Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Contract with Ray’s Electric; to Approve and Authorize the City Manager or her Designee to Negotiate and Approve a Change Order in Excess of the Individual Change Order Limit of Five Percent for the Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade, Project No. 2020.5620
Staffreport
COUNCIL PRIORITY
- Quality of Life
- Economic Development
- Public Safety
- Infrastructure
SUMMARY
An individual change order in the amount of $234,320 (35% of the original contract) is required to satisfy an unanticipated requirement by PG&E to relocate the City’s electrical meter for the Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade. Because the amount of the change order exceeds the City Manager’s 5% individual change order limit, City Council approval is required.
RECOMMENDATIONS
Staff recommend the following action:
- Approve and authorize the City Manager to negotiate and approve an individual Change Order in the amount $234,320 (35% of the original contract).
BACKGROUND
On May 15, 2023, the City Council by Resolution No. 2023-050 awarded a construction contract to Ray’s Electric in the amount of $669,487 for the Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade, Project No. 2020.5620. The resolution also authorized the City Manager to approve individual contract change orders up to 5%, and cumulative change orders up to 25% of the original contract. Subsequently, on July 21, 2025, by Resolution No. 2025-094, the City Council authorized an increase in the cumulative change order limit from 25% to 43% for the subject project.
The project scope includes a full traffic signal upgrade at the intersection of Wicks Boulevard and Manor Boulevard. The improvements consist of the installation of new protected left-turn signals, upgraded signal heads and related equipment, video detection systems for vehicles and bicycles (including advanced detection features), and Accessible Pedestrian Signals. Also included is the construction of new curb ramps to meet current accessibility standards.
During construction, PG&E identified the need to relocate the traffic signal electrical meter closer to the electrical point of connection. This directive was based on PG&E’s concerns about potential power theft when pull boxes are located between PG&E’s power source and the City’s electrical meter. As a result, the City’s electrical meter cabinet had to be relocated approximately 600 feet closer to PG&E’s power source.
Analysis
The unanticipated requirement to relocate the City’s electrical cabinet closer to PG&E’s power source will require a change order in the amount of $234,320, which is 35% of the original contract. This exceeds the City Manager’s five percent (5%) authorization limit for individual change orders and therefore requires City Council approval.
Approval of this change order would bring the cumulative amount of project change orders to 43%, which equals the revised cumulative change order limit of 43% approved by City Council on July 21, 2025 (Resolution No. 2023-050). The currently executed cumulative change orders total 8%; with this approval, the total would reach the full authorization limit of 43%. No additional change orders are anticipated to complete the project.
Because PG&E informed the City of the requirement to relocate the electrical cabinet during construction, the associated costs could not have been anticipated. Approval of this change order would allow staff to process payments for the high-cost items associated with the relocation of the electrical service; specifically, conduit installation between the new electrical point of connection and the traffic signal electrical meter. The project budget includes sufficient funds for the recommended change order.
Current Agency Policies
- Maintain and enhance the City’s infrastructure
Previous Actions
- On July 21, 2025, by Resolution No. 2025-094, the City Council approved an increase in the cumulative change order limit from 25% to 43% for Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade Project, Project No. 2020.5620, and to reappropriate $5,096,564 from Account No. 143-38-392 to on-going projects
- On May 15, 2023, by Resolution No. 2023-050, the City Council awarded a construction contract to Ray’s Electric for $669,487 for the Wicks Boulevard and Manor Boulevard Traffic Signal Upgrade, Project No. 2020.5620 and authorized the City Manager to approve individual contract change orders up to 5% and cumulative change orders up to 25% of the original contract
- On December 7, 2020, by Resolution No. 2020-150, the City Council approved a Consulting Services Agreement with Kimley-Horn and Associates for the design of the project in the amount of $83,859; appropriated $42,359 from the development fees for street improvement (DFSI) fund balance and authorized City Manager to negotiate and execute individual contract amendments up to 10% ($8,386) and cumulative amendments up to a maximum of 25% ($20,965)
- On March 16, 2020, by Resolution No. 2020-025, the City Council authorized the City Manager to Execute Program Supplement Agreement No. F029 with the State of California to Provide $37,350 in Grant Funds for the Design Phase of the Wicks Blvd. and Manor Blvd. Signal Upgrade Project and to Appropriate $359,900 for the Total Project Budget in Fiscal Year 2019-2020
- On June 19, 2017, by Resolution No. 2017-085, the City Council approved the Administering Agency-State Agreement No. 04-5041F-15.
Applicable General Plan Policies
- Policy T-2.1: Complete Streets Serving All Users and Modes. Create and maintain “complete” streets that provide safe, comfortable, and convenient travel through a comprehensive, integrated transportation network that serves all users.
- Policy T-7.2: Capital Improvements. Identify capital improvements and other measures which improve the safety of bicyclists, pedestrians, and motor vehicles on San Leandro Streets.
- Policy T-7.7: Funding. Pursue grants for the improvement of pedestrian, bicycle, and motor vehicle safety, including a greater focus on traffic law and speed enforcement.
Permits and/or Variances Granted
A building permit was obtained for the project.
Environmental Review
On December 4, 2019, the Categorical Exemption/Categorical Exclusion Determination Form was signed by Project Manager/Caltrans Division of Local Assistance (DLA) Engineer.
Summary of Public Outreach Efforts
The Notice to Bidders was published in The Daily Review, Vision 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 “City Projects” section of Public Works Department’s website.
Two non-mandatory pre-bid meetings were held on March 15 and 16, 2023.
Prior to any construction that would have affected access to private businesses, the contractor provided advance notification in the form of door hangers before the work started.
Financial Impacts
The estimated cost of this project is detailed below. This action would not require additional appropriation of funds.
The budget authority section has details on funding types, accounts, and authorizations. Capital Improvement Program (CIP) accounts are carried forward for five years or until the work is complete, whichever occurs first.
Design and Bid $ 160,216
Existing Construction Contract $ 669,487
Construction Management & Inspection $ 50,000
Construction Contingencies $ 287,274
Total Cost: $1,166,977
Budget Authority
Account No. Source Reso/Budget Year Amount
143-38-392 Measure B FY21-22 $340,354
120-38-349 DFSI Fund Res. 2020-025, FY19-20 $35,990
120-38-349 DFSI Fund Res. 2020-150, FY20-21 $42,359
144-38-349 Measure B FY19-20 $424,364
150-38-349 HSIPL Grant Res. 2020-025, FY19-20 $323,910
Total Appropriation $1,166,977
ATTACHMENT
- Attachment A – Resolution
PREPARED BY: Austine Osakwe, Senior Engineer, Public Works Department – Engineering Division