CITY OF SAN MATEO
RESOLUTION NO. ____ (2026)
REJECTING SOLE BID FOR THE DIGESTER 1 CLEANING PROJECT
WHEREAS, the City’s Wastewater Treatment Plant has two egg-shaped anaerobic digesters as part of the solids processing facilities; and
WHEREAS, the Digester 1 Cleaning Project (Project) includes the cleaning of Digester 1 and preparing its interior surfaces for inspection and condition assessment to determine critical repairs; and WHEREAS, the City advertised the Project on June 23, 2026, in accordance with San Mateo Municipal Code (SMMC) Chapter 3.60; and
WHEREAS, seven contractors attended the mandatory pre-bid walkthrough on July 2, 2026; and WHEREAS, F.D. Thomas, Inc. submitted the sole bid on July 16, 2025, in the amount of $1,962,576; and WHEREAS, F.D. Thomas, Inc.’s bid is 178 percent above the Engineer’s estimate of $1,100,000; 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 F.D Thomas, Inc. now to identify potential savings; and WHEREAS, staff recommends rejecting all bids and negotiating a contract directly with F.D. Thomas, Inc. for the Project in an effort to reduce 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 contract with F.D. Thomas, Inc. at a future date; 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. 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.
2. In accordance with the provisions of San Mateo Municipal Code Section 3.60.040(a)(4), all bids for the Digester 1 Cleaning Project are rejected.
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4 3. The Public Works Department is authorized to directly negotiate a potential contract with F.D.
Thomas, Inc., who was the sole bidder for the Project.