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Council Meetmg August 10, 1999 Santa MOnica, Callfornl~G 1 0 1999
To Mayor and City Council
From City Staff
Subject RecommendatIon to Adopt a Resolution to Waive Public Bidding Procedures
for Construction of Community Space at 1525 Euclid Street
INTRODUCTION
This report recommends that the City Council adopt a resolution with fmdmgs to waive the
blddmg procedures for the 933 square foot City-owned commu mty space to be developed
In conjunction with the 13 Unit United Cerebral Palsy (UCP) Housmg project at 1525 Euclid
Street
BACKGROUND
In April 1999 the City of Santa MOnica purchased the property at 1525 Euclid Street for
development as affordable hOUSing and a community meeting space BUilt In 1928, the
1525 Euclid bUilding IS the oldest remalnmg governmental faCIlity m the City, formerly
housmg the County Mental Health Center, and as such IS eligible for Ilstmg In the National
Register of Hlstonc Places The affordable housmg portion of the project, 13 Units
acceSSible to persons With disabilities, Will be pnmarlly funded from HUD With
supplementary funding through a loan from the HOUSing Trust Funds The City Will
develop, own and operate the 933 square foot community room space as a public faCility
at the estimated cost of $100,000
DISCUSSION
Section 2 24 071 of the Municipal Code requires that every contract Involvmg an
expenditure of more than $25,000 for pubhc works proJects, Including the construction of 6
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public faCilities, be let to the lowest bidder In the proposed project, only the community
space IS subject to the City's bidding requirements under Mu nlclpal Code Section 2 24 071 ,
as the City will own and operate the space as a community faCility The housing project
IS not a publ1c works project and, Instead of open public bidding, UCP will use an Informal
bidding process for the general contractor, as IS the standard practice for HUD-flnanced
projects If the City must apply Its bIddIng reqUIrements to the community space, different
contractors may lIkely be selected to construct each of the two project Improvements
The disadvantages of haVing separate contractors for each ofthe projects have to do with
coordination, tlmmg and liability, whIch In turn affect costs Those Implications are
descnbed In greater detail below
Coordination and Costs
The 1525 Euclid Street Project Involves hazardous matenal (asbestos) mitigation and
construction of many Interrelated systems between the community space and housmg
project, each of which Will require careful coordination If thiS coordination IS not done
properly, It Will cost the project time and money For example, prior to rehabilitation,
asbestos must be removed from both the community room and In hOUSing areas In
addition, condUIts for plumbmg, sewer, and electrrcal service to the community meetmg
space Will come dIrectly from the hOUSing project The relationship between the two uses
In the bUIlding and institution of measures to ensure proper coordination IS best
accomplished by a single general contractor
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Additionally, a single general contractor for both the housing, community room and
landscaping components of the project will help to ensure consistency In applYing
preservation standards dunng construction
Project Schedule and Timin~
The timely development of the proposed project IS Important for several reasons First,
the housing portion of the project must be started In the fall to meet a HUD funding
deadline Second, there will be construction cost savings for the entire project (including
the community space) If the project IS bUilt In one phase thiS fIscal year Third. If a
separate contractor selectlOn process occurs for the community space, the time involved
could potentially delay the beginning of the hOUSing project
Bonding and Liability
If two separate contractors are used l It IS likely that the contractor for the community space
would be unWilling to accept the work of the contractor for the hOUSing project or
Independently guarantee their work In the community space. With a Single general
contractor, related systems m the community space and the housmg project would be
"seamless" thereby allOWing for a clear delineation of responslblhty for liability and bonding
purposes
Contractor Biddin.q
Waiving the CIty's bidding reqUIrements does not mean that the project would not be
competitively bId The developer would obtain bIds from three Dr four general contractors,
and enter Into a negotIated general contract wIth a one who IS qualIfIed and cost-effective
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This contractor would be required to obtam a minimum of three competitive bids for each
line Item In the development budget
FINANCIAL/BUDGETARY IMPACTS
This recommendation would have no budgetary Impact Funding for the community space
Improvements and landscaping was approved In the FY 99-00 CIP budget
RECOM MENDA TIONS
Staff recommends that the City Council adopt the attached ResolutIon authOriZing the City
Manager to waive the blddmg procedures otherwise required by Section 224071 on the
basIs that the services necessary to construct the community space at 1525 Euclid Street
can be purchased more economically on the open market and With reduced liability and
safety concerns
Prepared by Barbara Stinchfield. Director Community and Cultural Services
Jeff Mathieu, Director of Resource Management
Karen Gmsberg, Assistant to the Director, ecs
Robert Moncrief, Housing and Redevelopment Manager
Brett Horner, Senior Administrative Analyst, CCS
Mike Strader, Senior Development Analyst, Housing
Marsha Moutrre, CIty Attorney
Linda Mills, Deputy City Attorney
Attachment A Resolution of the City Council AuthOrizing a Waiver of Bidding
Requirements for Public Works Projects Pursuant to Municipal Code
Section 224071 (d)(1) for Construction of the Community Space at
1525 Euclid Street
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F housmg/share/wpfiles/devproJs/UCP811 /euc bid RESO
City Council Meeting 8/10/99 Santa MOnica, California
RESOLUTION NO 9426
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA
AUTHORIZING A WAIVER OF BIDDING REQUIREMENTS
FOR PUBLIC WORKS PROJECTS
PURSUANT TO MUNICIPAL CODE SECTIONS 2 24 071 (d)(1) and 224071 (d)(3)
FOR THE CONSTRUCTION OF A COMMUNITY SPACE
AT 1525 EUCLID STREET
WHEREAS, the City of Santa Monica Will develop at the estimated cost of $100,000
approximately 933 square foot of community space, provide adjacent landscaping and a
housmg trust fund loan for a 13 Unit affordable housIng project for disabled persons at
1525 Euclid Street, and,
WHEREAS, Section 224071 ofthe MUnicipal Code reqUires that every contract
involving more than Twenty-Five Thousand Dollars ($25.000 00) for public works projects,
Including pUblIc burldmgs, shall be let to the lowest responsIble bIdder after notIce by
publication In a newspaper of general Circulation In the City of Santa MOnica, and,
WHEREAS, pursuant to Section 224071 (d)(1) of the MUnicipal Code, the City
Council may by two-thirds affirmative vote of Its membersh Ip, waive the blddmg procedures
otherwise required by Section 224071 of the MUnlclpal Code If the City Council finds that
the goods or servIces can be purchased more economIcally on the open market, and,
WHEREAS, pursuant to Section 224071 (d)(3) of the MUnicipal Code, the City
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Council may by two-thirds affirmative vote of Its membership, waive the bidding procedures
otherwise requrred by Section 224071 of the MUnicipal Code If the City Council finds that
due to urgent necessIty, the public health, welfare or safety would be JeopardIzed If the
blddmg procedures of SectIon 2 24 071 were followed, and,
WHEREAS, the City CouncIl finds that by waving the bidding requirements for public
works projects for development of the community space at 1525 Euclid Street, the
commumty space can be constructed more economically because the developer of the
disabled housing project may select a Single general contractor to coordinate the
constructIon of the dIsabled housmg project on behalf of the developer and the communIty
space on behalf of the City, which wIll result In greater coordination between the
construction of the communIty space and construction of the disabled hOUSing project,
thereby slgnrficantly reducmg both the time and costs to the City In developing the
communlty space, and,
WHEREAS, the City CounCil finds that by formally bIdding the community space
publiC works project at 1525 EucJrd Street, the publrc health, welfare or safety would be
JeopardIzed, In that contracting With a srngle contractor to Jomtly develop the dIsabled
hOUSing project and communlty space WIll ensure the proper mitigation of hazardous
matenals, ensure consIstency In applYing preselVatlon standards, ensure structural safety
of the bUlldmg and other common components, Will proVIde addItional quality controls, Will
minimiZe constructIon penod dIsruptions and WIll shorten the time penod for the opening
of additional public meeting space In the Immediate neighborhood,
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND ORDER AS FOLLOWS
SECTION 1 Pursuant to MUnicipal Code Sections 224.071 (d)(1) and
224071 (d){3), the City Council hereby authorizes the CIty Manager to forego the bidding
procedures otherwise required for public works projects for the development and
constructIon of the community space to be located at 1525 EuclId Street
SECTION 2 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
11 ~h k{
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MARSHA J' ES MOUTRIE
City Attorney
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Adopted and approved this 10th of August, 1999
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Ram O'Connor, Mayor
I, Mana M Stewart, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution 9426(CCS) was duly adopted at a meeting of the Santa
MOnica City CounCil held on the 10th of August, 1999, by the followmg vote
Ayes_ CounCil members Holbrook, Rosenstein, McKeown, Femstem,
Mayor Pro Tern Genser, Mayor O'Connor
Noes CounCil members
Abstam CounCil members
Absent CounCil members Bloom
ATTEST
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Mana M Stewart, Clty.~Clerk