Title
Adopt a Resolution to Approve and Authorize the City Manager to Award a Construction Contract to Bay Cities Paving & Grading, Inc. in the amount of $3,999,677 for Annual Street Overlay and Rehabilitation, Project No. 2020.0050; to Authorize the City Manager to Negotiate and Approve Individual Change Orders up to 5% (or $199,984) of the Original Contract Amount; and to Authorize the City Manager to Negotiate and Approve Change Orders up to a Cumulative Value of 20% (or $799,936) of the Original Contract Amount
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
The Annual Street Overlay & Rehabilitation Project consists of roadway paving, installation of Class IV bike lanes, a pedestrian hybrid beacon and various sidewalk and curb ramp improvements along Hesperian Boulevard between Bayfair Drive and Springlake Drive and 141st/142nd Avenues between East 14th Street and Bancroft Avenue. A total of four bids were received. The lowest responsive and responsible bid, in the amount of $3,999,677, was submitted by Bay Cities Paving & Grading, Inc. The project is partially funded by Alameda County Transportation Commission Measure BB funds.
RECOMMENDATIONS
Staff recommend the following actions:
• Award a construction contract in the amount of $3,999,677 to Bay Cities Paving & Grading, Inc.;
• Authorize the City Manager or her designee to negotiate and approve individual change orders up to 5% (or $199,984) of the original contract amount; and
• Authorize the City Manager or her designee to negotiate and approve cumulative change orders up to 20% ($799,936) of the original contract amount
BACKGROUND
The City of San Leandro maintains approximately 180 centerline miles of paved roadways. On average, the City undertakes two projects for pavement upkeep annually: one for street sealing and another for street overlay and rehabilitation. This contract is for the street overlay and rehabilitation project, which repairs damaged roadway subgrade and repaves streets that are in poor condition.
This year’s Annual Street Overlay & Rehabilitation Project will focus on rehabilitating Hesperian Boulevard between Springlake Drive and Bayfair Drive and 141st/142nd Avenues between East 14th Street and Bancroft Avenue. The Project will also include upgrading curb ramps within the project limits to comply with current Americans with Disabilities Act (ADA) accessibility requirements and repairing sanitary sewer lines.
The streets selected for overlay are in ‘Poor’ condition with a pavement condition index (PCI) of less than 60. As part of the selection process, pavement conditions were verified in the field, and streets with higher traffic volumes and bicycle route designations were prioritized.
As part of this Project, the City of San Leandro will also install Class IV bike lanes along Hesperian Boulevard between Springlake Drive and Bayfair Drive. Class IV bike lanes are distinguished from other bike lanes in that they are separated from the adjacent travel lane by a physical object(s). Along Hesperian Boulevard, bicyclists will be separated from adjacent vehicle traffic by parked cars and landscaped medians. Bicycle improvements along Hesperian Boulevard will be partially funded by an Alameda County Transportation Commission (ACTC) Measure BB grant. To facilitate these Class IV bike lanes, the number of vehicle travel lanes on Hesperian Boulevard will be reduced from six (6) to four (4). A Traffic Impact Study, approved by City Council in 2021, evaluated the effects of reducing the number of vehicle travel lanes on Hesperian Boulevard and found no adverse impacts.
Analysis
Bids were opened on March 19, 2026. Four (4) bids were received, ranging from $3,588,922.50 to $4,108,409.14. The Engineer’s pre-bid estimate for construction of the base bid was $4,797,076.00.
Due to the submission of an incomplete bid, the apparent low bidder O’Grady Paving, Inc. was disqualified. Staff recommend awarding the contract to the second apparent low bidder, Bay Cities Paving & Grading, Inc. with a bid of $3,999,677. Staff confirmed that Bay Cities Paving & Grading, Inc. has a valid license with the Contractor’s State License Board and is registered with the California Department of Industrial Relations.
None of the bidders has an office in San Leandro that would qualify them as a local business per the Local Inclusion Policy Ordinance. In addition, none of the bidders met the Local Business Participation Goal by subcontracting with San Leandro businesses for a minimum 25% of the contract value. However, Bay Cities Paving & Grading, Inc. provided documentation that demonstrated its good faith efforts to meet the local business participation goal.
This project is subject to the provisions of the Community Workforce Agreement (CWA). Each bidder was advised of this agreement in writing and verbally at the mandatory pre-bid meetings. Each contractor was given the contact information for the Bay Area Business Roundtable, an organization hired by the City to provide free technical assistance to comply with the CWA. All bidders signed the CWA commitment form.
As is the standard in the construction industry, staff balanced costs associated with extensive site investigation with the risk of finding unforeseen conditions during construction, as well as the design costs with the level of detail on the plans. As a result, unforeseen conditions may be encountered, and plan details may need to be adjusted or clarified during construction. To minimize delay to the project and ensure that the scope of work can be adjusted as needed to provide the highest quality project for the City, Staff request authorization to negotiate and approve individual change orders up to 5% (or $199,984) of the original contract amount and cumulative change orders up to 20% ($799,936) of the original contract amount. This will help to ensure efficient completion of the project on budget and on schedule.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• On January 4, 2021, by Resolution No. 2021-005, the City Council approved of a reduction in the number of vehicle travel lanes from six (6) to four (4) and installation of Class IV bicycle lanes on Hesperian Boulevard from Fairmont Drive to Springlake Drive
• On January 4, 2022, by Resolution No. 2022-002, the City Council approved of accepting $1,479,000 Measure B and TFCA grant funds for the installation of Class IV protected bike lanes on Hesperian Boulevard
Committee Review and Actions
• On September 3, 2020, Staff presented the Hesperian Boulevard Bike Installation Technical Memorandum to the Planning Commission and Board of Zoning Adjustments
• On December 2, 2020, Staff presented the Hesperian Boulevard Road Diet to the City Council Facilities & Transportation Committee
Applicable General Plan Policies
• Policy CSF-6.8 Maintenance:
Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities, including streets, streetlights, traffic signals, landscaping, street trees, storm drains, public buildings, and other infrastructure
• Transportation Goal T-5:
Improve major transportation arteries for circulation in and around the city
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the Alameda County Recorder on December 23, 2021.
Summary of Public Outreach Efforts
The streets that need to be repaved are reflected in the Plans and Specifications included with the bid posted on the City’s website. Properties adjacent to the work will receive a notification from the City and a second notification from the Contractor prior to the work.
The Notice to Bidders was published in the East Bay Times, the South County Post, Visión Hispana, and World Journal. Staff also notified nineteen (19) builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email.
Legal Analysis
The contractor has agreed to the terms of the contract.
Financial Impacts
Sufficient funds are included in the adopted FY 2026 Budget for the Annual Street Overlay & Rehabilitation construction services:
Construction Costs:
Design & Bid: $605,890
Construction Contract + Contingency: $4,799,613
Constr. Management: $224,180
Total Amount: $5,629,683
Sufficient funds are available for the Project as follows:
Account No. Reso. Appropriation Dates & Source Amount
FY 2025-26 Budget, CalRecycle Grant $77,000
141-38-419 FY 2019-20 Budget, Measure BB $614,600
141-38-540 FY 2025-26 Budget, Measure BB $1,065,000
143-38-540 FY 2025-26 Budget, General Fund $175,000
150-38-423 FY 2025-26 Budget, ACTC Grant $1,479,000
152-38-419 FY 2015-26 Budget, Measure BB $1,000,000
155-39-403 FY 2019-20 Budget, Measure BB $580,130
210-38-413 FY 2019-20 Budget, General Fund $319,200
210-38-419 FY 2020-2021 Budget, General Fund $980,560
Total $6,290,490
ATTACHMENTS
A: Resolution
B: Bid Summary
PREPARED BY: Adrian Toscano, Assistant Engineer, Public Works Department