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FILE # 600-35
AGENDA STATEMENT
CZTY COUNCZL MEETZNG DATE: May 1, 2001
SUBJECT:
Dublin Heritage Center Storage Building - Contract 01-07
Report Prepared by: Herma Lichtenstein, Parks and Facilities
Development Manager
ATTACHMENTS: 1)
1)
RECOMMENDATION: .~ 2)
Resolution
Adopt resolution
Authorize Staff to negotiate contract
FINANCIAL STATEMENT: None
DESCRIPTION: At the meeting of February 6, 2001 the City Council authorized Staff
to solicit bids for the new Dublin Heritage Center Storage Building. The storage building will be a
climate controlled modular building designed to match the existing structures at the Heritage Center
BID RESULTS
Notice that the City would accept sealed bids for the project was published in the Tri-Valley Herald in
March 2001. The notice inviting bids indicated where bid documents could be obtained and announced
that bids would be open and read on April 5, 2001 at 3:30PM.
The City only received one bid for the project. GE Capital Modular Space submitted the sole bid in the
amount of $57,520. The GE Capital bid included a one-page document entitled "Contractual
Clarifications." The document made GE Capital's bid subject to the City's acceptance of the "Contractual
Clarifications. Such "Clarifications" included provisions limiting GE Capital's liability concerning
delivery, making the project schedule subject to negotiation, and establishing payment, acceptance and
insurance terms. The City Attorney's office advised Staff that the "Contractual Clarifications" were
actually substantive modifications of the project specifications. Counsel further advised that the
"Clarifications" were bid non-conformities that the City could not lawfully waive, and that rendered the
GE Capital bid non-responsive. As a result, the City is obligated to reject the GE Capital bid as non-
responsive.
Counsel also advised Staff that where the sole bid for a public works project is non-responsive, the legal
result is as if no .bids at all were received. The City Attorney's office has advised that because no
responsive bids were received for the project further competitive bidding is excused under Public Contract
Code Section 20166. According to the City Attomey's office, the City is therefore legally permitted to
enter into a negotiated contract with GE Capital, the sole bidder for the project. The City Attorney's office
is prepared to negotiate such a contract with GE Capital based on the original project specifications and
"Clarifications" proposed by GE that are not detrimental to the City.
C:\WINDOWSXDESKTOPXHeritage award.doc
COPIES TO:
ITEM NO,
CONCLUSION
It is recommended that the City Council take the following action:
Adopt Resolution rejecting the bids for Contract 01-07
Authorize Staff to negotiate a contract with GE Capital Modular Space
Page 2
RESOLUTION NO. - 01
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
REJECTING THE BID FOR THE DUBLIN HERITAGE CENTER
STORAGE BUILDING PROJECT, CONTRACT NO. 01-07, AND DIRECTING STAFF
TO NEGOTIATE A CONTRACT FOR THE PERFORMANCE OF SUCH PROJECT
WHEREAS, the City of Dublin did, on April 5, 2001, publicly open, examine, and declare all sealed
bids for doing the work described in the approved Plans and Specifications for the Dublin Heritage Center
Storage Building Project, Contract No. 01-07, which Plans and Specifications are hereby expressly referred
to for a description of said work and for all particulars relative to the proceedings under the request for
bids; and
WHEREAS, the sole bid for Contract No. 01-07 was received from GE Capital Modular Space;
and
WHEREAS, the GE Capital Modular Space bid included a one-page document entitled
"Contractual Clarifications;" and it has been determined that the "Contractual Clarifications" are
substantive modifications of the project specifications; and
WHEREAS, because of this, it has been determined that the bid rendered by GE Capital is non-
responsive; and
WHEREAS, California Public Contract Code Section 20166' applies to permit cities to have public
projects performed without further competitive bidding when no responsive bids are received;
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby reject the bid received on
April 5, 2001 from GE Capital Modular Space for City of Dublin Contract 01-07; and
BE IT FURTHER RESOLVED that staff are authorized and directed to negotiate a contract for
the work described in the Plans and Specifications for Contract No. 01-07 with contract terms substantially
in accordance with the terms included with such Plans and Specifications and that staff are further
authorized and directed to present such contract and contract terms for execution by the Mayor on behalf
of the City in due course.
PASSED, APPROVED AND ADOPTED this Is day of May, 2001.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
K2/G/5-1-O 1/reso-reject-hcbldg.doc (Item 4.11 )
G: \CC-MTGSX2001 QTR2XMAYX5-1-01Xreso-rej ect-hebldg. doc
ATTACHMENT 1