Title
Adopt a Resolution to Approve and Authorize the City Manager to Award a Construction Contract to Giant Construction, Inc. in the amount of $6,994,000 for the Base Bid and Additive Alternate Bid Items A2 and A4 for Mulford Marina Branch Library, COSL Project No. 2018.2400; to Authorize the City Manager to Negotiate and Approve Individual Change Orders Up to 5% of the Original Contract Amount ($349,700); to Authorize the City Manager to Negotiate and Approve Cumulative Change Orders up to 15% of the Original Contract Amount ($1,049,100); and to Appropriate an Additional $630,000 from General Fund Reserves to the Subject Project
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Economic Development
• Infrastructure
SUMMARY
This contract covers the complete reconstruction of the Mulford Marina Branch Library, including the construction of a new 3,900-square-foot library building, along with an exterior patio and landscaped amenities.
RECOMMENDATIONS
Staff recommends the following actions:
• Award a construction contract to Giant Construction, Incorporated, in the amount of $6,994,000 for the Base Bid and Additive Alternate Bid Items A2 and A4
• Authorize the City Manager to negotiate and approve individual change orders up to 5% (or $349,700) of the original contract amount
• Authorize the City Manager to negotiate and approve change orders up to a cumulative value not to exceed 15% (or $1,049,100) of the original contract amount
• Appropriate and transfer an additional $630,000 from the General Fund to the subject project
BACKGROUND
The existing Mulford-Marina Branch Library, located at the northeast corner of the Aurora Drive and Fairway Drive intersection, has been in operation since 1962 in a 1,200-square-foot building that has reached the end of its useful life.
In 2018, the City identified funding associated with the San Leandro Shoreline Development for the replacement of the Mulford-Marina Branch library building. Design efforts commenced in 2019, and progressed through the Schematic Design phase, incorporating public engagement. However, in early 2020, due to the uncertain timeline of the Shoreline Development and lack of confirmed construction funding, the design effort was paused. In 2022, the City successfully secured a $4,079,701 grant from the California State Library’s Building Forward Library Infrastructure Grant Program. Additionally, the San Leandro Library Foundation committed $800,000 towards the project. With this new funding in place, the project design was restarted.
Following close consultation and input from Library Department staff during the project’s design, construction documents were completed, and the project was put out to bid.
Analysis
On April 10, 2025, the City opened bids for the subject project. Ten bids were received, with base bid amounts ranging between $6,784,000 and $9,230,000. The pre-bid Engineer’s estimate for the base bid was $7,202,900. Staff determined that Giant Construction, Inc. is the low bidder based on the base bid amounts. Staff verified that Giant Construction, Inc. has a valid Contractor’s State License Board license and is registered with the California Department of Industrial Relations.
The bid included four optional additive alternates: ‘A1’ for a decorative ceiling in the children’s alcove, ‘A2’ for monument sign lighting, ‘A3’ for an exterior shade trellis, and ‘A4’ for City sidewalk along the project frontage. Because the base bid was below the Engineer’s estimate and the costs are reasonable, staff recommends the award of a construction contract to Giant Construction, Inc. for the base bid plus additive alternates A2 and A4, for a total amount of $6,994,000. Additive alternate A1 for the decorative ceiling is not recommended, as the cost was higher than expected and the library staff deemed its benefit would not justify the expense. Additive alternate A3 for the exterior trellis is also not recommended at this time. Although the trellis was desired by Library staff, this item was removed in the interest of meeting the project budget. If funding becomes available in the future, the exterior trellis could be constructed and added to the building separately.
The City’s Local Business Preference Policy was required in this bid. Staff presented the requirements of the Local Business Preference Policy at the mandatory pre-bid meetings, responded to bidder questions, and provided contact information for free technical assistance. In addition, a list of San Leandro based contractors performing relevant trades applicable to the project was shared with the bidders. None of the bidders have an office in San Leandro that would have qualified them as a local business, and none of the bidders met the Local Business Participation Goal of subcontracting 25% of the contract value to San Leandro based businesses. However, the low bidder, Giant Construction, Inc. provided documentation that demonstrated good faith efforts to reach out and engage local businesses.
This project is also subject to the provisions of the Community Workforce Agreement (CWA). Each bidder was advised of the requirements of the agreement in writing and verbally at the mandatory pre-bid meetings. All the bidders signed the Community Workforce Agreement commitment form.
As is standard in the construction industry, staff balanced site investigation costs with the risk of finding unforeseen conditions during construction, as well as the design costs versus the level of detail of the plans. In addition, utility service applications are currently on-hold pending certainty of the award of the construction contract and the costs associated with potential mitigations due to the Shoreline Development EIR related to monarch butterflies are unknown. As a result, unforeseen and unanticipated conditions may be encountered during construction and plan details may need to be adjusted or clarified.
To minimize delay to the project and ensure that the scope of work is adjusted as needed to provide the highest quality project, staff requests that the City Council authorize the City Manager or her designee to negotiate and approve individual change orders up to 5% ($349,700) of the original contract amount. In addition, staff requests authority to negotiate and approve cumulative change orders up to 15% ($1,049,100) of the original contract amount. This contract allowance will facilitate efficient completion of the project on budget and on schedule.
Although the project base bid was below the Engineer’s estimate, additional funds are requested to construct the project and provide a suitable contingency. The 15% contingency and the addition of additive alternates results in a shortfall of $630,000. Staff recommends additional appropriation of this amount to fully fund the project.
Current Agency Policies
• Maintain and enhance San Leandro's infrastructure
• Support and implement programs, activities and strengthen communication that enhances the quality of life and wellness, celebrates the arts and diversity and promotes civic pride
• Maintain and support a strong positive relationship between the City, schools, and the educational community
Previous Actions
• On June 9, 2025, the City Council Discussed the Draft Capital Improvement Program 10 Year Plan FY 2026 through FY 2035; at which time staff proposed to ‘reject all bids’ on the Mulford Marina Branch Library construction contract. City Council directed staff to proceed with the project and bring back a resolution for approval at the June 16, 2025 City Council meeting to: ‘Award a construction contract to Giant Construction, Inc. in the amount of $6,994,000 (for the Base Bid with additive alternate bid items A2 and A4), and appropriate an additional $630,000 to the project from General Fund Reserves.’
• On July 17,2023, the City Council by Resolution No. 2023-100 Approved Amendment No. 3 to an Existing Consulting Services Agreement with Noll & Tam Architects for Design Services for the Mulford-Marina Branch Library, Project 2018.2400; to Increase the Amount of Compensation from $366,047 to $848,884; and to Extend the Term of the Contract to December 31, 2026
• On December 5, 2022, the City Council by Resolution No. 2022-208 authorized a grant application, acceptance and execution of the grant and appropriation of funding in the amount of $4,079,701 to account #150-68-100 for the subject property.
• On February 19, 2019, the City Council by Resolution No. 2019-045 approved a consulting services agreement with Noll & Tam for the subject project; and authorized the City Manager to execute individual amendments up to 5% and cumulative amendments up to 15% of the original Contract amount; and authorized for the agreement pursuant to Resolution No. 18-093 be suspended.
• On July 23, 2018, the City Council by Resolution No. 2018-093 approved a consulting services agreement with Noll & Tam for the subject project; and appropriated an additional $150,000 from economic uncertainty reserves for the design phase of the project.
Committee Review and Actions
• On July 22, 2019, Staff in the Engineering Division of the Public Works Department presented this project at the City Council Facilities and Transportation Committee meeting. The Committee was supportive of the design concept, including general site plan, building layout, and floorplan options.
Applicable General Plan Policies
• GOAL CSF-3 Sustain and expand a public library system that provides a destination for exploration and discovery, knowledge and information, leisure and cultural enrichment, and life-long learning opportunities for persons of all ages.
o Policy CSF-3.1 Library Expansion and Upgrades. Support the expansion and upgrading of public library facilities and services to keep pace with changes in information technology and community needs.
o Policy CSF-3.4 Libraries as Neighborhood Centers. Promote programs and events that affirm the role of the City’s libraries as community and neighborhood gathering places and that reflect the City’s diverse population.
o Policy CSF-3.5 Resources for Self-Improvement. Ensure that San Leandro’s libraries and other community institutions provide a setting for the open exchange of ideas and information and provide an opportunity for residents of all backgrounds to improve their skills and knowledge.
Permits and/or Variances Granted
This project obtained a building permit from the City of San Leandro Community Development Department, including review and approval by the Alameda County Fire Department.
Environmental Review
No further environmental review is required pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15162 as the proposed project is in conformance with the Environmental Impact Report (EIR), including subsequent Addendums, for the Shoreline Development Project (SCH# 2013072011) that was previously prepared and certified in accordance with the requirements of CEQA, and none of the conditions described in Section 15162 of the CEQA Guidelines exist. The approved project met all requirements and mitigation measures contained in the EIR.
Code Compliance Review
The project will have regular code inspections as part of the building permit approval process.
Summary of Public Outreach Efforts
• Community Meeting No. 2 for the project was held on Saturday June 29, 2019, at the Mulford-Marina Branch Library. Attendees were supportive of the project and provided input.
• Community Meeting No. 1 for the project was held on Tuesday June 25, 2019, at the Mulford-Marina Branch Library. Attendees were supportive of the project and provided input.
• A community outreach survey conducted in May-June 2019 resulted in over 300 responses. Half of the respondents were from the Mulford-Marina neighborhood.
Financial Impacts
The estimated project cost is shown below:
Design $1,145,600
Main Construction Contract $6,994,000
Utility Connections, FF&E, etc. $ 725,000
Construction Administration $ 750,000
Project Contingencies $1,049,100
Total $10,663,700
The project is funded as follows:
Account No. Reso and Source Amount
210-69-193 FY 17/18, CIP Funds $ 300,000
210-69-193 FY 18/19, CIP Funds $ 150,000
210-68-100 FY 18/19, CIP Funds $2,100,000
210-68-104 FY 22/23, CIP Funds $2,400,000
150-68-100 FY 22/23, Special Library Grants Fund $4,079,701
210-68-100 FY 22/23, Library Foundation Donation $ 800,000
210-36-502 FY 23/24, CIP ADA Transition Plan Funds $ 204,000
Total $10,033,701
Appropriation and Transfer requested by this action:
010-99-901 General Fund Reserves $ 630,000
Total $10,663,701
This Council action was not budgeted and will require an additional appropriation and transfer from the General Fund reserve fund in the amount of $630,000 to the subject project.
ATTACHMENTS
• Attachment A - Draft Resolution
• Attachment B - Bid Summary - Project No. 2018.0040
PREPARED BY: Mark Goralka, Associate Engineer, Public Work Department - Engineering Division