DWP board rejects all bids for Division Well No. 9, cuts scope and plans November re-bid

The Big Bear Lake Department of Water and Power board voted 4-0 on Sept. 29 to reject all bids received for the Division Well No. 9 Equipping Project, according to meeting minutes^[1]. Staff will trim the project's scope, switch to a cheaper pump design and re-bid the work, with contract award expected in November and completion still targeted for fall 2027^[1]. The outcome matters to ratepayers because water revenue can only be spent on water service, so how much the well costs bears directly on the money the utility has to work with. At the same meeting, the board approved $68,600 more for inspection services on a separate facility project^[1].

Why the bids were rejected

District Engineer Daniel Baguyo told the board that staff used the consulting engineer's estimate to set the project budget. During the bidding period and pre-bid meetings, however, contractors indicated that actual bids would likely exceed that estimate^[1].

Treasurer Craig Hjorth asked why the project wasn't pulled and rescoped before the bids were finalized^[1]. General Manager Reggie Lamson said such comments from contractors are common and bids often still come in under the engineer's estimate, so staff proceeded with the existing scope. According to the minutes, Lamson said that "for this project, bid process discussions proved to be an accurate indicator of bid prices but based on prior experience bid process discussions are not sufficiently accurate indicators of ultimate bid prices to preemptively stop a bid process"^[1].

What changes in the re-bid

Staff are working to remove items from the scope, including site paving, a concrete sidewalk and the surrounding block wall, and to shrink the building footprint. They are still evaluating how much those changes will lower construction cost^[1].

The design is also changing from a vertical turbine pump to a submersible pump. Lamson noted that vertical turbine pumps offer higher long-term efficiency and a 30-year life expectancy, but the bid prices prompted the switch to the more cost-effective option^[1].

Chair Bob Tarras asked whether a re-bid would cause delays. Lamson said the re-bid and award are anticipated for November, submittals will be processed over the winter, and the project remains on track for its originally intended fall 2027 completion^[1].

Garstin inspection budget

The board also voted 4-0 to authorize an additional $68,600 for Verdantas, Inc. for geotechnical and special inspection and materials testing on the Garstin Water Operations Facility Project^[1]. The revised total budget is $238,515, which Lamson said covers inspections for the entire construction period, expected to continue for another year and a half^[1].

Hjorth expressed disappointment that project managers didn't identify the extent of the inspection needs beforehand. Daniel Baguyo said the original estimate was prepared internally but was in line with the proposal provided by Verdantas.

Exchange over City Council item

The board also reviewed the Sept. 9 City Council agenda item about DWP. Legal counsel Mike Riddell said DWP is expected to adjust its own rates to cover its expenses rather than rely on City resources^[1]. Commissioner Matt Scriven read a statement inviting all City Council members to visit DWP, meet staff and learn about its operations^[1]. The minutes do not record any City Council response.

Commissioner Joe Cylwik was absent, and Vice Chair Barbara Willey attended remotely^[1]. The minutes list public forum speakers Daniel Gulbranson, Keeley Taylor and Kolman Lecroy but do not summarize their remarks^[1].

The re-bid and contract award for Division Well No. 9 are expected in November^[1].