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: 5 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 25-10507 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: November 3, 2025
SUBJECT:
Decommissioned Plant Processes Cleaning Project — Agreement RECOMMENDATION:
Approve an agreement with Ancon Marine dba Ancon Services, for the cleaning of decommissioned tanks and equipment at the Wastewater Treatment Plant in the amount of $236,258.88; establish a $50,000 contingency reserve; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue change orders within the contingency reserve.
BACKGROUND:
The Decommissioned Plant Processes Cleaning Project (Project) is part of the Wastewater Treatment Plant’s 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 liquid 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, the project did not include the decommissioning of the processes and equipment being removed from service.
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 on July 3, 2025, to advertise the project. On July 17, 2025, the bid opening date, one (1) bid was received from Ancon Marine dba Ancon Services (Ancon) with a bid amount of $477,188, which exceeded treatment plant staff’s estimate by $327,188.
On September 15, 2025, the City Council rejected the sole bid received from Ancon and authorized the Director of Public Works to directly negotiate a potential contract with Ancon. These negotiations were successful and achieved a 50% cost reduction for the Project. Accordingly, staff recommends approving an agreement with Ancon in the amount of $236,258.88 and establishing a $50,000 contingency reserve to address any unknown issues that arise during the project.
BUDGET IMPACT:
Sufficient funds are available in the Wastewater Treatment Plant’s operating budget to award this agreement.
ENVIRONMENTAL DETERMINATION:
This agreement 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 – Decommissioned Plant Processes Cleaning Agreement
STAFF CONTACT
Robert Knox, Wastewater Treatment Plant Operations Superintendent [email protected]
650-522-7376
Robert Learmonth, Wastewater Treatment Plant Manager
[email protected]
650-522-7386