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SR-07-25-1978-6QSanta Monica,' ,alifornia, July 19, 1978 TO: Mayor and City Council FROM: City Staff JUL 2 5 1978 SUBJECT: Recommendation to waive further competitive bidding and to accept bid for newspaper press and auxiliary'' equipment. Introduction This report concerns waiver of further competitive bidding and acceptance of a $78,000.00 bid for the newspaper press and auxiliary equipment formerly owned by the Santa Monica Evening Outlook. The press, platemaking equipment and electrical controls were acquired as part of the downtown redevelopment project. Background This machinery initially was placed on the market through formal bid procedure with the minimum bid deposit established at $25,000.00. This offering was preceded by a comprehensive sales campaign with advertisments placed in the Los Angeles Times, New York Times, Chicago Tribune, Wall Street Journal, (national edition), Editor & Publisher, The Publishers' Auxiliary and a west coast printing machinery newspaper. This was supplemented by forty -five (45) telephone calls to companies throughout the United States who might be interested or who cound furnish the names of prospects. Approximately one hundred Invitations to Bid and proposal packages were mailed in response to telephone calls or to companies listed in national publications and telephone directories. No bids were received at the scheduled opening April 18, 1978. Subsequent to the opening, Staff continued to seek out buyers by mail and by telephone. Emphasis was placed on South America, Mexico and India. 1 of 2 T0: Mayor and City Council Central National Corporation, agents for El Nacional of Caracas, Venezuela, was the only bidder from whom a responsible firm offer over $4,000.00 was received. Central National Corporation bid $78,000.00 and posted a good faith deposit of $5,000.00. In view of the need to remove this equipment by September 1, 1978, to meet building demolition deadlines, the offer was accepted subject to Council approval. It is estimated that the dismantling will require a minimum of four weeks. The Staff considers that the initial formal bid offering has satisfied the intent of the City charter and municipal code provisions and that further efforts to sell through formal bid procedure would incur additional expense with no assurance of success. Recommendation It is recommended that further competitive bidding be waived and that the bid for the newspaper press and auxiliary equipment by Central National Corporation, agents for El Nacional of Caracas, Venezuela, in the amount of $78,000.00 be accepted. Prepared By: R.N. Aronoff Purchasing Agent 2 of 2 Santa Monica,' ,alifornia, July 19, 1978 TO: Mayor and City Council JUL 2 5 1978 FROM: City Staff SUBJECT: Recommendation to waive further competitive bidding , and to accept bid for newspaper press and auxiliary equipment. Introduction This report concerns waiver of further competitive bidding and acceptance of a $78,000.00 bid for the newspaper press and auxiliary equipment formerly owned by the Santa Monica Evening Outlook. The press, platemaking equipment and electrical controls were acquired as part of the downtown redevelopment project. Background This machinery initially was placed on the market through formal bid procedure with the minimum bid deposit established at $25,000.00. This offering was preceded by a comprehensive sales campaign with advertisments placed in the Los Angeles Times, New York Times, Chicago Tribune, Wall Street Journal, (national edition), Editor & Publisher, The Publishers' Auxiliary and a west coast printing machinery newspaper. This was supplemented by forty -five (45) telephone calls to companies throughout the United States who might be interested or who cound furnish the names of prospects. Approximately one hundred Invitations to Bid and proposal packages were mailed in response to telephone calls or to companies listed in national publications and telephone directories. No bids were received at the scheduled opening April 18, 1978. Subsequent to the opening, Staff continued to seek out buyers by mail and by telephone. Emphasis was placed on South America, Mexico and India. 1 of 2 T0: Mayor and City Council Central National Corporation, agents for El Nacional of Caracas, Venezuela, was the only bidder from whom a responsible firm offer over $4,000.00 was received. Central National Corporation bid $78,000.00 and posted a good faith deposit of $5,000.00. In view of the need to remove this equipment by September 1, 1978, to meet building demolition deadlines, the offer was accepted subject to Council approval. It is estimated that the dismantling will require a minimum of four weeks. The Staff considers that the initial formal bid offering has satisfied the intent of the City charter and municipal code provisions and that further efforts to sell through formal bid procedure would incur additional expense with no assurance of success. Recommendation It is recommended that further competitive bidding be waived and that the bid for the newspaper press and auxiliary equipment by Central National Corporation, agents for E1 Nacional of Caracas, Venezuela, in the amount of $78,000.00 be accepted. Prepared By: R.N. Aronoff Purchasing Agent 2 of 2 RESOLUTT ^N NO. 5062 (CCS) CITY CO IL SERIES A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA WAIVING FURTHER FORMAL BID PROCEDURE AND ACCEPTING A BID FOR NEWSPAPER PRESS AND AUXILIARY EQUIPMENT. WHEREAS, the City of Santa Monica desires to sell a newspaper press and auxiliary equipment acquired as part of the downtown redevelopment project; and WHEREAS, this equipment was offered through competitive formal bid procedure and no bids were received; and WHEREAS, to call again for formal bids would incur additional expense and delay with no assurance of response; and WHEREAS, this equipment must be removed by September 1, 1978, in order to meet building.demolition schedules; and WHEREAS, Central National Corporation, agents for E1 Nacional of Caracas, Venezuela, has submitted as offer of $78,000.00 for this equipment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. That the City Council finds that the timely sale of this printing equipment is necessary and in the best interests of the City. SECTION 2. That to further advertise for formal competitive bids would incur additional time and expense with no assurance of response. SECTION 3. That further formal competitive bidding is waived and the bid of $78,000.00 submitted by Central National corporation, agents for E1 National of Caracas, Venezuels, is accepted SECTION 4. The City Clerk Shall certify to the adoption of this resolution and thenceforth and thereafter the same shall be in full force and effect. ADOPTED AND APPROVED THIS 25th day of July 1978. I Mayor ATTEST: CityjClerk ✓� I h. Thereby certify that the foregoing resolution was duly adopted by the City Council of the City of Santa Monica at a regular meeting thereof, held on the 25th day of July 1978, by the following vote of the Council: AYES: Councilpersons: Bambrick, Cohen, Reed, Scott, Trives, van den Steenhoven, Mayor Swink NOES: Councilpersons: None ABSENT: Councilpersons: None y v� �?yf9 C er,' i ! • • : � i � ���Tii i��i7�u -2- Reference: Contract No. 3065 (CCS)