City Council
Report
City Council Meeting: May 27, 2025
Agenda Item: 4.E
1 of 4
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Authorization of First Modification to Agreement #11583 with ACCO Engineered Systems, Inc. for the Airport Mechanical Equipment Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement and Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a first modification to agreement #11583 (CCS) in the amount of $1,055,945 (including no additional contingency) with ACCO Engineered Systems, Inc. (ACCO), a California-based company, for additional equipment and construction work to complete the Airport Mechanical Equipment Replacement Project. This will result in an amended agreement with a new total amount not to exceed $3,049,035 (including 6% contingency) with future year funding contingent on Council budget approval.
Summary
The Santa Monica Airport (SMO) not only provides aeronautical operations but also provides areas of business, education, and entertainment for community members, visitors, and City staff. The mechanical equipment in many City-owned buildings at SMO and throughout the City has reached the end of its useful life and requires replacement. ACCO Engineering Systems, Inc. (ACCO) was awarded the Airport Mechanical Equipment Replacement Project (Project) on May 28, 2024, in an amount not to exceed $1,993,090 (including a 10% contingency) (Attachment A). The Project includes the replacement of the mechanical equipment throughout the SMO Administration Building. Existing equipment configurations that did not meet standard 2 of 4
code and maintenance regulations and the lack of access to equipment and its distribution (duct) systems were discovered within the existing building when construction started. Staff recommends the execution of the first modification to agreement #11583 (CCS) between the City and ACCO, in an amount not to exceed $1,055,945 to accommodate revised system requirements, scope changes, and additional scope identified due to existing equipment and site conditions necessary to complete the Project. This would result in an amended agreement with a new total amount not to exceed $3,049,035 (maintaining a 6% contingency).
Discussion
The existing agreement #11583 (CCS) with ACCO includes the replacement of the mechanical equipment at the SMO Administration Building’s cooling tower and suites 3233A, 3233B, 3233C, 3233D, 3235, 3145, 3155, and 3157. ACCO was awarded the Project on May 28, 2024 (Attachment A), and a construction contract was executed between the City and ACCO on September 5, 2024.
Following the project initiation, investigative testing was completed including the review of existing systems and field conditions resulting in revisions to the original scope of work. The City procured revisions to the design documents produced by BOA Architecture, the original designer of the Airport Mechanical Equipment Replacement Project, including the mechanical drawings prepared by their sub-consultant, WSP. The revisions to the original bidding documents were provided in November 2024.
The revisions indicate that the replacement equipment for the cooling tower requires a redesign to accommodate the existing cooling tower configuration and future maintenance needs, including, but not limited to, access to mechanical panels and clearances between equipment. Also, the new equipment at the cooling tower requires a new communication and integration system between the equipment being replaced and the existing equipment remaining in place.
The scope of work at suites 3233A, 3233B, 3233C, 3233D, and 3235 require revisions that would include updates to the mechanical equipment layout and distribution system, 3 of 4
replacement of lighting, electrical distribution, fire alarm and suppression systems, and an updated finish schedule necessary to accommodate existing site conditions.
The scope of work at suites 3145, 3155, and 3157 require a redesign of mechanical equipment and rescoping to accommodate current site conditions. These changes include the addition of mechanical equipment, relocation of existing mechanical equipment, updates to the air distribution systems, installation of additional control systems, and finish work for all areas affected by the new layout of the mechanical equipment.
The revised scope of work for each site within the Project was realized following project initiation and is a product of upgrading systems within an existing facility and accommodating unforeseen conditions. To accommodate revised system requirements, scope changes, and additional scope identified due to unforeseen conditions necessary to complete the Project, staff recommends the execution of a first modification to agreement #11583 (CCS) between the City and ACCO, in an amount not to exceed $1,055,945. This would result in an amended agreement with a new total amount not to exceed $3,049,035.
Environmental Review
The agreement for the Airport Mechanical Equipment Replacement Project is categorically exempt from CEQA pursuant to Section 15302 (Replacement and Reconstruction) of the CEQA Guidelines. Section 15302 exempts Class 2 projects that “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same existing mechanical equipment system with the same purpose and capacity. Therefore, the contract for the Airport Mechanical Equipment Replacement Project is exempt pursuant to Section 15302.
Past Council Actions
Meeting Date Description
05/28/2024 Authorize agreement with ACCO Engineered Systems, Inc. 4 of 4
(Attachment A) (ACCO) following the RFP process.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Airport Fund to increase the amount of agreement #11583 with ACCO to complete construction work for the Airport Mechanical Equipment Replacement Project.
Future year funding is contingent on Council budget approval.
Prepared By: William Clerk, Architectural Associate
Approved Forwarded to Council
Attachments:
A. May 28, 2024 Staff Report (Web Link)
B. ACCO - Original Contract #11583
C. ACCO - Oaks Initiative
D. ACCO - Levine Act
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
Modified
Request
Amount
FY 2024-25 CIP
Account #
Total Revised
Contract
Amount
11583 $1,993,090 $864,055 C5704690.689000 $2,857,145
$0 $191,890 C5704700.689000 $191,890
TOTAL $3,049,035