Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Construction Contract to Apeña Engineering Incorporated in the amount of $269,300 for the Small Trash Capture Device Installation, Project 2017.0540; to Authorize the City Manager to Negotiate and Approve Individual Change Orders up to 10% (or $26,930) of the Original Contract Amount; to Authorize the City Manager to Negotiate and Approve Change Orders up to a Cumulative Value not to Exceed 25% (or $67,325) of the Original Contract Amount; to Accept the United States Environmental Protection Agency’s (EPA) Community Grant in the amount of $1,000,000 and Execute All Documents Related to the Grant; and to Appropriate Grant Funds
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Infrastructure
SUMMARY
This contract will facilitate the installation of small stormwater trash capture devices. Seven bids were received, the lowest responsive and responsible bid in the amount of $269,300 was submitted by Apeña Engineering, Incorporated. In addition, $1,000,000 in EPA Community Grant funding will be accepted and appropriated for this project.
RECOMMENDATIONS
Staff recommend the following:
• Award a construction contract to Apeña Engineering Incorporated in the amount of $269,300;
• Authorize the City Manager to negotiate and approve individual change orders up to 10% (or $26,930) of the original contract amount;
• Authorize the City Manager to negotiate and approve change orders up to a cumulative value of 25% (or $67,325) of the original contract amount;
• Accept and Appropriate EPA Community Grant in the amount of $1,000,000 in reimbursable funding; and
• Authorize the City Manager to execute all related grant documents
BACKGROUND
The San Francisco Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit CAS612008, Order No. R2-2022-0018, commonly referred to as Municipal Regional Permit 3 (MRP3), became effective on May 11, 2022. The updated permit introduced more stringent stormwater treatment and reporting requirements compared to the previous NPDES permit. The City of San Leandro is among the agencies regulated under MRP3. One of the key provisions of this permit is Provision ‘C.10,’ which pertains to storm water trash load reduction. Under this Provision, Permittees must achieve either a 100% reduction in trash from stormwater or ensure that stormwater trash has no adverse impact on receiving waters by June 30, 2025.
In compliance with MRP3, staff submitted an updated Trash Load Reduction Plan to the Alameda County Clean Water Board and the State Water Board in July 2023. The plan detailed actions necessary to meet the new requirements, including the installation of 177 small point-source storm drain inlet screens and 7 larger in-line storm drain trash capture devices. The Small Trash Capture Device Installation Project will install the inlet screens first, as they are customizable to fit the existing storm inlets and can be installed without requiring any special permits or detailed design documents. In contrast, the larger full trash capture devices (TCDs) are significantly more complex, requiring substantial investment, site-specific design, and permitting procedures. Installation of the larger TCDs is included in a separate project currently in the design phase.
The United States Environmental Protection Agency (EPA) Community Grants Program provides federal funding for the planning, design, and construction of drinking water, wastewater, and stormwater infrastructure projects. On September 24, 2025, the City was awarded $1,000,000 of EPA Community Grant funds for stormwater trash capture device projects.
Analysis
Bids for the Project were opened on February 12, 2026. Seven bids were received, ranging from $269,300 to $426,000. Apeña Engineering, Inc. submitted the lowest responsive bid of $269,300. The pre-bid Engineer’s Estimate was $476,630. Staff has verified that Apeña Engineering, Inc. has a valid Contractor’s State License Board license and is registered with the California Department of Industrial Relations and therefore recommends that Apeña Engineering, Inc. be awarded the contract.
Because this project is funded by federal grant funds, it is not subject to the City’s Community Workforce Agreement or the City’s Local Business Participation Goal. However, Apeña Engineering, Inc. is a local business with its office in San Leandro.
Consistent with the construction industry standards, staff balanced the costs of site investigation with the inherent risk of encountering unforeseen conditions during construction, as well as the level of design detail provided on the plans. As a result, unforeseen conditions may be encountered during construction, particularly in work involving underground facilities, and plan details may require adjustment or clarification.
To minimize potential project delays and allow timely adjustment to the scope of work is adjusted as needed to deliver a high-quality project for the City, staff request authorization to negotiate and approve individual change orders up to 10% ($26,930) of the original contract amount, with cumulative change orders not to exceed 25% ($67,325) of the original contract amount. This authorization will help to ensure efficient completion of the project on budget and on schedule.
Current Agency Policies
• Maintain and enhance the City’s infrastructure
Previous Actions
• On November 6, 2023 by Resolution No. 2023-146, the City Council approved and authorized the City Manager to enter into a Consulting Services Agreement with Schaaf and Wheeler for the design of Stormwater Trash Capture Devices, Project No. 2017.0540 in the Amount of $675,000; authorized individual amendments up to 10% (or $67,500) of the original agreement; and authorized cumulative amendments up to 30% (or $202,500) of the Original Agreement
Applicable General Plan Policies
• Policy EH-4.1 Urban Runoff Control: Continue to implement water pollution control measures aimed at reducing pollution from urban runoff. These measures should emphasize best management practices by residents, businesses, contractors, and public agencies to ensure that surface water quality is maintained at levels that meet state and federal standards.
• Action EH-4.1.A: Trash Capture Devices. Develop a funding plan for the installation and maintenance of trash capture devices on City storm drains, in order to comply with the unfunded State mandate for 100 percent trash capture in local storm drain systems.
• Policy EH-4.5: Public Works Maintenance. Continue, and if feasible expand, City Public Works maintenance activities, including scheduled street sweeping and cleaning of storm drains and culverts, to minimize pollution from surface runoff.
Environmental Review
This project is Categorically Exempt per California Environmental Quality Act (CEQA) Section 15301(c) of the CEQA guidelines. A Notice of Exemption was filed with the Alameda County Recorder’s Office on January 23, 2026.
This project is also exempt from National Environmental Protection Act (NEPA) requirements. EPA found that the proposed action is eligible for exclusion from detailed environmental review under 40 CFR § 6.204(a)(1), and will not involve any of the extraordinary circumstances delineated under 40 CFR § 6.204(b)(1) through (b)(10)
Summary of Public Outreach Efforts
The Notice to Bidders was published in the East Bay Times, Visión Hispana and World Journal. Staff also notified local builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email.
Two pre-bid meetings were held on January 20th and 29th, 2026, with potential bidders.
Financial Impacts
The estimated cost of this project is detailed below. CIP accounts are carried forward for five years or until the work is complete, whichever occurs first.
Permit Fees, Utility Costs, Misc. Fees $25,000
Design and Consulting Costs $125,000
Consulting Contracts (large and small TCDs) $1,100,000
Construction Contract $269,300
Construction Management & Inspection $60,000
Construction Contingencies (25% of contract amount) $67,325
Total Cost: $1,649,625
Sufficient funds are budgeted for this project as follows:
• General Fund - Account 210-58-125: $1,000,000
• General Fund - Account 210-38-371: $91,364
• Grant Fund - Account 150-38-453: $1,000,000
Total $2,091,364
This Council action will not impact fund balance because there are funds available in the FY 2026 adopted budget.
ATTACHMENT
Attachment A: Resolution to Award Project and Accept EPA Grant
Attachment B: EPA Grant Agreement 97T46301.
Attachment C: Bid Summary
PREPARED BY: Mark Goralka, Associate Engineer, Public Works Department, Engineering Division