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AGENDA REPORT
CITY OF SAN CLEMENTE
CITY COUNCIL MEETING
CITY OF SAN CLEMENTE
Meeting Date: March 17, 2026 Agenda Item: 11F.
Submitted By: Public Works
Prepared By: Belgin Cuhadaroglu, P.E, Senior Civil Engineer Subject:
..titl e
CONSIDERATION OF A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO GCI CONSTRUCTION, INC. FOR THE RESERVOIR 12 SITE IMPROVEMENTS, CIP PROJECT NO. 23403, AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT WITH GCI CONSTRUCTION, INC. IN AN AMOUNT NOT TO EXCEED $161,445,
AUTHORIZING THE CITY MANAGER TO IMPLEMENT THE PROJECT THROUGH
COMPLETION, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ..body ENVIRONMENTAL QUALITY ACT
Summary:
The City Council is being asked to consider adoption of a Resolution (Attachment 1) awarding a construction contract to GCI Construction, Inc., in an amount not to exceed $161,445 (Attachment 2), to improve drainage deficiencies to prevent localized flooding for the Reservoir 12 Site Improvements Project No. 23403.
Background:
Reservoir 12 consists of a 2.0 MG reservoir and the Santa Maria pump station. The Site has several drainage deficiencies that need to be addressed to prevent localized flooding during storm events. Currently, an existing V-shaped (“V”) ditch at the southern end of the Site and a 6- inch buried pipe convey most of the drainage to an existing “V” ditch located at the westerly side of the Site.
1 Attachment 3
Meeting Date: March 17, 2026 Agenda Item: 11F.
CITY OF SAN CLEMENTE
This drainage system needs upgrades to adequately handle storm runoff to prevent flooding and additional erosion. The existing drain inlet and pipe around the tank also need to be replaced.
Kreuzer Consulting Group designed and prepared a bid package for the Reservoir 12 Site Improvements. The project generally includes: installation of two 8-inch PVC drain pipes (201 feet), construction of AC berms, construction of approximately 115 feet of retaining concrete curbs, and installation of a 12-inch square inlet.
In accordance with the City’s Procurement Policy and Procedures, Section VII, staff contacted four qualified contractors (Alliance Diversified, OrangeBlue General Contractors, GCI Construction, Inc., and Cheloletty Engineering, Inc.), including two local contractors, to solicit bids. Three bids were received on February 2, 2026, with Base Bid amounts ranging from $67,920 to $166,070. The apparent lowest bid for the Base Bid of $67,920 was received from OrangeBlue General Contractors of Laguna Hills, California. Immediately after the bid opening, OrangeBlue General Contractors sent an email reporting an error in preparing the Base Bid Form, stating that the unit price used on bid item 13 was incorrect and that the total bid price submitted was too low to proceed as the low bidder. OrangeBlue General Contractors has chosen to withdraw (Attachment 3) from the bidding for the Reservoir 12 Site Improvements Project. The received bids are tabulated in Table 1 below:
Table 1. Bid Summary
Company Name
Company
Location
Base Bid
Amount
OrangeBlue General Contractors (Withdrew) Laguna Hills, CA $67,920 GCI Construction, Inc. San Clemente, CA $161,445
Cheloletty Engineering, Inc. Villa Park, CA $166,070
Due to OrangeBlue General Contractors' withdrawal from the bidding, the lowest responsive and responsible bidder was GCI Construction Inc. of San Clemente, California, with a total bid amount of $161,445.
Based on the lowest responsive and responsible bidder being GCI Construction, Inc., in the amount of $161,445, the estimated total construction cost for this project is as follows in Table 2 below:
Table 2. Cost Summary
Construction Administration, Management, and Inspection $20,000 Construction $161,445
Estimated Total Construction Cost $181,445
As required by state law and City policy, the selected contractor will be required to provide performance and payment bonds simultaneously with execution of the construction contract (Attachment 2). Project plans and specifications are on file in the City Clerk’s office. 2 Meeting Date: March 17, 2026 Agenda Item: 11F.
CITY OF SAN CLEMENTE
Considerations Identified by Staff:
The Reservoir 12 Site has several drainage deficiencies that need to be addressed to prevent localized flooding during storm events. The proposed improvements will address these deficiencies and enhance site conditions.
If the City chooses to delay or ignore the drainage issue, further erosion will damage the asphalt and canyon below the reservoir. The additional erosion and damage will be more costly to repair in the future.
Council Options:
Adopt Resolution No. 26-53 (Attachment 1), awarding the contract for the project to GCI Construction, Inc., as the lowest responsible bidder submitting a responsive bid, and finding the project categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the state CEQA Guidelines, Class 1 and Class 2, respectively, and authorizing the City Manager to execute a construction contract in an amount not to exceed $161,445.
Continue the item and direct staff to provide additional information. Do not adopt Resolution No. 26-53 and put the project on hold.
Environmental Review/Analysis:
This project was determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the state CEQA Guidelines, Class 1 and Class 2, respectively (repair and replacement of existing structures). The Notice of Exemption was filed with the County of Orange Recorder’s office on March 3, 2026.
Fiscal Impact:
The estimated total construction cost of $181,445 is within the approved budget amount of $192,641, from Account No. 052-466-43420-000-23403, Reservoir 12, Water Fund Depreciation Reserve.
Recommended Action(s):
..recommendation
Staff recommends that the City Council adopt Resolution 26-53, which will:
1. Find the Reservoir 12 Site Improvements, CIP Project No. 23403, categorically exempt from California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the state CEQA Guidelines, Class 1 and Class 2, respectively (repair and replacement of existing structures);
2. Award the Reservoir 12 Site Improvements, CIP Project No. 23403, construction contract to GCI Construction, Inc., as the lowest responsible and responsive bidder; and
3. Authorize the City Manager to execute a construction contract with GCI Construction, Inc. in an amount not to exceed $161,445, in a form substantially similar to Contract No. 26-27. ..end
3 Meeting Date: March 17, 2026 Agenda Item: 11F.
CITY OF SAN CLEMENTE
Attachment:
1. Resolution No. 26-53
2. Construction Contract with GCI Construction, Inc. (without attachments, attachments on file with the City Engineer)
3. OrangeBlue General Contractors Bid Withdraw Letter
Notification:
All Bidders.
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