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MAYOR Miguel A. Pulido MAYOR PRO TEM Claudia C. Alvarez COUNCILMEMBERS David Senavides Carlos Bustamante Michele C. Martinez Vince Sarmiento Sal Tinaiero February 9, 2012 EXHIBIT 3 CITY OF SANTA ANA 20 Civic Center Plaza • P.O. Box 1988, M-21 Santa Ana, California 92702 Mark Lehman President LEHMAN CONSTRUCTION, INC. P.O. Box 3569 Tustin, CA 92781 Re: Project No. 09 -6036, Edna Park Improvements Dear Mr. Lehman: INTERIM CITY MANAGER Paul Wafters INTERIM CITY ATTORNEY Joseph Straka CLERK OF THE COUNCIL Maria D. Huizar The Santa Ana Public Works Agency issued a Notice Inviting Bids for the above project. After bids were opened on January 17, 2012, the City received your bid protest from Lehman Construction, Inc., requesting that the low bidder and second bidder be disqualified for failure to comply with the bid specification requiring the listing of all subcontractors providing one -half of 1 % of the work. The protesting party has the burden of proof to demonstrate that the staffs determination of proposed low bidder is arbitrary and capricious, or unsupported by substantial evidence in the record. A protest hearing was held on February 2, 2012, at which you were present for Lehman Construction, Inc., and Don Henderson and Rosie Toledo were present for Green Giant Landscape, Inc. The following information was presented: • Green Giant Landscape, Inc. submitted the low bid of $219,000.00. One -half of 1 % of Green Giant's bid is $1095.00. • The bid specification named the required flooring system to be installed in the project: Sun Belt Flooring System as installed by Sunbelt Flooring, Inc., including preparation and installation of the "Heavy Duty Flooring No. 1100 Chemical Resistant Industrial Floor ". • Green Giant's bid did not list a subcontractor for the epoxy flooring, and did not propose a substitute flooring system.