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HomeMy WebLinkAboutMinutes - City Council - 1982-02-24 44 • City Council , Adjourned Regular Meeting Police Dept. & Council Chambers Redding, California February 24, 1982 12:00 Noon The meeting was called to order by Vice Mayor Demsher with the following Council Members present: Demsher, Fulton, Gard, and Kirkpatrick Absent: Mayor Pugh Also present were Electrical Engineer Baysinger, City Clerk Richter, and Secretary to the City Council Rupp. AWARD OF BID - Bid Schedule No. 1367, Moore Road Substation Council Members were given a memorandum from the City Attorney which is hereby made a part of these minutes by reference. He reviewed the decision of Mr. Berrigan, Assistant Licensing Deputy for the Contractors ' State Licensing Board in Sacramento, that an "A" , General Engineering Contrac- tor's license is required to build the Moore Road Substation, Bid Schedule No. 1367. It is the recommendation of the City Attorney, after reviewing the statutory definitions of the "A" and "B" licenses, and the project itself, that Council determine that an "A" license is required, and award the contract to the lowest responsible bidder holding an "A" license, which is Drumm Construction Company. Council Member Gard noted that the bid specifications do state that the successful bidder must have the correct license. Photos of the proposed project, Canby Substation and Sulphur Substation were submitted to Council and comparisons of the projects were made. Gary Borchard, Attorney representing Northern Industrial Electric, felt that his client is properly licensed for the project with a "B" and "C10" license. He noted that City Attorney Hays called him and advised that he had contacted Mr. Berrigan from the State Contractors ' Board asking for an explanation of his decision. Mr. Berrigan said, for the purposes of awarding a contract, his letter was sufficient. Mr. Borchard stated that he had a subsequent discussion with Mr. Berrigan, at which time Mr. Berrigan said the opinion he gave to the City of Redding was a subjective one based on his understanding of the situation, and the ultimate decision is with the City Council . '143, Mr. Borchard summarized his client' s opinion that 1 ) according to past history in awarding similar contracts, this is an electrical project, and not an engineering one, and 2) the amount of money allocated to road engineering, paving and site preparation ($43,340) , is incidental to the cost of the entire project ($302,237) . He noted that the electrical work would be covered by their "C10" , electrical specialty license. Jack Kenealy, Attorney representing Drumm Construction, stated that it is his client' s position that the site improvements and storage areas are not incidental to the project and that an "A" license is required. He pre- sented a graph comparing the number of square feet of building space to the number of square feet of site and road improvements. Mr. Borchard responded that the square footage on the graph has no bearing, but the cost is the determining factor. He noted that Northern Industrial Electric has no intention of suing the city but feels Council should consider the reasons for requiring an "A" license for this type of project. He thanked Council for the additional time and consideration given to this matter. r 2/24/82 S 45 1 TTT Jl I Councilman Kirkpatrick stated that both bidders feel they have the neces- sary qualifications to build the project and both have done satisfactory work for the City in the past. He feels that possibly plans should be sent to the State Contractor's Board in Sacramento for review in advance, so that it can be stated in the bid specifications which license is required. He also noted the difference of over $20,000 between the two bids. Mr. Demsher agreed with Councilman Kirkpatrick that he did not want to see an additional $20,000 spent unnecessarily but the interpretation of the State Contractor' s Board and the City Attorney is that the project requires an "A" license. MOTION: Made by Councilwoman Gard, seconded by Councilman Fulton that Bid Schedule No. 1367, Moore Road Substation, be awarded to the second apparent low bidder, Drumm Construction, in the amount of $325,000. Voting was as follows: Ayes : Council Members - Demsher, Fulton, Gard Noes: Council Members - Kirkpatrick Absent: Council Members - Pugh Council concurred that there is a need to be more specific about license requirements on bid specifications and instructed staff to develop a procedure whereby this may be determined in advance of the notice inviting bids. ADJOURNMENT There being no further business, at the hour of 12:35 P.M. , Vice Mayor Demsher declared the meeting adjourned. 4 APPROVED: a A A s Vice--Mayor- Y ATTEST: City Clerk i 111A 2/24/82