Loading...
HomeMy WebLinkAboutC-2733 - Water main improvement in Back Bay Drive & Bayside DriveCITY OF NEWPORT 4ACH November 30, 1989 OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 Irvine Pipeline Co., Inc. P.O. Box 3328 Santa Ana, CA 92703 Subject: Surety: Bonds No.: Contract No.: Project: (714) 644 -3005 The Continental Insurance Company 158 85 80 C -2733 Water Main Improvements in Back Bay Drive and Bayside Drive The City Council of Newport Beach on October 30, 1989 accepted the work of subject project and authorized the City Clerk to file a Notice of Completion and to release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. The Notice was recorded by the Orange County Recorder on November 8, 1989, Reference No. 89- 602361. Sincerely, Wanda E. Raggio� City Clerk WER:pm cc: Public Works Department 3300 Newport Boulevard, Newport Beach on which Irvine Pipeline Co., Inc., P.O. Box 3328 Santa Ana, CA 92703 was the contractor, and The Continental Insurance Company, 145 South State College Blvd., was the surety, was completed. Ste. 610, Brea, CA 92622 ZY,OF NEWPORT BFACH Public Works Director VERIFICATION I, the undersigned, say: I am the Public Works Director of the City of Newport Beach; the foregoing Notice of Completion is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 1, 1989 at Newport Beach, California. Public Vorks Director VERIFICATION OF CITY CLERK I. the undersigned, say: I am the City Clerk of the City of Newport Beach; the City Council of said City on October 30, 1989 accepted the above described work as completed and ordered that a Notice of Completion be filed. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 1, 1989 at Newport Beach, California. City Clerk , 89 -60236 RECORDING REQUESTED BY AND PEXEMPT RECORDS WHEN RECORDED RETURN TO: RECORDING REQUEST PER OF ORANGE �Nn' CALIFORNIA OFORA GECOIJNTY, City Clerk / � GOVERNMENT CODE 6103 10:30 ����/ NOV a 19e9 City of Newport Beach EXEMPT A.M. 3300 Newport Boulevard Newport Beach, CA 92663 C+11 e2 coo�RECOROER NOTiCF. OF COMPLETION PUBLIC WORKS - - -.4 'lo All Laborers and Material Men and to Every Other Person Interested: \Okto � YOU WILL PLEASE TAKE NOTICE that on June 30, 1989 the Public Works project consisting of Water Main Improvements in Back Bay Dri_ye and Bayside Drive (C -2733) on which Irvine Pipeline Co., Inc., P.O. Box 3328 Santa Ana, CA 92703 was the contractor, and The Continental Insurance Company, 145 South State College Blvd., was the surety, was completed. Ste. 610, Brea, CA 92622 ZY,OF NEWPORT BFACH Public Works Director VERIFICATION I, the undersigned, say: I am the Public Works Director of the City of Newport Beach; the foregoing Notice of Completion is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 1, 1989 at Newport Beach, California. Public Vorks Director VERIFICATION OF CITY CLERK I. the undersigned, say: I am the City Clerk of the City of Newport Beach; the City Council of said City on October 30, 1989 accepted the above described work as completed and ordered that a Notice of Completion be filed. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 1, 1989 at Newport Beach, California. City Clerk , FUI T 7LT B14'nslt?33R in^in.IXiR M:q is TO: CITY COUNCIL FROM: Public Works Department gctober 30, 1989 ICITY vY °P .ITY 0UNCILTEM Ch _rr,��7r11C� OCT 3 0 1989 APPRO",' " COUNCIL AGENDA NO. F -17 SUBJECT: ACCEPTANCE OF WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE AND BAYSIDE DRIVE - CONTRACT NO. 2733 RECOMMENDATIONS: 1. Accept the work. 2. Authorize the City Clerk to file a Notice of Completion. 3. Authorize the City Clerk to release the bonds 35 days after the Notice of Completion has been recorded in accordance with appli- cable portions of the Civil Code. DISCUSSION: The contract for the construction of the subject project has been completed to the satisfaction of the Public Works Department. The bid price was $273,631.00 Amount of unit price items constructed 272,494.75 Amount of change orders 7,352.68 Total contract cost $279,847.43 One change order was issued in the amount of $7,352.68. It provided for 1) the repair of a sanitary sewer which had not been shown on the plans and the use of ductile iron pipe in the vicinity and 2) the installation of additional fittings to connect to the existing fire service to the Dunes. Funds for the project were budgeted in the Water Fund, Account No. 50- 9288 -001. The Contractor is Irvine Pipeline of Santa Ana. The contract date of completion was June 30, 1989. The Back Bay Road portion of the project was completed by the date to accommodate the opening of the Dunes. Construction of the Bayside Drive portion of the project was coordinated with the Coast Highway project and was completed by September 15, 1989. )10-4 �2�_ � 0- Benjamin B. Nolan Public Works Director PD:so j PIP, fy„,rpg m��}� I � ,w / r -Z KAMINE, STEINER 8 UNGERER' LAWYERS BERNARD S. KAMINE 350 SOUTH FIGUEROA STREET. SUITE 250 MATT STEINER PHYLLIS UNGERER LOS ANGELES, CALIFORNIA 90071 JOSEPH BALISTOCKY OF COUNSEL CATHERINE RIPOLONE (213) 972 -0119 FAx 12131 972 -0005 11 CITY Ii ..'WPU U .1t1TCi May 4,1989 MAY 2 2 1989 Honorable City Council:. City of Newport Beach 3 ^� N2w. port Blvd. j RECEIVED P.O. Box 1768 NAY 9 1 Newport Beach, CA 92658 -8915 CRY am CITY OF NEWPORT BEACH Re: Water Main Improvements in Back Bay Drive and Bay Side Drive Contract No. 2733 Our File No. 093.999 (Newport) Gentlemen: As you know, this firm represents John T. Malloy, Inc., the second low bidder on the contract referred to above. This letter is an additional protest by John T. Malloy, Inc. against the proposed award of that contract to the low bidder, Irvine Pipeline Company, Inc. at the price of $273,631. An award at the $273,631 price would violate the City's own bidding procedures and state law. If that contract is awarded to Irvine, it can be awarded only at the correct bid price of $248,656. The City's "instruction to bidders" siaies '.flat "m the Event Of diSircp ii j vcC7VCC:i wording and figures, bid wording shall prevail over bid figures." In the bid submitted by Irvine, the bid price for the mobilization and traffic states in written words "twenty- five" dollars; the numerical price states "$25,000.00." To reach a total contract price of $273,631, the numerical figure of "$25,000" must be used. However, pursuant to the City's own "Instruction to Bidders," the contract price p � st be calculated using the written words of "twenty- five" dollars. Thus, the e G®dy correct contract price is $248,656. If the City awards Irvine the contract at any n ?,.cr other price, it will violate its own bidding procedures. The courts find no difficulty in forcing public agencies to comply with their own Jr. bidding procedures in circumstances like this case. In Pozar v. Department of is Dir. 1? Dir. [j Dir. L e Lhid Dir CE u5;er FA Honorable City Council City of Newport Beach Page No. 2 May 4,1989 Transportation (1983) 145 CA3d 269, 193 CR 202, Caltrans calculated petitoner's total bid by using the erroneous, stated extensions of the unit prices in the bid instead of recalculating those extensions using the unit prices. This contradicted the Caltrans bid procedure, which required reliance on the unit prices, not the extensions. Consequently, the court held that Caltrans should have followed it's own bidding procedures in calculating petitioner's bid and ordered it to do so. Thus, if the City awards to Irvine at the $273,631 price instead of the $248,656 price, the Court will probably set aside the contract. BSK:rem cc: John T. Malloy, Inc. Lloyd Dalton Bob Burnham, Esq. /at Fax #644 -3339 Very truly yours, S4 - -,A Bernard S. Kamine 0 0 CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 (714) 644 -3005 TO: FINANCE DIRECTOR FROM: CITY CLERK DATE: May 18, 1989 SUBJECT: Contract No. C -2733 Description of Contract Water Main Improvements in Bark Bal Drive and Bayside Drive Effective date of Contract May 16, 1989 Authorized by Minute Action, approved on May 8, 1989 Contract with Irvine Pipeline Co.. Inc. Address P.O. Box 3328 Santa Ana, CA 92703 Amount of Contract $273,631.00 (e-P 4e Wanda E. Raggio City Clerk WER:pm Attachment 3300 Newport Boulevard, Newport Beach t CITY CLERK NOTICE INVITING BIDS Sealed bids may be received at the office of the City Clerk, 3300 Newport Boulevard, P. 0. Box 1768, Newport Beach, CA 92658 -8915 until 2:00 P.M. on the 25th day of April , 1989, at whit te us such bids sa1T be opened d —and read for WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE & BAYSIDE DRIVE ow 0 Title of Project 2733 Contract No. $370,300.00 Engineer's Estimate O `4' R Approved by the City Council this 10th day of April , 1989. an a E. Raggio ly City Clerk Prospective bidders may obtain one set of bid documents at no cost at the office of the Public Works Department, 3300 Newport Boulevard, P. 0. Box 1768, Newport Beach, CA 92658 -8915. For further information, call Dick Hoffstadt at 644 -3311. Project Manager CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT PROPOSAL WATER MAIN IMPROVEMENTS BACK BAY DRIVETND BAYSIDE DRIVE CONTRACT NO. 2733 To the Honorable City Council City of Newport Beach 3300 Newport Boulevard P. 0. Box 1768 Newport Beach, CA 92658 -8915 Gentlemen: PR 1.1 The undersigned declares that he has carefully examined the location of the work, has read the Instructions to Bidders, has examined the Plans and Special Provisions, and hereby proposes to furnish all materials and do all the work required to complete this Contract No. 2733 in accordance with the Plans and Special Provisions, and will take in full payment therefor the following unit price for the work, complete in place, to wit: 'ITEM QUANTITY ITEM DESCRIPTION UNIT TOTAL NO. AND UNIT UNIT PRICE WRITTEN IN WORDS PRICE PRICE 1. Lump Sum Mobilization and traffic control @ Twenty Five Thousand-------- - - - - -- Dollars and No-------------------------- - - - - -- -Cents $ 25,000.00 Per Lump Sum 2. 282 Install 6 -inch ACP water main with trench Lineal Feet resurfacing @ Forty Six------------------- - - - - -- Dollars and Fift ----------------------- - - - - -- -Cents $ 46.50 $ 13,113.00 Ter Linea Foot 3. 198 Install 8 -inch ACP water main with Lineal Feet trench resurfacing @ Forty Nine------------------ - - - - -- Dollars and No-------------------------- - - - - -- -Cents $ 49.00 $ 9,702.00 Per Lineal Foot "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self - insurance in accor- dance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." Dates Si Irvine Pipeline Co., Inc. Contractor C -2733 • PR 1.2 ITEM NO. QUANTITY AND UNIT ITEM DESCRIPTION UNIT PRICE WRITTEN IN WORDS UNITT` PRICE OPAL —� PRICE 4. 80 Install 12 -inch D.I.P. (MJ) water main with Lineal Feet trench resurfacing @ Seventy Three--------------- - - - - -- Dollars an Fifty------------------------ - -- --- -Cents $73.50 $5,880.00 Per Lineal Foot 5. 40 Install 12 -inch D.I.P. water main with Lineal Feet trench resurfacing @ One Hundred Forty Two------- - - - - -- -Dollars and No-------------------------------- - -Dents $142.00 $5,680.00 Per Linea Foot- 6. 3182 Install 12 -inch ACP water main with Lineal Feet trench resurfacing @ Forty Six------------------- - - - --- -Dollars and No----------------------------- --- - -Dents $ 46.00 $ 146,372.00 Per Lineal Foof- 7. 258 Install 8 -inch D.I.P. water main with Lineal Feet trench resurfacing @_Forty Three----------------- -- -- -- -Dollars and No----------------------------- ---- -Cents $ 43.00 $ 11,094.00 Per Lineal Foot 8. 4 Install 2" water service per City Each Std. 503 -L @ One Thousand ---------------- - - - - -- Dollars and No --------------------------------- Eents $ 1,000.00 $ 4,000.00 Each 9. 2 Install 6 -inch butterfly valve Each @ Seven Hundred --------------- - - - - -- Dollars and fro-------------------------- - - - - -- -Cents $ 700.00 $ 1,400.00 PR 1.3 ITEM QUANTITY ITEM DESCRIPTION UNI TOTAL NO. AND UNIT UNIT PRICE WRITTEN IN WORDS PRICE PRICE 10. 4 Install 8 -inch butterfly valve Each @ Eight Hundred Twenty ------------- -0ollars and No------------------------------- -Cents $_820.00 $ 3,280.00 Each 11. 8 Install 12 -inch butterfly valve Each @ Twelve Hundred -------------- - - - - -- Dollars and No -------------------------- - - - - -- - Cents $1200.00 $ 9,600.00 ac 12. 9 Install new fire hydrant assembly Each including trench resurfacing @ Two Thousand Three Hundred Fifty -- Dollars and No--------------------------------- -Cents $2,350.00 $ 21,150.00 13. 2 Install air and vacuum release valve Each assembly @ Two Thousand ----------------------- and No-------------------------------- - -Cents $2,000.00 $ 4,000.00 Each 14. 2 Remove 12" plug and thrust block Each @ Twelve Hundred --------------------- and No--------------------------------- -Cents $1,200.00 $ 2,400.00 Each 15. 1 Install 4" flush -out assembly Each @ Two Thousand Ten------------ - - - - -- -Dollars and No--------------------------------- -Cents $2,010.00 $2,010.00 Each I • • PR 1.4 ITEM QUANTITY ITEM DESCRIPTION UNIT TOTAL NO. AND UNIT UNIT PRICE WRITTEN IN WORDS PRICE PRICE 16. 8 Install 12" plug and thrust block Each @ Three Hundred Fifty-------- - - - - -- Dollars and No----------- -------- ----- -- -- -- -- -Cents $350.00 $2,800.00 Each 17. Lump Sum Pressure testing and disinfection @ Four Thousand --------------- - - - - -- Dollars and No--------- -- ---- ----- -- ---- ------ - -Cents $ 4,000.00 Per Lump Sum TOTAL PRICE WRITTEN IN WORDS Two Hundred Seventy Three Thousand Six Hundred Thirty One - -Dollars and No ------------------------- ------- ------------------ - - - - -- - Cents $ 273,631.00 April 25, 1989 Irvine Pipeline Co., Inc. �a e i er I s /John Brisco, Estimator 14) r5-5 9 one Number Authorized �i 7 e9 Te 323951 Class A ' P.O. Box 3328, Santa Ana, CA 92703 Contractor's License um er Bidder's Address and Classification CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE & BAYSIDE DRIVE CONTRACT NO. 2733 ADDENDUM NO. 1 April 17, 1989 BIDDERS shall propose to complete Contract No. 2733 in accordance with the contract documents as modified by this Addendum No. 1. PROPOSAL The following bid items should be added to the subject contract: Item Description Unit Unit Price Written in Words Price 18. 1 Install Multiple Water Service Each per City STD 519 -L (3 -1" Services) @ Eleven Hundred Fifty------ - - - - -- Dollars and Total Price No------------------------- - - - - -- -Cents $1,150.00 $1,150.00 Each 19. 1 Remove 8" Plug & Thrust Block Each @ One Thousand-------------- - - - - -- -Dollars and No------------------------------ - -Dents $1,000.00 $1,000.00 Please sign and date this Addendum and attach it to your bid proposal. No bid will be considered unless this Addendum is attached. R. L. Hoffstadt Project Engineer I have carefully examined Addendum No. 1 - Irvine Pipeline Co., Inc. Bidder's Name s /John Brisco Authorized Signature April 25, 1989 0 0 INSTRUCTIONS TO BIDDERS The following contract documents shall be completed, executed and received by the City Clerk in accordance with NOTICE INVITING BIDS: 1. PROPOSAL 2. INSTRUCTIONS TO BIDDERS 3. DESIGNATION OF SUBCONTRACTOR(S) 4. BIDDER'S BOND (sum not less than 10% of total bid price) 5. NON- COLLUSION AFFIDAVIT 6. TECHNICAL ABILITY AND EXPERIENCE REFERENCES except that cash, certified check or cashier's check (sum not less than 10% of the total bid price) may be received in lieu of the Bidder's Bond. The title of the project and the words SEALED BID shall be clearly marked on the outside of the envelope containing the bid. The City of Newport Beach will not permit a substitute format for the contract documents listed above. Bidders are advised to review their content with bonding and legal agents prior to submission of bid. Bids shall not be received from bidders who are not licensed in accordance with the provisions of Chapter 9, Division III of the Business and Professions' Code. The low bidder shall also be required to possess a City of Newport Beach business license prior to execution of contract. The estimated quantities indicated in the PROPOSAL are approximate, and are given solely to allow the comparison of bid totals. Bids are to be computed upon the estimated quantities indicated in the PROPOSAL multiplied by unit price submitted by the bidder. In the event of discrepancy between wording and figures, bid wording shall prevail over bid figures. In the event of error in the multiplication of estimated quantity by unit price, the correct multiplication will be computed and the bids will be compared with correctly multiplied totals. The City shall not be held respon- sible for bidder errors and omissions in the PROPOSAL. Contract documents shall bear signatures and titles of persons authorized to sign on behalf of the bidder. For corporations, the signatures shall be of a corporate officer or an individual authorized by the corporation. For part- nerships, the signatures shall be of a general partner. For sole ownership, the signature shall be of the owner. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the contract. A copy of said determination is available in the office of the City Clerk. All parties to the contract shall be governed by all provisions of the California Labor Code relating to prevailing wage rates (Sections 1770 -7981 inclusive). The Contractor shall be responsible for compliance with Section 1777.5 of the California Labor Code for all apprenticeable occupations. 323951 Class A Contr's Lic. No. & Classification April 25, 1989 Date Irvine Pipeline Co., Inc. Bidder s /John Brisco, Estimator Authorized Signature /Title Page 2 0 0 Page 3 DESIGNATION OF SUBCONTRACTOR(S State law and /or City Specifications require the listing of all subcontractors who will perform work in an amount in excess of one -half of one percent of the prime contractor's total bid, If a subcontractor is not listed, the prime contractor will be responsible for performing of that portion of the work. Substitution of subcontractors shall be made only in accordance with State law and /or the Standard Specifications for Public Works Construction, as applicable. The bidder, by signing this designation, certifies that bids from the following subcontractors have been used in formulating the bid for the project and that these subcontractors will be used subject to the approval of the Engineer and in accordance with the applicable provisions of the City's Specifications. Subcontract Work Subcontractor Address 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Irvine Pipeline Co., Inc. BIDDER s /John Brisco, Estimator Authorized Signature /Title Page 4 BIDDER'S BOND KNOW ALL MEN BY THESE PRESENTS, That we, Irvine Pipeline Co., Inc. , as bidder, and The Continental Insurance Company , as Surety, are held and firmly bound unto the City of Newport Beach, California, in the sum of Ten Percent of Bid Amount-------------------- - - - - -- ----Dollars lawful money of the United States for the payment of which sum well and truly to be made, we bind ourselves, jointly and severally, firmly by these presents. THE CONDITION OF THE FOREGOING OBLIGATION IS SUCH, That if the proposal of the above bounden bidder for the construction of Water Main I vements in Back Title of Pro Drive and Bayside Drive C -2733 ntract No. in the City of Newport Beach, is accepted by the City Council of said City, and if if the above bounden bidder shall duly enter into and execute a contract for such construction and shall execute and deliver to said City the "Payment" and "Faithful Performance" contract bonds described in the Specifications within ten (10) days (not including Saturday, Sunday, and Federal holidays) from the date of the mailing of contract documents for execution to the above bounden bidder by and from said City, then this obligation shall become null and void; otherwise it shall be forfeited to the said City. In the event that any bidder above named executed this bond as an individual, it is agreed that the death of any such bidder shall not exonerate the Surety from its obligation under this bond. IN WITNESS WHEREOF, we hereunto set our hands and seals this 21st day of April , 19 89, (Attach acknowledgment of Attorney -in -Fact) s /Florence Lutfi otary Public Commission Expires: May 6, 1991 Irvine Pipeline Co., Inc. s /John Brisco, Estimator Authorize Signature Title The Continental Insurance Company Surety Title: 9ttorney -in -Fact 0 NON - COLLUSION AFFIDAVIT u Page 5 The bidder, by its officers and agents or representatives present at the time of filing this bid, being duly sworn on their oaths, say that neither they nor any of them have, in any way, directly or indirectly, entered into any arrangement or agreement with any other bidder, or with any public officer of such CITY OF NEWPORT BEACH whereby such affiant or affiants or either of them, has paid or is to pay to such bidder or public officer any sum of money, or has given or is to give to such other bidder or public officer anything of value whatever; or such affiant or affiants or either of them has not directly or indirectly, entered into any arrangement or agreement with any other bidder or bidders, which tends to or does lessen or destroy free competition in the letting of the contract sought for by the attached bids; that no bid has been accepted from any subcontractor or materialman through any bid depository, the bylaws, rules or regulations of which prohibit or prevent the bidder from considering any bid from any subcontractor or materialman which is not processed through said bid depository, or which prevent any subcontractor or materialman from submitting bids to a bidder who does not use the facilities of or accept bids from or through such bid depository; that no inducement of any form or character other than that which appears upon the face of the bid will be suggested, offered, paid or delivered to any person whomsoever to influence the acceptance of the said bid or awarding of the contract; nor has the bidder any agreement or understanding of any kind whatsoever with any person whomsoever to pay, deliver to, or share with any other person in any way or manner, any of the proceeds of the contracts sought by this bid. Irvine Pipeline Co., Inc. Bi er '— s/John Brisco. Estimator Authorized Signature Title Subscribed and sworn to before me this 25th day of April , 19 89 . My commission expires: 6, 1991 s /Florence Lutfi Notary Public 0 . Page 6 TECHNICAL ABILITY AND EXPERIENCE REFERENCES The undersigned submits herewith a statement of the work of similar character to that proposed herein which he has performed and successfully completed. Year Completed For Whom Performed (Detail) Person to Contact Telephone No. Bryan Avenue 1988 Irvine Ranch Water District John Economides Jamboree Rd. Improvements 1988 Irvine Ranch Water District John Economides Main Street Improvements 1988 Irvine Ranch Water District John Economides 1989 East Orange County Water District, Jamboree Road 538 -5815 Irvine Pipeline Co., Inc. s /John Brisco, Estimator Authorized Signature Title 0 • Page 7 NOTICE The following are contract documents which shall be completed and executed by the successful bidder after he receives a letter of award from the City of Newport Beach: PAYMENT BOND (pages 8 & 9) FAITHFUL PERFORMANCE BOND (pages 10 & 11) CERTIFICATE OF INSURANCE & ENDORSEMENTS (pages 12, 13, 14) CONTRACT (pages 15 & 16) The City of Newport Beach will not permit a substitute format for these contract documents. Bidders are advised to review their content with bonding, insuring and legal agents prior to submission of bid. BONDING COMPANIES shall be acceptable as sureties in accordance with the latest revision of Federal Reoister Circular 570. INSURANCE COMPANIES shall be (1) licensed to conduct business in California, and (2) assigned Policyholders' Rating A (or higher) and Financial Size Category Class VIII (or larger) in accordance with the latest edition of Best's Key Ratin Guide: Pro erty - Casualty. Coverages shall be provided for a 1 TYPE OF IN URANCE checked on the CERTIFICATE OF INSURANCE. All costs associated with the specifications of these contract documents shall be absorbed in the bid. Such specifications shall include those contained in (1) each contract document and (2) the Standard S ecifications for Public Works Construction (latest edition adopted or use in the City of Newport Beach), except as supplemented or modified by the Special Provisions for this project. BOND NUMBER: 158 85 80 • PREMIUM INCLUDED IN Page 8 PERFORMANCE BOND PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS, That WHEREAS, the City Council of the City of Newport Beach, State of California, by motion adopted MAY 8, 1989 has awarded to IRVINE PIPELINE COMPANY, INC. hereinafter designated as the "Principal ", a contract for WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE &BAYSIDE DRIVE — CONTRACT NO. 2733 in the City of Newport Beach, in strict conformity with the Drawings and Specifications and other contract documents in the office of the City Clerk of the City of Newport Beach; WHEREAS, said Principal has executed or is about to execute said contract and the terms thereof require the furnishing of a bond with said contract, providing that if said Principal or any of his or its subcontractors, shall fail to pay for any materials, provisions, or other supplies used in, upon, for, or about the performance of the work agreed to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same to the extent hereinafter set forth: NOW, THEREFORE, We IRVINE PIPELINE COMPANY, INC. as Principal, and THE CONTINENTAL INSURANCE COMPANY as Surety, are held firmly bound unto the City of Newport Beach, in the sum of TWO HUNDRED SEVENTY THREE THOUSAND SIX HUNDRED THIRTY ONE AND NO /100------------------- - - - - -- Dollars ($273,631.00 ---- ), said sum being equal to 100% of the estimated amount payable by the City of Newport Beach under the terms of the contract; for which payment well and truly made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal or his subcontractors, fail to pay for any materials, provisions, or other supplies, used in, upon, for, or about the performance of the work contracted tob be done, or for any other work or labor thereon of any kind or for amounts due under the Unemployment Insurance Code with respect to such work or labor, that the Surety or Sureties will pay for the same, in an amount not exceeding the sum specified in the bond, and also, in case suit is brought upon the bond, a reasonable attorney's fee, to be fixed by the Court as required by the provisions of Section 3250 of the Civil Code of the State of California. r Page 9 Payment Bond (Continued) The bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Section 3181 of the California Civil Code so as to give a right to them or their assigns in any suit brought upon this bond, as required by the provisions of Sections 3247 et, seq. of the Civil Code of the State of California. And said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alterations or additions to the terms of the contract or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alterations or additions to the terms of the contract or to the work or to the specifications. In the event that any principal above named executed this bond as an individual, it is agreed that the death of any such principal shall not exonerate the Surety from its obligations under this bond. IN WITNESS WHEREOF, this instrument has been duly executed by the J�rnZip�T= ; and Surety above named, on the 9th day of MAY ,, 1989 . IRVINE PIPELINE COMPANY, INC, Name of Contractor (Principa - ):...= AUthDf i i gnat ure and Tim Authorized Signature and Title THE CONTINENTAL INSURANCE COMPA -4 Seal) Name of Surety 145 SOUTH STATE COLLEGE BLVD.; STE. 610 BREA, CA 92622 - Address of Surjty N .— ' A 5ignaturg' and Title of Authorized Agent D. J. PICARD, ATTORNEY -IN -PACT j 2401 E. KATELLA AVE., S -500, ANAHEIM CA 92806 Address of Agent 714) 978 -9785 ]ephone No. of Agent • • . � Vii;. State of California ) SS. County of Orange ) On this 9th day of MAY in the year1989 , before me, a Notary Public in and for said Orange County, State of California, residing therein, duly commissioned and sworn, personally appeared D. J. PICARD personally known to me on the basis of satisfactory r evidence to be the person whose name is subscribed to this instrument as the Attorney -in -Fact of THE CONTINENTAL INSURANCE COMPANY (surety) and acknowledged to me that he /she subscribed the name of THE CONTINENTAL INSURANCE COMPANY own name as Attorney -in -Fact Notary Public in and Vr said state Attorney in Fact - Ca (surety) thereto and his /her OFFICIAL SEAL `° '•FRANCES LEFLER NOTARY PUBLIC- CALIFORNIA ORANGE COUNTY MY COMM. EXP. SEPT. 30,199 The liontinental Insurance Coq&any 180 Maiden Lane, New York, New York 10038 GENERAL POWER OF ATTORNEY Know all men by these Presents, That THE CONTINENTAL INSURANCE COMPANY has made, constituted and appointed, and by these presents does make, constitute and appoint D.J. Picard of Anaheim, California its true and lawful attorney, for it and in its name, place, and stead to execute on behalf of the said Company, as surety, bonds, undertakings and contracts of suretyship to be given to All Obligees provided that no bond or undertaking or contract of suretyship executed under this authority shall exceed in amount the sum of Ten Million !($10,000,000) Dollars This Power of Attorney is granted and is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company on the 1 st day of November, 1977: "RESOLVED, that the Chairman of the Board, the Vice Chairman of the Board, the President, an Executive Vice President or a Senior Vice President or a Vice President of the Company, be, and that each or any of them is, authorized to execute Powers of Attorney qualifying the attorney named in the given Power of Attorney to execute in behalf of the Company, bonds, undertakings and all contracts of suretyship; and that an Assistant Vice President, a Secretary or an Assistant Secretary be, and that each or any of them hereby is, authorized to anest the execution of any such Power of Attorney, and to attach thereto the seal of the Company. FURTHER RESOLVED, that the signatures of such officers and the seal of the Company may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company when so affixed and in the future with respect to any bond, undertaking or contract of suretyship to which it is attached.- In Witness Whereof, THE CONTINENTAL INSURANCE COMPANY has caused its official seal to be hereunto affixed, and these presents to be signed by one of its Vice Presidents and attested by one of its Assistant Vice Presidents this 1st day of May, 1985. Attest: L i.'. Robert W. Adler, Sr., Assistant Vice President •.....• STATE OF NEW YORK u.: COUNTY I- NEW YORK THE CONTINENTAL INSURANCE COMPANY By Michael 1. Beerwert, Vice President On this 1st day of May, 1985, before me personally came Michael J. Beernaert, to me known, who being by me duly sworn, did depose and say that he is a Vice President of THE CONTINENTAL INSURANCE COMPANY, the corporation described in and which executed the above instrument; that he knows the seal of the said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order. ETHEL TARANTO NOTARY PUBLIC, Slate New York Ki • No. 24- 4663117 Qual. in Kings County CERTIFICATE Commission Expires March 30, 1986 I, the undersigned, an Assistant Vice President of THE CONTINENTAL INSURANCE COMPANY, a New Hampshire corporation, DO HEREBY CERTIFY that the foregoing and attached Power of Attorney remains in full forceand has not been revoked; and furthermore that the Resolution of the Board of Directors, set forth in the said Power of Attorney, is now in force. Signed and sealed at the City of New York, in the State of New York. Dated the 9th day of MAY ,19 89 lames M. Keane, Assistant Vice President 11 BOND 4315E "" ° -" Printed in U.S.A. BOND NUMBER: 158 85 80 Page 10 PREMIUM: $5,104.00 FAITHFUL PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS, That WHEREAS, the City Council of the City of Newport Beach, State of California, by motion adopted MAY 8, 1989 has awarded to IRVINE PIPELINE COMPANY, INC. hereinafter designated as the "Principal ", a contract for WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE &BAYSIDE DRIVE - CONTRACT NO. 2733 in the City of Newport Beach, in strict conformity with the Drawings and Specifications and other contract documents in the office of the City Clerk of the City of Newport Beach; WHEREAS, said Principal has executed or is about to execute said contract and the terms thereof require the furnishing of a bond for the faithful performance of said contract; NOW, THEREFORE, We IRVINE PIPELINE COMPANY, INC. as Principal, and THE CONTINENTAL INSURANCE COMPANY as Surety, are held firmly bound unto the City of Newport Beach, in the sum of TWO HUNDRED SEVENTY THREE THOUSAND SIX HUNDRED MRrYDollars ($ 273,631.00 - - - -), ONE AND NO/ 100---------- ---------- --- -- ------ - - - -- -- said sum being equal to 100% of the estimated amount of the contract, to be paid to the said City or its certain attorney, its successors, and assigns; for which payment well and truly made, we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well keep truly and perform the covenants, conditions, and agreements in the said contract and any alteration thereof made as therein provided on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Newport Beach, its officers and agents, as therein stipulated, then this obligation shall become null and void; otherwise it shall remain in full force and virtue. And said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alterations or additions to the terms of the contract ti Faithful Performance Bond (Continued) 0 Page 11 or to the work to be performed thereunder or to the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alterations or additions of the contract or to the work or to the specifications. In the event that the principal above named executed this bond as an individual, it is agreed that the death of any such principal shall not exonerate the Surety from its obligations under this bond. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on the 9th day of MAY , 1989 . IRVINE PIPELINE COMPANY, INC. (Seal Name of ontractor (Principal) A4thor a i gnat ure and Title Authorized Signature and Title THE CONTINENTAL INSURANCE COMPA.�-Y(Sea_i) Name of Surety _ 145 SOUTH STATE COLLEGE BLVD.,)_STE. 610 BREA, CA 92622 - Address of Sur ty Signs ure and Title of Authorized Agent D. J. PICARD, ATTORNEY -IN -FACT 2401 E. KATELLA AVE., S -500, ANAHEIM CA 92806 Address of Agent (714) 978 -9785 Telephone No. of Agent 9 0 r- State of California ) SS. County of Orange ) On this 9th day of MAY in the year 1989 , before me, a Notary Public in and for said Orange County, State of California, residing therein, duly commissioned and sworn, ti personally appeared D. J. PICAED personally known to me on the basis of satisfactory evidence to be the person whose name is subscribed to this instrument as the Attorney -in -Fact Of THE CONTINENTAL INSURANCE COMPANY (surety) and acknowledged to me that he /she subscribed the name of THE CONTINENTAL INSURANCE COMPANY (surety) thereto and his /her own name as Attorney -in -Fact OFFICIAL SEAL FRANCES PUBLIC-CALWORNIA Notary Public in a for said state ORANGE COUNTY MY COM4. EXP. SEPT. 30,199 Attorney in Fact - Ca • CERTIFICATE OF INSURANCE Page 12 City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 C N A NAME IRVINE ADDRESS OF INC. Letter C HIGHLANDS INSURANCE CO Company P.O. BOX 3328 Letter D C N A company SANTA ANA, CA 92703 Letter E _ This is to certify that policies of insurance listed below have been issued to the insured named above and are in force at this time. includina attached endorsement(s). NOTE: the Comprehenslve General U aalltty ana AntamotIve LIM my po n ele5 are enaorsea with the attached lit of New ort Beach Endorsements. CANCELLR N: Sho uld any of the a ove described policies De cancelled or coverage reduced before the expiration date thereof, the Insurance Company affording coverage shall provide 30 days' advance notice to the City of Newport Beach by By: fr�Y Agency: GRANGER HANNA INSURANCE ASSOCIATES Author 7eo Nepresentative U Date: 5/3/89 Telephone: 714 978— Description of operations /locations /vehicles: All operations performed for the City of Newport Beach by or on behalf of the named insured in connection with the following designated contract: WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE & BAYSIDE 2733 (Project Title and Contract Number) NOTICE: This certificate or verification o insi' urance is not an insurance policy and doesnot amend, extend or alter the coverage afforded by the policies listed herein. Notwith- standing any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies, including attached endorsements. LIMITS OF LIABILITY 0100-F Polic _I_NT_HOUSANDS Ag.Products COMPAN TYPES OF INSURANCE Polic3 Exp. Each Completed LETTER COVERAGE REQUIRED No. Date Occurrence Operations GENERAL L A IL Comprehensive Form C0701 4212 5/3 gg�� 90dily Injury $1,000 $ 1,000 A Premises - Operations Explosion & Collapse Hazarc Property Damage $1,000 $ 1,000 Underground Hazard Products /Completed Operations Hazard Bodily Injury Contractual Insurance and Property Broad Form Property Damage Damage Combined $ $ Independent Contractors Personal Injury Marine Personal Injury $ 1,000 Aviation AU )MOTIVE LIABILITY © Comprehensive Form Bodily Injury B BUA501 4212 5131 ach Person) $ o ily Injury [I Owned (Each Occurrence $ © Hired Property Damage Bodily Injury an [1� Non -owned Property Damage Combined $1,000 EXCESS LlAffrLITY [,Umbrella Form XS21 464 /3/9 )Bodily Injury C Other than Umbrella Form and Property Damage Combined $ 1,000 $ 1,000 WORKERS' COMPENSATION Statutor D AND PWC101 42126 6/1/ (Each EMPLOYER'S LIABILITY 2000 , Accident) NOTE: the Comprehenslve General U aalltty ana AntamotIve LIM my po n ele5 are enaorsea with the attached lit of New ort Beach Endorsements. CANCELLR N: Sho uld any of the a ove described policies De cancelled or coverage reduced before the expiration date thereof, the Insurance Company affording coverage shall provide 30 days' advance notice to the City of Newport Beach by By: fr�Y Agency: GRANGER HANNA INSURANCE ASSOCIATES Author 7eo Nepresentative U Date: 5/3/89 Telephone: 714 978— Description of operations /locations /vehicles: All operations performed for the City of Newport Beach by or on behalf of the named insured in connection with the following designated contract: WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE & BAYSIDE 2733 (Project Title and Contract Number) NOTICE: This certificate or verification o insi' urance is not an insurance policy and doesnot amend, extend or alter the coverage afforded by the policies listed herein. Notwith- standing any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies, including attached endorsements. • 0 Page 13 CITY OF NEWPORT BEACH AUTOMOTIVE LIABILITY INSURANCE ENDORSEMENT It is agreed that: 1. With respect to such insurance as is afforded by the policy for Bodily Injury and Property damage Liability, the City of Newport Beach; the State of California, Department of Fish and Game; the County of Orange, Environmental Management Agency; the Orange County Harbors, Beaches and Parks District; and The Irvine Company, their offi- cers and employees are additional insureds, but only with respect to liability for dam- ages arising out of the ownership, maintenance or use of automobiles (or autos) used by or on behalf of the named insureds in connection with the contract designated below. The insurance extended by this endorsement to said additional insureds does not apply to bodily injury or property damage arising out of automobiles (1) owned by or registered in the name of an additional insured, or (2) leased or rented by an additional insured or (3) operated by an additional insured. The insurance afforded the additional named insureds shall apply as primary insurance and no other insurance maintained by the addi- tional insureds will be called upon to contribute with insurance provided by this policy. 2. The policy includes the following provision: "The insurance afforded by the policy applies separately to each insured who is seeking coverage or against whom a claim is made or suit is brought, except with respect to the limits of the Insurance Company's liability." 3. The limits of liability under this endorsement for the additional insureds named in paragraph 1 of this endorsement shall be the limits indicated below for either Multiple Limits or Single Limit, whichever is indicated by the letter X in the appropriate box. ( ) Multiple limits Bodily Injury Liability S each occurrence Property Damage Liability E each occurrence (31 Single Limit Bodily Injury Liability and Property Damage Liability Combined $ 1,000,000 each occurrence The limits of liability as stated in paragraph 3 of this endorsement shall not increase the total liability of the Insurance Company for all damages as the result of any one accident or occurrence in excess of the limits of liability stated in the policy as applicable to Automobile Liability Insurance. 4. Should the policy be cancelled or coverage reduced before the expiration date thereof, the Insurance Company shall provide 30 days' advance notice to the City of Newport Beach by registered mail, Attention: Public Works Department. 5. Designated ContractWATER MAIN IMPROVEMENTS IN BACK BAY DR & BAYSIDE DR 2733 Project Title and Contract No. This endors t effective 5/3/89 at 12:01 A.M. and forms a part of Policy No. X561142124 Named Insured IRVIEN PIPELINE CO., INC. Endorsement No. Name of Insurance Company CNA By GRANGER HA14NA INS ASSOC 2401 E KATELLA AVE., STE 500 ANAHIEM, CA 92806 1 0 Page 14 CITY OF NEWPORT BEACH COMPREHENSIVE GENERAL LIABILITY INSURANCE ENDORSEMENT It is agreed that: 1. With respect to such insurance as is afforded by the policy for Comprehensive General Liability, the City of Newport Beach, its officers and employees are additional insureds, but only with respect to liability arising out of operations performed by or on behalf of the named insureds in connection with the contract designated below or acts and omissions of the additional insureds in connection with its general supervision of such operations. The insurance afforded said additional insured shall apply as primary insurance and no other insurance maintained by the City of Newport Beach will be called upon to contribute with insurance provided by this policy. 2. The policy includes the following provision: "The insurance afforded by the policy applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the Insurance Company's liability." 1 3. The Jsurance afforded by the policy for contractual Liability Insurance (subject to the term conditions and exclusions applicable to such insurance) includes liability assumed by the named insured under the indemnification or hold harmless provision con- tained in the written contract, designated below, between the named insured and the City of Newport Beach. 4. With respect to such insurance as is afforded by this policy, the exclusions, if any, pertaining to the explosion hazard, collapse hazard and underground property hazard (commonly referred to as "XCU" hazards) are deleted. S. The limits of liability under this endorsement for the additional insured named in paragraph 1 of this endorsement shall be the limits indicated below for either Multiple Limits or Single Limit, whichever is indicated by the letter X in the appropriate box. ( ) Multiple limits Bodily Injury Liability $ each occurrence Property Damage Liability $ each occurrence (t) Single Limit Bodily Injury Liability and Property Damage Liability Combined $ 1,000,000 each occurrence The applicable limit of the Insurance Company's liability for the insurance afforded for contractual liability shall be reduced by any amount paid as damages under this endorse- ment in behalf of the additional insureds. The limits of liability as stated in this endorsement shall not increase the total liability of the Insurance Company for all damages as the result of any one occurrence in excess of the limits of liability stated in the policy as applicable to Comprehensive General Liability Insurance. 6. Should the policy be cancelled or coverage reduced before the expiration date thereof, the Insurance Company shall provide 30 days' advance notice to the City of Newport Beach by registered mail, Attention: Public Works Department. 7. Designated Contract:WATAR ( rec i a a aBcAo'.) BAYSIDE2733 This endorsement is effective 5/3/89 at 12:01 A.M. and forms a part of Policy No. C0701142123 Named Insured IRVINE PIPELINE CO.. INC. Endorsement No. 1 Name of Insurance Company CNA By GRANGER 41ANNA INS ASSOC. i 2401 E KATELLA AVE., STE 500 ANAHEIM, CA 92806 • Page 15 CONTRACT ��//� THIS AGREEMENT, entered into this A7Pzay of 19,q. by and between the CITY OF NEWPORT BEACH, hereinafter "City," d6d Irvine Pipeline Co., Inc. hereinafter "Contractor," is made with reference to the following facts: (a) City has heretofore advertised for bids for the following described public work: Water Main Im royements in Back Bay Drive and Bays de Drive C -2733 Title 07 Project Contract No. (b) Contractor has determined by City to be the lowest responsible bidder on said public work, and Contractor's bid, and the compensation set forth in this contract, is based upon a careful examination of all plans and specifi- cations by Contractor, NOW, THEREFORE, the parties hereto agree as follows: 1. Contractor shall furnish all materials and perform all of the work for the construction of the following described public work: Water Main Im rovements in Back Bay Drive and Ba side Drive C -2733 Title o Project Contract No. which project is more fully described in the contract documnts. Contractor shall perform and complete this work in a good and workmanlike manner, and in accordance with all of the contract documents. 2. As full compensation for the performance and completion of this work as prescribed above, City shall pay to Contractor the sum of'r E3i,,a d„/ Two Hundred Seventv Three Thousand Six Hundred Thirty One - - - -- ($273 .00 ). This compensation includes (1) any loss or damage arising from the nature of the work; (2) any loss or damage arising from any unforeseen difficulties or obstructions in the performance of the work; (3) any expense incurred as a result of any suspension or discontinuance of the work; but excludes any loss resulting from earthquakes of a magnitude in excess of 3.5 on the Richter Scale and tidal waves, and which loss or expense occurs prior to acceptance of the work by City. 3. All of the respective rights and obligations of City and Contractor are set forth in the contract documents. The contract documents are incor- porated herein by reference as though set out in full and include the following: (a) Notice Inviting Bids (b) Instructions to Bidders and documents referenced therein (c) Payment Bond (d) Faithful Performance Bond (e) Certificate of Insurance and Endorsement(s) Page 16 (f) Plans and Special Provisions for Water Main Improvements in Back Bay Drive (g) This Contract. 4. Contractor shall assume the defense of, and indemnity and hold harmless, City and its officers, employees and representatives from all claims, loss or damage, except such loss or damage proximately caused by the sole negligence of City or its officers, employees and representatives. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first above written. ATTEST: /rim" CITY OF NEWPORT BEACH By Mayor APPROVED AS TO FORM: CITY orney gzw�AZ 60.1 - Name of Contra for Principal A r d '1gnature and Title Authorized Signature and Title 0 CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT INDEX TO SPECIAL PROVISIONS WATER MAIN REPLACEMENT PROGRAM ON BACKBAY DRIVE AND BAYSIDE DRIVE CONTRACT NO. 2733 SECTION PAGE I. SCOPE OF WORK . . . . . . . . . . . . . . . . . 1 II. CLASSIFICATION OF CONTRACTOR'S LICENSE . . . . 1 III. AWARD AND EXECUTION OF THE CONTRACT. . . . . . 1 IV. TIME OF COMPLETION AND WORK SCHEDULE . . . . . 1 V. PAYMENT . . . . . . . . . . . . . . . . . . . . 2 VI. NOTICE TO RESIDENTS AND "NO PARKING" SIGNS . . 3 A. Notice to Residents. . . . . . . . . . . . 3 B. "NO PARKING" Signs . . . . . . . . . . . . 3 C. Street Sweeping Signs. . . . . . . . . . . 3 D. Access . . . . . . . . . . . . . . . . . . 3 VII. STREET CLOSURE, ACCESS AND TRAFFIC CONTROL . . 4 A. Traffic Control Plans. . . . . . . . . 4 B. "No Parking, Tow- Away" Signs . . . . . . . 4 VIII. CONSTRUCTION SURVEY STAKING. . . . . . . . . . 5 IX. WATER . . . . . . . . . . . . . . . . . . . . . 5 X. WATER SERVICE . . . . . . . . . . . . . . . . . 5 XI. CONSTRUCTION DETAILS . . . . . . . . . . . . . 5 A. Materials. . . . . . . . . . . . 5 B. Temporary Resurfacing. . . . . . . . . . 6 C. Portland Cement Concrete . . . . . . . . . 6 D. Utilities . . . . . . . . . . . . . . . . . 6 E. Inspection . . . . . . . . . . . . . . . . 6 1] CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT SPECIAL PROVISIONS FOR WATER MAIN IMPROVEMENTS IN BACKBAY DRIVE AND BAYSIDE DRIVE CONTRACT NO. 2733 I. SCOPE OF WORK • SP 1 of 6 The work to be done under this contract consists of constructing a 12" water main in Back Bay Drive from Jamboree Road to approximately 2200' northerly of Jamboree Road; construction of a 12" water main in Bayside Drive from East Coast Highway to approximately 1100' easterly; construction of an 8" water main at Newporter Inn from Back Bay Drive to 260' easterly; and construction of an B" water main in Shellmaker Road from Back Bay Drive to approximately 210' westerly and other incidental items of work. All work necessary for the completion of this contract shall be done in accordance with (1) these Special Provisions, (2) the Plans (Drawing No W- 5162 -S, (3) the City's Standard S ecial Provisions and Standard Drawings for Public Works Construction, 98 ition, and the Standard Specifications or Public Works Construction, 1988 Edition. Copies oT the Stan and Specifications may be purchased from Building News, Inc., 3055 Overland Avenue, Los Angeles, California 90034, telephone (213) 870 -9871. A copy of the Standard Special Provisions and Standard Drawings may be purchased at the Engineer's office for $5. Copies of the Standard Specifications may be purchased at Building News, Inc., 3055 Overland Avenue, Los Angeles, CA 90034. II. CLASSIFICATION OF CONTRACTOR'S LICENSE At the time of the award, the Contractor shall possess a General Engineering Contractor 'A' License or a Pipeline Speciality Contractor C -34 License. III. AWARD AND EXECUTION OF THE CONTRACT The award of the contract is anticipated to occur on May 8, 1989 IV. TIME OF COMPLETION AND WORK SCHEDULE A. All work under this contract shall be completed by June 30, 1989. • SP 2 of 6 B. The Contractor's schedule shall consider the phasing of water main construction, testing, disinfection, and connection to the existing system. The Contractor shall use the following guidelines in establishing this schedule: 1. No connections to existing water mains will be permitted until the new main has satisfactorily passed the hydrostatic test and has been disinfected. 2. Hydrostatic pressure testing will be permitted against new valves. The test pressure shall be 175 PSI. Any temporary bulkheads for thrust resistance will be the responsibility of the contractor. 3. Cutting -in of new water mains shall be done at times resulting in the least disruption to water service. Shutdowns to residences of up to four hours during the day will be permitted and will not require bypass. Operations requiring a longer shutdown period and shutdowns to businesses will require a temporary bypass. The Contractor shall notify the City's Utilities Superintendent, Mr. Gil Gomez, (714) 644 -3011, at least 48 hours in advance of the need to shut down or connect to any existing water mains. No shutdown will be allowed on Fridays, Saturdays, Sundays, holidays, or after 12:00 noon. The Contractor shall not operate existing water valves except in cases of extreme emergency. It will be the Contractor's responsibility to ensure the availability of all materials prior to the start of work. Unavailabilty of materials will not be sufficient reason to grant the Contractor an extension of time. The intent of this section of the Special Provisions is to emphasize to the Contractor the importance of prosecuting the construction in an orderly, preplanned, continuous fashion, so as to minimize the incon- venience to residents and businesses. V. PAYMENT The unit or lump sum price bid for each item of work shown on the Proposal shall be considered as full compensation for all labor, equipment, materials, and all other things necessary to complete the work in place, and no addi- tional allowance will be made therefor. Payment for incidental items of work not separately provided for in the pro- posal shall be included in the unit price bid for each item of work. Partial payments for Bid Item No. 1 shall be made in accordance with Section 10264 of the California Public Contract Code. The substitution of securities for any payment withheld in accordance with Section 9 -3.2 of the Standard Specifications is permitted pursuant to Government Code Sections 4590 and 14402 -5. 0 • SP 3 of 6 VI. NOTICE TO RESIDENTS AND "NO PARKING" SIGNS A. Notice to Residents Forty -eight (48) hours before restricting vehicular access to garages or parking spaces, the Contractor shall distribute to each affected address a written notice stating when construction operations will start and approximately when vehicular accessibility will be restored. Twenty -four (24) hours before shutting off water service, the Contractor shall distribute to each affected address, as determined by the Engineer, a separate written notice stating the date and time the water will be shut off and approximate time the water will be turned back on. The written notices will be prepared by the Engineer. The Contractor shall insert the applicable dates at the time he distributes the notice. Errors in distribution, false starts, acts of God, strikes or other alterations of the schedule will require Contractor renotification using an explanatory letter furnished by the Engineer. "NO PARKING" Si The Contractor shall furnish, install, and maintain in place "NO PARKING" signs (even if streets have posted "NO PARKING" signs) which he shall post at least 40 hours in advance of the need for enforcement. In addi- tion, it shall be the Contractor's responsibility to notify the City's Police Department, Traffic Division, at (714) 644 -3742, for verification of posting at least 40 hours in advance of the need for enforcement. The signs shall (1) be made of white card stock; (2) have minimum dimen- sions of 12 inches wide and 18 inches high; and (3) be similar in design and color to sign number R -38 on the CalTrans Uniform Sign Chart. The Contractor shall print the hours, day and date of closure in 2- inch -high letters and numbers. A sample of the completed sign shall be approved by the Engineer prior to posting. C. Street Sweeping Signs The Contractor shall bag or cover street sweeping signs on those streets adjacent to the construction site in a manner approved by the Engineer, after posting "NO PARKING" signs. All street sweeping signs shall be uncovered immediately after completion of work and upon removal of the "NO PARKING" signs. Access Vehicular and pedestrian access shall be maintained at all times to resi- dences adjacent to the project area; however, where conditions preclude such access for reasonable periods of time (as determined by the Engineer), access shall be restored at the end of each work day. • • SP 4 of 6 The City can provide, free of charge, a limited quantity of 1 "- thick, 5' x 10' steel plates. These plates may be obtained from and shall be returned to the City's Corporation Yard at 592 Superior Avenue. To determine the number of plates available and to reserve the plates, the contractor must call Mr. Gil Gomez, Utilities Superintendent, at (714) 644 -3011. The Contractor shall reimburse the City for all plates damaged or borrowed and not returned. VII. STREET CLOSURE. ACCESS AND TRAFFIC CONTROL The Contractor shall provide for street closure, traffic control and access in accordance with Section 7 -10 of the Standard Special Provisions and Standard Drawings for Public Works Construction an with the Stan arils container in t e Wor Area Tra is ontrol— Han3book (WATCH), published by Building News, Inc. A. Traffic Control Plans The Contractor shall submit a written traffic control plan for each street to the Engineer and obtain his approval a minimum of seven (7) working days prior to commencing any work. The traffic control plans shall incorporate the following: 1. The location and wording of all signs, barricades, delineators, lights, warning devices, temporary parking restrictions, and any other details required to assure that all traffic will be handled in a safe and efficient manner with a minimum of inconvenience to the motorists. 2. A complete and separate plan for each phase of construction proposed by the Contractor showing all items listed under 1. above and the restrictions of Section II. COMPLETION, SCHEDULE, AND PROSECUTION OF WORK. 3. Reopening of all traffic lanes upon completion of each day's work. All streets not part of this contract shall remain open to travel and parking at all times. B. "NO PARKING, TOW- AWAY" Signs Where any restrictions mentioned necessitate temporary prohibition of parking during construction, the Contractor shall furnish, install, and maintain in place "NO PARKING, TOW- AWAY" signs (even if streets have posted "NO PARKING" signs) which he shall post at least forty (40) hours in advance of the need for enforcement. In addition, it shall be the Contractor's responsibility to notify the City's Police Department, Traffic Division, at (714) 644 -3740, for verification of posting at least 40 hours in advance of the need of enforcement. • • SP 5 of 6 VIII. CONSTRUCTION SURVEYING AND STAKING Field surveying for control of construction shall be the responsibility of the Contractor. All such surveys, including construction staking, shall be under the supervision of a California registered civil engineer or licensed surveyor. Staking shall be performed on all items ordinarily requiring grade and alignment at intervals normally accepted by the agencies and trades involved. Payment for construction survey staking shall be considered as included in the various items of work and no additional allowance will be made therefor. IX. WATER If the Contractor desires to use City's water, he shall arrange for a meter and tender a $500 meter deposit with the City. Upon return of the meter in good condition to City, the deposit will be returned to the Contractor, less a quantity charge for water usage. X. WATER SERVICE Water service shall be maintained at all times to residences and businesses except as permitted in Section IV. The Contractor's methods of providing such continuous service shall be approved by the Engineer prior to construc- tion. XI. CONSTRUCTION DETAILS A. Materials The Contractor shall use asbestos cement pipe and ductil iron pipe as shown on the contract plans. 1. Pipe and Fittings - Ductil iron pipe (8" - Class 52; 12" - Class 52) may a su sti uted for the asbestos cement pipe with approval of the Project Engineer. Asbestos cement water pipe and fittings shall conform to Section 207 -7 of the Standard Specifications. Ductil iron water pipe and fittings shall conform to Section 207 -9 of the Standard Speciifications. 2. A.C.P. Installation A.C.P. laying shall be performed in accordance with the recommendations of the manufacturer as described in the most recent publication of "Installation Guide for Asbestos Cement Distribution and Transmission Pipe," published by CAPCO Pipe Company, Inc. Care shall be used to prevent damage in handling, moving, and placing the pipe. It shall not be dropped, dragged, nor handled in such a manner as to cause scratches, bruises, cracks, or chips. SP 6 of 6 Power driven saws with abrasive discs shall not be used for dry cutting or beveling asbestos cement pipe. Asbestos cement chips and cuttings from the field operations shall be disposed of in a manner that will not contribute airborne asbestos dust to the atmosphere. Loose material shall never be dry swept. Water or other dust suppressants shall be applied in those circumstances where sweeping is unavoidable. 3. D.I.P. Laying D.I.P. laying shall be performed in accordance with the recommendations of the manufacturer. All D.I.P. shall have an 8 mil polyethylene encasement as per Section 207 - 9.6.2. B. Temporary Resurfacing Paragraph 4, Section 306 - 1.5.1, "Temporary Resurfacing" of the Standard Specifications shall be deleted and the following added: The cost of furnishing, placing, maintaining, removing and disposing of temporary resurfacing shall be included in the unit costs to install the water main and laterals with trench resurfacing. Temporary resurfacing shall be 2" in thickness, and is required over all excavated pavement areas. C. Portland Cement Concrete All Portland Cement Concrete shall concrete surfaces shall conform in adjacent curbs and walks. D. Utilities be Class 560 -C -3250. All exposed grade, color and finish to all The existence and location of underground utility pipes, lines or structures shown on the plans were obtained by a search of available records. To the best of the Engineer's knowledge, there are no existing utilities except as shown on these plans. The Contractor is required to take due precautionary measures to protect the utilities shown and any other lines or structures not shown on these plans. The Contractor shall be responsible for verifying the actual location and elevation in the field prior to beginning construction of the new facilities. E. Inspection Contractor shall request inspection from Public Works 48 hours in advance of performing any work (644- 3311). o). May 8, 1989 CITY COUNCIL AGENDA DyTP- .ITY =NCIVEM NO. F -3(b) CITY "JI 'iZWPORT 9EACI:; •T0: CITY COUNCIL MAY 8 1989 _ _APPRDVFD FROM: Public Works Department SUBJECT: WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE AND BAYSIDE DRIVE CONTRACT NO. 2733 RECOMMENDATIONS: 1. Waive the irregularity in the bid documents of Irvine Pipeline Company Inc. 2. Approve a budget appropriation of $100,000.00. 3. Approve a budget transfer of $43,830.00. 4. Award Contract No. 2733 to Irvine Pipeline Company, Inc. for the total price of $273,631.00, and authorize the Mayor and City Clerk to execute the contract. DISCUSSION: At 2:00 p.m. on April 25, 1989, the City Clerk opened and read the following bids for the project: The low bidder's proposal contains a discrepancy in Bid Item No. 1, "Mobilization and Traffic Control." Prior to the bid opening, the bidder revised his amounts for the item from "Twelve- thousand" to "Twenty- five" in the worded item price and from $12,000.00 to $25,000.00 in the numerical item price (see attached Sheet No. PR 1.1). The low bidder's worded "Twenty- five" disagrees with his numerical $25,000.00. Bidder Total Price Low Irvine Pipeline Company, Inc. $273,631.00 2 John T. Malloy 321,460.00 3 D & M Grading 325,084.45 ** 4 Macco Construction 329,070.00 5 Byron L. Crume 333,861.90 6 Colich & Son 336,457.00 7 George Dakovich & Son 341,1.80.00 8 Zaich & Son 373,364.00 9 Drainage Construction 411,618.00 * Corrected total price is $311,560.00 ** Corrected total price is $325,078.64 • The low bid is 26% under the Engineer's estimate of $370,300.00. The low bidder's proposal contains a discrepancy in Bid Item No. 1, "Mobilization and Traffic Control." Prior to the bid opening, the bidder revised his amounts for the item from "Twelve- thousand" to "Twenty- five" in the worded item price and from $12,000.00 to $25,000.00 in the numerical item price (see attached Sheet No. PR 1.1). The low bidder's worded "Twenty- five" disagrees with his numerical $25,000.00. • 0 0 Subject: Water Main Improvements in Back Bay Drive and Bayside Drive (C -2733) May 8, 1989 Page 2 The City's Instruction to Bidders states that when such bid discrepancies occur, the bid wording shall prevail over numerical figures; however, in this case the $25,000.00 amount was used in the low bidder's worded and numerical total price summation of $273,631.00 (see attached Sheet No. PR 1.4). It is apparent to staff that the bidder's true intent for the price of Item No. 1 is $25,000.00, and that the $25,000.00 item should be used for the true comparison of bids and, in this case, for the award amount. At least two of the contending bidders have expressed disagreement with staff's recommendation concerning the low bidder's discrepancy in Bid Item No. 1 (see attached letter from attorneys representing John T. Malloy, Inc. and attached response from City Attorney's office). They cite that under other bid circumstances, an unscrupulous bidder could try to obtain a lower or higher bid price after bids are opened through the use of an intentional bid discrepancy. Staff agrees with this hypothesis; however, the low i er's discrepancy for Contract No. 2733 is obviously not intentional. The low bidder, Irvine Pipeline Company, Inc., is a well- qualified general contractor who possesses a Class A Contractor's license. Irvine • Pipeline has not performed previous contract work for the City; however, a check with their experience references and the State Contractor's License Board has shown that Irivne Pipeline has successfully completed publicly owned water pro- jects for the Irvine Ranch Water District and the East Orange County Water District and has no pending actions detrimental to their contractor's license, respectively. Irvine Pipeline is the pipeline subcontractor for the East Coast Highway Widening Contract No. 2711 currently under construction. Contract No. 2733 includes the construction of a 12" water main in Back Bay Drive from Jamboree Road to approximately 2200' northerly of Jamboree Road; construction of a 12" water main in Bayside Drive from East Coast Highway to approximately 1100' easterly; construciton of an 8" water main at Newporter Resort from Back Bay Drive to 260' easterly; and construction of a 6" water main in Shellmaker Road from Back Bay Drive to approximately 210' westerly and other incidental items of work. Funds for award are proposed from the following accounts: Account Description Account No. Amount Water Fund Reserve (apropriate) $100,000.00 • Study Well Fields (transfer) 50- 9297 -195 43,830.00 Newport Dunes Development 129,801.00 TOTAL $273,631.00 Budget amendments to transfer $43,830.00 and to appropriate $100,000.00 into the Water Main Replacement Account (Account No. 50- 9288 -01) have been prepared for Council consideration. • Subject: Water Main Improvements in Back Bay Drive and Bayside Drive (C -2733) May 8, 1989 Page 3 The Newport Dunes Development will be paying two- thirds (213) of the cost of the Bayside Drive portion of the water main contract which includes the water mains in Back Bay Drive, Shellmaker Road and the connection at the Newporter Resort. Those funds ($129,801.00) have been deposited with the City. The plans and specifications for Contract No. 2733 were prepared by the Public Works Department staff. The estimated date of completion is June 30, 1989. A/ Benjamin B. Nolan Public Works Director • DH -.so • I CITY OF NEWPORT BEACH 1 PUBLIC WORKS DEPARTMENT PROPOSAL WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE AND BAYSIDE DRIVE CONTRACT NO. 2733 To the 9onorable City Council City of Newport Beach 3300 Newport Boulevard P. 0. Box 1768 Newport Beach, CA 92658 -8915 Gentlemen: Pk i.i The undersigned declares that he has carefully examined the location of the work, has read the Instructions to Bidders, has examined the Plans and Special Provisions, and hereby proposes to furnish all materials and do all the work required to complete this Contract No. 2733 in �cordance with the Plans and Special Provisions, and w.11 take in full payment therefor the Ilowing unit price for the work, complete in place, to wit: ITEM QUANTITY -----ITEM DESCRIPTION UNIT TOTAL NO. AND UNIT UNIT PRICE WRITTEN IN WORDS PRICE PRICE 1. Lump Sum Mobilization and traffic control @ Dollars and 00 Cents Per Lump Sum 2. 282 Install 6 -inch ACP water main with trench Lineal Feet resurfacing @ /."t4 Dollars and ,�� Cents Per Linea o 3. 19B Install 8 -inch ACP water main with Lineal Feet trench resurfacing k1_1_ _1 _Dollars and D o Cents er Lineal Foot y $ $13,113. vz $ q9 -D0 $ j_lDZ -o 0 PR 1.4 ITEM 'QUANTITY ITEM DESCRIPTION UNIT T(JTNL i1D. AND UNIT UNIT PRICE WRITTEN IN WORDS PRICE PRICE 16. 8 Each 17. Lump Sum Install 12" plug and thrust block @ Dollars and 0o Cents $ 350.00 w ac Pressure testing and disinfection @ Dollars and 00 Cents Per Lump Sum WAL PRICE WRITTEN IN WORDS vo A-rx11L 25�t � l9 09 ati e er's Te eph-1 one Number 32y95 1 C. .,4 s ' A' Con ractor's License N— umTier — 0 n Classification ufwA ollars and 7--7 (431 • 0 q� Cents $ — C5 Initi pipsi-40die- Co.) =AL A �Iz.'IV3 P•b. Bv�L 3328 sa -a'ra 4dA�eA_ �_� _,_ Bi er�d s - A3dress J • BERNARD S. KAMINE PHYLLIS UNGERER JOSEPH BALISTOCKY CAT. CRWE RIPOLONE 0 0 KAMINE, STEINER 8 UNGERER LAWYERS 350 SOUTH FIGUEROA STREET, SUITE 250 LOS ANGELES, CALIFORNIA 00071 12131 972 -0119 FAX 12131 972 -0005 April 27, 1989 Honorable City Council City of Newport Beach 3300 Newport Blvd. P.O. Box 1768 .vp "'t ECac , CA 92651"915 Re: Water Main Improvements in Back Bay Drive and Bay Side Drive Contract No. 2733 Our File No. 093.999 (Newport) Gentlemen: HATT STEINER %.' OF COUNSEL r 7R Fh` This firm represents John T. Malloy, Inc., the second low bidder on the contract referred to above. This letter is a protest by John T. Malloy, Inc. against the proposed award of that contract to the low bidder. Such an award would violate the laws, standards and practices applicable to competitive bidding on public works projects, for the reasons set forth below. The low bid is defective and ambiguous, because it has two different prices listed for bid item No. 1, Mobilization and traffic control. At one place the price is "Twenty five Dollars and 00 Cents." At another place it is "$25,000.00." ,. ft,. _- defect ct t, . .. •, r+•Y.t `,f the Nd nC +hc ln,q hie?der cannot be �� a it.�lia� O, �iva .acic�.� �.te e_:ac•, ._it..,.._....._ determined from the face of the bid. It would require post -bid clarification by that bidder. If that need for post -bid clarification gives the low bidder an option to either take the job or not take the job, or it gives him an option to select one price or the other, then the defect is fatal and cannot be waived by the City as a mere irregularity. In this case the ambiguity in the bid gives the bidder both options. Therefore, that bid must be rejected. These issues were most recently discussed in Konica Business Machines v. Regents of University of California (1988) 206 CA3d 449. There the Regents awarded to the low bidder despite ambiguities in its bid. The court set aside that award, stating at 206 CA3d 454: Honorable City Council City of Newport Beach • Page No. 2 April 27, 1989 "[I]t is further well established that a bid which substantially conforms to a call for bids may, though it is not strictly responsive, be accepted if the variance cannot advantage or benefit not allowed other bidders, or, in other words, if the variance is inconsequential." (emphasis by the court) The court further stated at 206 CAM 456 -57: "The purpose of requiring governmental entities to open the contracts process to public bidding is to eliminate favoritism, fraud and corruption; avoid misuse of public funds; and stimulate advantageous market place competition. [citations] Because of the potential for abuse arising from deviations from strict adherence to • standards which promote these public benefits, the letting of public contracts universally receives close judicial scrutiny and contracts awarded without strict compliance with bidding requirements will be set aside. This preventative approach is applied even where it is certain there was in fact no corruption or adverse effect upon the bidding process, and the deviations would save the entity money. [citations] The importance of maintaining integrity in government and the ease with which policy goals underlying the requirement for open competitive bidding may be surreptitiously undercut, mandate strict compliance with bidding requirements." See also Menefee v. County of Fresno (1985) 163 CAM 1175, 1179, where the test was stated as whether "the deficiency of the bid -mould have givon [thc low bidder] an unfair advantage over other bidders ..." If so, the deficiency "would render the bid invalid." Those principles apply here. • First, the defect in the low bid is the classic kind of clerical error for which the low bidder could withdraw its bid under Pub. Contract Code §5100 et seq. [see especially §5103(d)]. Thus, the low bidder got an option —after submission of its bid —to either proceed with its bid or to withdraw the bid without risking liability on its bid bond. No other bidder got such an option. Second, the defect gave the low bidder the option to adjust its price after submission of its bid. The low bidder could elect to say it meant $25,000.00 if it 7 r� Honorable City Council City of Newport Beach • Page 3 April 2727, 1989 would still be low. On the other hand the low bidder could elect to say it meant $25.00 if it needed to lower its price —after bid time —in order to get the job. Again, no other bidder got such an option. Therefore, the defect in the low bid is fatal. It cannot be waived by the City as a mere irregularity. If the City tries to do so, John T. Malloy, Inc. will have no choice but to go to court, as Konica Business Machines did, to have the award thrown out. J* • BSK:rem • cc: Lloyd Dalton �Y X.. - -•ITY ;AUNCIL CITY 7{ �i:.WPO+RT SEAM, MAY 8 1989 .APPROVED TO: • CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY Ben Nolan FROM: Robert H. Burnham SUBJ: Contract No. 2733 • City Council Agenda Item No. F -3(b) May 3, 1989 You have asked if the City Council is authorized to award Contract No. 2733 to Irvine Pipeline Company, Inc. despite a discrepancy between bid wording and the numbers used in Item 1 (Mobilization and Traffice Control). In my opinion, the City Council is authorized to award the contract to the apparent low bidder and may not have the authority to do otherwise. The City Council's decision to award a competitively bid public works project is controlled, in part, by provisions of State law, the Instructions to Bidders, and court rulings. The City has an obligation to award the contract to the lowest responsible bidder unless it decides to reject all bids. Irvine Pipeline is a responsible company, their bid was properly executed, and they are the low bidder notwithstanding the minor discrepancy. John T. Malloy, Inc., the second low bidder, has argued the bid should be rejected because the discrepancy gave Irvine Pipeline an unfair competitive advantage over other bidders. According to Malloy's attorney, any discrepancy between bid wording and numbers gives the bidder the option to withdraw the bid without risking bid bond liability and /or the option to adjust bid price after opening. I believe these arguments are not valid in this case. Bidders do not, as a matter of right, have the option to withdraw a bid because of a discrepancy between wording and numbers. In the event of a mistake, the bidder is required to give the public entity written notice of the mistake and how it occurred within five days after bid opening. The bidder must also establish to the satisfaction of the public entity or Court, that the mistake made the bid materially different than intended and was not due to an error in judgment or carelessness in inspecting the work site, plans or specifications. The bidder does not, as a matter of right, have the option of withdrawing a mistaken bid. The restrictions on the right of a bidder to obtain relief are designed to avoid the concerns expressed by Malloy. Moreover, 0 0 Memo to Ben Nolan May 3, 1989 Page 2 Irvine Pipeline does not now have the option of seeking relief because it has not given requisite notice of its intent to do so. Malloy also contends the discrepancy "gave the low bidder the option to adjust its price after submission of its bid." Assuming this is true (and it isn't), no unfair advantage accrued in this case. Irvine Pipeline's bid is $48,000 less than Malloy's bid assuming use of the higher bid for the item. Malloy's argument could be valid if the "discrepancy" affected the ranking of the bidders, but it does not. The cases cited by Malloy's attorney do not necessarily support his arguments. In Menefee v. County of Fresno (1985) 163 Cal.App. 3d 1175, the Court upheld the Board's decision to award a contract to a bidder who failed to sign the bid. The Court ruled the bidder gained no advantage from the defect because, at time of award, they were not entitled to withdraw or void the bid. Irvine Pipeline is in the same position - they have no legal right to seek relief from their bid and they too have gained no advantage from any discrepancy. The other case cited, Konica Business Machines v. Regents of University of California 206 Cal.App. 3d 449 turns on the failure of the bidder to conform to bid specifications and the failure of the entity to provide the type of precise specifications necessary to insure competitive bidding on a common standard. A decision to award the contract to Irvine Pipeline is consistent with the purposes of the public bidding process. Competitive bidding of public works projects is intended to eliminate favoritism, fraud and corruption, insure retention of reliable contractors, and minimize the cost of public projects. Irvine Pipeline Company is a well qualified general contractor that has successfully completed similar public projects. Their bid is almost $50,000 less than the second low bidder, and the facts support staff's conclusions that the discrepancy was not intentional and the numerical figures reflect the bidder's intended price. JoTDert H. Burnham City Attorney • • • E TO: CITY COUNCIL FROM: Public Works Department April 10, 1989 i,Y TP7 ,ITY CO'JI0LCITY COUNCIL AGENDA CITY hf "i'WPORT 3EACITEM N0. F -12 APR 10 1989 A,PPREV11 1_ _. SUBJECT: WATER MAIN IMPROVEMENTS IN BACK BAY DRIVE AND BAYSIDE DRIVE CONTRACT NO. 2733 RECOMMENDATIONS: 1. Approve the plans and specifications. 2. Authorize the City Clerk to advertise for .6irii..�•alY DISCUSSION: The project provides for construction of a 12 -inch water main in Back Bay Drive from Jamboree Road to approximately 2200 feet northerly of Jamboree Road; construction of a 12 -inch water main in Bayside Drive from East Coast Highway to approximately 1100 feet easterly; construction of an 8 -inch water main at the Newporter Inn from Back Bay Drive to 260 feet easterly; and construction of a 8 -inch water main in Shellmaker Road from Back Bay Drive to approximately 210 feet westerly. This project will provide water service to the Newport Dunes project, Shellmaker Island and improve service to the Newporter Resort. The estimated cost of the work is $370,300.00. The Newport Dunes Development will pay $176,000.00 or two - thirds (213) of the construction cost for installation of the 12 -inch water main in Back Bay Drive,which includes the 8 -inch water main connection through the Newporter Resort and the Shellmaker Road water main,with the City paying $88,000.00 or the other one -third (1/3) of the cost. The City will pay the entire cost for installation of the 12 -inch water main in Bayside Drive at an estimated cost of $106,300.00. The City funds to award this contract are available in the Water Main Replacement Account and the Study Well Fields Account with $100,000.00 coming from the Water Main Replacement AccountA and remaining $94,300.00 coming from the Study Well Account. The Newport Dunes development will deposit funds covering their portion of the water main construction costs prior to award of contract. The plans and specifications were prepared by the Public Works Department. The estimated date of completion is June 30, 1989. An exhibit is attached for reference. JiC4 Benjamin B. Nolan Public Works Director DH :so Attachment • • ZD o� 00 9t �I r m Q y a° • 0 Aulhonzed to Publish Advarnsoments of all ko,n Ouding public notices by Decree of the Superior Court of Orange County, California. Number A -6214. dated 29 September 1961, and A- 224831. dated 11 June. 1963. STATE OF CALIFORNIA County of Orange F lK Ndbu �C+rwng cb.r�d IN. JlIndw4 n W ,n r Xiint Ile K. C.,uM .adln I am a Citizen of the United States and a resident of the County aforesaid, I�am over the age of eighteen years, and not a party to or interested In the below entitled matter. I am a principal clerk of the Orange Coast DAILY PILOT, with which is combined the NEWS - PRESS. a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that a Notice of Inviting Bids of which copy attached hereto is a true and complete copy. was printed and published in the Costa Mesa. Newport Beach, Huntington Reach, Fountain Valley, Irvine, the South Coast communittes and Laguna Beach issues of said newspaper for ,__?_ consecutive weeks to wit the issue(s) of 198_9 April 14 , 198 9 198— 198_ 198_— I declare, under penalty of perjury, that the foregoing is true and correct. Executed on April 14 , 198 9 at Costa Mesa,, California. �u�cc� 46� - Signature 0 y FIXIC NOTICE NOTICE INVMNO BIDS Sealed bide may be re- ceived at the Office of the City Clerk, 3300 Newport Bmleverd. P. O. Box 1758, Newport Beach, CA 52655;915 tmte 11.00 a.m.' on the .25th day of April.e AYSIDE iVE Yny ne�'e Eetlmatrr: Approved by the City' ouncll this 10th day of Aril, 1999.. WANDA E. BAOOIO, City lwk Prospective bidders may All one set of bid docu -, ants at no cost at the office: the Public works Depart -. ent, 3300 Newport wleverd, P. O. Box 1769, awport Beach, CA '958.8815. For further Inlormetion PROOF OF PUBLICATION April 13, J