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Staff Report

Laguna Beach City Council
May 26, 2026

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Staff Report
Meeting
May 26, 2026
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Laguna Beach City Council
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3
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STAFF REPORT
Meeting Date:

May 26, 2026

CONSENT
7 SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR AGATE STORM DRAIN

IMPROVEMENTS
RECOMMENDATION: It is recommended that the City Council:

1. Award and authorize the City Manager to execute a contract with Gentry General Engineering Inc., in the amount of $587,330.00 for the Agate Storm Drain Improvements project;

2. Award and authorize the City Manager to issue a task order to Onward Engineering, in the amount of $94,770 to provide construction inspection services;

3. Authorize the City Manager to approve project-related expenses and construction change-orders for unforeseen circumstances in an amount not to exceed $60,000; and

4. Find that the project is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301(d) – New Construction of Utility Extensions.

SUMMARY OF THE MATTER
This report recommends that the City Council award a construction contract to Gentry General Engineering Inc. in the amount of $587,330.00 for the Agate Storm Drain Improvements Project, and authorize a task order with Onward Engineering for inspection services. The scope includes construction of approximately 529 linear feet of new storm drain pipe and box culvert, installation of new inlet and outlet structures, and associated paving, utility protection, and site restoration.

The estimated project cost is $792,100, within the approved FY 2026/27 budget of $850,000. This project supports the City’s Infrastructure Management goals by improving storm drain capacity and enhancing public safety. The project has been reviewed under CEQA and is categorically exempt pursuant to Section 15303(d) of the CEQA Guidelines.

DISCUSSION
Staff completed a public bid process for the project in accordance with California Public Contract Code requirements. On March 12, 2026, eleven (11) bids were received. The following is a summary of the bids sorted by bid amount:

AWARD OF CONSTRUCTION CONTRACT FOR AGATE STORM DRAIN IMPROVEMENTS May 26, 2026

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Table of Bid Results
Bidder Total Bid Amount

1. Premo Construction Inc. $563,324.00

2. Gentry General Engineering, Inc. $587,330.00

3. Nieves General Engineering, Inc. $629,425.00

4. US Builders & Consultants $644,800.00

5. Shiraz Construction $686,604.00

6. Wright Construction Engineering Corp $781,530.00

7. Beador Construction Company, Inc. $820,300.00

8. HZS Engineering Inc. $1,047,967.00

9. Excel Paving Co. $1,088,711.00

10. MMC, Inc. $1,154,880.00

11. GCI Construction, Inc. $1,254,155.00
A bid protest was received from the third-lowest bidder, Nieves General Engineering. The apparent low bidder, Premo Construction, subsequently withdrew its bid. Staff reviewed the protest and concurred with the basis for disqualification of the low bidder; however, the protest as it pertained to the second lowest bidder was determined to be without merit. Accordingly, staff recommends award of the contract to the second lowest responsive and responsible bidder, Gentry General Engineering Inc. in the amount of $587,330.00. The Professsional Services Agreement is included in Attachment 1 and the location map is included in Attachment 2.

The project requires full-time inspection services and community outreach. Task order proposals were received from four (4) on-call consultants, including Dudek, Accenture, HRGreen, and Onward Engineering. The proposals were evaluated based on team qualifications, performance of similar work, cost reasonableness, and the ability to provide services within the required timeline. The proposal submitted by Onward Engineering ranked highest, and the proposed fee of $94,770 is reasonable for the scope of work.

It is recommended that a task order be awarded to Onward Engineering for inspection services.

FINANCIAL ANALYSIS
With the low bid amount of $587,330, the inspection services at $94,770, the contingency costs for unforeseen conditions (which is estimated not to exceed $60,000), and the anticipated construction support (which is estimated not to exceed $50,000), the total project cost is $792,100. With the anticipated adoption of the FY 2026/27 budget, which includes $850,000 for this project, sufficient funding will be available for the recommended action.

ENVIRONMENTAL ANALYSIS
The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15303(d) (New Construction of Utility Extensions). The exemption applies to the installation of new storm drain facilities within existing public rights-of-way. The project includes construction of new storm drain pipe, box culvert, and associated inlet and outlet structures, along with related improvements, which qualify under this exemption.

AWARD OF CONSTRUCTION CONTRACT FOR AGATE STORM DRAIN IMPROVEMENTS May 26, 2026

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ATTACHMENTS

1. Professional Services Agreement for Gentry General Engineering Inc. (Pgs. 4-8)

2. Location Map (Pg. 9)
Submitted By:
.Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Tran Tran, Assistant City Engineer Thomas Perez, City Engineer

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