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Page 4 of 5 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />By letter and email, dated May 2, 2025, and by certified mail sent on May 5, 2025, staff notified JMB <br />Construction, Inc. of staff’s intent to recommend that the City Council reject JMB Construction, Inc.’s bid <br />as non-responsible and award the project to the second lowest responsible and responsive bid. <br />Staff recommend awarding the contract to Subterra Construction, Inc., who had the second responsive <br />and responsible low bid of $4,375,600. <br />Construction is anticipated to begin in July 2025 and conclude in December 2025. Prior to the construction <br />start date, notification of the proposed work will be mailed to residents and property owners in the <br />vicinity. The contractor is required to distribute a two-week notice and an additional 48-hour notice in <br />advance of the start of work in their immediate area. Construction progress updates will be available on <br />the City’s website. <br />FISCAL IMPACT <br />There is no General Fund impact associated with this contract. Funds for Veterans Boulevard Sanitary <br />Sewer Replacement Project – Phase 3 were appropriated in the Fiscal Year 2024-25 budget for Sewer Fund <br />Capital Projects – Collection System Replacement Program. The fund has an available balance of <br />$6,861,000 as of May 13, 2025. <br />Table 2: Construction Budget <br />Construction subtotal $4,375,600 <br />Contingency (10%)$437,560 <br />Construction Administration $189,000 <br />Total construction cost $5,002,160 <br />Estimated available funding $6,861,000 <br />Construction Administration fees are estimated at $189,000 and are included within the program’s <br />estimated available funding. These fees cover Engineering and Transportation staff time for construction <br />management and on-call consultant services for inspection and geotechnical field testing, which are <br />essential to keeping the project on schedule and within the dedicated construction budget. <br />ENVIRONMENTAL REVIEW <br />The Veterans Boulevard Sanitary Sewer Replacement Project – Phase 3 qualifies as a Class 2 categorical <br />exemption under the California Environmental Quality Act (CEQA) Guidelines Section 15302(c) because it <br />involves replacement or reconstruction of an existing utility system or facilities involving negligible or no <br />expansion of capacity. Furthermore, the project design complies with the City’s Engineering Standards <br />and currently accepted practices. A Notice of Exemption (NOE) will be filed pending Council approval. <br />6.F. - Page 4 of 5 <br />62