CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 25-10342 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: September 15, 2025
SUBJECT:
Decommissioned Plant Processes Cleaning Project — Bid Rejection RECOMMENDATION:
Adopt a Resolution to reject the sole bid received for the Decommissioned Plant Processes Cleaning Project and authorize the Public Works Director to negotiate a contract directly with Ancon Marine (dba Ancon Services).
BACKGROUND:
The Decommissioned Plant Processes Cleaning Project (Project) is part of the Water Quality Control Plant’s (WQCP) plan to safely decommission obsolete tanks and equipment following completion of the Wastewater Treatment Plant Upgrade and Expansion Project. The upgrade and expansion project consists of new liquids treatment process facilities and other plant upgrades to replace aging infrastructure and produce high-quality treated water that will protect human health and the environment; however, this project did not include decommissioning of the processes and equipment to be replaced.
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 July 3, 2025. On the July 17, 2025, bid opening date, one (1) bid was received from Ancon Services with a bid amount of $477,188, which exceeded the WQCP’s estimate by $227,188. 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 reject all bids and authorize the Director of Public Works to directly negotiate a potential contract with Ancon Services 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.
BUDGET IMPACT:
There is no budget impact for the rejection of bids. Funding for this work is budgeted for in the Water Quality Control Plant’s operating budget. The lowest bid of $477,188 exceeds the Plant Manager’s estimate by $327,188, 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 bid rejection is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)
CITY OF SAN MATEO
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NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
STAFF CONTACT
Robert Learmonth, Watewater Treatment Plant Manager
[email protected]
650-522-7386
Robert Knox, Operations Superintendent
[email protected]
650-522-7376