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6.E. - Page 9 of 22 <br />COMMUNITY <br />DEVELOPMENT DEPARTMENT <br />www.redwoodcity.org <br />July 29, 2019 <br />/T <br />Redwood <br />CityI California <br />Pounded 1867 <br />TO: Mr. Peter Anderson <br />Anderson Pacific Engineering Construction, Inc. <br />1390 Norman Avenue <br />Santa Clara, CA 95054 <br />pea@andpac.com <br />VIA EMAIL AND U.S. MAIL <br />1017 Middlefield Road <br />Redwood City, CA 94063 <br />Main: 650.780.7380 <br />Fax: 650.780.7309 <br />PROJECT: Peninsula Tank No. 2 Seismic Improvement Project <br />Bid Opening Date: July 2, 2019 <br />SUBJECT: Response: to Request of Bid Relief Letter from Anderson Pacific <br />Engineering Construction, Inc. <br />Mr. Anderson, <br />This letter isprovided in response to your letter dated July 9, 2019, relating to the bid of the <br />Peninsula Tank No_ 2 Seismic Improvement Project (Project). City staff has reviewed the letter, <br />in which Anderson Pacific Engineering Construction, Inc. (Anderson Pacific) requests bid relief <br />from the City. <br />After a careful review of all related facts and California Public Contract Code Sections 5100- <br />5110 in particular, we have determined that Anderson Pacific had in fact claimed a mistake <br />under Public Contract Code Section 5103 in the original bid for the Project and satisfied the <br />elements of that statute. Specifically, Anderson Pacific claimed to have made an error in the bid <br />preparation by not including additional costs for Bid Item No.1 amongst other bid items as the <br />Project Specifications limited Bid Item No.1 not to exceed 5% of the total bid, the result of which <br />was a bid $125,000 lower than what was intended. You have stated that the mistake was a <br />clerical error in a spreadsheet formula while preparing the bid. Anderson Pacific notified City <br />staff of this mistake by email on July 9, 2019, which was four business days after bid opening on <br />July 2, 2019. There is no evidence that Anderson Pacific made an error in judgment or was <br />careless in inspecting the work site or reading the Project Plans and Specifications. <br />Pursuant to Public Contract Code Section 5105, Anderson Pacific is prohibited from <br />participating in further bidding on the Project. <br />On August 26, 2019, City staff intends to recommend that the City Council reject all bids and re- <br />bid the project at a later date in accordance with California Public Contracting Code Sections <br />5100-5110 and the bid specifications. <br />Page 1 of 2 <br />56 <br />