City Council
Report
City Council Meeting: August 27, 2024
Agenda Item: 5.M
1 of 6
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Facilities Maintenance Subject: Approval of First Modifications to Agreements with Bayview Construction, Inc., Olympos Painting, Inc., and RAMCO General Engineering Contractors, Inc. for As-Needed General Contractor Services
2 of 6
Recommended Action
Staff recommends that City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities), of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a first modification to agreement #11352 in an amount not to exceed $1,666,667 with Bayview Construction, Inc., for citywide as-needed general contracting services as required by Public Works. This will result in an additional amount not to exceed $666,667 for two years, and an additional amount not to exceed $1,000,000 for one additional three-year renewal option for a new total amount not to exceed $2,516,667 over a 5-year period with future year funding contingent on Council budget approval.
3. Authorize the City Manager to negotiate and execute a first modification to agreement #11353 in an amount not to exceed $1,666,667 with Olympos Painting, Inc., for citywide as-needed general contracting services as required by Public Works. This will result in an additional amount not to exceed $666,667 for two years, and an additional amount not to exceed $1,000,000 for one additional three-year renewal option for a new total amount not to exceed $3,541,667 over a 5-year period with future year funding contingent on Council budget approval; and
4. Authorize the City Manager to negotiate and execute a first modification to agreement #11354 in an amount not to exceed $1,666,667 with RAMCO General Engineering Contractors, Inc. (RAMCO Inc.) for citywide as-needed general contracting services as required by Public Works. This will result in an additional amount not to exceed $666,667 for two years, and an additional amount not to exceed $1,000,000 for one additional three-year renewal option for a new total amount not to exceed $3,916,667 over a 5-year period with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica utilizes general contractor services to perform work that requires specialized equipment, contractor licensing, and technical expertise that cannot be provided by City staff. Staff solicits the services of a general contractor over 150 times per year to ensure effective and efficient maintenance of the City’s infrastructure.
These contracted services range from jobs that require immediate attention due to safety concerns, to large-scale repairs that require specific State Contractor Licenses and equipment certifications. Since the Capital Improvement Program (CIP) typically covers preventative maintenance to critical infrastructure, staff anticipates an increase in frequency of immediate attention and large-scale repairs due to fewer CIP projects being funded. Staff recommends the additional spending authority to replenish exhausted budget authority, allowing staff to continue to utilize the as-needed 3 of 6
contractors to make immediate repairs and address safety needs at City facilities for the public and staff in a timely fashion.
Discussion
The Facilities Maintenance Division of Public Works employs four in-house staff to provide carpentry services at City facilities. Such services include locksmith repairs, stucco patching, weather stripping, partition/door installations and the repair of various fixtures throughout the city. Public Works staff solicits the services of a general contractor over 150 times per year to respond to citywide general contractor requests and to assist with overall maintenance and upkeep of City-owned facilities. These services range from jobs that require immediate attention due to safety concerns such as window repairs, trip hazards, and roof leaks to large-scale projects such as wall framing, floor replacements, concrete repairs, playground equipment repairs, and office renovations. Staff also utilizes general contractor services for capital improvement projects when small maintenance scopes grow to include multiple construction activities and are incorporated into a larger scope of services. This increases the cost of the maintenance contract, therefore exhausting the maintenance budget authority at a faster rate.
The City has historically contracted out general contracting services. The “Contract and As-Needed Staffing Review Policy, Practice, Recommendations” report (Attachment A) approved on January 13, 2015, recommended that general contracting services be contracted due to equipment requirements, specialized expertise, and risk management.
On January 24, 2023, Council awarded Bid #4432 (Attachment B), as a split award and authorized the City Manager to negotiate and execute the following agreements:
• Agreement #11352 (Attachment C) to Bayview Construction, Inc., to provide general contractor services in an amount not to exceed $340,000 for two years, with an additional three-year renewal option in the amount of $510,000 for a total amount not to exceed $850,000 over a 5-year period.
4 of 6
• Agreement #11353 (Attachment D) to Olympos Painting Inc., to provide general contractor services in an amount not to exceed $750,000 for two years, with an additional three-year renewal option in the amount of $1,125,000 for a total amount not to exceed $1,875,000 over a 5-year period.
• Agreement #11354 (Attachment E) to RAMCO, Inc., to provide general contractor services in an amount not to exceed $900,000 for two years, with aon additional three-year renewal option in the amount of $1,350,000 for a total amount not to exceed $2,250,000 over a 5-year period.
In the past 16 months, there has been an increase in the need for general contracting services due to repair projects resulting from deferred maintenance. Many maintenance projects expanded to include unanticipated scope that is typically included in CIP projects. Staff keeps the original as needed contractor on the project until it is complete to limit responsibility for all construction activity associated with the project to one contractor.
To ensure adequate funding remains available for ongoing maintenance requests, future urgent repair work, as well as small capital projects, modifications for additional spending authority is recommended.
Environmental Review
The awards for general contractor services are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301. Section 15301 of the CEQA State Guidelines provides Class 1 (existing facilities) exemption for projects that consists of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The awards for the general contractor services would not result in any modifications to existing facilities. The existing facilities would be maintained and repaired with the general contractor services and the award of services would not 5 of 6
expand or materially change existing facilities or operations. Therefore, the award agreements are categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.
Past Council Actions
Meeting Date Description
01/13/15 (Attachment A) Staff Report – As-Needed and Contract Staffing Review Report
01/24/23 (Attachment B) Staff Report – City Council authorization to award Bid #4432 to Bayview Construction, Inc., Olympos Painting
Inc., and RAMCO Inc. and execute Agreements 11352,
11353 and 11354 for general contractor services.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from various General Fund, Enterprise Funds and CIP accounts to increase the agreement amounts with Bayview Construction, Inc. (#11352), Olympos Painting Inc. (#11353), and RAMCO Inc. (#11354) for citywide general contractor services. Accounts would be provided by Departments and Divisions when as-need repair services are requested. The costs of these services would be covered using existing budgeted funds within the requesting departments’ budgets.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
FY 2024-25
Modified
Request
Amount
Future
Years’
Amount
Dept/CIP
Account #
Total
Revised
Contract
Amount
11352 $850,000 $666,667 $1,000,000 Various Accounts $2,516,667 11353 $1,875,000 $666,667 $1,000,000 Various Accounts $3,541,667 11354 $2,250,000 $666,667 $1,000,000 Various Accounts $3,916,667 Future year funding is contingent on Council budget approval. 6 of 6
Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Policy for Hiring Contracted Staff_January 13, 2015 Staff Report B. Staff Report January 24, 2023
C. Bayview_Agreement #11352
D. Olympos_Agreement #11353
E. RAMCO_Agreement #11354
F. Oaks Initiative Form - Bayview Construction
G. Levine Act Disclosure Form - Bayview Construction
H. Oaks Initiative Form - RAMCO
I. Levine Act Disclosure Form - RAMCO
J. Oaks Initiative Form - Olympos Construction
K. Levine Act Disclosure Form - Olympos Construction