RESOLUTION NO. 26-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, DETERMINING THE BID PROTEST, AWARDING A CONSTRUCTION CONTRACT FOR THE CALLE FRONTERA LIFT STATION SOIL STABILIZATION PROJECT TO THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) WHEREAS, the Calle Frontera Sewer Lift Station has experienced settlement due to soil movement in the surrounding area; and WHEREAS, a site settlement monitoring and investigation conducted by a geotechnical team (i.e., Ninyo & Moore Geotechnical) revealed that the near-surface soils had high expansion potential and were prone to slope failure; and WHEREAS, the geotechnical team recommended additional foundation support with caissons and grade-beam to control future movements of the existing building and prevent the formation of deterioration cracks in the wet well structure; and WHEREAS, Stantec Consulting Services, Inc. designed and prepared a bid package for the Calle Frontera Lift Station Soil Stabilization. The work to be performed includes excavations and installation of new concrete cast-in-drilled-hole pile foundations; and WHEREAS, the City conducted formal competitive bidding for the Calle Frontera Lift Station Soil Stabilization; and WHEREAS, on November 12, 2025, the City received five (5) bids ranging from $741,902 to $1,809,444 for the Project; and WHEREAS, the apparent lowest bid was Wright Construction Engineering Corp. of San Marcos, California at $741,902; and WHEREAS, the City received one bid from a local contractor, Alliance Diversified Enterprises, Inc., in the amount of $769,904; and WHEREAS, according to the San Clemente Municipal Code section 3.40.030 (E) regarding the Local Vendor Preference for a sealed bid, the seven percent preference amount is $53,893. Applying the seven percent preference amount, Alliance Diversified Enterprises, Inc. bid is reduced by $53,893 to $716,011. With the local preference applied, Alliance Diversified Enterprises, Inc. is the lowest bidder; and WHEREAS, on November 13, 2025, staff received a bid protest from the apparent lowest bidder, Wright Construction Engineering Corp. stating that Alliance Diversified Enterprises bid is non-responsive; and WHEREAS, on January 20, 2026, the City Council held a duly notice protest hearing and considered all evidence and comment submitted at or before the public hearing, including from any and all bidders.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. That the above recitations are true and correct and incorporated fully herein.
SECTION 2. That based on a review of the record as a whole, the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Conversion of Small Structures, 14 CCR section 15303) of the State CEQA Guidelines because it consists of construction of utility extensions of reasonable length and there is no possibility of a direct or reasonably foreseeable indirect substantial impact on the environment.
SECTION 3. That the City Council finds that the irregularity in Alliance Diversified Enterprises, Inc. bid is an inconsequential and immaterial bid defect. The irregularity did not affect the amount of the bid, make the bid materially different than intended, or give Alliance Diversified Enterprises, Inc. an unfair competitive advantage or benefit over the other bidders. Strict compliance with the bid documents for this deviation is hereby waived and the bid protest filed by Wright Construction Engineering Corp., is hereby denied.
SECTION 4. That the City Council finds that Alliance Diversified Enterprises, Inc. is the lowest responsive and responsible bidder, and the construction contract for the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201, is hereby awarded to Alliance Diversified Enterprises, Inc.
SECTION 5. That the City Manager is authorized and directed to execute a construction contract for the Calle Frontera Lift Station Soil Stabilization, CIP Project No. 32201 with Alliance Diversified Enterprises, Inc. in an amount not to exceed $769,904, in a form substantially similar to that presented to City Council on January 20, 2026.
SECTION 6. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _________ day of ______________, 2026.
ATTEST:
___________________________ __________________________
City Clerk of the City of Rick Loeffler, Mayor of the
San Clemente, California City of San Clemente, California STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 26-07 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _____ day of ______, 2026, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, 2026. ________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
4882-9904-3949 v1
Resolution No. 26-07 Page 3
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