Title
Adopt a Resolution to Authorize the City Manager to Award a Construction Contract for the Base Bid plus Additive Bid Alternate A to Pencor General Contractors, Inc. in the Amount of $678,034.51 for the San Leandro Marina Buildings Demolition Project, Project No. 2020.3080 and to Authorize the City Manager to Negotiate and Approve Cumulative Change Orders up to 15% (or $101,700) of the Original Contract Amount
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
This contract provides for the demolition of the existing buildings that housed the yacht clubs, boat dock covers, and restrooms in preparation for the upcoming development of the San Leandro Marina Shoreline.
RECOMMENDATIONS
Staff recommends the following actions:
• Award a construction contract to Pencor General Contractors, Inc. in the amount of $678,034.51; and
• Authorize the City Manager to negotiate and approve change orders up to a cumulative value not to exceed 15% (or $101,700) of the original contract amount
BACKGROUND
In the 1960s, San Leandro constructed a new marina along the San Francisco Bay shoreline, which included various amenities such as a harbor master’s office, boat docks, fueling station, parking lots, public restrooms, and three restaurants: the Blue Dolphin, El Torito, and Horatio’s. Across the street, a 9-hole golf course was built, followed by the addition of an 18-hole golf course with a driving range, a new Marina Park, and the Marina Inn. For over thirty years, the San Leandro Marina thrived. However, by 2000, the Blue Dolphin had closed, and the Army Corps of Engineers had limited dredging activities to the shipping channel in the Bay. The cost of dredging from the harbor to the shipping channel, particularly the disposal of the dredged material, became too expensive for the City, leading to the last dredging of the harbor in 1997.
As the Marina became increasingly silted, making the waters shallower and less navigable, the San Leandro Marina ceased operations in January 2023. The Marina, including the abandoned yacht clubs’ buildings, boat yards, and parking lots will be redeveloped into a 13-acre park, hotel, and apartment buildings. However, redevelopment has not started, and the buildings that once served the Marina have been vacant and closed to the public for several months. Because of the lack of activity in the Marina, the vacant buildings, gangways, and utility infrastructures serving the buildings and other assets have been stolen or vandalized, including the burning down of the vacant Blue Dolphin restaurant and the Harbor Master Office. In an effort to prevent further damage and vandalism in the area, the City initiated this project to demolish the remaining buildings.
This project is part of Phase 1 of a multi-phased project that includes the decommissioning of the Marina, and the preparation of the area for the future development phases of the Marina Shoreline Development. This project will demolish about nine structures, in addition to the structures over the covered boat docks at piers K and L.
Analysis
On September 4, 2024, the City opened bids for the subject project. As stated in Addendum No. 1, determination of the apparent low bidder was based on the Base Bid plus Additive Bid Alternate A. Three (3) bids were received ranging between $678,034 and $862,041. The pre-bid engineer’s estimate was $1,681,931. Staff determined that Pencor General Contractors, Inc. is the apparent low bidder. Staff verified that Pencor General Contractors, Inc. holds a valid Contractor’s State License Board license and is registered with the California Department of Industrial Relations.
The project included an Additive Bid Alternate Item for the removal of six (6) gangways that currently provide access to the buildings scheduled for demolition. Based on the bid submitted by Pencor General Contractors, Inc., staff recommends that the City Council add Additive Bid Alternate A to the construction contract, bringing the total contract amount award to $678,034.51. As detailed below, there are sufficient funds budgeted for this project to include the recommended Additive Bid Alternate A.
This project is subject to the provisions of the Community Workforce Agreement (CWA). Each potential bidder was advised of the agreement in writing and verbally at the mandatory pre-bid meetings, and this bidder signed the CWA commitment form.
To keep with the schedule to demolish the remaining buildings by the end of the year, staff had bid the project concurrently with an emergency permit application to the Bay Conservation and Development Commission (BCDC), the Army Corps of Engineers, and the CA Water Resource Board. Staff addressed all known permit conditions from these agencies when preparing the bid documents but understands that other permit conditions may be required. Staff requests that the City Council authorize the City Manager or her designee to negotiate and approve cumulative change orders not to exceed 15% ($101,700) of the original contract amount for unforeseen conditions and additional regulatory permit requirements. This contract allowance will facilitate the efficient completion of the project on budget and on schedule.
Current Agency Policies
Previous Actions
• On November 20, 2023, through Resolution No. 2023-160, the City Council authorized an amendment to the agreement with BKF for additional services related to the Shoreline Park
• On November 16, 2020, through Resolution No. 2020-145, the City Council authorized an agreement with BKF for schematic design of the Shoreline Park
.
Committee Review and Actions
The project was discussed with the City Council Facilities and Transportation Committee on 10/05/2022. The Committee provided suggestions for features to be included in the final design.
Applicable General Plan Policies
Goal LU-9. Reinforce the San Leandro Shoreline as a regional destination for dining, lodging, entertainment, and recreation, while creating a new waterfront neighborhood with housing, retail, and office uses.
Policy LU-9.1 Waterfront Enhancement. Enhance the San Leandro waterfront as a distinguished recreational shoreline and conservation area, with complementary activities that boost its appeal as a destination for San Leandro residents and visitors. Future development at the Shoreline should be compatible with the area's scenic and recreational qualities.
Policy LU-9.3. Public Amenities in Shoreline Development. Ensure that future development at the Shoreline includes complementary amenities that benefit San Leandro residents and current shoreline users, such as improved park space, restaurants, pedestrian and bicycle paths, and access to the Bay Trail.
Permits and/or Variances Granted
Permits for this project were obtained from the following agencies: the San Francisco Bay Regional Water Quality Control Board, the Army Corps of Engineers, California Department of Fish and Wildlife, the San Francisco Bay Conservation and Development Commission, and the San Leandro Community Development - Building Division.
Environmental Review
This project is included in the work covered by an EIR certified in 2015 and certified as amended in 2020.
Board/Commission Review and Actions
This project was included in the presentation to the Recreation and Parks Commission on 07/06/2022. The Commission provided positive comments and feedback on the project.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the Daily Review, the Post Newspaper, 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. The project is described on the Engineering and Transportation Department website.
Two mandatory pre-bid meetings were held on August 21st and 22nd 2024, with potential bidders.
Financial Impacts
The estimated cost of this project is detailed below.
Design and Bid $150,000.00
Construction Contract $678,034.51
Construction Management & Inspection $100,000.00
Construction Contingencies $101,700.00
Total Cost: $1,029,734.51
Sufficient funds are available with Fiscal Year 2023-2024 carryover and the Fiscal Year 2024-2025 Capital Improvements Projects Fund budget:
• General Fund-Administration, Account 210-57-203
This Council action will not impact fund balance because there are previously appropriated funds available.
ATTACHMENTS
A: Resolution
B: Bid Summary - Project No. 2020.3080
PREPARED BY: Austine Osakwe, Senior Engineer, Public Works Department