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Council Meeting: February 23, 1988 Santa Monica, California
TO: Mayor and City council
FROM: city staff
SUBJECT: Recommendation to Reject Bids for Construction of
Improvements to Parking structure No. 5 !
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Introduction
This report requests that the City Council relieve M. H.
Golden Co. of its bid and rej ect bids for the construction of
improvements to Parking structure No. 5 located at 1440 4th
street.
Background
On August 12, 1986,the city Council approved The Third
street Mall specific Plan which includes revitalizing The Mall
area through implementation 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/
retail space on the ground floor along Fourth street.
At the October 14, 1986 meeting the Ci ty Council awarded a
contract to Theodore Anvick structural Engineers to design and
prepare plans and specifications for the remodel and expansion of
Parking structure No. 5. The plans prepared are for the addition
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Council Meeting: February 23, 1988
of four floors to the existing structure, conversion of approxi-
mately 7,500 square feet of ground floor space adjacent to Fourth
street to commercial/retail use, and redesign of restrooms to
provide ( 1) handicap accessibility, (2) greater user security and
(3) reduction of vandalism. They include extension of existing
elevators and addition of a new elevator. Improvements to the
exterior include a new facade as well as new lighting along both
the Fourth street and alley sides. Interior improvements include
restriping of existing parking spaces, painting, and installation
of new access signage.
Plans were approved by the ARB on March 18, 1987. On
August 11, 1987, Council certified the initial study and negative
declaration and the Coastal Commission granted a permit on
October 23, 1987.
Plans and specifications for the improvements to Parking
structure No. 5 were completed by Theodore Anvick Consulting
Structural Engineers and reviewed by the City Engineer.
The specifications allow for a two-hundred-eighty day (280)
construction schedule with construction to begin in March, 1988.
During construction a four foot pedestrian walkway will be
maintained along Fourth street. A gantry crane will be installed
in the alley to maintain through traffic during construction.
However, there will be certain periods when the alley and the
number two southbound lane along Fourth street will have to be
closed to through traffic. It is anticipated that 60 percent
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(approximately 211) of the 352 parking spaces in the structure
will be available during construction.
A Notice Inviting Bids was published on October 22nd and
23rd, 1987 in the Evening outlook, four construction journals,
and sent to seven minority associations. Plans and
Specifications were issued to seven general contractors.
six bids were received on December 3, 1987 and the low bid
was $4,920,335 by M. H. Golden Co. Since the lowest responsible
bidder was substantially over the project budget, the city
council, on December 8, 1987, authorized Staff to reject all bids
and redesign and readvertise the project. Redesign of the
project included revisions to the structural system and material
specifications. All the functional elements as well as the
facade of the project were kept intact.
A second Notice Inviting Bids was published on January 11
and 12, 1988 in the Evening Outlook and plans and specifications
were sent to three construction plan rooms. Plans and
specifications were issued to eight general contractors and six
specialty contractors. The bid opening was scheduled for
Tuesday, February 16, 1988 at 3:00 p.m.
Three bids were received, opened and read publicly on
February 16, 1988, commencing at 3:00 p.m. by the Deputy City
Clerk. The bidders and their bids were as follows:
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M. H. Golden Company $3,800,801
Dinwiddie Construction Co. $4,450,000
Miner-Oederick Construction Corporation $4,723,000
city Engineer's Estimate: $3,900,000.00
The low bidder was M. H. Golden Co. Staff checked
references provided by M. H. Golden Co. as to comparable projects
previously completed and found them satisfactory.
On February 18, 1988 M. H. Golden Co. requested to be
relieved of their bid due because a mistake was made in the
preparation of their bid. Their request to be relieved of their
bid was in accordance with the Instruction to Bidders and with
the state Public Contract Code, Chapter 5, section 5100 et seq.
On February 19, 1988 M. H. Golden Co. provided the City
Engineer with documentation of the error in their bid. The city
Engineer found that the information provided demonstrated that an
error was made and that M. H. Golden Co. should be relieved of
their bid since:
l. A mistake was made;
2. The bidder gave the public entity written notice
within five days after the opening of the bids of
the mistake, specifying in the notice in detail
how the mistake occurred;
3. The mistake made the bid materially different from
what the bidder intended it to be; and,
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4. The mistake was made in filling out the bid and
not due to error in judgment or to carelessness in
inspecting the site of the work, or in reading the
plans or specifications.
The above criteria are stipulated in the Instructions to
Bidders and the State Public Contract Code.
Due to the difference in the amount of the next lowest bid
and the funds available, staff is recommending that the other
bids be rejected.
Recommendations
It is recommended that the City Council:
1. Relieve M. H. Golden Co. of its bid in accordance
with the conditions of the Instructions to Bidders
and the State Public Contract Code, and
2. Reject the remaining bids.
prepared by: stan Scholl, Director of General services
Desi Alvarez, P. E. , City Engineer
(CC1107)
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