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: 21 Section Name: CONSENT CALENDAR Account Number: 10-4679 File ID: 26-10950 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: March 16, 2026
SUBJECT:
Marina Lagoon Spot Dredging Project, Bid Rejection — Approval RECOMMENDATION:
Adopt a Resolution to reject all bids received for the Marina Lagoon Spot Dredging Project.
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. Between 1996 and 2024, the flood storage volume in Marina Lagoon has decreased by 19 acre-ft, with most of this volume being lost beneath the winter flood management operating levels. Only about 12.5% of sediment accumulated over 28 years has impacted active flood storage in the facility. While the City is considering alternatives to perform a medium- to large-scale dredging project to address 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. This spot dredging effort is expected to improve hydraulic connectivity within 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, only one (1) bid was received from Power Engineering Construction Company (Power) 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 the bid was greater than the established budget for the Project, staff recommends City Council to reject all bids and authorize the Director of Public Works to directly negotiate a potential contract with Power under which cost reductions could be achieved. The City did not successfully negotiate a contract with Power.
Therefore, in accordance with Municipal Code Section 3.60.030, a competitive public process was used to obtain bids for the Project for a second time. A Notice Inviting Sealed Bids was issued to advertise the Project on January 15, 2026. On the February 17, 2026; the bid opening date, two (2) bids were received from Power and Dixon Marine Services, Inc. (Dixon)
CITY OF SAN MATEO
with bid amounts of $1,496,000 and $1,438,144, respectively.
Upon review of the received bids, city staff found both bids were missing required information or documentation, and therefore both bids were found not responsive.
Staff therefore recommends City Council to reject all bids. Staff plans to re-advertise the project on March 17, 2026, pending Council approval to reject bids. Staff still expects the project to be completed in 2026 within the requirements of existing regulatory permits.
BUDGET IMPACT:
There is no budget impact for the rejection of bids. There are sufficient funds in the Storm System Dredging Project (#468005) and the Wet Weather Preparation Activities Project (#46C006) to fund this work provided that the lowest bid of $1,438,150 was accepted.
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