DATE: August 5, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: REJECTION OF ALL BIDS FOR THE CONSTRUCTION OF THE OCEANSIDE BLVD. 10-INCH RECYCLED WATER MAIN PRESSURE CIPP REHABILITATION PROJECT
RECOMMENDATION
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Staff recommends that the City Council reject all bids for the construction of the Oceanside Boulevard 10-inch Recycled Water Main Pressure CIPP Rehabilitation project; and not award a Professional Services Agreement to provide Construction Management and Inspection services for the Project.
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BACKGROUND AND ANALYSIS
The City’s Recycled Water system originally utilized a repurposed 10-inch brine line constructed in 1975 as the primary transmission main to convey water from the San Luis Rey Water Reclamation Facility (SLRWRF) to several customers including the Goat Hill Golf Course off of Oceanside Boulevard. In 2023, the Lower 1 Recycled Water Conveyance System project replaced the majority of the old 10-inch pipeline with a new transmission main, conveying recycled water to customers south of the SLRWRF.
A portion of the old 10-inch brine line in Oceanside Boulevard was not replaced and continues to serve recycled water customers along this corridor, including Goat Hill Golf Course. The Oceanside Boulevard 10-inch Recycled Water Main Pressure CIPP Rehabilitation Project will rehabilitate the active portion of this aging pipeline, improve its pressure rating to align with current standards, and will add needed system components on the pipeline such as isolation valves, air release valves, and blow-offs.
The Project will be located in Oceanside Boulevard, between Goat Hill Drive and Garrison Street. The environmental document covering construction is a Notice of Exemption (NOE), as the work involves the rehabilitation of existing facilities in City right-of-way.
On July 14, 2026, the city received and opened one bid for the construction of the Project, which exceeded the Engineer’s Estimate of $3,000,000 and the available budget for construction. After review, staff recommends rejecting all bids, updating bid documents, and revisiting the Engineer's Estimate. Staff further recommends that Council authorize staff to re-advertise the Project at its discretion, which staff believes is in the City's best interest and may result in more competitive bids should re-advertisement proceed.
On July 7, 2026, the City received five proposals for Construction Management and Inspection services for this Project. A panel of City staff reviewed and scored proposals using a standardized rating process. Due to the Staff recommendation to reject all construction bids, staff also recommends not awarding a Construction Management and Inspection PSA for the Project.
FISCAL IMPACT
There is no fiscal impact to rejecting all bids and reissuing the Notice Inviting Bids.
COMMISSION OR COMMITTEE REPORT
The Oceanside Water Utilities Commission approved staff’s recommendation at its meeting on July 21, 2026.
CITY ATTORNEY’S ANALYSIS
If awarded, the contract must be awarded to the lowest responsible bidder. The City Council is also authorized to reject all bids.
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PREPARED BY: Philip Tunnell, Senior Civil Engineer
APPROVED BY: Frederick Mayo, Water Utilities Director
SUBMITTED BY: Jonathan Borrego, City Manager