DATE: September 15, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Contract with Staples Construction Company for the City Hall Second Floor Facility Improvement Project No. 06972 in an Amount Not To Exceed $469,649.85 and Approving $46,965 in Administrative Construction Contingencies for a Total Maximum Compensation Amount Not to Exceed $516,614.85
RECOMMENDATION
That City Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute a Contract with Staples Construction Company for the City Hall Second Floor Facility Improvement Project No. 06972, in an amount not-to-exceed $469,649.85 and approving $46,965 in Administrative Construction Contingencies for a total not -to-exceed contract amount of 516,614.85.
SUMMARY
The City Hall Second Floor Facility Improvement Project at City Hall includes a new conference room and two offices for the Public Works and Utilities (PW&U) Deputy Director positions, which are currently the only Deputy Director positions in the City without offices.
This project will enhance City operations and service delivery by providing dedicated office space for the Deputy Directors of Transportation and Engineering to provide adequate privacy for personnel matters, confidential discussions, or focused work . The addition of a new conference room will serve as an alternative to Conference Room 2A for sizable meetings, including those held by the Mayor & City Council, Council Committees, other City- related business, as well as PW&U departmental and divisional meetings.
FISCAL IMPACT
There will be no impact on the General Fund or Measure C.
Funding for this work will come from the City Hall Second Floor Facility Improvement Project, Project No. 06972, made up of fund transfers from the Water Enterprise, Wastewater Enterprise, and Measure D Special Revenue Funds , for a project total in an amount not -to- exceed $550,000.
The estimated total project cost for the City Hall Second Floor Facility Improvement Project is as follows:
Project Tasks Cost
Construction Contract $469,649.85
Deputy Director Offices $156,321.45
Conference Room $285,525.12
Fire Suppression $17,693.40
Bond Fees $10,109.88
Administrative Construction Contingency $46,965
Office Furnishing $18,385
MSD Facilities Labor $15,000
Estimated Project Total $550,000
DISCUSSION
The Hayward City Hall Second Floor Facility Improvement Project, Project No. 06972 (Project) include s addition of a new conference room. The addition of a new conference room will serve as an alternative to Conference Room 2A, when Conference Room 2A is unavailable or overbooked. This added capacity will better accommodate the needs of interdepartmental meetings, project coordination sessions, and other internal functions, such as those held by the Mayor & City Council, Council Committees, other City -related business, as well as PW&U departmental and divisional meetings.
The project will also include two newly enclosed offices designated for the Deputy Directors of Transportation and Engineer ing, who are currently the only deputy directors without offices. These Deputy Directors oversee approximately 30 professional staff members and are currently located in open cubicle areas, which do not provide adequate privacy for personnel matters, confidential discussions, or focused work. The addition of private offices will support more confidential matters appropriately, facilitate sensitive conversations, and improve overall operational efficiency.
Staff propose using Sourcewell, a cooperative purchasing program that competitively bids construction services with pre -existing unit prices and specifications for general construction services (including materials, equipment, labor costs), to contract with Staples Construction Company for the project. Pursuant to California Government Code Section 6500 et seq., public agencies are authorized to enter into joint agreements to exercise shared power, including participating in cooperative purchasing agreements, provided such participation complies with the City’s adopted procurement policies and procedures . A job walk was conducted, and Staples Construction Company submitted a proposal in the amount of $469,649.85. Additionally, the City is requesting a 10% administrative construction contingency in the amount of $46,965. Staff has reviewed this proposal and recommend a contract award not-to-exceed $516,614.85.
STRATEGIC ROADMAP
This agenda item supports Strategic Priority to Invest in Infrastructure, specifically Invest in City Facilities and Property.
NEXT STEPS
If City C ouncil approves this request, staff will finalize a n agreement with Staples Construction Company for services to be performed.
Prepared by: Trang Nguyen, Management Analyst II
Recommended by: Alex Ameri, Director of Public Works
Approved by:
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Jennifer Ott, City Manager