Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a $6,301,000 Construction Contract with Odin Environmental Solutions, LLC for Water Pollution Control Plant (WPCP) Sludge-Soil-Cement Stabilization and Fill, Project No. 2025.6020; to Authorize the City Manager to Negotiate and Approve a Change Order of $337,500 for Bid Alternates A1 and A2; to Authorize the City Manager to Negotiate and Approve Additional Change Orders up to a Cumulative Value not to Exceed 10% (or $630,100) of the Original Contract Amount; and to Appropriate an Additional $2,988,801 to the Subject Project
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
This contract provides for the construction of the first of two phases of the Water Pollution Control Plant (WPCP) Treatment Wetland Project. This phase will prepare the site for the final installation of the project in a separate agreement.
RECOMMENDATIONS
Staff recommends the following actions:
• Approve a construction contract with Odin Environmental Solutions, LLC dba Odin in the amount of $6,301,000 for WPCP Sludge-Soil-Cement Stabilization and Fill, Project No. 2025.6020 and authorize the City Manager to execute all documents and take all actions necessary to effect the Resolution; and
• Authorize the City Manager to negotiate and approve a change order for Bid Alternates A1 and A2 up to $337,500; and
• Authorize the City Manager to negotiate and approve change orders up to 10% (or $630,100) of the original contract amount; and
• Appropriate an additional $2,988,801 to the subject project
BACKGROUND
This contract is for the first of two phases of the WPCP Treatment Wetland project. The purpose of the Treatment Wetland project is to treat a portion of the WPCP discharge water to remove nitrogen and other contaminates. In addition, the project will include enhancement of wetland habitat along the San Francisco Bay Trail and serve as a demonstration project of cost-effective nature-based solutions for contaminant removal.
The WPCP Treatment Wetland Project will utilize an existing, out of service treatment pond, to be completed in two phases. The bottom level of the pond needs to be raised for final construction of the project; there is currently a layer of sludge in the pond. The first phase will place soil stockpiled from the 2014 WPCP upgrade project into the basin and mix with cement to stabilize the base layer of the pond. After this is complete, additional fill soil will be imported to bring the level of the pond up to the final height. During the second phase, a liner, a terraced slope with wood chips and additional treatment equipment will be installed. The entire area will then be planted with native plants.
The project is split into two phases because the City’s geotechnical advisors recommended filling the pond and then allowing time for settling, which reduces the likelihood of future problems with the liner.
In July 2024, the San Francisco Bay Water Quality Resources Control Board issued Order R2-2024-0013, which requires all treatment plants discharging to the San Francisco Bay to reduce nitrogen by about 40% by 2034. The project is the City’s first step toward complying with this order.
This project has been supported by three grants:
• Planning and design grant for $538,926 from the San Francisco Bay Restoration Authority with funding from Measure AA;
• Implementation grant for $3,734,489 from the San Francisco Bay Restoration Authority with funding from Measure AA;
• Implementation grant for $2,975,302 from the San Francisco Bay Water Quality Improvement Fund at the US Environmental Protection Agency.
Analysis
Bids were opened on June 4, 2025, with two bids received, with the lowest bid in the amount of $6,301,000. The pre-bid engineer’s estimate was $4,938,361. There are two bid alternates for demobilization and remobilization in the event the project needs to be paused for weather. These were not included during the consideration of the lowest responsive bid from a responsible bidder; the total for these additive alternates to the bid is $337,500. Staff recommend Council approve the additive alternates through a change order.
Staff recommends awarding the contract to the lowest responsible bidder, Odin Environmental Solutions, LLC dba Odin.
Staff verified that the contractor holds a valid Contractor’s State License Board license and is registered with the California Department of Industrial Relations.
To minimize delays to the project and ensure that the scope of work is adjusted as needed to provide the highest quality project for the City, staff recommend Council authorize change orders up to 10% of the base bid, or $630,100. This is a complex project and there are several areas where costs could be higher than expected:
• The total bid is based in part on unit quantities for soil stockpile, import soil and material in the basin. These quantities were estimated using the best available methodologies, but it is possible they were underestimated.
• Detailed plans are not available for areas that need to be demolished. While unlikely, the demolition may uncover additional areas that need to be demolished that were not in the original scope.
Failure to approve this contract may result in the City forfeiting grant funding and falling behind on meeting regulatory deadlines.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• October 15, 2018: Reso No. 2018-30 RESOLUTION of the City of San Leandro City Council to Accept Grant Funds of $538,926 from the San Francisco Bay Restoration Authority for San Leandro's Treatment Wetland for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency Project (Project No. RA-007)
• October 17, 2019: Reso No. 2019-160 RESOLUTION of the City of San Leandro City Council to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with Terraphase Engineering, Inc., in the amount not to exceed $789,036 for Design and Permitting Services of a New Treatment Wetland at the Water Pollution Control Plant; Authorize the City Manager to Execute Contract Amendments Up to 20% (or $157,807) and an Appropriation of the Water Pollution Control Plant Enterprise Fund Balance in the Amount of $501,917 for Fiscal Year 2019-2020
• April 4, 2024: Reso No. 2024-029 Adopt a Resolution to Adopt a Mitigated Negative Declaration (MND) for the San Leandro Water Pollution Control Plant Treatment Wetland and Shoreline Resilience Project in Accordance with the Requirements of the California Environmental Quality Act (CEQA)
• July 15, 2024: Reso No. 2024-089 Resolution to Authorize the City Manager to Accept a Grant for $3,734,489 from the San Francisco Bay Restoration Authority for San Leandro’s Treatment Wetland for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency.
• July 15, 2024: Reso No. 2024-091 Resolution to Authorize the City Manager to Accept a Grant for $2,975,303 from the United States Environmental Protection Agency for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency.
• September 3, 2024: Resolution to Approve and Authorize the City Manager to Execute Amendment No. 3 to the Consulting Services Agreement with Terraphase Engineering, Inc. for Environmental Design Services for a Treatment Wetland, Increasing the Not-to-Exceed Amount by $266,624 for a Total Contract Amount of $1,177,863
Applicable General Plan Policies
• Policy EH-1.8 Sea Level Rise. Consider the effects of projected sea level rise in the design and planning of all development, recreational improvements, and infrastructure along the San Leandro shoreline.
• Action EH-1.8. A: Adaptation Plans. Develop long-term adaptation plans which minimize the potential for coastal flooding on public and private properties near the San Leandro shoreline. Periodically evaluate the risk to homes, businesses, parks, and other features and take steps to protect or fortify these areas to reduce damage potential.
• Policy CSF-6.4 Wastewater Collection and Treatment. Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
Permits and/or Variances Granted
• NPDES Permit and Waste Discharge Requirements, issued by the SF Bay Regional Water Quality Control Board in 2022: Order R2-2022-0006 NPDES Permit CA0038881
• Streambed Alteration Agreement, California Department of Fish and Wildlife: EPIMS-ALA-55940-R3
• Bay Conservation and Development Commission: Administrative Amendment to existing Permit (pending)
Environmental Review
Council approved a resolution to adopt a mitigated negative declaration (MND) in accordance with the requirements of the California Environmental Quality Act (CEQA) on April 4, 2024.
Financial Impacts
This project will require Council appropriation of $2,988,801 for Fiscal Year 2025-2026 from the Water Pollution Control Plant fund balance into Account 593-52-276. There will be $6,709,792 in grant funding revenues for the entire project, including this contract and the subsequent final installation.
The cost of this project is detailed below:
Construction Contract $6,301,000
Alternate Bid Items $337,500
Construction Contingency $630,100
Consultant Construction Management & Inspection $403,601
City Oversight $50,000
TOTAL $7,722,201
The budget authority is as follows:
Carryover from Fiscal 2024-2025 CIP, Account 593-52-276 $1,981,400
Included in 2025-2026 CIP Budget, Account 593-52-276 $2,752,000
Total Current Budget Authority $4,733,400
Additional appropriation requested to Account 593-52-276 $2,988,801
This Council action is not fully budgeted and will require an appropriation of $2,988,801 for this project that will draw down the Water Pollution Control Plant Fund’s undesignated fund balance.
Attachments
Attachment A - Resolution
Attachment B - Bid Summary
PREPARED BY: Hayes Morehouse, Water Pollution Control Manager