CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)
REJECTING ALL BIDS FOR THE DECOMMISSIONED PLANT PROCESSES CLEANING PROJECT AND AUTHORIZING
THE DIRECTOR OF PUBLIC WORKS TO DIRECTLY NEGOTIATE A CONTRACT WITH THE SOLE BIDDER WHEREAS, the Decommissioned Plant Processes Cleaning Project (Project) includes the cleaning of obsolete tanks and equipment to ensure they are safely decommissioned following completion of the Wastewater Treatment Plant Upgrade and Expansion Project; and WHEREAS, the City advertised the Project on July 3, 2025, in accordance with San Mateo Municipal Code (SMMC) Chapter 3.60.030; and
WHEREAS, three contractors attended the mandatory pre-bid walkthrough on July 10, 2025; and WHEREAS, Ancon Marine dba Ancon Marine dba Ancon Services submitted the sole bid on July 17, 2025, in the amount of $477,188; and
WHEREAS, Ancon Services’ bid is 218 percent above the Plant Manager’s estimate of $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 Ancon Services now to identify potential savings; and WHEREAS, staff recommends rejecting all bids and negotiating a contract directly with Ancon Services for the Decommissioned Plant Processes Cleaning 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 Ancon Services 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 Council action 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.)
2. In accordance with the provisions of San Mateo Municipal Code Section 3.60.040(a)(4), all bids for the Decommissioned Plant Processes Cleaning Project are rejected. 1 2
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4 3. The Director of Public Works is authorized to directly negotiate a contract with Ancon Marine dba Ancon Services, who was the sole bidder on the Project.