City Council
Report
City Council Meeting: August 27, 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: Award Construction Contract for the Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemptions pursuant to Sections 15301 (Existing Facilities) and 15302 (Replacement/Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines;
2. Award Bid #SP2644 to SMA Builders, Inc. for the Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project for the Public Works Department;
3. Authorize the City Manager to negotiate and execute a contract with SMA Builders Inc. in an amount not to exceed $1,534,500 (including a 10% contingency); and
4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.
Summary
Virginia Avenue Park, located at 2200 Virginia Avenue, is recognized as a community hub that empowers families, shapes programming, celebrates culture and tradition, and maintains the vibrant spirit of the Pico Neighborhood. The Virginia Avenue Park Commercial Kitchen and Thelma Terry Center Improvements Project (Project) would be implemented at the Thelma Terry building, in the heart of Virginia Avenue Park. The Thelma Terry building is used primarily for community gathering activities, community service, and programs for school-aged children. The Project would replace the building’s underutilized prep kitchen. The renovation of the existing prep kitchen, office, and storage space would accommodate an all-electric, shared kitchen and food storage 2 of 6
area that would cultivate the Pico Neighborhood and surrounding community food entrepreneurs and support ongoing programming by providing affordable shared commercial kitchen space, mentorship, and market opportunities. The Project would also renew community spaces with refreshed wall and floor finishes, new media equipment, new energy-efficient lighting, a new roof, access control, and a security system in the one-story Thelma Terry Center building. Staff recommends awarding the contract to SMA Builders Inc. for the construction of the Project in an amount not to exceed $1,534,500 (including a 10% contingency).
The Project is funded with a combination of Community Development Block Grant (CDBG) Funds and General Funds. Construction would begin fall 2024 and be completed within six months.
Discussion
Virginia Avenue Park serves as a community hub to empower families, shape programming, celebrate culture and tradition, and maintain the vibrant spirit of the Pico Neighborhood, which is one of strength, resiliency, and social justice. The Project would convert an existing City-owned facility into a fully licensed commercial kitchen that would offer kitchen rentals for local food businesses and small business incubator services to provide entrepreneurship education for its local members.
Converting the Virginia Avenue Park kitchen into a shared kitchen has been one of the key suggestions brought to light by Virginia Avenue Park parent groups and other residents for several years. In 2019, Council directed staff to identify ways to streamline and accelerate community economic development following Councilmembers’ requests to develop a comprehensive economic opportunity and community development policy that would include incubating, educating, and promoting local small businesses and entrepreneurs as one of its priorities while the Pico Wellbeing Project identified the kitchen as a top priority to create pathways for residents of the Pico Neighborhood into entrepreneurship.
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For over a year, the Community and Economic Development working group (a subcommittee of the Santa Monica Economic Recovery Task Force) met with leaders in the fields of incubator kitchens and entrepreneurship programs, and vetted ideas with local chefs and business owners, to develop the mission and goals for the kitchen. The Santa Monica Economic Recovery Task Force was created in April 2020 to, among other things, promote Community and Economic Development.
Project Mission
The Virginia Avenue Park Kitchen cultivates Pico Neighborhood and surrounding community food entrepreneurs by providing affordable commercial kitchen space; providing mentorship; providing access to market opportunities; and amplifying traditionally unheard voices.
Project Goals
• Increase availability of culturally diverse, local, healthy and affordable food products
• Build economic independence for local residents through increased income and new jobs for community members
• Provide business development training through partnership with an incubator agency that will provide business training for start-ups that will culminate with a business plan and product refinement
This project has emerged because of the dedication of the Community and Economic Development working group and the Mission and Goals they set forth have been the framework from which this project and community kitchen program have been developed. The all-electric kitchen would enhance resources, prevent harm to the natural environment and human health, and benefit the social and economic wellbeing of the community through access to the latest energy-efficient commercial food service equipment and technologies.
Engagement
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On May 6, 2021, the City issued an informal Request for Proposals (RFP) to obtain professional design services for the Project; three proposals were received and Koning Eizenberg Architecture was awarded a professional services agreement in an amount not to exceed $93,280 (including a 10% contingency). On April 18, 2022, staff and the consultant team hosted a virtual public workshop and invited the community and stakeholders to provide input on the proposed concept design and kitchen operational program. The design work incorporating community and stakeholder input is complete.
Vendor Selection
On February 29, 2024, the City issued a formal Request for Bids (RFB) to obtain construction services for the Project. The City received a total of three construction bids; however, Olympos Construction, Inc.’s bid did not meet the basic requirements of the RFB and was considered nonresponsive, and rejected without evaluation. An evaluation panel composed of Architecture Services and Housing and Human Services staff evaluated the remaining two bids and recommend SMA Builders Inc. as the best and lowest bidder.
Bidder Recommendation
Best Bidder SMA Builders Inc.
Evaluation
Criteria
Price, Experience
Municipal Code SMMC 2.24.180
Submittals Received
Vendor Total
(base bid and alternate bids)
SMA Builders Inc. $1,395,000
MZN Construction, Inc. $2,659,966
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date
Publicly
Opened
2/29/2024 City's Online
Bidding Site
Santa Monica Daily Press 94 4/24/2024
Best Bidder Justification
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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 2200 Virginia Avenue, and therefore, it has been determined that the project would fall within the Class 1 and Class 2 categorical exemptions. Furthermore, 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
12/10/19 (Attachment A) Request of Councilmembers Jara, Morena, and O’Day to identify ways to streamline and accelerate community economic development – Item 13.D
06/22/21 (Attachment B) FY 21-23 Biennial Capital Improvement Program Budget – Addendum to FY 20-22 CIP Budget – Virginia
Avenue Park Commercial Kitchen
06/28/22 (Attachment C) FY 22-24 Biennial Capital Improvement Program Budget – Thelma Terry Center Improvements
06/27/23 (Attachment D) FY 23-25 Biennial Capital Improvement Program Budget – Addendum to FY 22-24 CIP Budget – Virginia
Avenue Park Commercial Kitchen
Financial Impacts and Budget Actions
Staff recommends SMA Builders Inc. as the best bidder based on bid price and experience. The recommended bidder has demonstrated the ability to perform and complete quality work on past projects in Los Angeles.
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Staff seeks authority to approve available funding from the CDBG Fund and General Fund to award a contract to SMA Builders Inc. for the construction services for the Project.
Contract Request
Funding
Source
FY 2024-25
Request
Amount
Department/CIP Account
#
Total Contract
Amount
CDBG Fund $650,000 C1908130.689000
VAP Commercial Kitchen $650,000
CDBG Fund $565,000
C1908490.689000
Thelma Terry Center
Improvements
$565,000
General Fund $174,500
C0104580.689000
Citywide Facilities Renewal
Program
$174,500
General Fund $145,000 01500003.552010
Professional Services $145,000
Total $1,534,500
Prepared By: Amelia Feichtner, Capital Program Manager
Approved Forwarded to Council
Attachments:
A. December 10, 2019 Staff Report (Web Link)
B. June 22, 2021 Staff Report (Web Link)
C. June 28, 2022 Staff Report (Web Link)
D. June 27, 2023 Staff Report (Web Link)
E. Oaks Initiative Form - SMA Builders Inc.
F. Levine Act Disclosure Form - SMA Builders Inc.