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SR-6C (34) F IHOUSING\SHARE\WPFILES\STAFFRPT\eucbldRPT2 WPD be. 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 -1- C. AUG 1 0 1?g~ 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 -2- 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 -3 - 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 -4- 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 1 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, ..., - 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{ I Lm ~" . 1.' U1); - . MARSHA J' ES MOUTRIE City Attorney 3 Adopted and approved this 10th of August, 1999 \ ---r-..-," 'C:;/-;-i ------- ~ i I ~ I \! <' . l, ,. . r- -f ~~ I 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 -------- "---- \ \...)..J._~__..,,- 'w .....::to ~ . ~ J Mana M Stewart, Clty.~Clerk