STAFF REPORT
11 Meeting Date:
August 12, 2025
SUBJECT: REJECT BIDS FOR OLD TOP OF THE WORLD SEWER LIFT STATION REHABILITATION – PHASE 1
RECOMMENDATION: It is recommended that the City Council:
1. Reject all bids for the Old Top of the World Sewer Lift Station Rehabilitation – Phase 1 project; and
2. Direct staff to rebid the project.
3. Find the project categorically exempt from the California Environmental Quality Act pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines.
Appropriation: $0 Fund: N/A
Submitted By: . Approved: .
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
SUMMARY OF THE MATTER
This report recommends that the City Council reject all bids received for the Old Top of the World Sewer Lift Station Rehabilitation – Phase 1 project and authorize staff to re-advertise the project. Originally built in 1987, the lift station has deteriorated significantly and has experienced operational issues. Phase 1 of the rehabilitation project will address urgent infrastructure needs, including pump replacement, new valve vault installation with a bypass connection, minor electrical and instrumentation upgrades, and recoating of the wet well.
The City received four bids for the project on July 10, 2025. However, each bid contained deficiencies that rendered them non-responsive. Staff therefore recommends that all bids be rejected and the project readvertised, with construction contract award anticipated in September 2025. There is no fiscal impact associated with the recommended action. The project is categorically exempt from CEQA under Section 15302, and a Coastal Development Permit exemption was filed without appeal.
DISCUSSION
The capital improvement program includes a project to rehabilitate the Old Top of the World Sewer Lift Station, which was originally constructed in 1987 and has since deteriorated and experienced operational failures. To restore the lift station to normal operating condition as quickly as possible, the City has chosen to implement improvements in two phases. The first phase will focus on urgent repairs, including replacement of the existing pumps, installation of a new valve vault with a bypass connection, minor electrical and instrumentation upgrades, and recoating of the existing wet well; and is the subject of this
REJECT BIDS FOR OLD TOP OF THE WORLD SEWER LIFT STATION REHABILITATION – PHASE 1
August 12, 2025
agenda report. The second phase will address the remaining improvements, primarily electrical and control systems; design for that phase is expected to begin later this year.
Staff completed a public bid process for the project in accordance with California Public Contract Code requirements. On July 10, 2025, four bids were received. The following is a summary of the bids sorted by bid amount:
Table of Bid Results
Bidder Bid Amount
1. MMC, Inc. $844,000
2. CEM Construction Corporation $1,096,500
3. Houalla Enterprises, Ltd. $1,256,908
4. Harbor Coating & Restoration $1,309,485
All bids contained errors that rendered the bids nonresponsive. Errors included incomplete or missing subcontractor information, lack of demonstrated experience with similar projects, and/or failure to submit signed addenda forms. Pursuant to Section 2.30.070 of the Laguna Beach Municipal Code, the City Council has the discretion to reject any, and all, bids and re-advertise the project. Therefore, staff recommends that City Council reject all bids for the Old Top of the World Sewer Lift Station Rehabilitation – Phase 1 project and direct staff to rebid the project. The project will be re-advertised to solicit construction bids on August 13, 2025. A recommendation to award a construction contract is anticipated to be presented to the City Council at the September 23, 2025, City Council meeting.
FINANCIAL ANALYSIS
The recommended action has no impact on the budget.
ENVIRONMENTAL ANALYSIS
The project is categorically exempt under the State California Environmental Quality Act (CEQA) Section 15302, for replacement or reconstruction of existing utility systems and/or facility involving negligible or no expansion of capacity. The project is without risk of adverse environmental effects on coastal resources, including public access, and therefore does not require a Coastal Development Permit (CDP). Therefore, on May 1, 2025, a CDP Exemption was filed. The appeal period ended on May 19, 2025, and no appeals were received.
ATTACHMENTS
None
Report Prepared By: Coordinated With:
Ulises Escalona, Senior Project Manager Thomas Perez, City Engineer Pierre Sawaya, Capital Program Manager
REJECT BIDS FOR OLD TOP OF THE WORLD SEWER LIFT STATION REHABILITATION – PHASE 1
August 12, 2025