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File Number: 23-491 Analysis Bids were opened on January 23, 2025, with only one (1) bid received in the amount of $2,250,000. The pre-bid engineer’s estimate was $1,566,580.50. Staff recommends award to the lowest responsible bidder, Armer-Norman & Associates, in the amount of $2,250,000. This recommendation considers ongoing uncertainties in the construction market, particularly the impending tariff increase, which is expected to drive up bid prices. Analysis of the construction market by staff has also revealed that only a limited number of contractors specialize in this type of work, evidenced by the single bid received. Other agencies, including San Francisco have faced similar challenges securing bids for projects under the same mandate, with some agencies having to go out to bid multiple times before receiving any bids. In addition, with the upcoming deadline set by the SB 445 mandate, many fuel stations are also under construction, further constraining contractor availability. Although rebidding the project was considered, the current construction climate will not guarantee that lower bids will be received and that rebidding the project could delay the project from meeting the mandated December 2025 deadline. Staff verified that the contractor holds a valid Contractor’s State License Board license and is registered with the California Department of Industrial Relations. The sole bidder has its office in San Leandro, qualifying it as a local business per the Local Inclusion Policy Ordinance. Therefore, the good-faith outreach efforts for local business participation goals are not included in the bid package and are not needed. As is standard in the construction industry, staff balanced site investigation costs with the risk of finding unforeseen conditions during construction, as well as balanced the design costs with the level of detail on the plans. As a result, unforeseen conditions may be encountered during construction and plan details may need to be adjusted or clarified. 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 requests authorization to negotiate and approve individual change orders up to 5% ($112,500) of the original contract amount and cumulative change orders up to 15% (or $337,500) of the original contract amount. This will help to ensure efficient completion of the project on budget and on schedule. Failure to approve this contract award request may result in the City failing to comply with SB 445 and the State Water Board’s requirements, leading to the mandatory closure of the City’s fuel station until compliance is achieved. Consequently, the City will be forced to meet its fleet fuel needs by purchasing fuel from private vendors at a higher price. Current Agency Policies ·Maintain and enhance San Leandro’s infrastructure Previous Actions Page 2 City of San Leandro Printed on 9/4/2025