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CI\..I OF SAN BERNARD~O - REQUOT FOR COUNCIL AC'.)ON
From: Roger G. Hardgrave
Subject: Report of Bi ds -- Improvement of
Orange Show Lane, from "E" Street
to Arrowhead Avenue, per Plan
No, 6502
Dept: Publ ic Works/Engineering
Date: 4- 23-85
Synopsis of Previous Council action:
3-18-85 --- Resolution No, 85-109 adopted ordering work.
Recommemled motion:
1, That the Report of Competitive Bid Opening, for the
improvement of Orange Show Lane, from "E" Street to
Arrowhead Avenue, in accordance with Plan No. 6502,
be accepted and filed.
2, That the low bid from Tonco Construction for the
improvement of Orange Show Lane, from "E" Street to
Arrowhead Avenue, in accordance with Plan No. 6502,
be rej ected,
cc: John Matzer, Jr" City Admin,
Ralph Prince, City Attorney
~E{/JA~
Signature
Verne Nadeau
Phone:
5026
Contact person:
Supporting data attached:
Staff Report & Tabulation of Bids
Ward:
1
FUNDING REQUIREMENTS:
Amount:
N/A
Source:
Finance:
Council Notes:
75-0262
Agenda Item No. ,/?
C~ OF SAN BERNAR~O - REQUUT FOR COUNCIL AWON
STAFF REPORT
Bids for this project were opened on Thursday, 4-18-85, at
2:00 p.m.
A total of 4 bids were received, ranging from $256,764.46 to
$317,284.28. The low bid of $256,764.46 is 13.1% under the Engineer's
Estimate of $295,486.
The low bid was submitted by Tonco Construction. A letter
was received from Tonco Construction on 4-18-85 (see attached) stating
that their bid was based upon a cash payment, instead of bonds. This
misunderstanding resulted in the 15% bond discount not being included in
their bid price. If this discount had been included, their bid would have
been $295,280. Tonco Construction requested in their letter that they be
allowed to withdraw their bid, Due to this misunderstanding, we feel that
Tonco Construction is not a responsible bidder for this project, and we
recommend their bid be rejected.
The second low bid was in the amount of $265,508.70, which is
10.1% under the Engineer's Estimate.
75-0264
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CONSTRUCTION AND EQUIPMENT RENTAL. COMMERCIAL - INDUSTRIAL - RESIDENTIAL
I=:', 3'1 Y (7~~ ~ -i s.-/,
jure'";/.':>>, (.A 92 Y)')
City of San Bernardino
300 North "D" Street
San Bernardino, California 92401
RE:Roger Hardgrave, City Engineer
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APR 1 8 "
PUI . ' 19S5:&..
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Dear Mr. Hardgrave:
As per our conversation on 4/18/85, following the bid opening,
we were misinformed by an employe in the engineering office
as to how payment was to be made, i.e. Bonds or City funds.
We were told that payment was in no way to be made by bonds,
we were also informed that the City of San Bernardino would
negotiate any bonds, and the succesful bidder would be paid
by city funds. This conversation with the employe of the
City of San Bernardino took place at approximately 12:20p.m.
on 4/18/85. The employe stated her name was Rachel Shay.
We therefore find it necessary to withdraw our bid on the
Reconstruction of Orange Show Lane due to the difference
in 'value of negotiating bonds over city funds. Please accept
our apology for the misunderstanding.
Sincerely,
lX~yC~
~~G. Hicks, Jr.
TONCO CONSTRUCTION
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