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Resolution Number 15-08-04-07 RESOLUTION 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 all 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 completion 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(1980) 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 McQuillin, Municipal 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 City 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 41" day of August, 2015, by the following vote: Appr Derek eeva Mayor A Mari Morri lark 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 the foregoing Resolution No. 15-08-04-07 was duly adopted by the City Council of the City of San Juan Capistrano at the Special meeting thereof, held the 4' day of August 2015, by the following vote: AYES: COUNCIL MEMBERS: Allevato, Ferguson, Perry, Patterson and Mayor Reeve NOES: COUNCIL MEMBERS: None ABSENT: COUNCI MEMBERS: None MAR A MO R , Cit Clerk u Page 3 of 3