HomeMy WebLinkAbout1970-07-28COUNTY SANITATION DISTRICTS
OF ORANGE COUNTY, CALIFORNIA
P. 0. BOX Bl 27, FOUNTAIN VALLEY, CALIFORNIA 92708
10844 ELLIS AVENUE [EUCLID OFF-RAMP, SAN DIEGO FREEWAYJ
July 24, 1970
'I10: !'fl.EMBERS OF THE BOARD OF DIRECTORS OF COUNTY SANITATION
TELE PH ON ES:
AREA CODE 714
540-2910
962-2411
~~---D_I_S_~RICT~K-'0_. ___ 7 __ ~~--~---~~--~-----~---~~---~~---~
Gentlemen:
Pursuant to adjourrnnent of the adjourned meeting held July
14-, 1970, the Board of Directors of County Sanitation District ·
No. 7 will mc::et in an adjourned regular meeting:
JWS:gc
Tuesday, J 1..ily 28 _, 1970
at 4:30 p.m.
10844 Ellis Avenue
Fountain Valley, California
COUNTY SANITATION DISTRICTS
OF ORANGE COUNTY, CALIFORNIA
P. 0. BOX 8127, FOUNTAIN VALLEY, CALIFORNIA 92708
10844 ELLIS AVENUE [EUCLID OFF-RAMP, SAN DIEGO FREEWAYJ
Gentlemen:
Tuesday, 1-~: 30 p .m., July 28 ~ 1970
1081-~4 E11i s A.venue
Fountain VaJley, Califor~ia
TELEPHONES:
AREA CODE 714
540-2910
962-2411
I am calling a special meeting of the Board of Directors of
County Sanitation Di.strict No. 1 at the abov(:; hour and elate
to consider the following items:
JWS:gc
a. Request of G. B. Cocke, Contractor on Rehabllitatj_on
of Headworks 'B' at Plant No. 2, Job No. P2-5R-l,
to rescind his bid.
b o Authorizing John Carollo Engineers to redes.2.gn
Job No. P2-5R-l.
c. Consider RE~scJ.u tion No. ~(0-114-1 au th·-Jri:-:,i.ng
re-advertising for bids for Job No. P2-5R-l.
c hai rmari·-----------···-
II
MANAGER'S AGENDA REPORT
County Sanitation Districts
of Orange County, California
DISTRICT NO.
District No . 1 -Special Meeting
District No. 7 -Adjourned Meet ing
Tuesday, July 28, 1 970
. 4 :30 p .m.
10844 t:llis Avenue
Fountain Valley, Calif., 92708
· T elephone·s:
Area Code 714
540-29 10 ·
962-2411
July 24, 1970
·The following is a brief explanation of the items which appear
on the enclosed agenda and which are not otherwise self-explanatory.
District No. 7
No. 5 -AWARD OF SALE OF BONDS: Hopefully, the resolution appearing
.on the agenda can be adopted awarding sale of bonds for the best
bid received at 10:00 a.m., Tuesday, in the County Treasurer's . office.
We are advised that several public agencies have been able to market ·
bonds in the past few weeks below the statutory seven percent
interest maximum.
No·. 6 -PRINTING OF BONDS: Assuming the bond sale is successful, it
will be nec essary 'to arrange for printing of the bonds. The staff
has solicited a proposal from Jeffries Banknote Company, of Los
Angeles, which will be available at the meeting.
No. 7 -PROPOSAL FOR SOILS INVESTIGATION -SUNFLOWER INTERCEPTOR:
·The design eng ineers have recow.mended that Moore & Ta be r, of Anaheim,
be employed to conduct necessary foundation investigations for this
project. The staff therefore r ecommends that the proposal of this ·
firm, attached to the agenda, be adopted.
District No. 1
This special meeting has been called by the Chairman at the
request of the General Counsel to consider Item No. 9 and the follow-
ing itemq on the agenda . We are hop e ful that sufficient information
will b e presented to enab l e the Board to make the necess a ry decisions
sinc e this project is urgently needed and further delay could seriously
jeopardize the safety of the structure involved and of personnel
wo~king in the area.
No. 9 -REQUEST OF CONTRACTOR FOR RE CI SS ION OF BID: The pirectors
will recall that at the July 8 Board meeting a contract for Plant
Job No. P2 -5R -l, Rehabilit a tion of Headworks 'B' at Pl ant No. 2, was
awarded to G. B. Cooke at his low bid of $87 ,052 . There was only one
other bid submitted ($266,000). The engineer's estimate was $6.o,ooo.
Six days after award we received a communication from the contractor's
attorney asking that he be relieved of his contract on the basis of
an error in totaling his bid. The omission was stated to amount to
$24,ooo . A copy of the contractor's attorneys' l etter is attached to
the agenda , together with a letter from our General Counsel analyzing
the situation and recommending a course of action. It is expected
that the contractor and his attorney wi ll also be present at the
meeting .
A representative of John Carollo Engineers, who designed this
project, will be in attendance and will present a brief verbal r eport
of their investigation into the contractor's bid.
Nos.'10 and 11 -REDESIGN AND READVERTISE JOB NO . P2 -5R-l: Because
of the above -described urgency in completing thi s project and
r egardless of the Board's decision on the request for bid recission,
we are r ecomme nding that we proc eed immediately to readvertise the
project for bids with the scope considerab l y reduced to the most
essential portions of the work . We have discussed this matter with
the de sign enginee r s and they feel that the re duced scope of the job
can still be finished prior to the rainy season if it is imm ediately
redesig n ed and a contract awarded by mid-August . We are therefore
rec ormaending the actions indic ated on the a genda unde r these items .
-2-
Fred A. Harper
General Mana ge r -
Meeting Date
JOI NT BOARDS
CuJ.ver
Arbiso
Baum
Re rt on
Christie
Clark
Davis
Dutton
Finnell
Gibbs
Gre en
Gris et
Ha:rvey
Herrin
Hirth
Hyde
Just
---
----·•.
.Mc Innis
McWhinne _y __
Mill er
Pars ons
Porter
Rog ers
Shipley
Sims
Smith
Wedaa
Winn
Hirstein ---Allen
Mitchell ---Boyd
o·rHE RS
Harper ..,,.,,.,
Brown ./"
Sylvester _,
Carlson
Clarke
Dunn
F inster
Gall oway ---Hohene r ...---
Keith
Low ry
Maddox
Martin son
Niss on .._.,,,
Pier sall ---Sigler __ _
Stevens
Tremblay
Crabb ---
--------
DISTRICT 8
.Mitche ll
BcyC.
A1 len
7/8/70 gc
Lewis
Hoga.rd
We s tr2.
Root
Magnus
Bousman
Pebley
Gomez
Shipley
Herrin
Kanel
Griset
Croul
Kroes en
Harper
Hirth
Coco
Hirth
Coen
Zuniga
Hileman
Machado
Schniepp
Allen
Phillips
Goldb erg
0~1,:n ... ~~-u v..L u..u c.....1. b
Phillips
Time District No . ~ Type of Meeting
DISTRI CT 1 es o . /·11t ·I .
.e~ ±set:: .. V' Herrin (~~ Mi lle r ---.; Coco
Porte r l'N
.A..lle n ~ Phillips --
DISTRICT 2
Just Harper Chris t:Le ___ Root
Cl a,rk ·Magnus ---Culver
Dutton Pebley
Finnell Gomez --Her rin Gris et
Sims Zuniga
Smith Hil eman --Wedaa Machado
Winn Schniepp
Allen Phill:Lps --
DISTRICT J .
Culver
Arbis o Lewis
Ba.um Hogard ---Berton Westra Christi_e __ Root
Clark Magnus
Davis Bousman
Dutton Pebley --Green Shipl e y --Harvey --Kanel
Herrin Gris et --Hyde Kroes en
Just Harper
Mc Whinney-·
Sims --Zuniga
Allen Phillips
DISTRICT 5
Parsons
Hirth Cr oul
Allen Phillips
DISTRICT 6
Porter --Mc Innis Hirth
Allen Phillips I
DISTRICT 7 ~ 1o-,,1-1 a.,._J_,
Miller .... Coco --Herrin v
Porter --? Q.
Rogers -----;;;-Hir th
Smith "" Hileman
Hirstein_Z Allen
DISTRICT 1 1
Shipley __ Coen
Gibbs
All en --Phj_llips
. . 11~ BO.ARDS O f DIRECTORS
jj Cou nf \.' San1 fo tio n Dishl ds P. 0 . Box 5 175
!! of Orang e Cou nty, California
l
l
10844 Ellis Avenue
Fountai n Valley, Cal i f., 92{08
JI DI STRIC T No.
(1 )
(2)
(3)
(4)
(5)
(6)
(7 )
/')
AG ENDA
District No. 1 -Sp e cial Meeting
District No . 7 -Adjourne d Regul ar Meeting
4 : 30 p . m. , ,July 28, .1970
Roll Call
Appointments of Chairmen pro tern, if necessary
Report of the General Manager
Rep ort of the General Counsel
DISTRICT 7
Con-s i deration of motj_on to rec e ive and file bid tabulat -Lon /
and recommendation of the Director of F1nance re : $3 .5
mil l ion bond sale . See pages 11 A11 a n d __ 1 1 13~----
DISTRICT 7
Consl.deration of Resolution No . 70 --113-7, awarding
sale of $3 .5 million in bonds to United Calif: Bar...k
r ejecting all other bids , and directing the return
of checks accompanying said rejected bids . See
page -~'c '_' _
DISTRICT 7
Cons i deration of motion a u thoriz i ng the General Manager
to award printing of b onds a..,v:id coupons r elatl.ve to ,
$3 .5 million bond sale to Jeffries Bank note Company AAS
i n the amount of $450 . 00 for pr int ing p l us an additional r·
charge of $20 .00 for eachj-nterest r9.te~ver one; plus
tax . See page 11 D'1 ':f> . .61u /( 1.c\ ~ 'C c.. 7}
DISTRICT 7
Con.siderati on of moticn accepting proposal of Moore
& Taber for so il investigation for the Sunflowe r
Intercep tor Sewer, Contracts Nos. 7 -6 -1 a r.d 7 -6-2 ,
for a maximum am01.;.nt not to exceed $7, 7:'..0 . 00 as
f ollows :
Contract No . 7-6-1
Contract No . 7-6-2
$ 6 ,060 .00
1 ~650 .00
and authorizing the General Manag er to d :Lr e ct said
firm to proc e ed with the soi.1 j_nvestlgatirn 1. Se e
. H E ii page _:__" __ _
DISTRICT 7
Gtl1 e r -bu s i n e ss a nd commu.nic a.t:L ons
(11)
(12)
(13)
(14)
DISTRIC'l1 1
Consideration of request of G.
on Rehabilitation of Headworks
Job No. P2-5R-l
B. Cooke, Contractor 11 jf
'B' at Plant No. 2, ~ fd'J'
(i)
a. Consideration of motion to receive and /' }....,,....
(
file letters from Monteleone & McCrory, l,01':' ~~~JD!
attorneys for G. B. Cooke, Contractor, and /Ou" _
c. Arthur Nisson, District's Legal Counsel, ~,,..,,-.It
~ relative to contractor's request to rescind
\......:/ his bid on Job No. P2-5R-l. See pages r _A(1'f
"F" ~d ... " " • 0 ,,. · (})~~~ . ~~~
b. Verba report of John Carollo Engineers
relative to bids on Job No. P2-5R-l
-~ y.-~ Consideration of action on the request ~rP" ~of Go B. Cooke, Contractor on Job No. P2-5R-l,
tr to rescind his bid·
DISTRICT 1 ,~
Consideration of motion authorizing John Carollo /A . E~,r~r~~~~n ~oUo·-~Rjt 2 s--. tt ti
DISTRICT 1 . u {) ~--OJ{,,,
Consideration of Resolution No. 70-114-1, authorizing ~' /
re-advertising for bids for Job No. P2-5R-l (Revised ~
for Rebid); and authorizing the General Manager to
award contract for said work. See page "H"
DISTRICT 1
Consideration of motion to adjourn
DISTRICT 7 7 ·./:'j' Consideration of motion to adjourn -
I _, s:.10
. .
·.
COUNTY SANITATION DISTRICTS
of ORANGE COUNTY, CALIFORNIA
P. 0. BOX 5175
10844 ELLIS AVENUE
FOUNTAIN VALLEY, CALIFORNIA, 92708
(714) 540-2910
(714) 962-2411
July 28, 1970
Board of Directors
County Sanitation District No. 7
Re: Orange County Sanitation District No. 7, 1970 Sewer Bonds,
Series A
We have figured the bids presented for the purchase of the
$3.5 million Orange County Sanitation District No. 7 1970
Sewer Bonds, Series A, and find that the bid of United
California Bank and Associates will result in the least
cost to the District as shown on the attached tabulation.
It is recommended that the sale of said bonds be awarded
to United California Bank and Associates as the best bidder.
JWS:gc
Attachment
Agenda Item 5
A
~-Di.strict 7
...,,.,
July 28, l970
BID TABULATION
ORANGE COUNTY SANITATION DISTRICT NO. 7
l970
Bank
United California Bank
and Associates
7 % on $675,000.00
6.50% on 150,000.00
6.00% on 350,000.00
6.10% on 200,000.00
6.20% on 200,000oOO
6.30% on 225,000oOO
6.40% on 250,000.00
6.50% on 525,000.00
6.60% on 600,000.00
6070% on 325,000.00
Security Pacific
7 % on $525,000.00
6 % on 650,000oOO
6050% on 875,000.00
6.60% on 250,000oOO
6070% on 275,000.00
6.75% on 925,000.00
Bank of America
7 % on $675,000.00
6.50% on 150,000.00
6.00% on 175,000.00
6010% on 175,000.00
6020% on 200,000.00
6.30% on 200,000.00
6.40% on 225,000oOO
6050% on 250,000.00
6060% on 250,000.00
6.70% on 120,000.00
Agenda Item 5
SEWER BONDS, SERIES A
Interest
$ 232,750.00
78,000.00
199,500.00
134,200.00
148,800.00
184,275.00
224,000.00
529,750.00
693,000.00
413:_725.00
$2,838,000.00
$ 159,250.00
334,500.00
716,625.00
247,500.00
294,800.00
121252562.50
$2,878,237050
$ 232,750.00
. 78,000.00
94,500.00
106,750.00
136,400.00
151,200000
187,200.00
227,500.00
247,500.00
1 2 L~l2 2 025. 00
$2,873,825.00
f)
~-
Premium Net
$417.00 $2,837,583.00
$665.00 $2,877,572.50
$1,192025 $2, 872_, 632. 75
District 7
RESOLUTION NO. 70-113-7
A RESOLUTION OF THE BOARD OF DIRECTORS OF
COUNTY SANITATION DISTRICT NO. 7, OF ORANGE
COUNTY, CALIFORNIA, AWARDING $3,5000,000
BONDS OF SAID DISTRICT TO THE BEST BIDDER
AND REJECTING ALL OTHER BIDS
* * * * * * *
WHEREAS, at the time and place fixed for the opening of bids
'
for the $3,500,000 bonds of County Sanitation District No. 7, of
Orange County, designated Orange County Sanitation District No. 7
1970 Sewer Bonds, Series A, ·all bids were publicly opened, examined
and read, and a tabulation thereof has been entered in the minutes;
and,
WHEREAS, The bid of the bidder hereinafter named is the best
bid made by a responsible bidder for said bonds;
NOW THEREFORE, The Board of Directors of County Sanitation
District No. 7 of Orange County, California, does hereby RESOLVE,
DETERMINE AND ORDER as follows:
Section 1. That the bid of UNITED CALIFORNIA BANK AND -·
ASSOCIATES offering par, accrued interest to date of delivery and
.·a premium of $417.00 for said bonds to bear interest payable annually
the first year and semia..nnually thereafter at the rates.of:
Rates Years
7.00 % . 1971 through 1977
6.50 % 1978
6.oo % 1979 thr:ough 1980
6.10 .% 1981
6.20 % 1982
6.30 % 1983
6.40 % 198l~
6.50 % 1985 through 1986
6.60 % 1987 through 1988
6.70 % 1989
Agenda Item 6 C-1 District 7
~s the.bid fo~ said bonds yielding the lowest net interest cost.
Said bid is hereby accepted and the bonds awarded to said best
bidder in accordance with the terms 'of the proposals.
Section 2. That all bids other than the one accepted in
._,,,,, Section 1 hereof are rejected and the Secretary of the District is
· directed to return the check accompanying said rejected bids to
the respec~ive bidders.
Section 3. That the interest rates on said bonds are
hereby fixed at the rates stated in Section 1 hereof.
Section 4. The County Treasurer of Orange County is hereby
directed to deliver said bonds to the successful bidder upon the
payment of par, accrued interest to date of d~livery and the
premium above stated.
PASSED AND ADOPTED at a adjourned regular meeting held
July 28, 1970.
Agenda Item 6 C-2 District 7
JEFFRIES BANKNOTE COMPANY
County Sanitation District
Orange County
p; o: Box 8127
1330 West Pico Boulevard, Los Angeles, California 90015
Financial Printers & Securities Engravers
Telephone (213) 746-1611 Cable Address JEBACO
July 241 197 0
Fountain Valley, California 92708
· Dear Mr 0 Sylester:
In answer to your letter of July 22, requesting a bid on
300 County Sanitati9n District No, 7 bonds 1 we submit
a quotation of $450. 00 for printing the issue plus an
additional charge of $20G·oo for each interest rate over
oneo
In the past we have printed your County Sanitation
Districts bonds including your 1911 act bondsG Enclosed
is a specimen of your last issueG
Being the only bank note company in this area and being
near your attorneys we believe we can offer bet·ter service
than Eastern companiesci
We trust that you will find this off er satisfactory and that
after the bonds are printed that delivery to the underwriters
can be made at our plantQ
Very truly yours,
~~i-J*j_~
· Vice President "{/
LLJ:nw
SINCE 1894 · 75 YEARS OF DISTINCTIVE GRAPHICS
Agenda Item 7_ -D-District 7
.... ~-... -· ·-:-......
ROUTE TO:
M 0 0 RE & TAB E R CONSULTING ENGINEERS AND GEOLOGISTS
4530 EAST LA PALMA AVENUE • ANAHEIM, CALIF'ORNIA 92806 • (714) 524-3350
OTHC~ OFFICES:
WOODLAND MILLS
' WEST SACRAMENTO
SANTA ROSA
County Sanitation District No. 7
c/o Mr. Conrad Hohener, Jr.
Boyle Engineering
P. 0. Box 178
Santa Ana, California 92702
SUNFLOWER INTERCEPTOR SEWER
July 13, 1970
Pr~posal No. 70-152
As requested by Mr. Conrad Hohener, we would like to present the following
proposal to conduct a soil investigation for the Sunflower Interceptor sewer,
which wi 11 be constructed. under two contracts. The first contract (#7-6-1)
wi 11 extend from the Orange County Sanitation Di strkt Treatment Plant No. 1
along Sunflower Street to Raitt Street. The second contract (#7~6-2) will
extend from this point to Main Street.
The investigation would include exploration, field and laboratory testing,
data analysis, and soil mechanic recommendations for project design. Approx-
imately fifteen {15) borings would be drilled along the sewer alignment within
the limits of the first contract and approximately seven (7) within the limits
of the second contract. Observation of ground water seepage would be made
in all borings, and pipe would be installed in some of the borings to facilitate
future ground water observations. Undisturbed samples would be obtained from
all of the borings for purposes of determining classification, unit soil
weight, strength, sand equivalent, and other pertinent characteristics of the
soil. The entire investigation would be conducted under the supervision of
an experienced engineering geologist or soil engineer.
Based on engineering analysis of the field and laboratory data, a written
report would be furnished summarizing the field and laboratory data and
presenting soil recommendations for project design. Included would be
recommendations for bedding and backfill, trench stability, allowable bearing
pressure, active and passive lateral soil pressures, and other soil recommen-
dations be 1 i eved to be pertinent to the. project •
. The investigation as outlined above could be conducted for the following
fees:
jl~\ Contract No. 7-6-1
Contract No. 7-6-2
$ 6,060.00
1,650.00
~enda Item 8 E -1
County Sanitation Dist.
c/o Mr. Conrad Hohener, Jr. -2-July 13, 1970
The above fees also include provision for several conferences with the
design engineer after completion of the field investigation and prior to
construction. These fees do not include ahy inspection work during con-
struction.
The investigation on both contracts could be completed in six to eight
weeks after authorization is received. We appreciate your consideration
of our firm and hope we can be of service on this project.
MOORE & TABER
y-~ \&~-i~-~'-
R. F. Moore
President
vc
STEPHEN MONTELEONE
(1886-l!i62)
CARRELL ~ McCRORY
CAVIO P, YAFFE
STANTON P. BELLAND
WILMER E. WINDHAM
G.R-OBERT HALE
ALAN P. RI BAKOF'F
PATRICK .J. DUFFY m
MoNTELEO~E & McCRORY
SUITE 1912 L.EE TOWER
5455 WILSHIRE: BOULEVARD
LOS ANGELES. CALIFORNIA 90036
July 14, 1970
Board of Directors
county sanitation District No. 1
10844 Ellis Avenue
Fountain Valley, California 92708
Gentlemen:
Re: Rehabilitation of Headworks 'B' at
Plant NO. 2; Job NO. P2-5R-l
on or about July 1, 1970, our client G. B.
Cooke submitted a bid for construction of the above-
referenced project.
TELEPHONE
WEBSTER 7-1533
CRESTVIEW 4-6106
After submittal of the bid and because of the
large difference in amount of the other bid, our client
reviewed his bid but did not discover any mistake.
However, at the request of his bonding company, our client
rechecked his bid and last night discovered that he did
make a mistake in his bid in the sum of $24,000.00.
The bid was prepared on a series of worksheets
which segregated the construction required into various
items of work. On the reverse side of one of the work-_
sheets our client had estimated a price of $24,000.00
for the work of dewatering and removal of loose concrete.
In preparing a surrunary of the various items set forth on
the worksheets, Mr. Cooke through clerical error missed
the worksheet for the work of dewatering and removal of
loose concrete and, consequently, his bid did not include
the $24,000.00 which he intended to be included in his
lump sum price.
The original worksheets which reflect the clerical
error which was made are in the possession of this office
and will be made available to the District or its
representatives for inspection upon request.
In view of the material mistake in bid, our
client must and hereby does rescind his bid and respectfully
requests that his bid bond be released.
Agenda ItefQ___lQa F~-1 District 1
Board of.Directors
July 14, 1970
Page Two
If you require any additional informatj.on or
assistance with respect to this matter, please feel free
to contact the undersigned.
GRH:jp
F-2
Very truly yours,
MONTELEONE & McCRORY
By~)A--+--"--"". /D h~l~v"'----L
G. ~HALE'
District l
CLARK MILL.ER
C.ARTHUR NISSON
NELSON KOGLER
MILLER, NISSON 8 KOGLER
ATTORNEYS AT LAW
2014 NORTH BROADWAY
SANTA ANA, CALIFORNIA 92706
July 24, 1970
Board of Directors of
County Sanitation District #1
Orange County
Gentlemen:
Re: Rehabilitation of Headworks "B"
at Plant No. 2
Job No. P2-5-R-l
Bid of G. B. Cooke
TELEPHONE
!542-6771
The question as to whether or not Mr. Cooke should
be allowed to rescind his bid does not have a simple answer.
·The known facts are:
1. The bid was r~gular on its face.
2. The bid was in excess of the engineer's cost
estimate and it was lower than the other bid.
3. The second bid was unrealistic and not competi-
tive.
4. A staff conference with Mr. Cooke was held
after the bid opening and he re-affirmed his bid and claimed
no errors.
5. The contract was awarded about a week later
on July 8, 1970, and the contract documents were sent to Mr.
Cooke.
6. On July 14, 1970, Mr. Cooke, through his attorneys,
attempted to rescind his bid, claiming to have omitted a
vital ~lement of the costs estimated for this work.
The law applicable in this situation is
summarized as follows:
G. -1 District 1 ----------·--.
Board of Directors
Page Two
July 24,. 1970
Where a bidder makes a mistake as to facts
in compiling a bid, i.e., omitted to include a proper figure
in his bid total, he can properly rescind his bid if he
does so in a timely manner and before he is awarded the
contract, unless at the time of the award of the contract
the awarding agency knew of the claimed error and awarded
it any way.
A mistake of judgment, i.e., discretionary with
contractor, is not ground for rescission unless such mistake
has been in some way induced or contributed to by the awarding
agency or its engineers.
The problems before the District are: first, the
untimeliness of the rescission, i.e., after the award,
and secondly, is the claimed error one of fact or judgment.
The following factors must be considered in
seeking an answer to the second question: The job is
principally a repair job and only two subcontractors were
intended to be used by the bidder. The items claimed to have been
omitted were factors inherent in the work to be done, and
may have been included in other items.of costs included in
the total bid as originally submitted. The engineer's
estimate and the valuation of the bid, the method of bidding
and the engineer's opinion. The ultimate question seems to
be, did Mr. Cooke actually omit th~ $24,000 claimed or was
this an after thought.
The action to be taken is either to accept the
rescission or to decline to allow the contract to be rescinded.
If rescinded, work must be done by force account or re-bid.
Mr. Cooke is liable for costs of re-bidding, including
special meetings and all items of cost relating thereto.
If rescission is not allowed, Mr. Cooke and his
G'-2 D1str:i.ct l
Page Three
July 24, 1970
bid bondsman must be held liable. A lawsuit will probably
ensue. It is'difficult to estimate the costs thereof.
One other factor should be considered, and that
is the state of the law with reference to public bidding
of public works. The trend of the decisions has been
to erode the rights of public agencies to hold contractors
to their bids. However, there is no case that I am aware
of where a contractor has been allowed to rescind the
bid that was not clearly based upon a factual mistake after
the contract had been awarded by the agency which was not
·aware of any error in the bid.
I have advised Mr. Cooke and his attorney to be
present for the purpose of presenting the matter to you
at your meeting on July 28th, at which time a decision
should be reached.
CAN:cp
j\genda IteI!l_+oa..
Respectfully submitted,
C. Arthur Nissan
General Counsel
G'-3 Dl::.tr:i.ct 1
-~-----
RESOLUTION NO. 70-114-1
AUTHORIZING ADVERTISING FOR BIDS FOR
JOB NO. P2-5R-l (REVISED FOR REBID)
A RESOLUTION OF THE BOARD OF DIRECTORS
OF COUNTY SANITATION DISTRICT NO. 1,
OF ORANGE COUNTY, CALIFORNIA, AUTHOR-
IZING RE-ADVERTISING FOR BIDS FOR
REHABILITATION OF HEADWORKS 'B' AT PLANT
NO. 2, JOB NO. P2-5R-l (REVISED FOR
REBID)
* * * * * * * *
The Board of Directors of County Sanitation District No.
1, of Orange County, California,
DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1. That the General Manager be authorized to
re-advertise for bids for Rehabilitation of Headworks 'B' at
Plant No. 2, -Job Noo P2-5R-l (Revised for Rebid); and
Section 2. That said bids will be received in the office
of the Secretary of the District until 4:00 p.m., August 14,
1970, at which time they will be publicly opened and read;
and,
Section 3. That the General Manager is hereby authorized
to award a contract for said work on behalf of the Board of Directors;
and,
Section 4. That the General Manager and Secretary of the
District are hereby authorized to execute the contract for said
work upon award by the General Manager.
PASSED AND ADOPTED at an adjourned regular meeting held
July 28, 1970.
Agenda Item 12 -H-Distr:Lct 1