1993 AGN AUG 03 I03 - Laserfiche WebLink

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BEST, BEST& KRIEGER • PARTN[RSN11 INCLUDING PROFElfIONAL CORPORATIONS LAWYERS PALM SPRINGS- 400 MISSION SOUARE ONTARIO (619) 325-7264 - 3750 UNIVERSITY AVENUE (714) 989.8584 POST OFFICE BOX 1028 RANCHO MIRAGE RIVERSIDE, CALIFORNIA 92502 (619) 568-2611 - TELEPHONE (714) 686-1450 T£LECOPIER (714) 686-3083 July 20, 1993 C:ER tiFIED 1VXA RETURN RECEIPT REQUESTED Indemnity Company of California 17780 Fitch, Suite 200 Irvine, CA 92714 MTR1.76076 Re: Bid Bond No. 50333-13 Gentlemen: Our office serves as City Attorney for the City of Colton. On June 15, 1993, the Colton City Council awarded a contract for its Davis Park Improvement Project to Mathis Construction, Inc., the Principal named in the above -referenced bid bond, for the total bid amount of $265,535. Your bid bond is in the amount of 10% of the total bid amount, or $26,553.50. Enclosed for your convenient review are photocopies of the bid bond, power of attorney, and bid proposal submitted by Mathis Construction, Inc. Following award of the contract, Mathis Construction, Inc„ has advised the City that it will be unable to obtain the other bonds required by the contract, and thus will not sign the contract. Therefore, in accordance with Public Contract Code Section 20174, the Colton City Council intends to award the contract to the next lowest bidder, Shibata Landscape, Inc., for the total amount of its bid, $289,765. Also enclosed is a photocopy of the proposal submitted by Shibata Landscape, Inc. The difference between the two bid amounts is $24,230, and the City hereby demands payment on your bid bond in this amount. Since the amount of the next lowest bid exceedstheamount budgeted by the City for this project, the City will be relying on the proceeds of the bid bond in order to fund the project. By July 27, 1993, please confirm directly xo the City that you will provide these required funds. This date is important for purposes of awarding the contract to the next lowest bidder. ATTACHMENT "B"