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AgdaPkt 2019-04-08 Joint SA PFA
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AgdaPkt 2019-04-08 Joint SA PFA
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Last modified
9/24/2020 10:54:06 AM
Creation date
4/4/2019 4:43:39 PM
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Template:
CC Index
CC Index - Document Type
Agenda Packet
Meeting Type
Joint
Agency Type
City Council and Successor Agency and Public Financing Authority
Date
4/8/2019
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6.F. - Page 11 of 32 <br />Phong Du, PE <br />Supervising Civil Engineer <br />City of Redwood City <br />March 15, 2019 <br />Page 2 <br />On January 28, 2019, the City issued a Notice of Intent to Reject All Bids, including <br />because of the much higher than expected construction cost over the planned budget. The City <br />further stated it would reevaluate the project scope, design, schedule, budget and financing <br />options and re -bid the project at a later date. The City also stated in bold: This Notice will <br />supersede all prior official notice(s). <br />On February 21, 2019, the City invited Disney to re -bid the project. <br />Disney is not prohibited from re -bidding the project pursuant to section 5105 because <br />Disney did not "claim" mistake or give notice to the City in the manner required by section 5103 <br />for relief of bid. The grounds for relief of bid under section 5103 require that the bidder <br />establish the following: <br />(a) A mistake was made. <br />(b) The bidder gave the public entity written notice within five working days <br />after the opening of the bids of the mistake, specifying in the notice in <br />detail how the mistake occurred. <br />(c) The mistake made the bid materially different than the bidder intended it to be. <br />(d) The mistake was made in filling out the bid and not due to error in <br />judgment or to carelessness in inspecting the site of the work, or in reading <br />the plans or specifications. <br />Section 5103 does not apply to Disney's January 9, 2019 letter responding to the City's <br />request. First, Disney did not "claim" much less establish that a mistake was made as required <br />by section 5103(a). Second, Section 5103(b) requires a bidder to give the public entity notice of <br />a mistake within five working days after bid opening. Disney's letter was sent to the City on <br />January 9, 2019, thirteen working days after the bid opening on December 19, 2018. Section <br />5103(b) also requires the bidder to specify in detail how the mistake occurred; Disney provided <br />no details in its January 9 letter, or at any other time. <br />Third, Disney's letter was conditioned and only applied "if the City intends to award the <br />Contract for this value [$10,022,000]", while reaffirming that Disney remained "able and willing <br />to complete the work for $10,862,000 per our intended bid total on bid day." In addition, as <br />noted above, after the City decided to reject all bids because of multiple factors, the City invited <br />Disney to participate in bidding the project. <br />Based on the above facts and circumstances, section 5103 is not applicable to Disney's <br />response letter to the City on January 9, 2019, and Disney is not prohibited from participating in <br />bidding pursuant to Public Contract Code section 5105. In addition, the City is estopped from <br />using Disney's conditional response to the City's request that Disney withdraw its bid under <br />section 5103, as prohibiting Disney from participating in further bidding pursuant to section <br />118 <br />
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