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City of San Leandro <br />City Council <br />Meeting Date: March 17, 2025 <br />Agenda Number: 5.c. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 23-491 <br />File Type: Staff Report <br />Adopt a Resolution to Approve and Authorize the City Manager to Execute a $2,250,000 Construction <br />Contract to Armer-Norman & Associates for Public Works Service Center (PWSC) Replace Fuel Tanks <br />Project, Project No. 2020.3600; to Authorize the City Manager to Negotiate and Approve Individual <br />Change Orders Up to 5% (or $112,500) of the Original Contract Amount; to Authorize the City Manager <br />to Negotiate and Approve Change Orders up to a Cumulative Value not to Exceed 15% (or $337,500) of <br />the Original Contract Amount; and to Appropriate an Additional $1,872,020 to the Subject Project <br />COUNCIL PRIORITY <br />·Infrastructure <br />SUMMARY <br />This contract provides for the removal of two (2) 20,000 gallon and two (2) 12,000 gallon <br />single-walled underground storage tanks (USTs), and the subsequent replacement of these tanks <br />with two (2) 12,000 gallon double-walled USTs to comply with State mandates. <br />RECOMMENDATIONS <br />Staff recommends the following actions: <br />·Approve a construction contract to Armer-Norman & Associates in the amount of <br />$2,250,000 for PWSC Replace Fuel Tanks Project, Project No. 2020.3600 and authorize <br />the City Manager to execute and take all actions necessary to effect the purpose and <br />·Authorize the City Manager to negotiate and approve individual change orders up to 5% <br />(or $112,500) of the original contract amount <br />·Authorize the City Manager to negotiate and approve change orders up to a cumulative <br />value of 15% (or $337,500) of the original contract amount; and <br />·Appropriate an additional $1,872,020 to the subject project <br />BACKGROUND <br />The City’s Public Works Service Center currently operates four single-walled underground <br />storage tanks (USTs) containing diesel fuel and unleaded fuel . These tanks supply fuel to four fuel <br />pumps that serve the City’s fleet of vehicles and equipment. In compliance with SB 445 passed in <br />2014, the State Water Board requires all single-walled tanks and associated plumbing to be <br />permanently decommissioned by December 2025. <br />This project will remove and replace existing single-walled fuel storage tanks with new compliant <br />double-walled tanks designed to meet the station’s current fuel demand . The new system will <br />consist of one (1) 12,000-gallon fuel tank and one (1) 12,000 -gallon split tank with 6,000 gallons <br />designated for diesel and 6,000 gallons for unleaded fuel. In addition, the four (4) existing fuel <br />dispensers will be replaced with two (2) new and modern dispensers . <br />Page 1 City of San Leandro Printed on 9/4/2025