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W A T E R I E N E R G Y I l I E E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T T I I T T F $ BOARD OF PUBLIC UTILITIES DATE: March 5, 2010 ITEM NO: 6 SUBJECT: BID SUB-728 BREACH OF CONTRACT AND AWARD TO NEXT LOWEST RESPONSIVE BID FOR CONTROL PANEL EQUIPMENT FOR THE SUBTRANSMISSION PROJECT ISSUE: Board approval is requested to declare a breach of contract for the purchase of relay and control panels, equipment and spare parts from Harlo Corporation in the amount of$241,528 and for award of the purchase order bid to the next lowest responsive bidder Power Up Controls in the amount of$261,819 including sales tax. RECOMMENDATIONS: That the Board of Public Utilities: 1. Declare Harlo Corporation in breach of contract for bid SUB-728 and terminate contract; and 2. Approve award of bid SUB-728 for relay and control panels, equipment and spare parts to the next lowest responsive bidder, Power Up Controls of Garden Grove, California, in the amount of $261,819 including sales tax. BACKGROUND: Related Board Action on February 19, 2010, the Board of Public Utilities(Board)declared Harlo Corporation in breach of contract for bid SUB-718 and terminated its contract for the Riverside Energy Resource Center Units 3 and 4. On November 20, 2009, at the request of staff the Board approved the award of bid to Harlo Corporation (Harlo) in the amount of$241,528 for the purchase of relay and control panels and equipment necessary for the Sub-transmission Project, Specification SUB-728 paragraph C12 and D8, provide the following: "C12. Faithful Performance Bond Upon award of bid, Vendor shall immediately submit a faithful performance bond in the amount of 50 percent of the proposal price in a form satisfactory to the City of Riverside (City) and in complete compliance with State of California bond requirements. Each bond, which is written by an out-of-state bonding company, shall contain the name, address, and telephone number of an agent located in the State of California,who is authorized to act for the bonding company. Listing of the bonding companies in the U.S. Department of Treasury Circular 570 is not required, but the corporate surety must be authorized to issue the bonds in the State of California. Faithful performance bond shall be mailed to the City within two weeks of notification of award. D8. Bidder's Certification and Exceptions Bidder certifies that Bidder's complete bid proposal, including all bid proposal sheets in this section and all required attachments is, unless Bidder exceptions are clearly and expressly listed below, proposed in full compliance with this Specification and in good faith as attested by signature below of the officer or responsible official duly authorized by the Bidder to execute proposals and contracts in the name and on behalf of the Bidder."