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sr-120611-3f1r City of Santa Monica City Council Report City Council Meeting: December 6, 2011 Agenda Item: 3"t' To: Mayor and City Council From: Dean Kubani, Manager, Office of Sustainability & the Environment Subject: Reject Bids for Civic Center Parking Structure Lighting Project Recommended Action Staff recommends that the City Council: 1) Authorize the City Manager to reject all bids received on October 4, 2011, for energy efficient lighting services for the Civic Center Parking Structure. 2) Authorize the City Manager to direct staff to reissue a request for bids in order to obtain the best bidder for this project. Executive Summary On October 4, 2011, five bids were received for the design and construction of an energy efficient lighting system for the Civic Center Parking Structure. However, some of the bids were based on prevailing wage and some were not. In addition, the received bids indicate that the cost of the work may exceed $100,000, requiring public noticing. Staff recommends rejecting all bids and reissuing the request for bids in order to obtain the best bidder for this project. Discussion In September 2011, a bid was posted on the City's online- bidding website PlanetBids for energy efficient lighting services at the Civic Center Parking Garage. The estimate for the bid was under $100,000 and so the bid was not published in any newspaper. Five bids were received and publicly opened on October 17, 2011. One bid was found to be non - responsive. The remaining bids were all for amounts exceeding $100,000, which would require public noticing per the Santa Monica Municipal Code. This project is eligible and has reserved funds for an ARRA federal incentive program for energy efficiency. Although other ARRA- funded projects would require federal prevailing wage requirements, this specific program functions as a product rebate incentive and is not subject to prevailing wage requirements. The mention of ARRA funding in the bid documents suggested to some bidders to use federal prevailing wage in their bid, while 1 other bidders who were familiar with the specific funding source did not use prevailing wage in their bid. Staff recommends rejecting all five bids and reissuing the request for bids, with additional clarification to the bid submittal requirements. This would provide potential bidders with a clear direction on the expectations and requirements of this project. This would also allow the City to obtain the best bid that meets the City specifications. Finally, this would allow staff the opportunity to provide public notice of the bid as required by the Santa Monica Municipal Code. Financial Impacts and Budget Actions There is no immediate financial impact to these Council actions. Prepared by: Brenden McEneaney, Green Building Program Advisor Approved: Dean Kubani Office of Sustainability & the Environment 2 Forwarded to Council: Rod Gould City Manager