Staff Report
City Council
Item No. 3.F
Meeting Date: February 25, 2026
From: John A. Corella, Director of Public Works
Title: Reject Bids for the Construction of the Cypress Road and Santoro Drive Retention Basin Project (C02609)
RECOMMENDATION:
To reject all bids received for the construction of the Cypress Road and Santoro Drive Retention Basin Project (C02609) and direct staff to re-advertise for construction bids to ensure compliance with fair and competitive bidding practices.
BACKGROUND:
The intersection of Cypress Road and Santoro Drive has historically experienced localized flooding during rainfall events due to limited drainage pipe capacity to collect and convey stormwater runoff to the existing adjacent retention basin located at the northwest corner of the intersection. As a result, this intersection location has been identified as a recurring flood- prone area within the city.
To address these conditions, staff included a drainage improvement project for this location in the FY 2025-26 Public Works Maintenance Division’s roadway maintenance budget.
Engineering Division staff designed the project in-house and prepared plans, specifications, and cost estimates for bidding to improve the drainage performance at this location during storm events.
The proposed improvements include removal of the existing catch basin and installation of a larger catch basin, associated storm drain piping, headwalls, and riprap within the retention basin. These improvements are designed to efficiently collect stormwater from the roadway and convey it to the retention basin, thereby reducing the potential for roadway flooding.
DISCUSSION:
City staff advertised the invitation to bid on Sunday, January 18, 2026, requesting qualified contractors to perform the scope of work described in Bid Number B26-113E, which included the project plans and specifications. The solicitation period remained open for twenty-four (24) calendar days and was advertised in the following locations:
Desert Sun - Published on January 18 and January 28, 2026 PlanIt Print Works - From January 18, through February 11, 2026 City’s Website - From January 18, through February 11, 2026 On February 11, 2026, at the time of the bid opening, the city received four (4) bid proposals for this project.
The following table ranks each bidder by total price:
RANK CONTRACTOR AMOUNT
1 Three Peaks Corporation (Calimesa, CA) $132,595.00
2 Narrow Path Engineering, Inc. (Beaumont, CA) $136,589.40 3 Roadway Engineering & Construction Corporation (Perris, CA) $156,290.00 4 James McMinn, Inc. (Riverside, CA) $1,011,350.00
Upon review of the bids received, staff identified the following issues:
Apparent low bidder (Three Peaks Corporation): The required Non-Collusion Affidavit was not submitted with the bid documents, rendering the bid non-responsive.
Pursuant to California Public Contract Code §7106 and the project specifications, submission of this affidavit is mandatory.
Second and third lowest bidders (Narrow Path Engineering, Inc. and Roadway Engineering & Construction Corporation): Both bids were determined to contain materially unbalanced unit prices. Bids with unbalanced unit prices are subject to disqualification. Unbalanced pricing reflects a disproportionate allocation of costs and presents potential financial risk to the city.
Fourth bidder (James McMinn, Inc.): This bid was determined to be non-competitive and unreasonable, with a total bid price approximately seven hundred percent (700%) higher than the other bids received. As such, it falls outside the competitive range established by the bidding market and the engineers estimate. Non-compliant submittals: Two additional envelopes were delivered by mail to the city but were not properly identified as bid submissions and therefore were not received by the City Clerk in time for the prescribed bid opening. While city staff believe these envelopes likely contain bids based on the senders’ identities as contractors, they were deemed non-compliant and remain unopened. The Invitation to Bid requires bids to be submitted on approved forms and in sealed envelopes clearly marked on the outside for the applicable bid opening. These unopened envelopes will be returned to the senders.
Based on staff’s review of the bids received, none of the bids meet the requirements for award or represent the city’s best financial interest. Therefore, staff are requesting that the City Council reject all bids and direct staff to re-advertise the project. The City Council’s authority to reject bids is provided under California Public Contract Code Section 20166 and Section 1110, Instructions to Bidders, Subsection 22.0 (Rejection of Bids) of the project specifications.
Staff recommend that the City Council reject all bids received for the construction of the Cypress Road and Santoro Drive Retention Basin Project (C02609) and direct staff to re- advertise the project for construction bids to ensure compliance with fair and competitive bidding practices.
FISCAL IMPACT:
The recommended action does not result in an immediate fiscal impact. Construction costs will be presented to the City Council upon receipt and evaluation of new bids, and at that time the fiscal impact will be subject to the City Council’s approval.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENTS
OBJECTIVE: Cathedral City roads, gateways, public spaces, and other infrastructure are well planned, designed, constructed and maintained.
ATTACHMENTS:
1- Vicinity Map