City Council
Report
City Council Meeting: March 19, 2024
Agenda Item: 5.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Approval of First Modification to Agreement with Olympos Construction Inc. for 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 Environment Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a first modification to agreement #11449 (CCS) in the amount of $1,746,250 (including contingency) with Olympos Construction Inc. (Olympos) for costs associated with additional scope related to the multiple buildings at 2800 Airport Avenue for the Public Works Department. This will result in an amended agreement with a new total amount not to exceed $5,058,350, with future year funding contingent on Council budget approval;
3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority; and
4. Authorize budget changes as outlined in the Financial Impacts and Budget Actions section of this report.
Summary
The 2800 Airport Avenue Renovation Project consists of upgrades for code compliance, renovation of restrooms, fresh finishes, new lighting and HVAC and is necessary to comply with current code regulations, address deferred maintenance issues, minimize ongoing maintenance costs, and increase revenue potential. During construction, it became clear additional work would be necessary to complete the seismic retrofit, address miscellaneous repairs to the mobile trailers and paint the exterior of the kiln building also at the project site. These additional scopes of work required on-site evaluation during the early phase of construction and could not be fully defined until 2 of 5
after that work was complete. To complete the unanticipated additional seismic retrofit, repairs and painting scope to the 2800 Airport Avenue buildings, staff recommends executing a first amendment to the construction contract with Olympos in the amount of $1,746,250 for a new total amount not to exceed $5,058,350. Appropriation of additional budget from the Airport Fund is required to complete this additional scope of work.
Discussion
Originally built in 1953, the main building at 2800 Airport Avenue is a concrete cast-inplace structure that requires seismic retrofitting. While the preliminary design of this seismic retrofit was included in the bid documents, it was anticipated that the design would be finalized based on on-site evaluations during the early phase of construction.
Therefore a $500,000 allowance for the retrofit was included in the original bid. The final design has now been completed and requires the roof to be removed and replaced.
This was not anticipated and requires additional funds to complete the unanticipated work for the seismic retrofit.
Circa 1988, Santa Monica College (SMC) installed nine double-wide mobile trailers for use as classrooms in the parking lot associated with the 2800 Airport Avenue building.
On March 31, 2023, SMC did not exercise their option to extend their lease and transferred ownership of the trailers to the City. The City now desires to convert these trailers to artist studios and classrooms for the Ruskin Theater (executed lease). These trailers, which have been sitting vacant since the start of the COVID-19 pandemic, have deferred maintenance issues requiring additional funds beyond those approved in the original contract.
Also built in 1953, the kiln building at the site has been occupied since 1988 by SMC as their ceramics program facility. Painting of the exterior of the building and related deferred maintenance issues have been identified and additional funds are required to add this to the original scope of work.
Staff recommends awarding the additional scope to Olympos to expedite the completion of work, avoid additional mobilization costs, and limit responsibility for all construction 3 of 5
activity associated with the project to one contractor. The City is working in close collaboration with the Ruskin Group that plans to start their tenant improvements of a portion of the building following the completion of City improvements to the core and shell. Bidding the additional scope of work, as described herein, separately would delay the completion of work by both the City and the Ruskin Group, therefore delaying the ability to lease the building, the ability to collect revenue from those leases, and the activation of the space. In addition, the removal and replacement of the roof would affect the work that is required to be completed by Olympos under the current contract.
Some of the newly completed work would need to be demolished and replaced if done under a separate contractor which would increase the total cost to the City. Finally, having multiple contractors complete work within the same building may create additional liability for the City and therefore is not recommended.
Construction of the 2800 Airport Avenue Renovation Project base scope was started in November 2023, and is currently on schedule to be completed by May 5, 2024. Due to the schedule of classes for the SMC ceramic program, painting of the kiln building cannot be completed until September 1, 2024.
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 facilities 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.
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Past Council Actions
Meeting Date Description
07/25/23
(Attachment A)
Original bid and award of agreement with Olympos Construction Inc. for construction of the 2800 Airport Avenue Renovation.
Approved amount $3,312,100 (including a $301,100 contingency).
Financial Impacts and Budget Actions
Staff seeks authority to appropriate additional funds from the Airport Fund for the 2800 Airport Avenue Renovation Project to include the additional scope for the seismic retrofit, trailer repairs and kiln building painting as well as an additional $53,750 for additional miscellaneous City costs including prevailing wage, inspections, and testing.
FY 2023-24 CIP Budget Changes
Additional Funds to be Appropriated
Account Number Amount
C5704690.689000 $1,746,250
C5704690.689000 $53,750
Total $1,800,000
Staff seeks authority to approve available funding from the Airport Fund to increase the amount of the contract with Olympos Construction Inc. for construction services for the 2800 Airport Avenue Renovation Project.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
FY 2023-24
Modified
Request Amount
Budget CIP
Account #
Total Revised
Contract
Amount
11449 $3,312,100 $1,746,250 C5704690.689000 $5,058,350
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Prepared By: Alex Parry, Senior Design Manager
Approved Forwarded to Council
Attachments:
A. Staff Report July 25, 2023 (Web Link)
B. Olympos Oaks Form
C. Olympos_Levine ACT Disclosure
D. Construction contract_Olympos