CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: CONSENT CALENDAR Account Number: 10-4679 File ID: 25-10175 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: August 18, 2025
SUBJECT:
Marina Lagoon Spot Dredging Project — Bid Rejection
RECOMMENDATION:
Adopt a Resolution to reject the sole bid received for the Marina Lagoon Spot Dredging Project and authorize the Public Works Director to negotiate a contract directly with Power Engineering Construction Company.
BACKGROUND:
The Marina Lagoon Spot Dredging Project (Project) is part of the City's plan to perform maintenance on the City's most prominent flood control and recreational facility. Since its construction in 1964, the Marina Lagoon has accumulated more than 314,190 cubic yards of shoaling (sediment deposition), which has reduced its utility as a flood control and recreational facility. While the City is exploring alternatives to perform a medium- to large-scale dredging project to address nearly 60 years of shoaling, this current project comprises targeted dredging up to 2,000 cubic yards from areas where stream and stormwater runoff from where Borel Creek (19th Avenue Channel) and Leslie Creek (16th Avenue Channel) flow into Marina Lagoon. Dredging near the outfall of Laurel Creek was originally part of the proposed project but was later deferred for the medium- to large-scale project.
On January 4, 2024, the City issued a Request for Proposals for professional design and professional consultant services for the Project. The City awarded the project to Moffatt & Nichol (M&N) on April 1, 2024. M&N subsequently prepared bid documents with an Engineer's Estimate of $1,150,000 for the Project. Due to wet weather work window constraints, staff proceeded to advertise the project prior to receiving final approval by the Dredged Material Management Office (DMMO).
In accordance with Municipal Code Section 3.60.030, a competitive public process was used to obtain bids for the Project.
A Notice Inviting Sealed Bids was issued to advertise the Project on June 3, 2025. On the June 25, 2025 bid opening date, one (1) bid was received from Power Engineering Construction Company with a bid amount of $1,509,500, which exceeded the Engineer’s Estimate by $359,500.
Pursuant to San Mateo Municipal Code Section 3.60.040(a)(4), the City Council, at its discretion, may reject all bids received and authorize the direct negotiation of a contract for the Project if the Project is not within budget, do the work through City employees, or terminate the Project or purchase. Given that bids are greater than the established budget for the Project, staff recommends for City Council to reject all bids and authorize the Director of Public Works to directly negotiate a potential contract with Power Engineering Construction Company under which cost reductions may be achieved. If these direct negotiations are successful, staff will return to Council for approval of a contract at a future date.
If negotiations are not successful, staff will either rebid the Project at a later date or modify the scope.
CITY OF SAN MATEO
BUDGET IMPACT:
There is no budget impact for the rejection of bids. Funding for this work is budgeted in the Wet Weather Preparation Activities (46c006) project. The lowest bid of $1,509,500 exceeds the engineer’s estimate by $359,500, which would exceed the project's available budget. By rejecting all bids, if authorized to do so, staff can potentially negotiate a more favorable contract with the lowest bidder.
ENVIRONMENTAL DETERMINATION:
This Project will be performed pursuant to the terms and conditions of an existing permit with the environmental regulatory agencies for the Marina Lagoon including the San Francisco Bay Regional Water Quality Control Board. On July 7, 2021, the City filed a Notice of Exemption with the Office of Planning and Research and the County Clerk-Recorder for the County of San Mateo (SCH No. 2021070131) for proposed maintenance activities for the Marina Lagoon, effective from 2022 through 2026. These maintenance activities are categorically exempt as existing facilities as they involve negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
STAFF CONTACT
James Yang, Senior Engineer
[email protected]
650-522-7575