City Council
Report
City Council Meeting: October 27, 2026
Agenda Item: 4.B
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Architecture Services Division Subject: Approval of Fourth Modification to Agreement No. 11449 with Olympos Construction, Inc. for Construction Services for the 2800 Airport Avenue Renovation Project
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) Guidelines; and
2. Authorize the City Manager to execute a fourth modification to Agreement #11449 (CCS) in the amount of $2,100,000 with Olympos Construction, Inc. for additional construction services associated with the 2800 Airport Avenue Renovation Project for the Public Works Department. This will result in an amended agreement with a new total amount not to exceed $10,158,350, with future year funding contingent on Council budget approval.
Summary
The City is currently implementing improvements to the building located at 2800 Airport Avenue, a City-owned facility originally constructed in 1953 and undergoing renovation to address deferred maintenance, improve code compliance, and support interim Airport Campus uses. During construction activities and additional site investigations, previously undocumented building and subsurface infrastructure conditions were identified involving building conditions and deteriorated underground electrical service infrastructure, non-compliant sewer connections, and other legacy utilities not reflected in available record drawings. Addressing these conditions requires additional construction work and associated site restoration. Staff recommends approving a fourth 2 of 5
modification to the agreement with Olympos Construction, Inc. in the amount of $2,100,000 (including a 20% contingency) for a new total amount not to exceed $10,158,350 to complete these improvements and allow the project to proceed without delay.
Discussion
The building located at 2800 Airport Avenue is a 22,000-square-foot reinforced concrete structure constructed in 1953 as an armory for the Organized Reserve Corps. The building was later repurposed for aviation-related and municipal uses, and at one time was leased to Santa Monica College. 2800 Airport Avenue consists of multiple buildings that require improvements to bring them up to code and make the spaces viable and profitable for lease at the Santa Monica Municipal Airport. The site's existing conditions required multiple improvements, many of these could not be foreseen at the time of the initial construction bid due to the complexity of the structure and site wear and tear. The Architecture Services Division has worked closely with the Building and Safety Division and the general contractor, Olympos, to identify all existing conditions that must be addressed before finalizing the project. This contract modification incorporates all the outstanding required improvements. As a proactive measure, on March 1, 2025, the Architecture Services Division and the Santa Monica Municipal Airport issued a Request for Qualifications (RFQ) for 2800 Airport Avenue. The RFQ sought to qualify contractor(s) for the necessary improvements at 2800 Airport Avenue while maintaining the quality of workmanship and schedule, with the understanding that there might be multiple unforeseen conditions that will need to be addressed during construction.
Olympos Construction, Inc. was selected as the qualified contractor for the necessary improvements to 2800 Airport Avenue complex. This selection process ensures that all necessary improvements can be completed by one qualified contractor, ensuring that the buildings are up-to-date with the latest California Building Codes, ADA requirements, and International Building Code, while providing the City with full warranty coverage of all work performed.
On July 25, 2023, the City Council awarded Bid SP2686 to Olympos Construction, 3 of 5
Inc. in the amount of $3,312,100 (including a 10% contingency) to initiate the renovation of the buildings to address infrastructure repairs necessary to comply with current code, resolve deferred maintenance issues, minimize ongoing maintenance costs, and increase revenue potential through the establishment of new artist studios, creative office space for small local businesses, and the new home of the Ruskin Group Theater.
During construction, additional conditions—including critical structural, fire, and life-safety issues —were discovered that required additional and expanded scope. Council has approved three contract modifications to address this additional scope, the work required to complete the renovation, and material cost escalation due to implemented tariffs. These actions were incorporated into the construction agreement through Change Orders No. 1 and 2, establishing a total agreement amount of $8,058,350.00.
During construction, several previously undocumented building and subsurface conditions were identified by the contractor and the Building and Safety Division. The additional scope of work includes, but is not limited to, correcting the misalignment of the proposed interior lift to meet Americans with Disabilities Act (ADA) requirements, repairing or replacing existing underground utility connections (power and plumbing), providing proper building and site stormwater drainage, and completing additional ADA and structural repairs that are required by the Building and Safety Division.
The age of the facilities and the incomplete historical documentation of the building and underground infrastructure were the reasons these scope items were overlooked during the initial design and construction phases. The Architecture Services Division, with the assistance of the Building and Safety Division, the contractor, and infrastructure providers, has identified the remaining on-site corrections that are required to bring the 2800 Airport Avenue buildings up to code; Therefore, staff recommends approving a fourth and last modification to the agreement with Olympos Construction, Inc., and in accordance with the RFQ issued on March 1, 2023, in the amount of $2,100,000 (including a 20% contingency), for a new total amount not to exceed $10,158,350, to complete these improvements.
Environmental Review
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This project is categorically exempt from CEQA pursuant to Section 15301 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 alternation of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.
The project would renovate the existing City facilities at 2800 Airport Avenue, and therefore, it has been determined that the project would fall within the Class 1 categorical exemption. Furthermore, none of the exceptions in Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2, would preclude the use of this exemption.
Past Council Actions
Meeting Date Description
7/25/2023
(Attachment A)
Award Construction Contract for the 2800 Airport Avenue Renovation Project
3/19/2024
(Attachment B)
Approval of First Modification to Agreement with Olympos Construction Inc. for 2800 Airport Avenue Renovation
Project
8/27/2024
(Attachment C)
Approval of Second Modification to Agreement with
Olympos Construction Inc. for 2800 Airport Avenue
Renovation Project
5/13/2025
(Attachment D)
Approval of Third Modification to Agreement with Olympos Construction Inc. for 2800 Airport Avenue Renovation
Project
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Airport Fund to increase the amount of the contract with Olympos Construction Inc. for construction services for the 2800 Airport Avenue Renovation Project.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY2025-26
Request
Amount
CIP Account # Total Revised
Contract
Amount
11449 $8,058,350 $2,100,000 C5704690.689000 $10,158,350 5 of 5
Future year funding is contingent on Council budget approval.
Prepared By: William Clerk, CIP Project Manager
Approved Forwarded to Council
Attachments:
A. July 25, 2023, Staff Report (web link)
B. March 19, 2024, Staff Report (web link)
C. August 27, 2024, Staff Report (web link)
D. May 13, 2025, Staff Report (web link)
E. _EXECUTED_DocuSign_SP2686_-_GC_Contract_-_2800_
F. Executed - Third Modification - Change Order #2
G. Olympos_Oaks_Initiative_Disclosure_Form
H. Olympos_Levine_Act_Disclosure_Form_2026