Minutes 1982/04/13
Roll Call
Las An i mas
Tech. Pk.
Assmt. Dist.
...
4723
Apri 1 13, 1982
Gilroy, California
The Adjourned Regular Meeting of the Gilroy City Council was called
to order by His Honor Mayor Norman B. Goodrich at 5:09 p.m.
Present: Council Members: Sharon A. Albert, Donald F. Gage, Roberta
H. Hughan, Marion T. Link, Robert E. Taylor, Pete Valdez, Jr. and Norman
B. Goodrich.
The Mayor noted that the April 5, 1982, meeting was continued for
the purpose of unfinished business regarding Las Animas Technology Park
Assessment District; that the Public Hearing for same was closed at the
April 5, 1982, regular Council Meeting.
City Administrator Wood recommended that Council proceed by first
considering the awardin0 of the contract for said improvement.
The Mayor asked if there was anyone present in the audience wishing
to speak in regard to Council considering awarding the contract for the
subject improvement district.
Mr. Paul Eilert, Eilert Construction Company, Inc., addressed the
Council noti ng htat hi s company was the low bi dder for the project and
he spoke in regard to alleged irregularities of his bid and Staff's
recommendation presented to Council at their April 5, 1982, meeting in
regard to the competence of his company.
Mr. Lou D. Packard, attorney representing Eilert Construction Com-
pany, Inc., addressed the Council regarding a recent newspaper article
inferring that they are not a responsible contractor as a result of the
Staff's memorandum to Council recommending that the bid of Samuel R.
Spencer be awarded for the subject improvement. He further presented
letters of commendation from agencies who awarded contracts to Eilert
Construction Company, Inc. He further noted alleged failures on one street
in the Obata Industrial Park Project performed ~y Samuel R. Spencer, con-
tractor.
Councilman Taylor requested an anology from Mr. Packard for his
inference that the City would require Eilert Construction Company, Inc.,
to adhere to each and every portion of the specifications but would waive
irregularities in the contract of Samuel R. Spencer.
Mr. Packard apologized for same noting that the inference was not
intentional.
Councilman Gage noted that Mr. Packard referred to the savings to
taxpayers in awarding the bid to the low bidder when, in fact, same is not
a cost to taxpayers, but to private parties for this particular assessment
district. Mr. Packard concurred.
Mr. John P. Corley, attorney for Samuel R. Spencer, addressed the
Council and noted that the irreqularities of the low bid are not slight;
that time is of the essence in the biddin~ process and at some noint, the
contractors must complete their bid in accordance with the specifications,
noting that in the low bid, several of the unit prices were not written in
words as required by the specifications; that the bid of Eilert Construction
Co., Inc. did not follow the City.s specifications.
4724
Executive
Session
Res. #82-56
Adjournment
...
Councilman Link noted that the Las Animas Technology Park
owners expressed their willingness to a9ree with Staff's recommenrla-
tions.
Mr. Philip D. Assaf, City's Bond Attorney, noted that whether
or not the owners are willing to accept Staff's recommendation is of
no consequence in Council's consideration of awarding the contract.
At 5:42 p.m., the Mayor called an Executive Session of the
Council and reconvened the meeting at 6:04 p.m.
City Administrator Wood reported that Council will reject all
bids and call for new bids. He noted that the City wants to remove
any question or onfusion in regard to the seval bids received and to
give all prospective bidders an equal opportunity to resubmit new bids.
He noted that Council will call for new bids at 2:00 o'clock p.m. on
April 30, 1982, and report to Council on May 3, 1982. On behalf of
the City, he invited Mr. Eilert to resubmit a new bid as an expression
of the City's confidence in his and his company's abilities.
The City Attorney reported that the new specifications should
be followed in every detail.
Motion was made by Councilman Link seconded by Councilman Taylor
and carried that all bids receiverl for the subject project be rejected.
Councilwoman Hughan voted IInoll on the motion.
Mr. Philip D. Assaf, Bond Attorney for the City, presented and
read Resolution No. 82-56, A Resolution Calling for Sealed Proposals or
Bids. On motion of Councilman Link, seconded by Councilman Valdez and
unanimously carried, Resolution No. 82-56 was adopted.
RESOLUTION NO. 82-56
A RESOLUTION CALLING FOR SEALED PROPOSALS AND FIXING LIQUIDATED
DAMAGES FOR FAILURE TO COMPLETE THE WORK WITHIN TIME SPECIFICED -LAS
ASNmAS TECHNOLOGY PARK ASSESS~1ENT DISTRI CT.
PASSED AND ADOPTED this 13th day of April, 1982, by the following vote:
AYES: COUNCIL MEr1BERS: ALBERT, GAGE, HUGHAN, LINK, TAYLOR, VALDEZ
ann GOODRICH
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCI L ~1Er1BERS: NONE
At 6:07 p.m., the Mayor adjourned the meeting.
Respectfully submitted,
-/l"2uJa-J t ..d ~~
~ City Clerk'