AGENDA REPORT
Meeting Date: January 9, 2025
Item Number:
To: Honorable Mayor & City Council
From: Mandana Motahari, City Architect
Subject: AWARD OF A CONTRACT TO UNLIMITED ENVIRONMENTAL, INC.
FOR THE BUILDING DEMOLITION PROJECT AT 1959 S. LA
CIENEGA BOULEVARD; AND
APPROVAL OF A CORRESPONDING PURCHASE ORDER IN THE
NOT-TO-EXCEED AMOUNT OF $204,585; AND
APPROVAL OF PLANS AND SPECIFICATIONS THEREFOR WITH
RESPECT TO DESIGN CRITERIA; AND
PURSUANT TO THE PROVISIONS OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), CITY COUNCIL WILL
ALSO CONSIDER FINDING THE PROJECT EXEMPT FROM
FURTHER REVIEW UNDER CEQA
Attachment: 1. Contract
RECOMMENDATION
Staff recommends that City Council:
1. Approve the award of a contract to the lowest responsible bidder, Unlimited Environmental Inc., for the Building Demolition Project at 1959 S. La Cienega Blvd. in the amount of $177,900; and
2. Approve a construction contingency in the amount of $26,685 (15%); and
3. Approve a purchase order in the not-to-exceed amount of $204,585; and
4. Approve the plans and specifications as detailed in the bid documents, which are adopted and approved with respect to design criteria; and
5. Consider finding the project exempt from the California Environmental Quality Act (CEQA).
BEVERLY
HILLS
Meeting Date: January 9, 2025
INTRODUCTION
In 2017, the City purchased property on S. La Cienega Blvd. in Los Angeles to construct a water well. At the time of the purchase, the property included three buildings:
(i) A single-family residential structure that was most recently used as an auxiliary office space by former owners,
(ii) A 16,000-square-feet two-story office building, and (iii) A smaller 5,039-square-feet two-story building of wood-frame construction built in 1950 that former owners had converted to office use from prior residential and/or motel use with the address 1959 S. La Cienega Blvd.
The single-family structure was demolished and a water well, which is now in operation, was constructed in its place. The larger office building was leased to an office tenant and renovated. The smaller office building at 1959 S. La Cienega Blvd. has been scheduled for demolition. Demolition of the building will allow adequate space for (i) future water infrastructure or well reconstruction projects and (ii) additional parking to serve the larger office building when not in use for water infrastructure purposes.
ENVIRONMENTAL REVIEW
Approval of the demolition of 1959 S. La Cienega building was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines and the environmental regulations of the City. Staff believes the approval of the proposed improvements is exempt from CEQA pursuant to the ‘Existing Facilities’ Section 15301 of Title 14 of the California Code of Regulations because the work, which involves demolition of a small commercial structure designated for an occupant load of 30 persons or less. Based on the foregoing, staff recommends City Council find that the project is exempt from CEQA pursuant to CEQA Guidelines Section 15301 Existing Facilities.
DISCUSSION
The firm of Kaplan Chen Kaplan Architects was engaged to prepare bid documents for the demolition package as well as development of the site for a surface parking lot. The project was broken into two bid packages to speed up the construction schedule and start the demolition portion of the work while the improvements are still under review by the City of Los Angeles Department of Building & Safety.
The bid documents included two alternates to allow for cost control as follows:
Alternate #1: A deductive alternate cost to omit the removal of east side, sliding gate, fence(s) and site wall from the scope of work.
Alternate #2: An additive alternate to remove all debris and loose furniture from the 1945 S. La Cienega work area and 1959 S. La Cienega building (both floors).
The bid documents were advertised in the local Beverly Hills newspapers and construction trade publications as well as the PlanetBids portal. A total of 24 companies attended the mandatory pre-bid meeting held on November 6, 2024.
Meeting Date: January 9, 2025
On November 19, 2024, nine bids were received as shown below.
Basis of Selection
Contractor Base Bid Alt 1 Alt 2
Compensation
for Delay
20-Day
Basis of
Selection
Total
Unlimited
Environmental, Inc. $174,000 $2,500 $3,900 $2,000 $173,500 Integrated Demolition
and Remediation $270,000 $5,500 $19,500 $10,000 $274,500 Global Builders $298,888 $16,000 $14,000 $3,660 $286,548 Zuma Construction
Group $298,400 $3,000 $3,000 $2,000 $288,400
At Your Service
Construction & Energy $350,000 $66,000 $20,000 $11,200 $295,200 Fidelity Builders $357,700 $2,000 $15,600 $20,000 $375,700 Standard Demolition $351,721 $5,700 $10,285 $53,600 $399,621 Vertex Civil $275,946.66 $20,485 $21,100 $156,015.80 $411,477.46 JC Construction $450,878 $22,000 $5,000 $81,500 $510,378 The bid documents specify that the low bid is determined by the sum of the base bid, all alternates, and the compensable delay cost for 20 days. After review of the bids, staff has determined Unlimited Environmental, Inc. is the lowest responsible bidder and has submitted a responsive bid and as reported by the State Contractors Licensing Board, maintains a license that is current and in good standing. Furthermore, references have been favorable for Unlimited Environmental, Inc., and the company has successfully completed projects of similar scope. Therefore, staff recommends City Council approve an agreement with Unlimited Environmental, Inc. for this work.
Staff recommends rejection of Alternate #1, as it does not bring much value to retain the existing east side fence and gate and to accept Alternate #2 as the cost is reasonable and brings good value to the project scope.
A contingency of $26,685, 15% of the contract amount, is recommended for changes due to unforeseen conditions to successfully complete the work. Expenditures from the contingency will be made utilizing the Change Order process specified in the Beverly Hills Municipal Code upon adequate written justification and substantiation.
Selected Bid
Base Bid $ 174,000
Alternate #2 $ 3,900
Subtotal $ 177,900
15% Contingency $ 26,685
TOTAL $ 204,585
Meeting Date: January 9, 2025
FISCAL IMPACT
The total amount of $204,585 for this agreement is available as part of Capital Assets Fund 405, Capital Improvement Program (CIP) 00349, Tenant Improvements Program.
No appropriation is requested currently.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 CONTRACT
CITY OF BEVERLY HILLS
BUILDING DEMOLITION PROJECT AT 1959 S. LA CIENEGA BOULEVARD THIS CONTRACT (“Contract”) is made and entered this 9
th day of January, 2025 (“Effective Date”), by and
between the CITY OF BEVERLY HILLS, a California municipal corporation (“City”), and Unlimited Environmental, Inc. (“Contractor”). Contractor’s license number is 668511.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference. In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.
2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as BUILDING DEMOLITION PROJECT AT 1959 S. LA CIENEGA BOULEVARD (“Project”), as described in this Contract and in the Contract Documents.
3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of One Hundred Seventy-Seven Thousand Nine Hundred dollars ($177,900.00) in accordance with the prices as submitted in Contractor’s Proposal, attached hereto and incorporated herein by this reference.
4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance; Additional Insured Endorsement (Comprehensive General Liability); Additional Insured Endorsement (Automobile Liability); and Additional Insured Endorsement (Excess Liability).
5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties.
6. Prevailing Wages. City and Contractor acknowledge that this Project is a public work to which prevailing wages apply. The provisions of Section Error! Reference source not found. of the General Provisions shall apply and are mandatory for this Project.
7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to under take self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 2 9. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
10. Entire Agreement. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Contract.
11. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
CITY OF BEVERLY HILLS
By:
LESTER J. FRIEDMAN, Mayor
ATTEST:
By:
HUMA AHMED, City Clerk
Dated:
(“CONTRACTOR”)
By:
Printed Name:
Title:
By:
Printed Name:
Title:
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
By: By:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
By:
SHANA E. EPSTEIN
Director of Public Works
By:
MANDANA MOTAHARI
City Architect
[Signatures continue]
3 By:
SHARON L’HEUREUX DRESSEL
Risk Manager
By:
ANTHONY RODSTEIN
Purchasing Services Manager