SR-417-007 (23)
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GS:SES:DA - 03/01/88 (5)
Council Meeting: March 8, 1988
Santa Monica, California
TO:
Mayor and City Council
FROM:
city Staff
SUBJECT:
Resolution Waiving Competitive Bidding and Authorizing
the city Manager to Negotiate and Execute ~ontract for
Improvements to Parking structure No. 5
Introduction
This report requests the adoption of the attached resolution
waiving competitive bidding and authorizing the City Manager to
negotiate and execute a contract for the improvements to Park~ng
Structure No.5.
Background
On August 12, 1986, the City council approved The Third
street Mall Specific Plan which includes revitalizing The Mall
area through implementat10n of design standards, an operation and
maintenance program, upgrading and expanding the downtown parking
structures and a financing program. As part of Phase I of the
Plan, Parking Structure No. 5 located at 1440 Fourth Street is to
be expanded to provide 300 new parking spaces and commercial/
reta~l space on the ground floor along Fourth street.
The Improvements to Parking structure No. 5 was initially
advertised on October 22 and 23, 1987. Five bids were received
on December 4, 1987, ranging from $6,490,000.00 to $4,920,335.00.
The low bid was approximately $1.0 million over budget. As a
result, the CJ.ty Council rejected these bids at a meeting held
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tM\R 8 1988
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GS:SES:DA - 03/01/88 (5)
council Meeting: March 8, 1988
December 8, 1987, and directed staff to redesign and rebid the
project.
Redesign of the project included revisions to the type of
structural
system
and
material
specifications.
All
the
functional elements as well as the facade of the proj ect were
kept intact.
The
Improvements
to
Parking
structure
No.
5
was
re-advertised on January 11 and 12, 1988. On February 16, 1988,
three bids were received. The low bid was $3,800,801.00 and the
high bid was $4,723,000.00.
The low bid was slightly under
budget, however the bidder asked to be relieved of its bid
because of a clerical error made during bid preparation.
At a meeting held on February 23, 1988, the City Counc11
relieved the low bidder of the bid due to a clerical error as
provided by section 5100 et. seg. of the state Public Contract
Code, and rejected the remaining bids due to insufficient project
funds.
After bidding the project twice, staff believes that the
project can be built for approximately $4,000,00.00 exclusive of
contingencies and project administration. To bid the project a
third time without any changes in scope is inadvisable because
1) contractors are reluctant to rebid since bids have been
rejected ~n two consecutive instances, and 2) if any bids are
received they may aga1n be too high. Staff is confident that it
can negotiate a contract which will be within the estimated cost
and project budget.
section 608 of the Charter of the C1ty of Santa Monica
allows for the declaration by city Counc~l to contract for Public
GS:SES:DA - 03/01/88 (5)
council Meeting: March 8, 1988
Works in the open market if, subsequent to advertising and
b1dding, the work may be so purchased at a lower price.
Staff
recommends that the City Council make such a finding.
Budget/Financial Impact
Funds are available in the amount of $3,848,056.53 at
Account No. 01-720-263-000-920.
At such time when the final
contract is negotiated, contingencies defined, and contract
administration costs determined, staff will request an additional
appropriation from interest earned on the Mall Certif~cates of
partlcipation proceeds.
Recommendatlons
It is recommended the City Council:
(1) Adopt the attached resolution waiving competitive
bidding of Improvements to Parking structure No.5;
(2) Authorize the city Manager to negotiate and execute a
contract for the construction of Improvements to
parking Structure No. 5 with interested qualified firms
in the open market; and
(3) Authorize the city Engineer to issue any necessary
change
orders
to
complete
additional
work
~n
conformance with the Administrative Instructions.
Prepared by: stan Scholl, Director of General Services
Desi Alvarez, City Engineer
Attachment: Resolution
GS:jldl09/hpc
city council Meeting 3-8-88
Santa Monica, California
RESOLUTION NUMBER
(City council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA WAIVING COMPETITIVE BIDDING AND
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE A CONTRACT FOR THE IMPROVEMENTS TO PARKING
STRUCTURE NO. 5 ON THE OPEN MARKET
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE
AS FOLLOWS:
SECTION 1.
section 608 of the Santa Monica Charter
authorizes the City council to release a public works project for
bidding on the open market if, after rejecting bids, the city
Council determines that, in its opinion, the materials, supplies,
or work may be so purchased or performed at a lower price on the
open market or with city employees.
SECTION 2.
On
December 8
19 JD, and again on
F~bruary 23 , 19~, the city council rejected all bids presented
for improvements to Parking Structure No. 5 on the ground that
the bids were too costly.
SECTION 3. In accordance with Santa Monica charter Section
608, the city Council declares and determines that, in its
opinion, the public work improvements to Parking structure No. 5
may be performed more economically if purchased in the open
market, and waives competitive bidding for the improvements to
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Parking Structure No. 5 and authorizes the City Manager to
negotiate and execute a contract on the open market.
SECTION 4. The city Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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