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CC - CONSENT ITEM: (1) Approval of Amendments to the Existing Construction Contracts with Cornerstone Construction Group, Inc. in an Aggregate Amount Not-to-Exceed $72,006 Related to Improvements on City-Owned Properties (Known as Project Homekey) at 3868 and 3900 Sepulveda Boulevard.
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Meeting Date: January 8, 2024
Contact Person/Dept: Elaine Warner / Office of Economic and Cultural Development
Tevis Barnes/ Housing and Human Services Department
Phone Number: (310) 253-5777
(310) 253-5782
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/03/2024)
Department Approval: Jesse Mays, Assistant City Manager (12/13/2023)
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RECOMMENDATION:
Staff recommends the City Council approve amendments to the existing construction contracts with Cornerstone Construction Group, Inc (CCG) in an aggregate amount not-to-exceed $72,006 for required improvements of City-owned properties (known as Project Homekey) at 3868 and 3900 Sepulveda Boulevard.
BACKGROUND/DISCUSSION:
On September 12, 2022, the City awarded a construction contract to CCG for the renovation of two motels for interim and supportive permanent housing on Sepulveda Boulevard. The total amount of the contract was $8,300,000 with an allowable 10% contingency for unanticipated costs.
Construction of the project was initiated in October 2022. As renovations began, it was discovered that several systems required substantial improvements and repairs beyond the original bid amount. Additionally, new elements were added to the project scope to include enhanced common areas, kitchenette upgrades and plumbing connections, HVAC systems, flooring roof replacement, perimeter wall repairs, fire alarm/life safety updates, window/door replacement, sof...
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