704690.689000 $3,312,100 5.A Packet Pg. 954 5 of 5 Prepared By: Alex Parry, Senior Architect Approved Forwarded to Council Attachments: A. Oaks Initiative Form - Olympos Construction, Inc. B. Written Comments 5.A Packet Pg. 955 5.A.a Packet Pg. 956 Attachment: Oaks Initiative Form - Olympos Construction, Inc. (5740 : Contract Renovation 2800 Airport Ave) 5.A.a Packet Pg. 957 Attachment: Oaks Initiative Form - Olympos Construction, Inc. (5740 : Contract Renovation 2800 Airport Ave) From:Eve Lopez To:councilmtgitems Subject:Item 5a Date:Tuesday, July 25, 2023 11:48:25 AM Attachments:Agenda Item 5a (2800 Airport Ave).pdf EXTERNAL Thank you. ITEM 5.A. JULY 25, 2023 ITEM 5.A. JULY 25, 2023 5.A.b Packet Pg. 958 Attachment: Written Comments (5740 : Contract Renovation 2800 Airport Ave) Agenda item 5a (2800 Airport Avenue) 3200 Airport Avenue - Photos taken July 1, 2023 ITEM 5.A. JULY 25, 2023 ITEM 5.A. JULY 25, 2023 5.A.b Packet Pg. 959 Attachment: Written Comments (5740 : Contract Renovation 2800 Airport Ave)