Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Construction Contract for the Base Bid and Alternate Bid to Bear Electric Solutions, LLC in the amount of $1,801,925 for the I-880 Integrated Corridor Management - Central Segment, Project No. 2023.5620
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
The I-880 Integrated Corridor Management (ICM) Project will integrate adaptive traffic signal control, traffic surveillance cameras, and dynamic wayfinding signage to improve corridor operations and enhance safety along San Leandro Boulevard and Washington Boulevard during incidents on I-880. The project is a result of a collaborative effort with the Metropolitan Transportation Commission (MTC) and is funded entirely with federal Congestion Mitigation and Air Quality (CMAQ) funds.
RECOMMENDATIONS
Staff recommend the following actions:
• Award a construction contract for the Base Bid and Alternate Bid in the amount of $1,801,925 to Bear Electric Solutions, LLC
BACKGROUND
Interstate 880 (I-880) plays a significant role in the Bay Area, connecting Alameda County to Silicon Valley. When an incident occurs on I-880, commuters, transit providers and trucks use local streets to avoid the freeway, causing traffic impacts on local communities such as San Leandro. The Metropolitan Transportation Commission’s (MTC) I-880 ICM reduces traffic diversion impacts on adjacent neighborhood streets by implementing adaptive Intelligent Transportation Systems (ITS) that support real-time traffic management and incident response. The project integrates adaptive traffic signal control, traffic surveillance cameras, and dynamic wayfinding signage to improve corridor operations and enhance safety during incidents on I-880.
Collaboration between the City of San Leandro, MTC, and CalTrans has been essential to the advancement of the I-880 ICM Project. This multi-agency partnership enables the City to leverage regional and state funding while implementing coordinated, data-driven transportation strategies that enhance mobility, improve safety, and support efficient corridor operations locally and regionally.
MTC developed the I-880 Corridor Management Project in partnership with CalTrans and the cities of Oakland and San Leandro. Phase 1 (North Segment) of the Project was completed in 2017. The work stretched from San Pablo/West Grand Avenue in Oakland into the City of San Leandro, ending at the intersection of San Leandro Boulevard and Davis Street.
In 2021, MTC and the City entered into a cooperative agreement (City Council Resolution No. 2016-089) to deliver Phase 2 (Central Segment) of the I-880 ICM Project. MTC awarded $1,928,000 of federal CMAQ funds to the City to advertise, award and administer the construction of the Phase 2 improvements. Construction documents for the Project were prepared by MTC and handed over to the City.
Phase 2 of the I-880 ICM Project will build on the previous Phase 1 improvements, beginning at the intersection of San Leandro Boulevard and Juana Avenue, extending south along San Leandro Boulevard to Washington Avenue, and continuing south on Washington Avenue to Lewelling Boulevard. Subsequent phases of MTC’s I-880 Corridor Management Project will expand improvements further south through Central and Southern Alameda County and into Santa Clara County.
The specific intersections where enhancements will be installed as part of Phase 2 of the I-880 ICM Project are as follows:
San Leandro Boulevard
1. Juana Avenue
2. Dolores Avenue
3. Williams Street
4. Marina Boulevard
5. Polar Way
6. Washington Avenue
Washington Avenue
1. 143rd Avenue
2. Floresta Boulevard
3. Anza Way
4. Springlake Drive
5. I-880 Off Ramp
6. Beatrice Street
7. Fargo Avenue
8. Lewelling Boulevard
Analysis
Bids were opened on February 5, 2026. Five (5) bids were received, with Base Bid amounts ranging from $1,605,025 to $2,264,878. The Engineer’s pre-bid estimate for construction of the Base Bid was $1,537,044. The apparent low bidder was determined by the Base Bid only, with no consideration of Alternate Bid amounts. The slight variance (less than five percent) between the low bidder and the Engineer’s pre-bid estimate can be attributed to the unpredictable price fluctuations within the construction industry. Staff confirmed that Bear Electric Solutions, LLC has a valid license with the Contractor’s State License Board and is registered with the California Department of Industrial Relations.
Because this project is funded by federal grant funds, it is not subject to the City’s Community Workforce Agreement or the City’s Local Business Participation Goal.
The Project includes an Alternate Bid for the installation of additional traffic signal infrastructure to further enhance communication and coordination between signals along the corridor. The Engineer’s pre-bid estimate for construction of the Alternate Bid was $260,000. Based on the Alternate Bid amount submitted by Bear Electric ($196,900), Staff recommend that the City Council add the Alternate Bid to the construction contract. The additional traffic signal infrastructure items will allow efficient completion of the project should unforeseen conditions be encountered while establishing the communication network between signals along the corridor.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• On February 17, 2026, by Resolution No. 2026-014, the City Council approved of accepting $1,928,000 Congestion Mitigation and Air Quality (CMAQ) in grant funds for the I-880 Integrated Corridor Management - Central Segment Project
Committee Review and Actions
• On November 13, 2025, Staff presented the I-880 Integrated Corridor Management - Central Segment project to the City Council Facilities and 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.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the East Bay Times, the South County Post, Visión Hispana, and World Journal. Staff also notified nineteen builders exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email.
Fiscal Impacts
The cost and details on funding types and accounts are detailed below.
Construction Costs:
Construction Contract: $1,801,925
Construction Management: $126,075
Total Amount: $1,928,000
Sufficient funds are available for the Project as follows:
Account No. Reso. Appropriation Dates & Source Amount
150-38-602 Federal CMAQ Fund (Construction) $1,801,925
150-38-602 Federal CMAQ Fund (Construction Engineering) $126,075
Total $1,928,000
This Council action will not impact fund balance because there are funds available in the FY 2026 adopted budget
ATTACHMENTS
• Attachment A - Resolution
• Attachment B - Bid Summary
PREPARED BY: Adrian Toscano, Assistant Engineer, Public Works Department