Mike Moore's 24-Hour Towing v. City of San Diego

45 Cal. App. 4th 1294, 53 Cal. Rptr. 2d 355, 96 Daily Journal DAR 6196, 96 Cal. Daily Op. Serv. 3888, 1996 Cal. App. LEXIS 511
CourtCalifornia Court of Appeal
DecidedApril 29, 1996
DocketD024685
StatusPublished
Cited by34 cases

This text of 45 Cal. App. 4th 1294 (Mike Moore's 24-Hour Towing v. City of San Diego) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mike Moore's 24-Hour Towing v. City of San Diego, 45 Cal. App. 4th 1294, 53 Cal. Rptr. 2d 355, 96 Daily Journal DAR 6196, 96 Cal. Daily Op. Serv. 3888, 1996 Cal. App. LEXIS 511 (Cal. Ct. App. 1996).

Opinion

Opinion

HUFFMAN, Acting P. J.

The City of San Diego (the City) awarded five-year contracts for vehicle towing in nine separate districts. The losing bidders in three of these districts, Mike Moore’s 24-Hour Towing (Moore), Tom Moynahan, and H. M. Sevel, Inc. (sometimes collectively the Moore group), filed protests with the San Diego City Council (City Council), which heard them at a council meeting. (San Diego Mun. Code (SDMC), § 22.0513.) The Moore group protested that the bids of the prevailing bidder in those three districts, San Diego Police Tow Operators, Inc. (SDPTO), should have been disqualified for ten specified omissions in its bid. Moore also contended that its own bid should not have been disqualified as incomplete. The City rejected the protests and the Moore group filed this petition for writ of mandate. (Code Civ. Proc., 1 § 1085.) The trial court rejected Moore’s claim that its bid should have been found complete, but accepted the argument of the Moore group that a fair hearing had not been held before the City Council because the evidence presented at the hearing included a misrepresentation by City staff that there were no material omissions in the SDPTO bid. The trial court remanded the matter to the City Council to reconsider the bids submitted in the three districts, with directions to consider a particular document presented at the protest hearing supporting the Moore group’s allegations of material omissions by SDPTO.

The City, joined by SDPTO, appeals from the order, contending that the trial court erred in finding the City’s approval of the SDPTO bid was irrational, arbitrary, or capricious. The Moore group has cross-appealed the order, contending the trial court erroneously rejected its arguments that its bid was adequate. We reverse the portion of the order requiring remand to the City Council for reconsideration, finding that application of the proper standard of review does not permit such a resolution of the matter. We affirm the balance of the order after hearing, which is construed as an appealable judgment. (§ 1064.)

Factual and Procedural Background

The City contracts with private companies to have vehicles towed from public streets and other places for reasons ranging from illegal parking to *1300 accident cleanup. (Veh. Code, § 22651.) In February 1988, the City awarded to SDPTO a five-year citywide franchise contract to tow such vehicles. SDPTO is a California corporation which conducts business through its member companies, five individual towing businesses. The SDPTO contract expired in 1993, but was extended through 1994. The City started the process for awarding a new contract in 1993, and then issued a second request for proposals (RFP) in 1994. This RFP sought bids on both a possible citywide contract and separate contracts for each of the nine City districts. The RFP contained certain criteria which a bidder had to meet, and provided that if the bid were deemed responsive to the requirements of the RFP, it would be evaluated on the basis of the referral fee that the towing company offered to pay the City for each City-requested tow.

The proposals received were evaluated by a screening committee, which made a recommendation to the City Council. This action concerns only three of the nine City districts, as no citywide contract was awarded. SDPTO bid on each of those districts, and Moore bid on district 3, offering a higher referral fee than did SDPTO. Moynahan and Sevel submitted bids for districts 8 and 9, offering referral fees which were lower than those offered by SDPTO. The city manager’s recommendations were based on the evaluation committee’s findings, and found Moore’s bid was nonresponsive to the RFP, and that for district 3, SDPTO should be awarded the contract. SDPTO also received the contracts for districts 8 and 9, although the Moynahan and Sevel bids were found responsive, because SDPTO offered the City a higher referral fee.

The Moore group filed formal protests as allowed by the RFP’s, each arguing that the SDPTO bid was inadequate because it contained nine or ten material omissions of information required by the RFP. In addition, Moore individually protested that it was unfair to find his bid was nonresponsive for failure to provide a biographical summary for the key personnel in his management team, and a list of his current business accounts, since that information had been inadvertently omitted and was available in earlier versions of his bids. 2 Moore argued that if his bid were going to be disqualified for such omissions, the SDPTO bid should likewise be disqualified.

At the hearing on the protests, City Council member Judy McCarty inquired of City staff about the reasons for disqualifying Moore’s bid while *1301 accepting SDPTO’s bid. A speaker for the city manager, Deputy Police Chief Dave Worden, responded to the effect that the Moore bid omitted certain required information, while the SDPTO bid had initially been found responsive and had recently been reexamined and found to include all required information. Worden stated that Moore’s representative, Attorney Robert Ottilie, was incorrect in maintaining that there were material omissions in the SDPTO bid. After a vote, the protests were denied on August 8, 1994.

The Moore group then sought reconsideration of the denial of their protest, and submitted papers entitled “Documentation Supporting Allegations of Material Omission by SDPTO” to the City Council. The City did not act upon the request for reconsideration.

The Moore group filed this petition for writ of mandate to require the City to find that the Moore bid was responsive, and the SDPTO bids were not. 3 At the hearing on the petition, the Moore group submitted as an exhibit their “Documentation Supporting Allegations of Material Omission by SDPTO” (referred to here as exhibit 20), which had been submitted to the City in the reconsideration request. The trial court issued a tentative ruling denying the petition in all respects, and heard argument. The City’s contention was that the SDPTO bid was exemplary, and no additional response should be required concerning business records, business hours, fees, etc. (i.e., as covered in section 3 of the RFP, the “Statement of Work”), or as to other matters such as insurance and credit rating. The court then took the matter under submission and issued an order after hearing, first denying the petition to the extent it requested that Moore’s bid be deemed qualified or responsive. The court stated, “There is no evidence that the City Council acted arbitrarily or capriciously in rejecting Moore’s bid. Moore’s bid did not contain material information which was needed by the Evaluation Committee to determine that Moore was capable of performing under the contract. The Committee and the City Council were not required to search Moore’s other bids, submitted in a different context, in order to locate the missing material.”

As to the SDPTO bid, the trial court granted the petition on the basis that the City Council had abused its discretion when it dismissed without inquiry *1302 the Moore group’s protest concerning the sufficiency of the SDPTO bid.

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45 Cal. App. 4th 1294, 53 Cal. Rptr. 2d 355, 96 Daily Journal DAR 6196, 96 Cal. Daily Op. Serv. 3888, 1996 Cal. App. LEXIS 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mike-moores-24-hour-towing-v-city-of-san-diego-calctapp-1996.