15-0804_CHARLES KING COMPANY, INC._Resolution 15-08-04-07RESOLUTION NO. 15-08-04-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO. CALIFORNIA, WAIVING COMPETITIVE BIDDING AND
MAKING FINDINGS IN SUPPORT THEREOF
WHEREAS, the City received competitive sealed bids for the 1-5 and Ortega
Highway Interchange Pipeline Relocation Project ("Project") on November 15. 2012;
and
WHEREAS, Charles King Company, Inc. ("CKC"), was the lowest responsible
bidder submitting a responsive bid of $1,990,133; and
WHEREAS, part of the Project included work to install an additional waterline in
the Ortega Bridge ("New Ortega Line") to satisfy fire flow requirements of the Plaza
Banderas Hotel to be paid for by Stroscher G3, LLC ("Stroscher"); and
WHEREAS, after bids had been opened, Stroscher cancelled its plans and its
participation in the New Ortega Line; and
WHEREAS, the contract for construction of the Project ("Contract") was awarded
without the New Ortega Line to CKC; and
WHEREAS, Rivendell Land Development, Inc. ("Rivendell"), purchased all rights
to the Plaza Banderas Hotel from Stroscher and now desires to have the City add the
New Ortega Line to the Contract with CKC; and
WHEREAS, the City entered into an agreement with Rivendell whereby Rivendell
agreed to advance $640,000 to the City to pay for ail expenses related to the New
Ortega Line; and
WHEREAS, the Project is being constructed in conjunction with the
reconstruction of the Ortega Bridge by Caltrans ("Ortega Bridge Project"); and
WHEREAS, the window of time to construct the New Ortega Line prior to
completion of the Ortega Bridge Project is too short to allow the City to separately bid
the New Ortega Line; and
WHEREAS, construction of the New Ortega Line after compietion of the Ortega
Bridge Project would incur substantial additional costs resulting from removal of finished
work on the Ortega Bridge Project to install the pipeline and refinishing following
installation; and
WHEREAS, construction of the New Ortega Line after completion of the Ortega
Bridge Project would also negatively impact the City's traveling public because it would
entail lane closures while construction is ongoing; and
Page 1 of 3
WHEREAS, the City has determined that the cost of constructing the New
Ortega Line will amount to $452,867, which was calculated based on the original unit
prices bid by CKC plus additional costs due to changed construction conditions; and
WHEREAS, competitive bidding is not required when the nature of the contract is
such that competitive bidding would be unavailing or would not produce an advantage,
and the advertisement for competitive bids would thus be undesirable, impractical or
impossible [Graydon v. Pasadena Redevelopment Agency {^9B0) 104 Cal.App.3d 631);
and
WHEREAS, the public policy purpose served by competitive bidding is to guard
against favoritism, improvidence, extravagance, fraud and corruption; to prevent the
waste of public funds; and to obtain the best economic result for the public {Graydon,
citing 10 McQuiliin, fvlunicipal Corporations (3d ed.) § 29.29).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San
Juan Capistrano, as follows:
Section 1. The facts set forth in the recitals above are true and correct and
hereby incorporated into the City Council's findings and determinations.
Section 2. The City Council hereby finds and determines that because Rivendell
is paying the entire cost of adding the New Ortega Line to the Contract with CKC and
because performing this work at a later date would incur substantial additional costs and
negatively impact the City's traveling public due to the need to lengthen the construction
process, competitive bidding is unavailing and would not produce any public advantage,
and is. therefore, undesirable and impractical.
Section 3. The Citv Council further finds and determines that since no public
monies are to be utilized on the New Ortega Line, the public policy served by
competitive bidding is not implicated here.
Section 4. The City Council, therefore, waives the requirement of competitive
bidding for the New Ortega Line work and authorizes the New Ortega Line work to be
done by CKC pursuant to an amendment to the Contract.
Section 5. The Mayor is hereby authorized to execute and deliver the
amendment to the Contract with CKC adding the New Ortega Line work following the
City Council's adoption of this Resolution and to do or cause to be done any and all
other acts and things necessary and proper for carrying out this Resolution.
Section 6. The City Clerk shall certify to the passage and adoption of this
resolution and the same shall thereupon take effect and be in force immediately upon its
adoption.
Page 2 of 3
PASSED, APPROVED AND ADOPTED by the City Council of the City of San Juan
Capistrano, on the 4'" day of August, 2015, by the following vote;
Appro
Derek Reeve
Mayor
Attest
Maria Morris
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that tlie foregoing Resolution No. 15-08-04-07 was duly adopted by the City
Council ot the City of San Juan Capistrano at the Special meeting thereof, held the 4'"
day of August 2015, by the following vote
AYES' COUNCIL MEMBEI^S: Allcvato, f-erguson, Perry, Patterson and Mayor Ree
NOES: COUNCIL MEMBERS: None
ABSENT. COUNCIL MEMBERS: None
MARIA MORRIS'; Cifv Clerk
Page 3 of 3