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SR-6-E (105) . ~-E JLiL 9 1991 GS:SES:LR:cj/CC1256.word.engine Santa Monica, California Council Meeting: July 9, 1991 TO: Mayor and City council FROM: City staff SUBJECT: Resolution Waiving competitive Bidding and Authorizing the City Manager to Negotiate and Execute a Construction Contract for Civic Auditorium Snack Bar/Box Office Remodel Introduction This report requests that the city Council adopt the attached resolution waiving competitive bidding and authorizing the City Manager to negotiate with the low bidder and other responsible contractors and execute a contract within budgetary funds. Background During the 1990-1991 budget process the City Council approved funding for the remodeling of the existing Snack Bar and Box Office at the lobby of the civic Auditorium. Both were built in the 1950's and are in a deteriorated condition which requires renovation work, upgrading to comply with Health Department requirements, and making the facilities handicap accessible. Plans and specifications were prepared by the City Engineer's Office. A Notice Inviting Bids was published on May 11 and 13, 1991, in the Evening Outlook and in four construction journals. Bidding documents were sent to eight WMBE associations. Bid documents were requested by thirteen contractors. Bids were opened and read publicly by the Deputy City Clerk on June 17, 1991- {p-E - 1 - JUL 9 1991 "'- . Four (4) bids were received as follows: California Repair and Remodel Contractors $ 94,400.00 Brugman Management and Development Company $ 145,000.00 Moment Construction Co., Inc. $ 147,740.00 DTEC Construction $ 205,500.00 city Engineer's Estimate. . . . . $ 110,000.00 The project needs to be completed before winter since that is the busiest season for the civic AUditorium and construction at that time would inconvenience scheduled events. Also, the Health Department corrections must be made quickly to avoid being cited and possible closure of their food service facilities. The apparent low bidder asked to withdraw their bid because of a mathematical mistake. The city Attorney's office concurs that all contractual requirements relating to withdrawing the bid have been met. The amount of the new apparent low bidder ($145,000.00) exceeds the project budget. Staff believes that the design can be modified slightly and a contract negotiated at an estimated cost of $110,000.00 plus 15% ($16,500) contingencies. Design and duplicating costs to date are $2,000.00. Total estimated need for this project is $128,500.00. Section 608 of the Charter of the City of Santa Monica states that the City Council, after rejecting bids, may determine by resolution that the work may be purchased at a lower price on the open market, therefore, Staff requests authorization to negotiate on the open market for this contract. - 2 - BUdget/Financial Analysis ESTIMATED FUNDS REQUIRED Contract . . . . . . . . . . $110,000.00 Contingencies . . . . . . . $ 16,500.00 Design/Duplicating $ 2,000.00 Total $128,500.00 Funds are available in CIP Account No. IS 32-740-621-20091-8900-99278, "Box Office Renovationll, in the amount of $22,500.00 ; 32-740-621-20091-8900-99279, "Snack Bar Renovationll, in the amount of $42,487.00, and 01-000-000-00000-0483, "civic Area Development Reserve" in the amount of $63,513.000. In order to transfer funds from the Civic Area Development Reserve to the civic Auditorium fund, the following technical budgeting changes are required: increase revenue budget at account 32-400-621-00000-0483-1000 by $63,000, and increase appropriation at accounts 01-700-274-00000-7773-00000 and 32-740-621-20091-8900-99279 by $63,000 each. Recommendation It is recommended that the City council: (1) Adopt the attached resolution rejecting bids and waiving competitive bidding for the construction of the civic Auditorium Snack Bar and Box Office Remodel: (2 ) Approve the revenue and expenditure budget changes set forth above; and - 3 - (3) Authorize the city Manager to negotiate and execute a contract for the foregoing construction on the open market; and (3) Authorize the city Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions. Prepared by: stan Scholl, Director of General services Dave Britton, Acting City Engineer See Attached Resolution - 4 - -- - . I RESOLUTION NUMBER 8253(CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT FOR THE CIVIC AUDITORIUM SNACK BAR AND BOX OFFICE REMODEL. WHEREAS, Section 608 of the Santa Monica City Charter provides that the City Council after rejecting bids may declare and determine in its opinion that work may be purchased or performed at a lower price in the open market or with City employees; and WHEREAS I all bids received for the civic Auditorium Snack Bar and Box Office remodel were in excess of budget;and WHEREAS, the bids received for the work greatly exceeds the City Engineer's cost estimate for the work, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council rejects all bids for the Civic Auditorium Snack Bar and Box Office remodel. SECTION 2. In accordance with Santa Monica City Charter Section 608, the City Council declares and determines that, in its opinion, an amended Contract within the budget can be accomplished by negotiation in the open market, and waives competitive bidding for the said improvements. - 5 - . . SECTION 3. The city Manager is authorized to negotiate and execute a contract for the civic Auditorium Snack Bar and Box Office remodel. 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: _#- ~ -..-\ .~ ',"-.-,,' .... ~- ROBERT M. MYERS City Attorney . - 6 - . , Adopted and approved this 9th day of July, 199~. / ~l:ftf I hereby certify that the foregoing Resolution No. 8253 (CCS) was duly adopted by the City Council of the City of Santa Monica at a meeting thereof held on July 9th, 1991 by the following Council vote: Ayes: Councilmembers: Holbrook, Ka tz , Olsen, Vazquez, Zane, Abdo Noes: councilmembers: None Abstain: councilmembers: None Absent: councilmembers: Genser ATTEST: ~ /~ ~ / City crery - -