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ORAL COMMUNICATIONS (continued) versus 6% in Redwood City; and that local service to the vehicles is more convenient. City Manager Smith indicated that the City did in fact make an error, however, E-Z Davies Chevrolet made an exception in their bid relating to furnishing bumper guards, which voids their bid. City Attorney Schricker replied to questions by Council, advising that any mistake on the part of the City is not germain to the award of the bid, because of the exception taken to the bid documents by Mr. Davies' company; that having accepted the Ellis Brooks bid the City has established a binding contract and does not have the authority to back out, so that it is legally the option of Ellis Brooks whether they have a contract or not, although as of this time, they have not signed the contract. In response to further questions, Mr. Schricker advised that the Davies bid was not the lowest bid; that Ellis Brooks was the lowest "responsible" bidder, Davies the lowest "apparent" bidder, the distinction being that the Davies bid was not respon- sive because it took exceptions to the requirements in the bid documents, and is therefore invalid. Discussion followed during which members of the Council indicated that apparently there was a misunderstanding at the time action was taken to award the bid, and that the situation should be re-examined. City Attorney Schricker advised that having awarded the contract, to rescind that action there must be a material error on the part of the City that could not otherwise have been ascertained, and if the bid has been misinterpreted, that could be considered a material error. Assistant Finance Director Becker responded to questions by Council, advisinq that even had the $70.00 discount offered by Ellis Brooks been intended to be per unit, E-Z Davies would not be the lowest bidder and that the whole issue is that Davies made exception to the $23 per unit bumper guards and elected not to furnish those in his bid. In response to question by Council regarding the City's liability toward Ellis Brooks in the event the previous action is rescinded, Mr. Schricker advised that inasmuch as apparently no document has been executed by Ellis Brooks to date, Council could minimize liability tonight be rescinding the action. Following additional discussion, the consensus of Council was to rescind the previous resolution (Resolution No. 9120) awarding the contract, and to authorize a new call for bids. City Attorney Schricker read the following title: RESOLUTION NO. 9132 RESCINDING RESOLUTION NO. 9120 AWARDING CONTRACT FOR PURCHASE OF TWELVE COMPACT PICKUP TRUCKS; AUTHORIZING PREPARATION OF REVISED SPECIFICATIONS FOR SAID PICKUP TRUCKS, AND AUTHORIZING READVERTISEMENT FOR BIDS THEREFOR M/S: Mosher/Claire to adopt the resolution. Carried unanimously by roll call vote. -------------------------------------------------------------------------------------------------- ADJOURNMENT Upon motion duly made, seconded and carried, City Council adjourned to a meeting of the Redwood City Redevelopment Agency. Carried unanimously and Council adjourned at 9:12 p.m. (The City Council will reconvene immediately following the meeting of the Redevelopment Agency.) FRANCES I. REGGETTS Deputy City Cl erk Reg. Mtg. 5/24/82 Page 7 "