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5 CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
REJECTING ALL BIDS FOR THE MARINA LAGOON SPOT DREDGING PROJECT AND AUTHORIZING THE DIRECTOR
OF PUBLIC WORKS TO DIRECTLY NEGOTIATE A CONTRACT WITH THE SOLE BIDDER WHEREAS, the Marina Lagoon Spot Dredging Project (Project) includes the targeted dredging of 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; and WHERAS, work began on the design phase Project in April 2024; and WHEREAS, the City advertised the Project on June 3, 2025 in accordance with San Mateo Municipal Code (SMMC) Chapter 3.60; and
WHEREAS, four contractors attended the mandatory pre-bid walk on June 12, 2025; and WHEREAS, Power Engineering Construction Co. (Power Engineering) submitted the sole bid on June 25, 2025 in the amount of $1,509,500; and
WHEREAS, Power Engineering’s bid is 31 percent above the engineer’s estimate of $1,150,000; and WHEREAS, future market conditions and the associated impacts and/or benefits are uncertain; and WHEREAS, SMMC Section 3.60.040(a)(4) authorizes the City Council to, at its discretion, reject all bids received, negotiate a contract for the work or supplies if the project is not within budget, do the work through City employees, or terminate the project or purchase; and WHEREAS, given the uncertainty of future price escalations, there may be an opportunity to have value engineering discussions with Power Engineering now to identify potential savings; and WHEREAS, staff recommends rejecting all bids and negotiating a contract directly with Power Engineering for the Marina Lagoon Spot Dredging Project in an effort to reduce Project costs and account for the potential future changes in economic conditions; and
WHEREAS, if these negotiations are successful, staff will return to Council for approval of a modified contract with Power Engineering at a future date; but if negotiations are not successful, staff will either rebid the Project at a later date or modify the scope.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. 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.)
2. In accordance with the provisions of San Mateo Municipal Code Section 3.60.040(a)(4), all bids for the Marina Lagoon Spot Dredging Project are rejected.
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5 3. The Director of Public Works is authorized to directly negotiate a contract with Power Engineering Construction Co., who was the sole bidder on the Project.