ITEM 6-G

City Council Meeting:  August 7, 1990

TO:      Mayor and City Council

FROM:    City Staff

SUBJECT: Resolution Waiving Competitive Bidding  and  Authorizing
         the  City Manager to Negotiate and Execute a Contract to
         Design,  Furnish  and  Construct  an  Outdoor   Computer
         Programmable Message Display at the Civic Auditorium

INTRODUCTION

This report requests that the City  Council  adopt  the  attached
resolution  waiving  competitive bidding and authorizing the City
Manager to negotiate on the open market to execute a contract  to
design,  furnish  and  construct an outdoor computer programmable
message display board at the Civic Auditorium.

BACKGROUND

The display board will replace the existing sign and be installed
in  the same location outside the Civic Auditorium.  This display
will be remotely operated from the Auditorium Office and has  the
capability  of  being  programmed so that an assortment of static
and graphic displays  can  be  produced.   The  display  will  be
readable,  both  day and night, from approximately 500 feet.  The
new display board was part of the 1989-1990 Capital  Improvements
Program.

A notice inviting bids was published on May 18 and 21,  1990,  in
the  Outlook  and  four construction journals.  Bidding documents
were sent to five DBE contracting associations and were requested
by  three contractors.  Bids were opened and read publicly by the
Deputy City Clerk on June 11, 1990.
Two bids were received as follows:

         Chief Neon Sign Co. Inc.           $  99,990.00
         Visual Information Systems Inc.    $  74,950.00
         City Engineer's estimate           $ 100,000.00

The bid from Visual Information Systems Inc. was determined to be
non-responsive  on the basis that specification requirements were
not met as follows:

         Nine fonts submitted instead of the required 12.

         Maximum of 1.2 frames/second furnished  instead  of  the
         required 5.0 frames/second

         Ten months of successful system  operations  instead  of
         the required 5 years.

The high bid from Chief  Neon  Sign  Co.  met  all  specification
requirements,  however, the bid cost exceeded the available funds
when the contingency costs were considered.

To rebid the project would result in a delay  of  two  months  to
reissue contract documents and allow contractors adequate time to
prepare bids and may not result in a responsive  bid  within  the
budget.

Section 608 of the City Charter of Santa Monica states  the  City
Council,  after  rejecting bids, may determine by resolution that
the work may be purchased at a lower price on the open market.

BUDGET/FINANCIAL REPORT

         Funds Required

         Contract (Approx.)        $  92,500
         Contingency (5%)              4,327

         Total                     $  96,827

         Funds in the amount of 96,827.00 are  available  in  CIP
         Account 32-740-621-27390-8911-99183.

RECOMMENDATION

It is recommended that City Council:

         (1)  Adopt the attached resolution  rejecting  bids  and
              waiving   competitive   bidding   for  the  design,
              furnishing  and  construction/installation  of   an
              outdoor display board at the Civic Auditorium;

         (2)  Authorize the City  Manager  to  negotiate  with  a
              responsible  contractor  and execute a contract for
              the foregoing design/construction; and

         (3)  Authorize the City Manager to issue  any  necessary
              change   orders  to  complete  additional  work  in
              conformance with the Administrative Instructions.

Prepared by:  Stan Scholl, Director of General Services
              Barbara  Franklin-Moran,  Director  of Cultural and
              Recreational Services
              Carole Curtin, Manager of the Civic Auditorium
              Dave Britton, Acting City Engineer


                   RESOLUTION NUMBER ________
                      (CITY COUNCIL SERIES)

         A RESOLUTION OF THE CITY COUNCIL OF THE  CITY  OF  SANTA
         MONICA  AUTHORIZING  THE  CITY  MANAGER TO NEGOTIATE AND
         EXECUTE  A  CONTRACT  FOR  THE  DESIGN,  FURNISHING  AND
         CONSTRUCTION/INSTALLATION  OF  AN ELECTRONIC SIGN AT THE
         CIVIC AUDITORIUM

              WHEREAS, Section  608  of  the  Santa  Monica  City
Charter  provides  that the City Council after rejecting bids may
declare and determine in its opinion that work may  be  purchased
or  performed  at  a  lower price in the open market or with City
employees; and

              WHEREAS, the high  bid  received  for  the  design,
furnishing and construction/installation of an electronic sign at
the Civic Auditorium was in excess of budget; and

              WHEREAS, the low bid  received  for  the  work  was
non-responsive to the specification requirements,

              NOW, THEREFORE, THE CITY COUNCIL  OF  THE  CITY  OF
SANTA MONICA DOES RESOLVE AS FOLLOWS:

              SECTION 1.   The City Council rejects all bids  for
the   design,  furnishing  and  construction/installation  of  an
electronic sign at the Civic Auditorium.

              SECTION 2.   In accordance with Santa  Monica  City
Charter  Section  608,  the  City Council declares and determines
that, in its  opinion,  a  contract  within  the  budget  can  be
negotiated in the open market, and waives competitive bidding for
the said improvements.

              SECTION 3.   The  City  Manager  is  authorized  to
negotiate  and  execute a contract for the design, furnishing and
construction/installation of an  electronic  sign  at  the  Civic
Auditorium.

              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.

APPROVED AS TO FORM:

____________________
ROBERT M. MYERS
City Attorney