City Council
Report
City Council Meeting: March 19, 2024
Agenda Item: 5.E
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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 Swinerton Builders for 3200 Airport Avenue Renovation Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement/Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a first modification to agreement #11365 (CCS) in the amount of $500,000 (including a $50,000 contingency) with Swinerton Builders Corporation for the additional costs related to unforeseen conditions and electrical upgrades, for the Public Works Department. This will result in an amended agreement with a new total amount not to exceed $9,584,792, with future year funding contingent on Council budget approval; and
3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.
Summary
The 3200 Airport Avenue Building Renovation Project consists of interior and exterior upgrades, building system replacements, improved building access, and new landscaping and is necessary to comply with current code regulations, address deferred maintenance issues, minimize ongoing maintenance costs, and increase revenue potential. During initial building demolition and construction, unforeseen conditions were encountered and tenant coordination items were incorporated into the core and shell design, both of which affect the price of the project work to be completed by Swinerton Builders. To address these unforeseen conditions and incorporate elements of the tenant’s scope in a coordinated and expedited manner, staff recommends executing a 2 of 4
first amendment to the construction contract with Swinerton Builders in the amount of $500,000 for a new total amount not to exceed $9,584,792.
Discussion
Built between 1940-1947, the building at 3200 Airport Avenue was part of a Property Condition Assessment that included a tier 1 seismic analysis and a comprehensive building assessment. The analysis and assessment identified numerous deficiencies in the building envelope, interior finishes, and building systems resulting in water intrusion, deterioration of building materials, and lack of thermal comfort within the building.
During demolition and construction, it was discovered that the original building materials (water proofing, wood windowsills, door thresholds, etc.) had deteriorated more than expected, and subsequently allowed rain and irrigation water to leak into walls causing dry rot and termites to damage wall framing beyond repair. Therefore, the replacement of all existing wall framing was required to meet current code mandates/construction standards, and to maintain the structural integrity of the building.
The City executed a lease agreement with the company Clover in September 2023 for approximately half of the 3200 Airport Avenue building. Clover has developed plans for the conversion of their leased space into a new restaurant and are planning to start construction as soon as the City completes the building’s core and shell work. The proposed design includes an all-electric kitchen, which supports the City’s zero emission building objectives, and requires an upgrade to the building’s electrical supply components beyond that which was anticipated in the original scope of work. In addition, some of their work would require the augmentation or demolition of materials that would have just been installed by Swinerton Builders. Therefore, incorporating elements of the tenant’s planned improvements, such as under slab plumbing, into Swinerton Builders’ contract would provide a coordinated and expedited completion of the work, including tenant build-out and opening the tenant space to the public.
Construction of the 3200 Airport Avenue Renovation project was started in May 2023 and the base scope of work will be completed by the original completion date, additional services are anticipated to be completed in early 2025. 3 of 4
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. 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. The project would renovate the existing city facility at 3200 Airport Avenue, and therefore, it has been determined that the project would fall within the Class 1 and Class 2 categorical exemptions. 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.
Past Council Actions
Meeting Date Description
02/28/23
(Attachment A)
Original bid and award of agreement with Swinerton Builders for construction of the 3200 Airport Avenue Renovation- Approved amount $9,084,792 (including a $1,184,973 contingency.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Airport Fund to execute Change Order 1 to increase the contract with Swinerton Builders for construction services for the 3200 Airport Avenue Renovation project.
Agreement Modification Request
Agreement # Current Authorized
Amount
FY 2023-24
Modified Request
Amount
Budget CIP Account # Total Revised
Contract Amount
11365 $9,084,792 $500,000 C5704690.689000 $9,584,792
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Prepared By: Alex Parry, Senior Design Manager
Approved Forwarded to Council
Attachments:
A. Staff Report February 28, 2023 (Web Link)
B. Oaks Initiative Disclosure_Swinerton
C. Swinerton_Santa Monica Levine Act Disclosure
D. ConstructionContract_Swinerton