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SR-904-004-02 (2) -- JUL ~~ EPWM:CP:F:\EPWM\ADMIN\ST AFFRPTI7 -11-00\drainpublicsafetysupp. wpd Council Meeting: July 11, 2000 Santa Monica, California TO: Mayor and City Council FROM City Staff SUBJECT: Supplemental Staff Report to Agenda Item 60 DISCUSSION On May 2,2000, City Council approved a recommendation to reject all bids for construction of the Public Safety Facility and Olympic Drive and authorize the City Managerto negotiate on the open market for the construction, pursuant to the Municipal Code Section which allows for open market negotiation if the City Council finds that a service or product may be procured more economically in this manner. It has come to the attention of staff that the specific Municipal Code Section which was cited in this prior report, 2.24.071 (e)(2), contained a typographical error. The correct Municipal Code Section citation is 2.24.071 (e)(1) which states: "The goods or services can be purchased more economically on the open market". It is therefore recommended that Council re-confirm the intent of the action on May 2, 2000 to reject all bids for construction of the Public Safety Facility and authorize the City Manager to negotiate on the open market. In addition, although Agenda Item 60, which recommends the award of a contract to J.A. Jones Construction for excavation and strengthening of the Kenter Canyon storm drain for the Public Safety Facility project, identifies the fact that the storm drain work must be 1 JUL , t _ ~~.. completed before this year's rainy season to minimize the risk of structural failure to the drain, the report does not reference the specific Municipal Code Section which authorizes such work to be contracted without competitive bidding in the interest of public health and safety. Municipal Code Section 2.24.071(e)(3) states that competitive bidding can be waived and a contract can be negotiated on the open market if "Due to urgent necessity, the public health, welfare or safety would be jeopardized if the bidding procedures of this section were followed". In the case of the storm drain work, there could be dire consequences to public health, welfare and safety if the strengthening work is not completed prior to the rainy season and the Kenter Canyon drain were to fail at this location. It is therefore recommended that Council adopt such a finding and authorize the work to proceed under a negotiated contract with J.A. Jones Construction Company as described in the staff report. RECOMMENDATION Staff recommends that: City Council confirm the basis of their action on May 2, 2000 to waive competitive bidding for construction of the Public Safety Facility and Olympic Drive and authorize contract negotiations on the open market under Municipal Code Section 2.24.071(e)(1); and find that the Kehter Canyon storm drain work recommended by Agenda Item 60 is of urgent necessity due to public health, welfare and safety according to Municipal Code Section 2.24.071 (e)(3), waive competitive bidding and authorize the work to proceed under a negotiated contract. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, City Engineer Lauren Friedman, Senior Architect 2