REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Michael Aguas, Capital Projects Administrator
Subject:
title
Accept the lowest responsive and responsible bid and authorize execution of a construction contract with Vido Artukovich & Son, Inc./Vidmar, Inc., a JV, in the amount of $4,495,550 for the McFadden Sewer Lift Station, Wet Well Project Phase 2, (CC1610); Reject bids 1-3; Authorize a 15% in contingency; and Authorize appropriation of additional funds
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Statement of Issue:
On October 21, 2025, the City of Huntington Beach publicly opened bids for the McFadden Sewer Lift Station Wet Well Project Phase 2, CC1610. Shortly thereafter, on November 21, 2025, a formal bid protest was submitted to the Public Works Department. Following a thorough investigation, it was determined that the bids in question did not meet the required contract specifications. In light of these findings, City Council action is requested to award the construction contract to Vido Artukovich & Son, Inc./Vidmar, Inc., a JV, identified as the lowest responsive and responsible bidder.
Financial Impact:
The total project cost is $5,818,625.10, which includes the construction contract with Vido Artukovich & Son Inc./Vidmar, Inc., a JV in the amount of $4,495,550, a 15% construction contingency of $674,332.50, and supplemental expenses of $648,742.60.
The available funding for this project is $1,462,325.01 from the Sewer Service Fund (511) in Account No. 51189027.82600. Additional new funding of $651,039.74 and reappropriation of existing funding in the amount of $3,705,260.35, totaling $4,356,300.09 is requested to be appropriated to fund this project from the Sewer Service Fund (511).
Staff identified savings in the current fiscal year budget in the amount of $3,705,260.35 from the Sewer Service Fund (511) as follows:
|
Savings from |
Account No. 51185101.69365 |
$199,348.77 |
|
Sewer Service Fund (511) |
Account No. 51185201.83700 |
$355,000.00 |
|
|
Account No. 51189017.82600 |
$415,801.58 |
|
|
Account No. 51189021.82000 |
$2,735,110.00 |
|
Total Funds to Appropriate |
$3,705,260.35 |
Staff is requesting that City Council reappropriate savings from available funds in the amount of $3,705,260.35 from the Sewer Service Fund (511) and appropriate additional funding in the amount of $651,039.74 from the Sewer Service Fund (511) to Account No. 51189027.82600 to cover the total project cost.
Recommended Action:
recommendation
A) Appropriate $4,356,300.09 in additional funding from the Sewer Service Fund (511); and
B) Accept the lowest responsive and responsible bid submitted by Vido Artukovich & Son, Inc./Vidmar, Inc., a JV, in the amount of $4,495,550; and
C) Reject bids 1-3 as non-responsive to the bid requirements; and
D) Authorize the Director of Public Works to approve change orders up to a 15% contingency for potential construction change orders; and
E) Authorize the Mayor and City Clerk to execute a construction contract with Vido Artukovich & Son, Inc./Vidmar, Inc., a JV, in a form approved by the City Attorney.
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Alternative Action(s):
Reject all bids and provide staff with direction.
Analysis:
The existing sewer facilities were constructed in 1972 and are near the end of their functional life. The existing concrete box structure is also experiencing structural failures due to immersion in a high chloride groundwater environment. The issue concerning insufficient wet well capacity is problematic, as the wet well lacks holding time, which limits maintenance staff’s ability to respond to issues. Additionally, the undersized wet well causes the pumps to cycle excessively, which reduces pump life and overall station’s reliability. A new duplex submersible pump lift station and a separate valve vault with a magnetic flow meter will be constructed using current state-of-the-art equipment and materials, which will improve the sewer system’s reliability and staff response time during emergencies.
Phase 2 of this project will include reconstruction of the wet well, valve vault, an 8-inch gravity flow pipe system, a new force main system, mechanical and electrical support infrastructure, and other associated site improvements. This lift station will also be connected to a new emergency natural gas generator to ensure the sewer facility remains operational during a power outage, thereby minimizing the risk of sewage spills at South Greer Park.
Bids were opened on November 20, 2025, with the following results:
|
Bidder’s Name |
Submitted and Verified Bid |
|
Mehta Mechanical Company, Inc. |
$3,654,385.00 |
|
R2 Build |
$3,938,015.00 |
|
Lonerock, Inc. |
$4,368,875.00 |
|
Vido Artukovich & Son Inc./Vidmar, Inc. a JV |
$4,495,550.00 |
|
Caliagua, Inc. |
$5,553,650.00 |
On November 21, 2025, a formal bid protest against Bids 1-3 was submitted to City staff. Upon a thorough review of the protest, it was determined that Bidders 1-3 did not meet contract requirements.
The primary reasons for disqualification of Bidders 1-3 include:
• A non-responsive bid was determined due to mobilization costs exceeding the maximum percentage expressly permitted in the bid specifications, in violation of Public Contract Code 10264.
• A non-responsive bid was determined for failure to comply with mandatory bid requirements, including identification of required key personnel and demonstration of minimum experience, as expressly required by the bid specifications, consistent with Public Contract Code 20101 and 20155.1.
• A non-responsive bid was determined due to failure to demonstrate the minimum experience expressly required by the bid specifications, consistent with Public Contract Code 20101 and applicable bid responsiveness principles.
Bidders 1-3 have been notified of their disqualification. No further action has been taken.
Based on the low bid received, the total estimated construction costs of this project is $5,818,625.10 as itemized below:
|
Item |
Amount |
|
Bid submitted by Vido Artukovich & Son, Inc. |
$4,495,550 |
|
15% Contingency |
$674,332.50 |
|
Supplemental |
$648,742.60 |
|
TOTAL CONSTRUCTION COST: |
$5,818,625.10 |
Staff recommends rejecting Bids 1-3 and awarding the construction contract to Vido Artukovich & Son, Inc./Vidmar, Inc., a JV, in the amount of $4,495,550. Vido Artukovich & Son, Inc./Vidmar, Inc., a JV, has successfully completed similar construction projects before. The total project cost is estimated to be $5,818,625.10, which includes the construction contract, on-call construction management & inspection, and the construction contingency.
Environmental Status:
The project is categorically exempt pursuant to Sections 15302 (Replacement or Reconstruction), 15301 (Existing Facilities), and 15304 (Minor Alterations to Land) of California Environmental Quality Act.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Construction Contract
2. RCA Contract Agreement Summary
3. PowerPoint Presentation