Title
Adopt a Resolution to Approve and Authorize the City Manager to Award a Construction Contract to Westland Contractors Inc. in the amount of $1,165,352 for Sanitary Sewer Point Repairs 2024-25 and Floresta Blvd. Sanitary Sewer Replacement, Project No. 2024.0120; to Authorize the City Manager to Negotiate and Approve Individual Change Orders Up to 5% (or $58,268) of the Original Contract Amount; and to Authorize the City Manager to Negotiate and Approve Change Orders up to a Cumulative Value not to Exceed 25% (or $291,338) of the Original Contract Amount
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
This contract will facilitate the maintenance of various sanitary sewer lines throughout the City of San Leandro’s sewer service area. Nine (9) bids were received, the lowest responsive and responsible bid in the amount of $1,165,352 was submitted by Westland Contractors Inc.
RECOMMENDATIONS
Staff recommend the following actions:
• Award a construction contract to Westland Contractors Inc. in the amount of $1,165,352;
• Authorize the City Manager to negotiate and approve individual change orders up to 5% (or $58,268) of the original contract amount; and
• Authorize the City Manager to negotiate and approve change orders up to a cumulative value of 25% (or $291,338) of the original contract amount.
BACKGROUND
City staff routinely inspect the condition of the sanitary sewer main lines and manholes within the City’s service area. The City’s annual Sanitary Sewer Point Repair Project addresses identified defects and deteriorated facilities that require repair or are anticipated to require repair in the near future. Locations that require frequent, repetitive maintenance by Public Works, and are in proximity to planned repair areas, are also included in the Project.
This project will repair and replace defective sewer main lines, construct new pipeline segments to divert flow and increase system capacity, rehabilitate and reconstruct deteriorated manholes, and replace undersized access structures with full sized standard manholes. Upon completion, these improvements will increase the system’s reliability, reduce the frequency of required maintenance, improve maintenance efficiency, and reduce the risk of sanitary sewer overflows.
Analysis
Bids for the project were opened on February 11, 2026. A total of nine (9) bids were received, with bid amounts ranging between $1,165,352 and $2,311,130. The engineer’s pre-bid estimate for construction was $2,265,557.01. After evaluation of the bids received, staff recommend awarding the construction contract to the lowest responsive and responsible bidder, Westland Contractors Inc. in the amount of $1,165,352.
Staff verified that the recommended contractor holds a valid license with the Contractor’s State License Board and is properly registered with the California Department of Industrial Relations.
The recommended contractor does not qualify as a local business in San Leandro based on the Local Inclusion Policy Ordinance and does not meet the Local Business Participation Goal of 25% by subcontracting with San Leandro businesses for 25% of the contract value. However, the bidder provided documentation that demonstrated good faith efforts to outreach and engage local business participation.
Consistent with construction industry standards, staff balanced the costs of site investigations with the inherent risk of encountering unforeseen conditions during construction of underground facilities, as well as the level of design detail provided in the plans. As a result, unforeseen conditions may be encountered during construction and plan details may require adjustment or clarification.
To minimize potential project delays and allow timely adjustments to the scope of work as needed to deliver high-quality project for the City, staff request authorization to negotiate and approve individual change orders of up to 5% ($58,268) of the original contract amount, with cumulative change orders not to exceed 25% (or $291,338) 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.
Applicable General Plan Policies
• Policy CSF 6.4: Wastewater Collection and Treatment. Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
Environmental Review
This project is categorically exempt from CEQA per Section 15301(C1) - Existing Facilities - of the CEQA guidelines. A Notice of Exemption was filed with the Alameda County Recorder's Office on August 19, 2025.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the Daily Review, the South County Post, World Journal and Visión Hispana. Contractors that asked to be automatically notified of posted bidding opportunities via email were also notified. The project is posted on the City website.
Two mandatory pre-bid meetings were held on February 2, 2026, and February 3, 2026. The intent of these meetings was to inform bidders of the project details, including the City’s Local Inclusion Ordinance and address any questions bidders may have.
Prior to any construction which will affect access to private businesses or residences, the contractor will provide notifications in the form of door hangers.
Financial Impacts
The total project cost is estimated as follows:
Design and Bid: $165,000
Construction Contract: $1,165,352
Construction Contingency: $291,338
Construction Management and Inspection: $190,000
Total $1,811,690
Budget Authority
Sufficient funds are included in the FY 2026 Water Pollution Control Plant (WPCP) Enterprise Fund budget for the project:
Account No. Source Fiscal Year Amount
593-52-293 WPCP Enterprise Fund FY 2026 $3,020,000
Total Proposed Project Funding $3,020,000
ATTACHMENT(S)
• Attachment A: Resolution
• Attachment B: Bid Summary
PREPARED BY: Iman M. Fawzy, Assistant Engineer, Public Works Department - Engineering Division