DATE: November 19, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: AWARD OF CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC. FOR THE MISSION SIPHON RELIEF PROJECT
RECOMMENDATION
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Staff recommends that the City Council award a public works agreement to Palm Engineering Construction Company, Inc., in the amount of $773,190, for the construction of the Mission Siphon Relief Project, authorize the City Engineer to approve change orders up to 10 percent of the project cost or $77,319; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The Mission Siphon Relief Project (Project) will reduce the risk of a sanitary sewer overflow to the San Luis Rey River associated with the existing siphon pipe and its northern tributary sewer. The siphon is located at 1306 Buena Street, on the east side of Interstate 5. Siphons require regular cleaning to avoid clogging based on the nature of their design. In addition, the tributary sewer does not meet current minimum size standards.
The Project would divert wastewater away from the existing siphon by constructing a new sewer on Brooks Street, which would connect to the existing trunk sewer in 1st Street. The northern tributary sewer to the siphon will also be upsized, providing additional storage capacity and improving system reliability. During design, it was identified that the existing sewer along Brooks Street between Mission Ave and Seagaze Drive had experienced settlement at the downstream manhole, creating a potential for pipe failure and hydraulic in efficiencies.
In 2018, the City utilized its on-call design contract with West Coast Civil to design the tributary sewer upsizing and replacement of the settling sewer segment along Brooks Street. Upon completion of the design, City staff worked with West Coast Civil to prepare contract documents for the Mission Siphon Relief Project. The Project was advertised for bids on August 21, 2025.
On October 2, 2025, the City received and publicly opened three bids for construction of the Project. The apparent low bidder is Palm Engineering Construction Company, Inc., with a total bid amount of $773,190. Staff reviewed the bid submittal and confirmed that the bid, bid bond and contractor references comply with City standards and requirements.
FISCAL IMPACT
The construction contract with Palm Engineering Construction Company, Inc. is in the amount of $773,190 and will be charged to the Mission Siphon Relief Project account 909153418722.5703.10600 which has a current available balance of $1,228,005. Therefore, sufficient funds are available to support the award.
Staff recommends that City Council authorize the City Engineer to approve change orders up to 10 percent, or $77,319, for a total authorized construction budget of $850,509.
Table 1 shows a summary of the current available balance in Mission Siphon Relief Project, as well as the estimated cost for construction.
Table 1
|
Mission Siphon Relief Project |
|
909153418722.5703.10600 |
|
Current Available Balance |
$1,228,005 |
|
Construction Contract (Palm ECC, Inc.) |
773,190 |
|
Construction Contingency (10%) |
77,319 |
|
Total Estimated Construction Costs |
850,509 |
|
Remaining Balance |
$ 377,496 |
Funding for this Project is provided through the Sewer Fixed Asset Replacement Fund 722, which is primarily funded by sewer service and flow-based user fees.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its scheduled meeting on October 21, 2025.
CITY ATTORNEY’S ANALYSIS
The bid documents were previously reviewed by the City Attorney and approved as to form. The contract must be awarded to the lowest responsible bidder. The Public Contract Code defines “responsible bidder” as a bidder who has demonstrated the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform a public works contract.
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Prepared by: Mabel Uyeda, Water Engineering Manager
Reviewed by: Frederick Mayo, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Bid Tabulation
3. Public Works Agreement