Title
Approval of a Resolution Authorizing the City Manager to Reject All Bids and Re-advertise the Transmission Main Seismic Valves Installation - Bid Package 1 Project
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution authorizing the City Manager to reject all bids and re-advertise the Transmission Main Seismic Valves Installation - Bid Package 1 Project.
Report
Issue:
Whether to reject all bids and direct staff to re-advertise the project.
Staff Contact:
Randy Wesselman, Project Manager, Public Works Engineering, 360.753.8477.
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City’s 36-inch diameter water transmission main carries approximately 80% of the City’s drinking water from the McAllister Wellfield, located approximately 8.3 miles away, to the Fir Street Reservoir. To improve the seismic resilience of this critical infrastructure, the City is installing seismic isolation and control valves at 10 locations along the transmission main (seven manual valves and three automatic valves). The project is divided into two bid packages: Bid Package 1 includes four valves and Bid Package 2 will include six valves.
On July 14, 2026, Rognlin’s, Inc. submitted a bid for the Transmission Main Seismic Valves Installation Bid Package 1 project and was identified as the apparent low bidder at bid opening. On July 16, 2026, Rognlin’s, Inc. submitted the required Supplemental Bidder Responsibility (SBR) forms. On July 21, 2026, the City notified Rognlin’s, Inc. that it had been determined to be a non-responsible bidder due to failure to meet the mandatory bidder responsibility criteria.
Per Section 1-02.14, Disqualification of Bidders, of the contract documents, a bidder will be deemed non-responsible if they do not meet the mandatory bidder responsibility criteria. The section also provides a process for bidders to appeal the determination and submit additional information for City review. Rognlin’s, Inc. appealed the City’s determination and provided additional information within the required two business days. The City reviewed the submitted documentation and obtained additional information from third-party and independent sources, as allowed under Section 1-02.14.
In a letter dated July 23, 2026, the City notified Rognlin’s, Inc. that it had been determined to be a non-responsible bidder due to failure to meet the mandatory criteria for this project.
Awarding the project to the lowest bidder when the bidder does not meet the mandatory criteria could expose the City to litigation and result in project delays. Staff reviewed the second lowest bidder but determined that the bid is approximately $367,178 above the engineer’s estimate and $438,982 above the lowest bid, creating a significant impact to the project budget.
The City has the discretion to reject all bids. Rejecting all bids and re-advertising the project provides the lowest risk of litigation, significant project delays, and budget impacts.
If the Resolution is approved, the City Manager will be directed to reject all bids and re-advertise the Transmission Main Seismic Valves Installation - Bid Package 1 Project. Re-advertising the project is expected to result in minor additional costs, with construction anticipated to begin in early 2027.
Sufficient time remains to re-advertise the project and seek new bids. Staff recommends rejecting all bids and re-advertising the project.
Climate Analysis:
This item does not affect greenhouse gas emissions.
Equity Analysis:
This item does not affect issues of equity.
Neighborhood/Community Interests (if known):
The water transmission main provides approximately 80% of the City’s drinking water supply. Improving the seismic resilience of this critical infrastructure benefits the entire community by supporting continued access to reliable drinking water during and after a major earthquake or other emergency.
Financial Impact:
Overall project costs for Bid Package 1:
Engineers Estimate $1,994,810
Contingency to Award (10%): $ 199,480
Engineering: Design, Inspection, Consultants $ 535,080
Total Estimated Cost: $2,729,370
Available Project Funding for
Bid Package 1 and Bid Package 2:
Federal Funds (FEMA): $3,937,266
Local Funds: $ 437,474
$4,374,740
The additional cost to re-advertise will be within anticipated project contingency.
Options:
1. Move to approve a resolution authorizing the City Manager to reject all bids and re-advertise the Transmission Main Seismic Valves Installation - Bid Package 1 Project.
2. Direct staff to take all steps necessary to award the Transmission Main Seismic Valves Installation - Bid Package 1 to the lowest bidder and waive non-responsive contractor experience issues.
3. Direct staff to take all steps necessary to award the Transmission Main Seismic Valves Installation - Bid Package 1 Project to the next lowest responsive and responsible bidder.
Attachments:
Resolution
Vicinity Map