City Council
Report
City Council Meeting: January 28, 2025
Agenda Item: 5.F
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Approval of Second Modification to the Agreement with Safeguard US Inc. for Fall Protection Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities), of the California Environmental Quality Act (CEQA) Guideline; and
2. Authorize the City Manager to negotiate and execute a second modification to agreement #11149 in the amount of $1,524,350 (including a 15% contingency) with Safeguard US, Inc. to provide fall protection infrastructure in response to the findings of a fall hazard locations report conducted as part of the City’s Risk Management program. This will result in a five-year amended agreement with a new total amount not to exceed $3,455,307 for Phase III, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Risk Management Division is responsible for providing safe and inviting areas for visitors and staff. On November 24, 2020, staff issued a Request for Bids (RFB) SP#2643 for a design/build contractor to address fall hazard locations at the facilities noted in an initial fall hazard locations report procured by Risk Management in 2018. On April 13, 2021, City Council approved staff’s recommendation to award the Fall Protection Project to Safeguard US Inc. The first phase of the Fall Protection Project has been completed in accordance with California Division of Occupational Safety and Health (Cal-OSHA) standards. Staff returned to Council on July 18, 2023, for approval to begin the Phase II, which is expected to be completed by 2025. 2 of 5
Staff recommends a second modification of agreement #11149 with Safeguard US, Inc., in the amount of $1,524,350, including 15% contingency, for a five-year amended agreement with a total amount not to exceed $1,569,941 for Phase III; and a total contract amount not to exceed $3,455,307. The modification expands the remediation to Phase III to ensure safe working conditions at city facilities including the Virginia Avenue Park Thelma Terry Building, Animal Shelter, Memorial Park Community Activity Building, Palisades Park Camera Obscura Building, Marine Park Auditorium & Daycare, and other city facilities. Future phases will still be required to bring the City into full compliance once additional funds become available. Any future construction services related to fall protection infrastructure would be procured through the City’s competitive bid process.
Discussion
Facilities owned by the City of Santa Monica range from new construction to historic buildings. Cal-OSHA fall protection requirements for new and existing structures are revised periodically. Some of the structures owned by the City do not meet current CalOSHA standards. The original construction phase contract with Safeguard, to initiate Phase I work, was executed on April 13, 2021.
On July 18, 2023, City Council approved a first modification of agreement #11149 with Safeguard US, Inc., in the amount of $299,023, including 15% contingency, for a fouryear amended agreement with a total amount not to exceed $1,930,957 for Phases I & II. Phase I of the Fall Protection Project was completed per California Division of Occupational Safety and Health (Cal- OSHA) standards at City Hall, the Public Safety Facility, the Montana Branch Library, Big Blue Bus facilities, Woodlawn Cemetery, the Arcadia Water Treatment Plant, and the City Yards. Phase II expanded the remediation of unsafe working conditions at City facilities by including Fire Station 2, Fire Station 3, the Ken Edwards Center, and the Public Safety Facility drone deck and is scheduled to be completed in 2025.
On September 26, 2022, Safeguard provided a quote for projects identified as ‘Priority 2’. However, the City did not have the funding to move forward with all of these 3 of 5
buildings at once and directed Safeguard to work on 4 buildings for Phase II and hold the remainder for Phase III. On November 22, 2024, Safeguard provided a quote for Phase III which included updated pricing due to increases in labor and material costs over the 2+ year time span between quotes. There was a 21.37% increase in the cost of the quote from 2022 to 2024 from Safeguard, below the 28.2% California construction cost index (CCCI) increases over the same time period. With the current fire conditions, costs for labor and resources are sure to increase above the current CCCI. Therefore, our recommendation is to execute this amendment to this contract as an exception to the competitive bidding process as we believe if we publicly bid this work, we would see quotes significantly higher and possibly lose our contractor to other rehabilitation projects due to the fires.
Safeguard has completed Phase 1 and Phase 2 should be completed in 2025. They have substantial knowledge of City facilities and have proven their technical knowledge of Cal-OSHA fall protection requirements. Risk Management is looking to expedite Phase III of this work to reduce the City’s exposure and ensure safe working conditions per Cal-OSHA standards.
The areas that need attention are used by the City’s maintenance staff and are not accessible to the public. Special safety precautions have been taken whenever staff work at or around these areas. As a property owner, the City is responsible for updating its facilities and meeting building code requirements.
Environmental Review
The proposed project is 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 project would provide for fall protection services in existing spaces and would not result in any 4 of 5
significant expansions to the existing spaces. Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.
Past Council Actions
Meeting Date Description
04/13/2021
(Attachment F)
Original bid and award of agreement with Safeguard US Inc. for fall protection design and equipment procurement.
07/18/2023
(Attachment E)
First Modification to agreement with Safeguard US Inc. for phase II of fall protection services.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Self-Insurance, Workers’ Compensation Fund to award a second contract modification with Safeguard US, Inc. for the design, procurement, and installation of fall protection safety equipment.
Agreement Modification Request
Agreemen
t #
Funding
Source(s)
Current
Authorized
Amount
FY 2024-25
Request
Amount
CIP Account #
Total Revised
Contract
Amount
11149
General, BBB,
Cemetery,
Water Funds
$1,930,957 Various $1,930,957
Self-Insurance,
Workers’
Comp Fund
$1,524,350 C7407940.689000 $1,524,350
Total $3,455,307
Future year funding is contingent on Council budget approval.
Prepared By: Heidi Creighton, Senior Design Manager
Approved Forwarded to Council
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Attachments:
A. X - Safeguard Agreement
B. 07/18/2023 Staff Report (Web Link)
C. 04/13/2021 Staff Report (Web Link)
D. Levine Act Disclosure Form
E. OaksInitiative-wEx