SR-502-01-05
EPWM: CP: AA: DB: SL: \Staff Reports In Process\2004\12_14\cc1951 (Reject Bids).doc
Council Meeting: December 14, 2004 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Rejection of Bids for the Water Fluoridation System Project
Introduction
This report recommends that the City Council authorize the City Manager to reject all
bids received for the water fluoridation system project in accordance with Santa Monica
Municipal Code (SMMC) Section 2.24.071(d), waive formal bidding procedures in
accordance with SMMC Section 2.24.071(e) and authorize the City Manager to negotiate
on the open market for the construction of the project.
Background
On October 23, 2001, the City Council directed staff to fluoridate water supplied to the
community. Following an extended design process, including review by the City?s
Environmental Task Force, bid documents were prepared and advertised.
Discussion
A Notice Inviting Bids for the construction contract was published on October 2 and 7,
2004 in the Los Angeles Times. Bid packages were requested by 8 contractors. The
City Clerk?s office received two sealed bids, which were publicly opened and read aloud
on October 22, 2004 by the Deputy City Clerk. The results were as follows:
1
Ecology Construction, Inc. $ 1,737,755
Atlas-Allied, Inc. $ 2,177,950
City Engineers Estimate $ 1,200,000
Bids substantially exceed the capital budget for the project. Staff reviewed the bids and
believes that a more favorable project price can be negotiated on the open market and
completed within available budget. Section 2.24.071 of the SMMC states that the Council
can reject all bids, and by 2/3 affirmative vote, forego the bidding procedures if work can
be completed more economically in the open market. Staff recommends that all bids be
rejected, the formal bidding requirements be waived, and the City Manager be
authorized to negotiate a contract on the open market in order to attain a more
competitive price.
Staff will return to Council following these negotiations.
Budget/Financial Impact
There are no budget or financial impacts associated with this recommendation.
Recommendation
Staff recommends that the City Council:
1. Reject all bids received on October 22, 2004;
2
2. Find that the City should be able to negotiate and attain a more competitive price
on the open market and that formal bidding procedures should therefore be
waived; and
3. Authorize the City Manager to negotiate a contract on the open market to
construct the water fluoridation project. After the contract is negotiated, staff will
return to Council for award of contract.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Anthony Antich, P.E., City Engineer
Gil Borboa, Water Resources Manager
Susan Lowell P.E., Civil Engineer
Dave Britton, P.E., Principal Civil Engineer
Spiros A. Lazaris, P.E., Civil Engineer
3