SR-205-004 (2)
EPWM: CC: AA: JS: SL; F:/SPFILES/Sp1765/Staff Reports/CC1765-0.doc
City Council Meeting: August 13, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Rejection of Sole Bid Received for the Ocean Avenue and Main Street
Sewer Rehabilitation and Main Street Roadway Restoration Project
Introduction
This report recommends that the City Council reject the sole bid received for the Ocean
Avenue and Main Street Sewer Rehabilitation and Main Street Roadway Restoration
project.
Background
After the Northridge Earthquake of January 17, 1994, the City initiated a citywide
inspection program of the sewer system to identify the locations that were damaged and
requested that the Federal Emergency Management Agency (FEMA) and the State’s
Office of Emergency Services (OES) approve funds for repair work. The City
subsequently accepted a Grant Acceleration Program (GAP) offer from FEMA in the
amount of $78 million for the repair of the earthquake damaged sewer system
throughout the City. Sewers in Ocean Avenue and Main Street were among those found
to have suffered earthquake damage.
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Discussion
A Notice Inviting Bids for the construction of the Ocean Avenue and Main Street Sewer
rehabilitation and Main Street Roadway Restoration project was published in the Los
Angeles Times on June 27 and June 29, 2001. The Notice Inviting Bids and plans and
specifications, were also sent to six construction journals and five women/minority
business (WMBE) associations. Bid packages were requested by 29 contractors. The
City Clerk’s Office received one (1) sealed bid, which was publicly opened and read aloud
on July 15, 2002, by the Deputy City Clerk. The only bid received was from Modern
Continental Construction Company Inc., in the amount of $5,247,488. The Engineer’s
estimate for the project was $4,000,000. Staff believes the City can receive more
competitive bids by modifying some provisions of the specifications to make it easier for
more qualified contractors to bid.
Budget and Financial Impact
There is no financial impact associated with the rejection of bid.
Recommendation
Staff recommends that the City Council reject the sole bid received for the project.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Anthony Antich, P.E., City Engineer
Jack Schroeder, P.E., Disaster Recovery Program Manager
Susan Lowell, P.E., Civil Engineer
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