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: 17 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 26-11512 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: August 17, 2026
SUBJECT:
Digester 1 Cleaning Project — Bid Rejection
RECOMMENDATION:
Adopt a Resolution to reject the sole bid received for the Digester 1 Cleaning Project and authorize the Public Works Department to directly negotiate a potential contract with the sole bidder, F.D. Thomas, Inc.
BACKGROUND:
The Clean Water Program (CWP) Annual Major Components (AMC) project includes capital improvement projects that rehabilitate aging infrastructure in the City’s sewer collection system and Wastewater Treatment Plant (WWTP) to maintain reliable operations, minimize service disruptions, and safeguard public health. As part of the Biogas and Biosolids Evaluation Project, the City’s consultant completed an inspection of Digester 2 in 2025 and will now conduct a condition assessment of Digester 1. In preparation for the assessment, the consultant developed a bid package, including drawings and specifications, for cleaning Digester 1 and preparing its interior surfaces for inspection (Project). Digester 1 has not been cleaned or internally inspected in more than 20 years, and its current condition is unknown.
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 23, 2026. On July 16, 2026, bid opening date, one (1) bid was received from F.D. Thomas, Inc. with a bid amount of $1,962,576, which exceeded the Engineer’s estimate of $1,100,000 by $862,576.
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 sole bid is greater than the established budget for the Project, staff recommends that City Council reject the bid and authorize the Public Works Department to directly negotiate a potential contract with F.D. Thomas, Inc., under which cost reductions may be achieved. If these direct negotiations are successful, staff will return to City Council for approval of a contract at a future date. If negotiations are not successful, staff will either rebid the Project or modify the scope to reduce costs.
BUDGET IMPACT:
The bid of $1,962,576 exceeds the Engineer’s Estimate of $1,100,000 by $862,576, which would exceed the project’s budget. By rejecting the bids, staff can potentially negotiate a more favorable contract amount.
ENVIRONMENTAL DETERMINATION:
The California Environmental Quality Act (CEQA) does not apply to the rejection of bids because CEQA is inapplicable to projects that are rejected or disapproved, under CEQA Guidelines section 15270.
CITY OF SAN MATEO
STRATEGIC PLAN ALIGNMENT
This staff report supports the Infrastructure initiative.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
STAFF CONTACT
Jennifer Lam, Project Manager II
[email protected]
(650) 522-7281
Rob Learmonth, Wastewater Treatment Plant Manager
[email protected]
(650) 522-7386