Title
Adopt a Resolution to Authorize the City Manager to Negotiate and Execute an Increase in the Cumulative Change Order Limit from 25% to 35% (from $291,338 to $407,874) for Sanitary Sewer Point Repairs 2024 - 25 and Floresta Blvd Sanitary Sewer Replacement, Project No. 2024.0120
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
The requested increase in cumulative change order authority is necessary to address additional sanitary sewer deficiencies identified during construction that require prompt attention. The additional scope includes pipe bursting a sewer segment on Clarke Street and performing localized point repairs on sanitary sewer lines on or near Johnson Street, Fremont Avenue, Washington Avenue, and Marineview Drive. This work was urgent due to severe breaks in the lines and reports of clogs backing up sewage. Adding the work to the existing contract is the most efficient and cost-effective approach, as it avoids the delay and additional costs associated with procuring, mobilizing, and coordinating a separate contractor just for these segments. Although the remaining cumulative change order authority can partially cover the cost of the additional work, an increase of $116,536 is required to fully fund the effort. This increase would raise the contract not-to-exceed amount from $1,456,690 to $1,573,226.
RECOMMENDATIONS
Staff recommend the following action:
• Authorize an increase in the Cumulative Change Orders Limit from 25% to 35% (from $291,338 to $407,874) of the original Construction 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 soon. The project also includes locations that require frequent or repetitive maintenance by sewer maintenance staff and are in proximity of planned repair areas.
On March 9, 2026, City Council previously authorized a construction contract with Westland Contractors, Inc. for the Sanitary Sewer Point Repairs 2024 - 25 and Floresta Blvd Sanitary Sewer Replacement Project in the amount of $1,165,352, as well as a Cumulative Change Order Limit of 25% (or $291,338) of the original contract amount. This work includes repairing and replacing defective sewer main lines, constructing new pipeline segments to divert flows and increase system capacity; rehabilitating and reconstructing deteriorated manholes, and replacing undersized access structures with full sized, standard manholes. 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.
A total of three (3) change orders have been approved to date totaling $168,347.49 to address unforeseen field conditions encountered during the originally planned repairs. These conditions included abandoned concrete structures that required slurry backfill and pipeline defects that extended beyond the limits initially anticipated, requiring several additional feet of pipe to be repaired. Addressing these conditions was necessary to complete the repairs properly and restore the affected sewer facilities to reliable operating conditions.
Analysis
Additional deficiencies in the sanitary sewer system were identified during construction, after the original project scope was developed. Staff determined that these deficiencies require timely action to prevent further deterioration and more costly repairs if the work were deferred. The additional work will include pipe bursting a sewer line on Clarke Street and point repairs on or near Johnson Street, Fremont Avenue, Washington Avenue, and Marineview Drive. Completing these repairs as part of the current project will minimize the risk of sanitary sewer overflows and emergency repairs. The additional work includes approximately 360 feet of full pipe replacement.
Westland Contractors Inc. is the current contractor for the Project and is familiar with the project conditions, site requirements, and contract requirements. Adding the work to the existing contract is the most efficient and cost-effective approach, as it avoids the delay and additional costs associated with procuring, mobilizing, and coordinating a separate contractor.
The cost of the additional work is $239,526.51, which would cause the cumulative value of change orders approved to date ($168,347.49) to exceed the previously authorized cumulative contract change order limit ($291,338). Therefore, to complete the additional repairs, close out the project, and process final payment to the contractor, staff recommend increasing the cumulative change order limit from 25% to 35% (from $291,338 to $407,874) of the Construction Contract amount, a difference of $116,536.
Current Agency Policies
• Maintain and enhance the City’s infrastructure
Previous Actions
• On March 9, 2026, by Resolution No. 2026-024, the City Council authorized the City Manager to execute a construction contract with Westland Contractors Inc. for the Construction of the Sanitary Sewer Point Repairs 2024-25 and Floresta Boulevard Sanitary Sewer Replacement Project
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 bidders’ questions.
Prior to construction all affected private businesses or residences will be notified by the contractor.
Financial Impacts
The total project cost is estimated as follows:
Original Construction Not to Exceed Total: $1,456,690
Additional Change Order limit: $116,536
Total Not to Exceed $1,573,226
Budget Authority
Sufficient funds were included in the FY 2026 Water Pollution Control Plant (WPCP) Enterprise Fund budget for the project and are being carried forward into FY 2027:
Account No. Source Fiscal Year Amount
593-52-293 WPCP Enterprise Fund FY 2026 $3,020,000
Total Project Funding $3,020,000
This Council action will not impact fund balance because there are funds available in the FY 2026 adopted budget and will be carried forward into FY 2027.
ATTACHMENT(S)
A: Resolution
PREPARED BY: Iman M. Fawzy, Assistant Engineer, Public Works Department - Engineering Division