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Solvang awards $2.45 million contract to replace Nyborg Estates water mainlines
Summary
The City Council awarded a $2,224,170 construction contract (plus a $222,417 contingency) to Tierra Contracting Inc. for the Nyborg Estates water main replacement project after rejecting a lower bid as nonresponsive; council voted 5-0 to proceed.
The Solvang City Council on June 9 awarded a construction contract to Tierra Contracting Inc. for the Nyborg Estates water main replacement project, authorizing a contract amount not to exceed $2,446,587 including contingency.
Public works staff described the project as a priority due to pipe deterioration from soil electrolysis and prior improper installation. The scope includes replacement of roughly 4,900 linear feet of mainline, installation of 55 new valves, replacement of 14 fire hydrants, and the replacement or relocation of about 82 water service lines and meters as needed.
Staff said the city solicited competitive bids and received 13 responses ranging from about $2.2 million to $4.9 million. Tierra submitted the lowest responsive and responsible bid; another apparent low bidder, Joseph Engineering, submitted a bid that staff deemed incomplete because of missing signed documents and an omitted updated bid schedule tied to addendum No. 2. Joseph Engineering requested that the council delay action and argued the omissions were clerical and did not affect the total price.
Crystal Joseph, vice president of Joseph Engineering, told the council her firm had the lowest numerical price and asked the council to waive non-prejudicial irregularities or delay action for investigation. City staff and the city attorney said the council may waive non-prejudicial informalities but is not obligated to do so; staff recommended awarding to the lowest responsive bidder, Tierra.
Councilmember Infante moved to award the contract to Tierra Contracting Inc.; the motion carried 5-0.
Officials said the project is budgeted within the adopted CIP (originally estimated at $3.4 million) and that construction will include measures to limit customer service interruptions, notifications to residents about scheduled shutoffs, and installation of hydrant check valves to limit water loss in the event a hydrant is struck.
The contract term is 06/09/2025 through 01/31/2026; staff was authorized to approve change orders within the approved contingency.
