City Council Meeting: November 14, 2006

Agenda Item: 1-D  

 

To:                   Mayor and City Council 

From:              Craig Perkins, Director Environmental and Public Works Management

Subject:          Contract Award for Abatement of Asbestos and Lead and Selective Demolition at 415 Pacific Coast Highway

 

Recommended Action

Staff recommends that City Council award a contract with Midwest Environmental Control, Inc., (MEC) for the abatement of asbestos and lead containing materials and selective demolition associated with the 415 PCH Rehabilitation and Reuse Project in the amount of $679,133 plus a 10% contingency ($67,913), in the event unforeseen conditions should arise, for a total of $747,046.

 

Executive Summary

The site at 415 PCH is owned by the State of California.  Pursuant to a long-term operating agreement with the State, the City of Santa Monica is responsible for all site improvements, maintenance, and operations.  Midwest Environmental Control, Inc., is recommended to perform the abatement of asbestos and lead containing materials and selective demolition to prepare the site for the adaptive reuse and rehabilitation of the property.  Funds in the amount of $747,046 are available in the existing capital project for this agreement.  Staff will return to Council to award a Guaranteed Maximum Price contract in December, 2006.

 

Discussion

Midwest Environmental Control, Inc., specializes in the abatement of hazardous materials and prior to commencement of the renovation and rehabilitation by the general contractor it is necessary to properly remove and dispose of asbestos and lead containing materials located at the Locker Building and historic North House.  MEC’s services will also include complete demolition of the Locker building and selective demolition of the North House as required for structural upgrade.  In order for the proper abatement to occur, selective demolition is required at these locations.  In addition, the Locker building has paint containing lead which will be encapsulated immediately prior to demolition, hauling and disposal by MEC who specializes in both abatement and demolition.

 

Previous Council Actions

On February 28, 2006, Council reviewed and approved the refined schematic design plans, community use program, and financial projections for the project.

 

On May 25, 2006, the City Council denied the appeals of the Planning Commission and Landmarks Commission actions, certified the Final Environmental Impact Report and approved a Development Review Permit, Reduced Parking Permit, Fence/Wall Height Modification and Certificate of Appropriateness for the project.

 

 

Commission Actions

Prior to Council’s February 28, 2006, schematic design approval, presentations were made to the California State Parks, the State Office of Historic Preservation, City of Santa Monica Arts Commission, Landmarks Commission, Park and Recreation Commission, Commission for a Senior Community, Disabilities Commission, Social Services Commission, Pier Restoration Corporation, Santa Monica Convention and Visitor’s Bureau, Caltrans, and the California Coastal Commission.  Responses from these bodies were positive.  On April 5, 2006, the Planning Commission certified the Final Environmental Impact Report, approved a Development Review Permit, Reduced Parking Permit, and a Fence/Wall Height Modification.  On April 10, 2006, the Landmarks Commission approved a Certificate of Appropriateness with the condition that building materials, colors, landscape, lighting and signage return to them for approval.  On October 9, 2006, the Landmarks Commission approved building materials, colors, and landscape for the site.     

 

Environmental Analysis

An EIR was prepared and certified by City Council on May 25, 2006, along with a Statement of Overriding Considerations.  An Addendum has been prepared subsequent to the May 2006 certification of the Final EIR that provides new information relevant to the historic resources analysis of the Locker Building.  The City Council should consider the Addendum before taking action on this item; however, no formal action on the addendum is required by the Council. 

 

Contractor Selection

A Notice Inviting Bids was published in the Los Angeles Times on March 18 and 20, 2006.  The City Clerk’s office received five sealed bids, which were publicly opened and read aloud on May 5, 2006. The base bid amounts were adjusted for each vendor by deducting bid alternates related to extension of contract duration and use of heavy equipment for demolition of the Locker Building.

Bidder

Base Bid

Add/Deduct Alternates

10% Reserve

Total

Action Environmental Enterprises, Inc.

1,246,675

-250,000

99,668

1,096,343

U.S. Construction, Inc.

770,918

-57,500

71,342

784,760

Midwest Environmental  Control, Inc.

871,833

-192,700

67,913

747,046

MARCOR Remediation, Inc.

711,253

-194,654

51,660

568,259

Miller Environmental Incorporated

429,300

-40,000

38,930

428,230

 

Midwest Environmental Control, Inc. is the recommended best bidder in conformance with Santa Monica Municipal Code Section 2.24.072.  Per the Code, criteria for evaluating the best bidder include the capacity and skill of the bidder to perform services promptly, price, quality of the services, the bidder’s financial resources, experience, efficiency, reputation, ability to provide future service as needed, as well as any other factor which will further the intent set forth in the City Charter.  Other criteria considered for contractor selection included consistent accuracy in bidding, minimal record of change orders, repeat service for clients with highly sensitive projects, volume of projects involving historical structures, and exceptionally positive reference responses.  Analysis of the two lowest bids revealed mathematical errors or omission of an allowance requirement.  Additionally, references for MEC were positive.  Applying the criteria for the determination of the best bidder to the bid, MEC is recommended as the best bidder.

 

MEC has an extensive record of successful and timely completion of abatement and demolition projects for the U.S. Army Corp. of Engineers, the U.S. Air Force, and Lockheed Martin, including hazardous materials abatement at Edwards, Vandenberg and Charleston Air Force Bases.  MEC’s highly professional performance on projects resulted in repeated contract award from these same agencies.  MEC’s prolific record of projects involving historical structures garnering highly positive feedback from owner and third party monitors include the Devils Island Lighthouse for the National Park Service, the National Chavez Center Memorial Project for the Stoneybrook Corporation, a 112-year-old Jail/Sheriff Office for Sandusky County, Ohio, and numerous projects for the United States Postal Service, Department of Justice Federal Prison System, and the Army Corps of Engineers.  The contractor has resources to consistently perform demolition and abatement of hazardous material in-house with limited or no change order requests, has no history of project related litigation, and has a current, active and good standing State Contractor License.  MEC’s contractor history is repeatedly reported by references, including clients and independent third-party monitors, to be outstanding regarding overall quality, thoroughness, knowledge, experience, negotiation fairness, skill with schedule management, attention to care in handling sensitive and/or historical materials, and accuracy in estimating job costs leading to no or significantly limited or no change order requests. 

 

Public Outreach

A number of public workshops and meetings have convened since the summer of 2005 to discuss the 415 PCH Project and gather community input on the emerging design and programming for the site.  The outreach included a public open house, two community workshops, and meetings with neighbors and community organizations.  A dedicated website (http://415pch.smgov.net/main.html) for the project was established allowing members of the public to view the schematic design and submit comments. 

 

Budget/Financial Impact

Funds in the amount of $747,046 are available in account C240766.589000, “Annenberg Foundation Grant.”

 

Prepared by:  Lauren Friedman, City Architect

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Craig Perkins

Director - Environmental and Public Works Management Department

 

P. Lamont Ewell

City Manager