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Home My WebLink AboutRS01-Public Works File No. 7.3695 . CI. OF SAN BERNARDIF - REQUFtT FOR COUNCIL AC'FN ,From: Roger G. Hardgrave ~: Public Works/Engineering Date: 5-13-86 Subject: Rejection of Low Bid & Award of a Contract -- Construction of Rio Vista Regional Park, Phase II-A, per Plan No. 6767 -- HUBBS EQUIPMENT & CONSTRUCTION Synopsis of Previous Council action: June, 1985 Allocation of $270,000 approved from CDBG Funds & Park Construction Fee Fund. 3-03-86 Plans approved and authorization granted to advertise for bids. Recommended motion: Adopt Resolution. . cc: John Matzer, Jr. Wa rren Knudson Annie Ramos Ralph Prince I4r1+ ~c4 Signatu Contact person: Roger G. Hardgrave Supporting data attached: Report of Bi ds Ward: 5025 6 Phone: FUNDING REQUIREMENTS: Amount: Source: Finance: I'Cil Notes: 75-0262 Agenda Item No. ~S - I CI*' OF SAN BERNARD. - REQUAT FOR COUNCIL AC4tON . STAFF REPORT Page 1 of 2 Bids for this project were opened at 2:00 p.m. on Tuesday, 5-6-86. A total of 6 bids were received, ranging from $189,314.55 to $257,125.71. The low bid of $189,314.55, for the Basic Bid plus 8 Additive Alternates, is 17.0% under the Engineer's Estimate of $228,467. The low bidder telephoned immediately after the bid opening to advise that he had made a "gross clerical error," and requested to be excused from his bid. A telegram and certified letter were later submitted in support of this re- quest. Copies of these items are attached for reference. This request has been reviewed with Bill Sabourin, Deputy City Attorney. Mr. Sabourin is of the opinion that Sections 5100 - 5108 of the Public Contract Code grants authority for the low bid to be rejected. In view of the financial hardship on the low bidder, and difficulty in obtaining a satisfactory project, we recommend that the low bid be rejected. The second low bid of $231,966.06 is 1.5% over the Engineer's Estimate of $228,467.00. Listed below is an estimate of the total project cost, based upon the second low bid. . Construction Contract (Basic Bid plus 8 Additve Alternates) Engineering & Inspection (W.O. #1413) 3-inch Water Meter Fee $ 231,966.06 Sub-Total $ Contingencies (5%)! TOTAL ESTIMATED PROJECT COST $ 11,600.00 8,889.00 252,455.06 12,544.94 265,000.00 Funding for this project has been allocated as follows: 1984-85 Budget $ CDBG 100,000 Park Construction Fees 50,000 1985-R6 Budget CDBG $ 100,000 Park Construction Fees 20,000 TOTAL AVAILABLE FUNDS $ 270,000 Phase II extends from the existing improvements to the south about 630 feet. The total estimated cost for improvement of Phase II is $458,502. Since only . 75-0264 CI" OF SAN BERNARD-F - REQU.T FOR COUNCIL ACFN STAFF REPORT . Page 2 of 2 $270.000 was available. the contract documents were prepared to direct rough grading of the entire 630 feet and full park improvements of the northerly half. as Phase II-A. The Department of Parks. Recreation and Community Services will propose that an additional $200.000 from CDBG Funds be allo- cated in the 1986-87 Budget. in order to finance the completion of Phase II. If agreement could be reached that these funds are to be approved in the 1986-87 Budget. another option would be to reject', all bids and authorize that the project be re-advertised for all of Phase II. We recommend that a contract be awarded to the second low bidder. . . 75-0264 -~ ~,~~~, ,~:;.c'",;~. ,"-,:'~.r,;~ "...;& ,~ "'<-.l~"-"''''-'''''''-~'~~''''-'-'''''''''~'''-'''-'-''''~''''''''l \~WJ(:;.-v-t='d~" f ':;-r I,~ I'~v-' . !J:iiJ'J,U.AJ.~_ _~" (~ JJ : ""-" TERRA-CAL CUNSTRUCTION INC _ 60X 1549 . ~LDWIN PARK CA 917n6 ObAM . ""._.~.,_.,---- .~ ~.,' ....'" .....~-_..--........-._, ....... . . 1-0372775126003 05/06/86 Ies IPHRNCZ C5P ~SAA 2 8189603694 MGM TORN BALDWIN PARK CA 05-06 OS34P EST ~ CITY OF SAN BERNARDINO ATTNI ROGER HARDGRAVE 7143835025 300 NORTI-i 0 ST SAN BERNARDINO CA 92418 " /~-"',> (~! , \-1 \'Cr\ Y:~ ~?7'.,. n'. -, -, ~':.).!..L::,'~ ... . I ( THIS IS A CONFIRMATION cOpy OF A TELEGRAM ADDRESSED TO YOU, WE MADE GROSS CLERICAL ERROR ON RIO VISTA PARK BID, REQUEST TO BE EXCUSED FROM PERFORMANCE WILL HEET TO DISCUSS ERROR AT YOUR REQUEST REGISTERED LETTER TO fOLLOW TERRA-CAL CONSTRUCTION INC . .........~.........................................._...-............... .SPECIAL MOTHERIS DAY TELEGRAM ...~....._.-..-....-..._._... REMEMBER MOTHER ON MAY 11TH wITH A SPECIAL KEEPSAKE TELEGRAM PLAQUE fOR AS LOW AS $19.75. YOUR MESSAGE WILL BE READ TO HER OVER THE TELEPHONE AND A SPECIALLY DESIGNED KEEPSAKE TELEGRAM~ MOUNTED ON A BEAUTIfUL WOOD TONE PLAQUE, WILL BE MAlLED TO HER AS A LASTING MEMENTO THAT SHE CAN PROUDLY DISPLAY, CALL 1-800-325-&000, OPERATOR 24. .-.-------_..~._-----.._._....._....-..-.........-.--~.~.~._.-....-..-.. 17131 EST MGMCOMP ( - '- . ~ \. N II) , ... g; " - '>t N "' TO REPLY BY MAilGRAM MESSAGE, SEE REVERSE SIDE FOR WESTERN UNION'S TOll, FREE PHONE NUMBERS ~ '- -~~ . . . . l TERt\A.CAt CONSTRUCTION, INC. ..... ~:;.~ ~ 14530 JOANBRIOGE STREET. P.O. BOX 1549. BAlOWIN PARK. CALlFQHNIA 91706. (818) 9GQ-3394 SITE DEVELOPMENT' LANDSCAPE May 7, 1986 City of San Bernardino 300 N. D Street San Bernardino, Calif. 92418 Attention: Roger Hardgrave, Director of Public Works. Reference: Rio Vista Regional Park Spec # 6767. Gentlemen: During the preperation of our bid on the above referenced project a gross clerical error was made during the compilation of projected costs. This error resulted in a substantial reduction of the bid amount and the subsequent submission of an erron- eously low bid. Due to the large amount of this error and the devastating effect it would have on our operation we respectfully request that we be excused from per- formance of this contract. . While we were compiling our bid the following events occured which resulted in the above referenced clerical error. Having outlined the material, equipment, labor, and production parameters, Steve Bimm gave the item by item bare costs to Estella Lorona, our Vice President, to check for multiplication errors, totals and mark- up. While she was performing this function Steve reviewed the miscellaneous job costs, which were to be incorporated into Bid Item I, with company President Larry Tyler. Mr. Tyler approved and totalled these costs and inserted the total on the appropriate Bid Item Work-Up form, however, he failed to re-add the total for that item and upon subsequent transfer to the official bid forms the ~rroneous figure was utilized. In light of this clerical error we respectfully request that we not be forced tQ enter into a contractual agreement with the City of San Bernardino and be relieved of obligation pursuant to Sections 5100-5108, inclusive, of the Public Contract Code of the State of California. We sincerely appologize for any inconvenience that this request will cause for you and your staff. We will be happy to meet with you if necessary at your convenience to provide any further information you may need in regard to this matter. Thank you for your time and judicious consideration of this request. Very truly yours, TERRA-CAL CONSTRUCJI~N.INC. U~ ~~./2 . William L. Tyler, ~ident ~~~~ Steven M. Bimm, Estimator/Project Manager - . . . . . 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A CONTRACT TO HUBBS EQUIPMENT AND CONSTRUCTION FOR CONSTRUCTION OF RIO VISTA 3 PARK, PHASE II-A, AND REJECTING THE BID FROM TERRA-CAL CONSTRUCTION INC. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF 5 SAN BERNARDINO AS FOLLOWS: 6 SECT ION 1. The bi d from Terra-Cal Construction, Inc., is 7 rejected, due to a gross clerical error, as provided in Sections 8 5100 - 5108 inclusive of the Public Contract Code of the State of 9 California. 10 SECTION 2. Hubbs Equipment and Construction is the lowest 11 responsible bidder for construction of Rio Vista Park, Phase II-A, 12 in accordance with Plan No. 6767 for the total amount of 13 $231,966.061 a contract is awarded to said bidder accordingly ~ 14 for the Basic Bid and Additive Alternates 1 through 8, but such 15 ward shall be effective only upon the contract being fully 16 xecuted by the parties; all other bids therefor are hereby 17 ejected; and the Mayor is hereby authorized and directed to 18 xecute said contract on behalf of the City; a copy of the 19 ontract is attached hereto, marked Exhibit A and incorporated 20 erein by reference as fUlly as though set forth at length. 21 SECTION 3. Execution and Amendments. This agreement and 22 ny amendments or modifications thereto shall not take effect or 23 ecome operative until fully signed and executed by the parties 24 nd no party shall be obligated hereunder until the time of such 25 ull execution. No oral agreements, amendments, modifications or 26 aivers are intended or authorized and shall not be implied from ~ 27 ny act or course of conduct of any party. 28 1 . . 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 . 27 . . . . 1 I HEREBY CERTIFY that the foregoing resol ution was duly 2 adopted by the Mayor and Common Council of the Ci ty of San 3 Bernardino at a 4 held on the meeting thereof, day of 1986, by the 5 following vote, to-wit: 6 AYES: Council Members NAYS: ABSENT: Ci ty Clerk The foregoing resolution is hereby approved this , 1986. day of Mayor of the City of San Bernardino Approved as to form: j!2J .,0'" /, ,.., /.' {" _:-.', / .' -'" ,:/.j.' ' .......~)....'". . .'. - --~ Ci ty Attorney'=', 28 2