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SR 05-09-2017 3K (2) Ci ty Council Report City Council Meeting : May 9, 2017 Agenda Item: 3.K 1 of 3 To: Mayor and City Council From: Joseph Cevetello, Chief Information Officer , Information Systems Department Subject: Reject Proposals for Santa Monica Utility Undergrounding and Excavation Bid#UUC1005 Recommended Action Staff recommends that the City C ouncil: 1. Reject all bids for Bid #UUC1005 Utility Undergrounding and Excavation , for utility undergrounding, excavation, and construction services related to the City’s fiber optic network. 2. Direct staff to issue a request for bids (RFB) to obtain the best bidder for utility undergrounding, excavation, and construction services for the City’s fiber optic network. Executive Summary On December 29, 2016, one proposal was received for the Utility Undergrounding and Excavation Bid#UUC1005 , but the bidder failed to submit and complete the required Base Bid document . The project consists of boring, conduit installation, fiber installation, and construction services for the City’s fiber optic network. The public bid was posted as a formal Request for Bid (RF B) for a construction contract. After review of the one proposal received, staff determined that it would be in the best interest of the City to: 1) reject all proposals, 2) require a mandatory pre -bid job walk, and 3) issue a new request for bids. Backg round The City of Santa Monica has built a Municipal Fiber Optic Network, CityNet, for delivering voice, video, and data communications to City businesses, and to offer residential broadband to affordable housing residents participating in the City’s Digit al Inclusion Pilot. The City of Santa Monica has bid a defined phase of utility undergrounding and excavation work for an expansion of the fiber network. The bid requires interpretation of bid engineering drawings, and an active General “A” and Class C -10 Electrical Contractor License at the time of bid submission in order to submit a bid on the project. 2 of 3 Discussion On October 28, 2016, the City published a Notice Inviting Bids to provide utility undergrounding, excavation, and construction services in acc ordance with City specifications. The bid was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal code provisions. 1,376 vendors were notified, 30 vendors dow nloaded the bid. One (1) bid was received and publicly opened on December 29, 2016 per Attachment A. City Clerk and Information Systems Department staff were in attendance during the public bid opening, along with a representative from Minako America Co rporation, dba Minco Construction. The sole bidder, Minco Construction, failed to complete and submit the required Base Bid, a necessary bid document for City staff to evaluate the financial bid proposal. Staff recommends rejecting all proposals and issu ing a new request for bids for a construction contract, with a mandatory pre -bid job walk for the following reasons: The sole bidder failed to complete and submit the required Base Bid A mandatory pre -bid job walk would allow bidders the opportunity t o assess the scope of work and engineering designs in context of City’s description of planned construction, obtain data on existing conditions of construction areas, and identify potential cost drivers to the project during the job walk with City staff. Rejecting all proposals and issuing a new Request for Bid would allow the opportunity for any interested bidders to submit a complete bid, and for staff to evaluate the best bidder for the utility undergrounding, excavation, and construction services requ ired for the City’s fiber optic network Financial Impacts and Budget Actions There is no immediate fiscal impact or budget action necessary as a result of the 3 of 3 recommended action. Prepared By: Yvonne Varela, Administrative Analyst Approved Forwarded t o Council Attachments: A. CDBG Undergrounding and Excavation UUC 1005 Bid Results Bid Results For : CDBG Undergrounding and Excavation UUC100 5 Opened On: December 29, 2016 at 3:00pm in Council Chambers Firm Name Base Bid 1 Minako America Corporation dba Minco Construction NO BID 2 3 4 5 6 7 8 The b ase b id numbers list above were directly transcribed during opening and have not been verified. The offic i al bid tabulation will be calculated after bid opening and any changes will be posted on PlanetBids. The apparent low bidder is: NO BID Please be awar e that City Ordina n ce does not require awarding to the low bidder, but rather the Best Bidder as defined in Municip a l Code Section 2.24.07 2 - Best Bidder .