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(Bragato Paving Co.) AND DIRECTING RETURN OF SECURITY DEPOSITS, seconded by Coun-
<br />cilman Rosselli and carried on roll call vote, Councilman Petersen being noted absent.
<br />REPORT OF BID OPENING, Northwest Area Storm Drain System, Project SD -26, GID 1-65.
<br />The following bids were received:
<br />Mission Pipeline, Inc.
<br />W. H. Ebert Corp. -Spartan Const.
<br />Great Western Pipe
<br />Joseph R. Ramos
<br />Davis Company
<br />Jardin & Jardin
<br />McGuire & Hester
<br />Fairley Constructors
<br />Fremont Pipeline Co.
<br />Rodrigues Construction Co.
<br />Wenrick & Associates
<br />Pestana Co.
<br />Bragato Paving Co.
<br />Granite Construction Co.
<br />Murphy Bros., Inc.
<br />Fay Improvement Co.
<br />William R. Cole
<br />$4o6,321.o4
<br />4o8,807.00
<br />418,925.60
<br />419,70 00
<br />420,044.00
<br />433,624.50
<br />446,651.50
<br />464,756.00
<br />472,376.00
<br />479,117.50
<br />485,572.30
<br />494,34o.00
<br />549,978.95
<br />%071.20
<br />603,237.75
<br />614,622.00
<br />686,483.00
<br />Engineer's Estimate $517,338.00
<br />Staff report stated apparent low bidder, Mission Pipeline, Inc., failed to include
<br />a bid bond as required by the Notice to Bidders and Contract Documents, and that
<br />City Attorney had stated this was grounds for disqualification. Staff and Jenks
<br />& Adamson, therefore, recommend acceptance of the bid of W. H. Ebert Corp. -
<br />Spartan Construction Corp. in the amount of $408,807.00.
<br />Councilman Rosselli moved to adopt RESOLUTION NO. 5339 AWARDING CONTRACT FOR CON-
<br />STRUCTION OF STORM DRAIN IMPROVEMENTS, NORTHWEST AREA GENERAL IMPROVEMENT DIS-
<br />TRICT 1-65, PROJECT SD -26; (W. H. Ebert -Spartan Corp.3 REJECTING ALL OTHER BIDS
<br />RECEIVED, AUTHORIZING EXECUTION OF CONTRACT FOR SAID WORK AND DIRECTING RETURN OF
<br />SECURITY DEPOSITS, seconded by Councilman Bury.
<br />On question, Councilman Keckley discussed communication which had been received
<br />from the Mission Pipe Line Company explaining reason for their failure to submit
<br />their bid bond (copy previously submitted to Council).
<br />Mr. Howard Evans, Attorney of San Jose, representing Mission
<br />Pipeline, Inc., explained circumstances which had resulted
<br />in irregularity of bid submitted by his client and the steps
<br />which had been taken to rectify the situation by communication
<br />being delivered the following morning explaining how bid bond not attached
<br />to bid and submitted bid bond therewith, besides affidavit from
<br />bonding company verifying fact bid bond had been prepared and
<br />submitted to Mission Pipeline, Inc. at time stated prior to the
<br />bid opening, and that representatives were present to verify all
<br />facts. He stated his clients were the lowest responsible bidders
<br />and believed discrepancy could be overlooked by Council as speci-
<br />fications specifically gave City right to waive any informality
<br />and urged Council to award bid to Mission Pipeline, Inc.
<br />Mayor Herkner asked that communication from Mission Pipeline, Inc., be read in full
<br />for the records. (Communication read in full; for full text - See City Clerk's
<br />file - Agreements - GID 1-65, Project SD -26)
<br />City Attorney was asked to state City's legal position in this matter and advised
<br />omission of bid bond was a ground for disqualification of bid received and that it
<br />was proper for Council to award to second lowest bidder; that it was also probable
<br />that the irregularity being a procedural type it could be waived, but also warned
<br />of possible risk if contractor failed to perform. He stated if bidders are not held
<br />to the bid requirements, then such requirements should be eliminated from the bid-
<br />ding procedures. Councilman Rosselli reminded Council of resultant law suit which
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