CC RESOLUTION 1490Ili I,
RESOLUTION NO. 1490.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO, CALIFORNIA, AWARDING
TO BARUCH CORPORATION A CERTAIN CONTRACT
FOR CONSTRUCTION AND COMPLETION OF A CITY
HALL BUILDING, A POLICE STATION BUILDING
AND SITE IMPROVEMENTS IN AND FOR SAID CITY.
WHEREAS, the City Council of the City of E1 Segundo,
California, did heretofore invite sealed bids for the construction
and completion of a City Hall Building, Police Station Building
and certain Site Improvements in and for said City as described
and referred to in that certain "NOTICE INVITING BIDS FOR THE
CONSTRUCTION OF THE EL SEGUNDO CITY HALL, POLICE STATION AND SITE
IMPROVEMENTS FOR THE CITY OF EL SEGUNDO, CALIFORNIA. ", dated the
5th day of January, 1955, and which was duly and regularly pub-
lished in time, form, and manner as required by law; and
WHEREAS, pursuant to said notice the said City Council
did duly receive various bids for the works and improvements
therein contemplated; and
WHEREAS, said Council did duly refer all of said bids
so received to the Architect and to the City Administrative Of-
facer for checking, tabulating and report thereon at its next
regular meeting to be held February 9, 1955; and
WHEREAS, immediately upon the declaration of said bids
Mr. Herbert J. Powell of Smith, Powell and Morgridge, Architects
for the City on said improvements, immediately questioned the ac-
curacy of the bid submitted by one of the bidders, to wit: the
bid of R. J. Daum Construction Company, which appeared to be ex-
cessively low and requested that said bidder recheck figures and
estimates to determine whether an error had been made in furnish-
ing its said bid; and
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WHEREAS, in response to the query of said Architect, a
representative of said R. J. Daum Construction Company who was
then and there present immediately advised the Council and the
Architect that an apparent error had been made in submitting the
bid of said company, and that the bid figures, estimate sheets,
etc., etc. would be checked at once with the Architect and the
Administrative Officer to ascertain the facts with reference there-
to; and
WHEREAS, at the regular meeting of said City Council of
February 9, 1955, the said City Administrative Officer and the said
Architect filed their written report under date of said 9th day
of February, 1955, in words and figures as follows:
"To The Honorable City Council
City of E1 Segundo, California
Gentlemen:
At your request, we have reviewed the bids which were sub-
mitted on February 2, 1955, for the E1 Segundo City Hall
and Police Station and Site Work. The low bid of R. J.
Daum Co. for the complete project was $371,200.00. A part
of this bid for the Police Building was $111,143.00. Since
the next bid for the.Police Building was.$175,1+00.00, it
became apparent that some substantial error had been made
in this part of the bid. As you know, the Photostat copy
of the estimate revealed that some $53,000.00 worth of
special construction was omitted from the bid.
A letter is in your hands from the R. J. Daum Co., request-
ing the withdrawal of their bid for the El Segundo City Hall,
Police Station, and Site improvements, because of this er-
ror. We are convinced that this was an honest error, that
it is of such substantial nature as to cause great injury
to the Bidder were he forced to perform this work. Accord-
ingly, it is our recommendation that permission be granted
by the City Council for the withdrawal of R. J. Daum Co.'s
bid.
In considering all the matters having to do with the con-
struction of the Bidding Project at an informal meeting on
the morning of February 9, 1955, it was determined:
1. That the requirements and needs of this City were met
in the plans as developed. Further, that due to the close-
ness of the 2nd and 3rd Bidders on the complete project Bid,
and furthermore the fact that they are both experienced Bid-
ders on work of this type, their bids appear to be a good
value for the buildings as designed. Assuming, therefore,
that the City decides to proceed with this work, we recom-
mend the 2nd low Bidders, Baruch Corp., be awarded this work
on the following basis:
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and
The Complete Project Bid No. 40 $429,000.00; add special
prison equipment, Alternate No. 1, $11,000.00; add addition-
al basement area in City Hall, Alternate No. 2, $7,500.00;
substitute Copper Flashing throughout on both buildings, in
place of Galvanized Iron, Alternate No. 3C; add $1,000.00.
This results in a total of $448,500.00.
Respectfully submitted
/s/ E. E. Udall
E. —E. Udall
City Administrator
/s/ Herbert J. Powell
Herbert J. Powell
Smith, Powell, & Morgridge,
Architects p;
WHEREAS, at said meeting of February 9, 1955, there was
also submitted to and filed with said City Council a communication
from said R. J. Daum Construction Company in words and figures as
follows:
"February 4, 1955
City of E1 Segundo
E1 Segundo, California
Attention: Mr. E. Earl Udall
Chief Administrative Officer
Subject: E1 Segundo City Hall, Police Station & Site
Improvements
Gentlemen:
We respectfully request that our bid on Bid Items No. 1 and
4 on the subject project be withdrawn because of a clerical
error of $53,580.00 in the sub - contract column of Bid Item
No. 1, Police Station, as evidenced by the attached photo-
static copies of our estimate sheets.
The sub - contract totals of our estimate sheet No. 1 were en-
tirely omitted from the total of the sub- contract column.
We are extremely sorry for the inconvenience this has caused
you, and we will be pleased to submit any additional infor-
mation you may require concerning the project.
WAP /tl
Encls.
cc Architects
and
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Yours very truly,
R. J. DAUM CONSTRUCTION
COMPANY
Isl Wade A. Perona
WADE A. VERUNG; P ESSIDEERT
u;
\fT M
WHEREAS, the City Council has consulted with the City
Attorney of the City of E1 Segundo with reference to the said bid
of the said R. J. Daum Construction Company and the findings, de-
terminations and recommendations of the City Administrative Offi-
cer and Architect, hereinabove quoted, and with reference to the
above quoted communication of said R. J. Daum Construction Company
requesting withdrawal of its said bid by reason of the error above
referred to therein; and
WHEREAS, the City Attorney, after consideration of said
matter, has advised this Council that, in his opinion, under the
authority of the decision of the District Court of Appeals of the
Second District of California, Division 2, made December $, 1950,
in the case -of M. F. Kemper Construction Company, et al., versus
The City of Los Angeles, that the City of El Segundo may permit
the said low bidder, R. J. Daum Construction Company, to rescind
and withdraw its said bid on account of said mistake, as it ap-
pears to be an honest error; that it was made by inadvertence;
that it is substantial in nature; that it would cause great injury
to the bidder were he forced to perform the work thereunder; that
it was immediately disclosed at the time of declaration thereof;
and that it would be unconscionable to require said low bidder to
proceed with the said contract under its said bid; and
WHEREAS, said City Council did take the said matter
under further advisement until the hour of 1;00 otclock P. M.,
on February 10, 1955; and
WHEREAS, said last above mentioned hour and date has
now arrived and the City Council has duly considered the'said mat-
ter, the report and recommendations of said Architect and City Ad-
ministrative Officer and the advise of the City Attorney and believes
that the action hereinafter taken under the particular facts and
circumstances here presented is in the public interest and in the
interest of said City and is lawful and justified;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SE-
GUNDO, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE
AND ORDER AS FOLLOWS:
SECTION 1. Said Council does hereby find that the facts
recited in the preamble to this resolution are true.
SECTION 2. Said Council does hereby grant the request
of said low bidder, R. J. Daum Construction Company, to rescind,
annul and withdraw its said bid under the facts and circumstances
hereinabove referred to and does hereby reject said low bid of
said R. J. Daum Construction Company accordingly.
SECTION 3. That all other bids or proposals received
under and pursuant to said above mentioned notice to bidders be
and the same are hereby rejected with the exception of Bid No. 4
and Alternate Bid Nos. 1, 2 and 3(c) of Baruch Corporation, a
corporation (address: 321 South San Vicente Boulevard, Los Ange-
les, California), and the City Clerk is hereby authorized and
instructed to return the bid checks of all unsuccessful bidders.
SECTION 4. That the said City Council hereby accepts
the said Bid No. 4 and Alternate Bid Nos. 1, 2 and 3(c) of said
Baruch Corporation on behalf of said City and does hereby agree
on behalf of said City to pay to said Baruch Corporation the sum
of $429,000.00 under its said Bid No. 4; the sum of $11,000.00
under its said Alternate Bid No. 1; the sum of $7,500.00 under its
said Alternate Bid No. 2; and the sum of $1,000.00 under its said
Alternate Bid No. 3(c), making a total of $448,500.00 for the en-
tire project, including said City Hall Building, said Police
Station Building and the Site Improvements , all as contemplated
in and under and in conformity with the contract documents herein-
after referred to.
SECTION 5. That the following documents, to wit:
1st. Said *NOTICE INVITING BIDS FOR THE CONSTRUCTION
OF THE BL SEGUNDO CITY HALL, POLICE STATION AND
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SITE IMPROVEMENTS FOR THE CITY OF EL SEGUNDO,
CALIFORNIA. *, dated January 5, 1955;
2nd. The said original bid of said successful
bidder, BARUCH CORPORATION;
3rd. This Resolution No. 1490 of Acceptance of
said bid;
4th. All of the various plans, specifications and
documents for said complete project referred
to in the respective instruments above men-
tioned; and
5th. The contract *AGREEMENT" to be executed by the
parties pursuant to this award;
each and all of which (with the exception of 5th, the Agreement
to be executed pursuant to this award) are on file in the office
of the City Clerk of the City of El Segundo. Each and all of the
above mentioned documents so on file are open to public inspection
and as so on file are hereby expressly referred to and by this
reference expressly incorporated herein and made a part hereof as
fully and for all intents and purposes as though the same were here-
in set forth at length. Said instruments and documents mentioned
and referred to in said items 1st, 2nd, 3rd, 4th and 5th of this
Section 5 of this Resolution are hereby determined to be and may
be referred to, and are hereby designated as the *Contract Docu-
ments*, and the said contract documents in the aggregate are and
shall be and constitute the contract for the construction and
completion of said City Hall Building, said Police Station Build-
ing and Site Improvements for said City, within said City, all in
the manner, at the locations, of the materials, within the time,
subject to the terms and conditions, and at the prices as set
forth in and as contemplated by said Contract documents.
SME
SECTION 6. In order that the funds provided by the
bond issue for the City Hall Building and Site Improvements
($270,000.00) and the funds provided by the bond issue for the
Police Station ($120,000.00) may be properly applied and accounted
for, and the respective funds charged with the respective amounts
properly chargeable thereto, the City Council has investigated and
has determined from information furnished by the Architects and
by the successful bidder, above named, that of the above totaled
bid of $44$,500.00, the sum of $ 269,100.00 represents and is the
bid price on the City Hall Building and Site Improvements; and
that the sum of � 179,400.00 represents and is the bid price on
the Police Station Building.
SECTION 7. That the Mayor of the City of El Segundo,
on behalf of said City and in its name,is hereby authorized
and instructed to execute the "Agreement" for said entire project
hereinabove referred to in item 5th of Section 5 of this resolu-
tion, and the City Clerk to attest the same, affix the official
seal of said City thereto and make delivery thereof in due course
upon receipt of a duplicate thereof duly and regularly executed
on the part of said Baruch Corporation.
mediately.
SECTION 8. That this resolution shall take effect im-
SECTION 9. That the City Clerk shall certify to the
passage and adoption of this Resolution; shall cause the same to
be entered in the book of original resolutions of said City, and
shall make a minute of the passage and adoption thereof in the
records of the proceedings of the City Council of said City in the
minutes of the meeting at which the same is passed and adopted.
Passed, approved and adopted this 101h day of February,
1955.
ATTEST:
Cry C I erk
(SEAL)
Mayor of t e City o egundo,
California'
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STATE OF CALIFORNIA, )
COUNTY OF LOS ANGELES, ) SS.
CITY OF EL SEGUNDO. )
I. Neva M. Elsey, City Clerk of the City of El Segundo,
California, do hereby certify that the whole number of members of
the City Council of the said City is five; that the foregoing
resolution, being Resolution No. 1490, was passed and adopted by
the said City Council, approved and signed by the Mayor of said
City, and attested by the City Clerk of said City, all at an ad-
journed regular meeting of the said Council held on the 10th day
of February, 1955, and that the same was so passed and adopted
by the following vote:
AYES: Councilmen
Mayor Selb,
NOES: Councilmen
ABSENT: Councilman
WITNESS my hand and
11th day of February, 1955.
(SEAL)
Frederick, Gordon, Swanson and
r;
None;
Baker.
the official seal of said City this
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City lerk of the C ty o.
E1 Segundo, Californi .