ITEM 6-K
Council Meeting: 04/14/92
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Allocate Additional Funds for the
Restoration of the Billiard Building on the Santa
Monica Pier
Introduction
This report requests that the City Council allocate an additional
$175,617 to complete the restoration of the Billiard Building on
the Santa Monica Pier.
Background
On October 8, 1991, the City Council approved the award of a
contract for the restoration of the Billiard Building to Unique
Builders. The construction contract called for the restoration
of the exterior and core of the building which includes three
leaseholds. The two long-term tenants, the Crown and Anchor
Restaurant and S.M. Pier Seafood, are responsible for the costs
of the construction of the exterior improvements as well as the
cost of actual construction of the interior improvements. The
original contract cost for the exterior improvements for the two
tenants is $414,450; the cost for the interior improvements for
both tenants is estimated to be between $500,000 and $600,000.
These tenants have executed lease modifications which provide for
repayment of their proportionate share of the exterior
improvements over a ten year period at an interest rate of eight
percent per year. The tenant selected by the Pier Restoration
Corporation (PRC) for the vacant space, the Ash Grove
entertainment club, will be responsible for the construction of
tenant improvements. The cost of the tenant improvements for the
Ash Grove will be determined during lease negotiations which are
currently underway by the PRC.
At the time the contract was awarded, staff indicated that the
extent of structural deterioration of the seventy-five year old
building was not known. In addition, the condition of the Pier
deck and substructure could not be determined until the floor was
removed. The condition of the existing structural system could
not be accurately assessed prior to the start of construction
since the significant exposure of the existing structural
conditions would have caused considerable inconvenience to the
tenants.
Once the demolition process was underway, it became apparent that
the level of structural renovation required to bring the Billiard
Building up to current code requirements and standards was
significant. This additional structural reinforcement is needed
to transfer the earthquake and building loads to the existing
Pier structural system. In addition to the structural
modifications, the advanced conditions of dry rot and
deterioration of the Pier deck required reconstruction in most
areas.
The timing element is critical so that the existing tenants are
not delayed in re-opening for the summer season. The contractor
will increase the size of the work crews so that no extension for
time is required for these changes.
Budget/Financial Analysis
Initial Contract and Contingencies $724,250
Additional Contingency Funds Requested 175,617
Total: $899,867
Funds for the additional contingencies are available in Account
Numbers 30-740-625-20091-8900-99928 ($157,091.47), Pier
Commercial Development/ Rehabilitation, and
30-740-625-26990-8912-99181 ($18,525.53), Utilities for
Commercial Development. In addition to the $414,450 of the
original contract that will be repaid to the City by the tenants,
approximately $50,000 of the changes required to the contract
will also be repaid by the tenants.
Recommendation
Staff respectfully recommends that the City Council:
1. Allocate additional funds in the amount of $175,617
for restoration of the Billiard Building on the Santa Monica
Pier.
2. Authorize the City Engineer to issue any change orders
necessary to complete additional work in conformance with the
Administrative Instructions on change orders.
Prepared by: Barbara Stinchfield, Acting Director of
Community Development
Stan Scholl, Director of General Services
Judith Meister, Pier Manager
Tony Antich, City Engineer