SR-8-C (69)
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Council Meeting December 15, 1998
Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Introduce for First Reading an Ordinance amending the
Public Works Contracting sections of the Santa Monica MUnicipal Code to
allow for a Two-phased Process of Awarding Public Contracts
INTRODUCTION
This report recommends that the City Council Introduce for first reading an ordinance
amending the public works contracting section of the Santa Monica MUnicipal Code to allow
for a two-phased process of awarding public works contracts
BACKGROUND
The City of Santa Monica IS currently engaged In the most ambitiouS Capital Improvement
Program In Its history The capital Improvements that are programmed In the upcoming
years range from large projects such as the Public Safety FacIlity to smaller projects such
as renovations to cntlcal elements of the public Infrastructure To ensure that the delivery
of the unprecedented volume of public works projects IS completed In an effiCient. effective,
and timely manner, a number of Important steps have been taken Including reorganization
of the CIvil Englneenng DIVIsion and retention of professional project management firms for
certain projects
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In evaluating potential Improvements to the processes by which capital Improvements are
accomplished, staff reached out to other governmental agencies to Identify best practices
and learned that many have moved away from the SIngle-step procedure of contracting for
public works projects Currently, all Santa MonIca publIC works projects are advertised for
public bid once the plans and specifications have been completed Under thiS approach,
each prospective contractor submits a bid package that Includes their proposed contract
amount as well as eVIdence of proper licensing, ability to obtain required Insurance,
experience With Similar types and magnitudes of construction, etc FollOWing receipt of the
bid packages, staff tallies the bId amounts, declares an apparent low bidder, and then goes
about checking the background and qualifications of the apparent low bidder In a Situation
where the apparent low bidder proves to be unqualified, staff then checks the qualifications
and responsiveness of the second lowest bidder ThiS Iterative process can cause
SIgnificant delay of the project follOWing the receIpt of bids
Many other CIties and government agencies have successfully employed a two-phased
process for bidding of public works contracts With thiS method, prospective contractors
submit theIr qualifications and experience early In the process while the project construction
documents are being prepared Staff evaluates the qualifications of all of the Interested
contractors, determining their finanCial status, the scope and nature of their expenence and
the nature of any complaints or pending actions against them All bidders qualified through
that process are notIfied that may submit bid amounts once the construction documents
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have been finalized Culver City has successfully used this two-phased contracting process
for several significant projects, Including construction of their new City Hall
By allOWing the pre-qualification of bidders to occur dunng the final design phase. thiS
permits a thorough analysIs of the contractors' qualifications without delay to the project In
addition, the pre-qualification phase focuses solely on the responsibility and qualIfications
of the prospective bidders When bids are soliCited, proposals are submitted by fIrms
capable of handling the project
The two-phased contracting process clearly notifies prospective contractors that only those
construction firms With appropriate qualifications Will be engaged by the City for the project
The process IS benefiCIal to prospective contractors who spend conSiderable amounts of
time and money prepanng bid prices because It proVides Increased certainty that their bids
Will not ultImately be rejected due to lack of qualifications
Currently, the Municipal Code prescnbes a Single-step bidding process In order to use a
two-step process, the MUnicipal Code must be amended to proVide for thiS opportunity In
concert With the approval of the Code change, staff Will prepare an Administrative Instruction
to detail speCifiC procedures for Implementation of the two-phase bidding process If the
enabling ordinance IS approved, the two-phased process Will be used for the Public Safety
Facility, which IS scheduled to go out to bid for the first phase of construction (excavation
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and utilities) In the spring of 1999
BUDGET/FINANCIAL IMPACT
There IS no budget or financial Impact as a result of this recommendation
RECOM MENDA TION
It IS recommended that the City Council Introduce for first reading an ordinance amending
the public works contracting sections of the Santa Monica Municipal Code to allow for a MrO-
phased process of awarding public works contracts
Prepared by Craig Perkins, Director
Anthony Antlch, City Engineer
Environmental and Public Works Management Department
Suzanne Fnck, Director
Andy Agle, Deputy Director
Planning and Community Development Department
Katie LIChtlg, Assistant to the City Manager for Management Services
City Manager's Office
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