SR-100907-1D~ir
~,tYof City Council Report
Santa Monica
City Council Meeting: October 9, 2007
Agenda Item: ~ - ~
To: Mayor and City Council
From: Craig Perkins, Director -Environmental and Public Works Management
Subject: Rejection of Bids for the Mountain View Mobilehome Park Utility & Site
Improvements Project
Recommended Action
Staff recommends that the City Council:
1. authorize the City Manager to reject all bids received for the Mountain View
Mobilehome Park Utility & Site Improvements Project in accordance with
Santa Monica Municipal Code (SMMC) Section 2.24.071(d);
2. waive formal bidding procedures in accordance with SMMC Section
2.24.071(e); and
3. authorize the City Engineer to negotiate with the two responsive bidders for
the construction of the project.
Executive Summary
The Mountain View Mobilehome Utility and Site Improvement Project consists of various
upgrades to the park's infrastructure including new underground utilities and street
improvements. On July 19, 2007, three bids were received for the construction of the
project. Of the three bids, one bid was deemed non-responsive as a bid bond was not
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submitted, in addition to other irregularities. The other two bids exceeded the capital
budget available for this project.
In order to implement the project, staff has identified potential modifications to the
project specifications/requirements that may be negotiated, which would reduce the cost
of the proposed improvements. Additionally, staff believes that negotiating the
construction contract using the proposed methods of work and received bids as the
basis, will result in the most economical purchase of services. The recommendation
presented in this report does not have any budget or financial impact. The fiscal impact
will be determined as a result of the proposed negotiations and will be brought to
Council for consideration.
Discussion
The scope of work for this project includes the installation of new underground utilities,
including water, electricity, telephone, cable television, sewer and gas. Other site
improvements include new curbs and gutters, street construction and street lighting.
A Notice Inviting Bids was published on June 13 and 14, 2007, in the Santa Monica
Daily Press. The Notice Inviting Bids was also posted on the Civil Engineering and
Architecture Division's webpage and made available at nine public plan rooms. Nine
contractors requested bid packages and three sealed bids were received by the City
Clerk's office and publicly opened and read aloud on July 19, 2007, by the Deputy City
Clerk. The bid results were as follows:
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Bidder Base Bid Base+Alternate Bid
Gonzales Construction $4,899,574 $5,297,017
Griffith Company $5,769,000 $6,459,000
Palp dba Excel Paving $6,098,300 $6,948,300
City Engineer's Estimate $5,000,000 $5,350,000
The bid from Gonzales Construction was deemed to be non-responsive because the
contractor did not submit a bid bond, along with other significant irregularities. The next
bidder, Griffith Company, base bid exceeded the capital budget available for the project
by $769,000. Staff believes that since the second and third bids were within 5% of each
other and both bids were complete and deemed responsive, the bids reflect the true
market value of the proposed scope of work. Therefore, it is recommended to reject all
bids in accordance with Santa Monica Municipal Code Section 2.24.071(d), as the best
interest of the City will be served if the cost of the proposed work can be reduced to
within the project budget. Additionally, it is recommended to waive formal bidding
procedures in accordance with SMMC Section 2.24.071 (e) and negotiate with the two
responsible bidders, Griffith Company and Palp dba Excel Paving for the construction of
the project using the bid and proposed methods of work as the basis for negotiations.
Staff believes that negotiating the construction contract will result in the most
economical purchase of construction services. Staff has reviewed the proposed
methods of work for the project and has identified possible opportunities to reduce
project costs while maintaining the quality of the improvements. Upon authorization,
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staff will meet with Griffith Company and Palp dba Excel Paving to evaluate options to
bring the project within budget by revising and/or clarifying the project
specifications/requirements. If negotiations are not successful, the City will rebid the
project. If negotiations are successful, staff will report back to City Council on the
proposed revisions to the cost and methods of work and recommend the award of a
construction contract for the improvements.
Budget/Financial Impact
The recommendation presented in this report does not have a budget or financial
impact.
Prepared by:
Allan Sheth, Civil Engineering Associate
Approved:
Forwarded to Council:
. ~ ~.
Craig Perkins ~ P/C~mont EN
Director - En ironmental and Public r~y~ Manager
Works Management Department
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