R-9685
F:\A TTY\MUNI\LA WS\MOX\SM PoolBidWaiver .wpd
City Council Meeting 7-10-01 Santa Monica, California
RESOLUTIONNUMBER9685 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING WAIVER OF BIDDING REQUIREMENTS FOR AWARDING A
CONSTRUCTION CONTRACT TO SWINERTON BUILDERS TO COMPLETE THE
SANTA MONICA MUNICIPAL POOL PHASE II IMPROVEMENTS PROJECT UNDER
THE SURETY COMPANY"S PERFORMANCE BOND
The City of Santa Monica, by vote of not less than five votes of its members, does
hereby resolve and determine as follows:
WHEREAS, on April 11, 2000, following a competitive bidding process, the City
awarded Contract Number 7697(CCS) ("Contract") to Vahdani Construction Co., Inc. ("the
Initial Contractor") for construction of the public works project entitled Santa Monica
Municipal Pool, Phase II ("Pools, Building and Site Improvements, SP-1662") (the
"Project"); and
WHEREAS, commencing in January 2001, the City began to receive stop notice
claims from subcontractors providing labor and materials on the Project, which claims
asserted the Initial Contractor's failure to pay these subcontract claims; and
WHEREAS, on March 28, 2001, the City sent written notice of default to the Initial
Contractor in connection with its material breach of its obligations to pay subcontractors and
to provide progress reports and revised schedules to the City as required by the Contract;
and
WHEREAS, the Initial Contractor failed to cure any of the defaults within the cure
period under the Contract; and
WHEREAS, on April 3, 2001, the City sent official notice to the Project's surety
company, National Fire Company of Hartford, (the "Surety")seeking to invoke the
Performance Bond and requesting the Surety to take immediate action to assure
completion of the Project in a timely manner; and
WHEREAS, Santa Monica Municipal Code Section 2.24.071 requires that every
contract involving more than One Hundred Thousand Dollars ($100,000) for public works
projects be awarded to the best bidder after notice by publication in a newspaper of general
circulation in the City of Santa Monica. Waiver of the competitive bidding requirements is
appropriate pursuant to Santa Monica Municipal Code Sections 2.24.071 (e)(1) and (3) on
City Council findings that: (i) the good or services can be purchased more economically on
the open market and/or (ii) the public health, welfare or safety would be jeopardized if the
bidding procedures were followed; and
WHEREAS, the City believes that immediate action is necessary to complete the
Project in order to make the best use of public funds and assure that the public health,
welfare and safety aspects of this Project are adequately addressed; and
WHEREAS, selection of a qualified new contractor on the open market to complete
the Project will allow work to commence promptly and achieve cost savings by avoiding
further delays; and
WHEREAS, the existing Project site contains open excavations and unfinished
improvements and is difficult to completely secure from trespass and vandalism, thereby
posing a risk to the public's health, welfare and safety; and
WHEREAS, the community's welfare is suffering and will continue to suffer due to
the loss of essential recreational facilities until the Project can be completed and opened
for public use; and
WHEREAS, the City desires to avoid further delays in the completion of the Project
and believes it is in the City's best interests to expedite completion of this community
resource to avert economic losses, reduce risk to the public health, safety and welfare, and
assure that the Project is fully operational and open to the public for the 2002 summer
season; and
WHEREAS, after negotiation on the open market ,the Surety, acting on behalfofthe
City and the Project, obtained a bid in the amount of $6,850,000 from Swinerton Builders
("Swinerton") to complete all remaining work on the Project on a fast track schedule to meet
the City's goal of opening the Project to the public for the 2002 summer season; and
WHEREAS, Swinerton is a qualified contractor licensed to perform construction
activities under the laws of the State of California, and has extensive experience in
completion of projects which have been partially completed by other contractors; and
WHEREAS, the Surety will pay the City the sum of $$3,484,24.87, which represents
the difference between the remaining contract balance held by the City and the amount of
Swinerton's bid so that the City will have sufficient funding to complete the Project; and
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WHEREAS, time is of the essence and Swinerton is prepared to mobilize and
commence work within 2 weeks of issuance of a notice to proceed and is committed to
complete all remaining Project work within 6 months of the notice; and
WHEREAS, the City Council determines that the construction contract with
Swinerton for completion of the Project will avoid further delays, thereby reducing or
avoiding escalating construction costs and related expenses while assuring that the City
locks in necessary funding to complete the Project. The City Council also determines that
approval of the contract with Swinerton will reduce the risks to the public health, safety and
welfare by meeting the goal of timely completion of this community facility. Accordingly,
waiving the bidding process for the completion of construction of the Project allows the City
to construct the Project more economically and protects the public health, safety and
welfare; and
WHEREAS, the City Council hereby waives the competitive bidding procedures
otherwise required by Sections 2.24.071 (e)(1) and (3) in connection with the construction
contract for the Santa Monica Municipal Pool Phase II ("Pools, Building and Site
I mprovements") Project. This waiver of the competitive bidding process only applies to the
contract with Swinerton.
NOW, THEREFORE, THE CITY COUNCil OF THE CITY OF SANTA MONICA
DOES RESOLVE AND ORDER AS FOllOWS:
SECTION 1. Pursuant to S.M.M.C. Sections 2.24.071 (e)(1) and (3), the City
Council hereby authorizes the City Manager to forego the bidding requirements otherwise
required for the construction contract with Swinerton to complete the Santa Monica
Municipal Pool Phase II Improvements Project.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution once,
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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MARSHA JONES MO TRI
City Attorney
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Adopted and approved this 10th of July, 2001.
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Michael Feinstein, Mayor
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby
certify that the foregoing Resolution No. 9685 (CCS) was duly adopted at a
meeting of the Santa Monica City Council held on the 10th of July, 2001, by the
following vote:
Ayes: Council members:
Holbrook, O'Connor, McKeown, Genser,
Katz, Mayor Pro Tem Bloom, Mayor
Feinstein
Noes: Council members:
None
Abstain: Council members:
None
Absent: Council members:
None
ATTEST:
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Maria Stewart, City ClertJ