APPROVED AS TO FORM AND LEGALITY
___________________________ CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.
RESOLUTION (1) AUTHORIZING THE CITY ADMINISTRATOR TO
AWARD A CONSTRUCTION CONTRACT TO MCGUIRE AND HESTER
FOR THE EAST 12TH STREET BIKEWAY PROJECT NUMBER 1003980,
THE LOWEST RESPONSIBLE AND RESPONSIVE BIDDER IN
ACCORDANCE WITH PROJECT PLANS, SPECIFICATIONS, STATE
REQUIREMENTS, AND WITH CONTRACTOR’S BID IN THE AMOUNT
OF FIVE MILLION FIFTY-FIVE THOUSAND EIGHT HUNDRED
NINETY-EIGHT DOLLARS ($5,055,898.00); (2) AUTHORIZING THE
CITY ADMINISTRATOR TO APPROVE AND EXECUTE CHANGE
ORDERS TO THE CONSTRUCTION CONTRACT UP TO TWENTY-FIVE
(25%) OF THE ORIGINAL CONTRACT AWARD AMOUNT; AND (3)
ADOPTING APPROPRIATE CALIFORNIA ENVIRONMENTAL
QUALITY ACT FINDINGS
WHEREAS, the East 12th Street Bikeway Project Number 1003980 (Project) will construct transportation safety improvements on East 12th Street between 35th Avenue and 54th Avenue, and on 35th Avenue between Oscar Grant III Way and East 12th Street, including protected bike lanes, upgraded existing bike lane striping, ADA curb ramps, bike wayfinding signage, traffic signal improvements, and traffic calming measures such as traffic circles and speed bumps; and WHEREAS, sufficient City of Oakland (City) funds are available for this Project through a combination of Alameda County Transportation Commission grant funds, which have been appropriated in Fund 2214, Project 1003980, Measure U bond funds, which have been appropriated in Fund 5346, Project 1003980, and Gas Tax funds which have been appropriated in Fund 2232, Project 1003980; and
WHEREAS, Oakland Municipal Code (OMC) section 2.04.050 requires advertising and competitive bidding for contracts for the purchase of services, supplies, or combination required by the city in any one transaction which exceeds $50,000, and the award to the lowest responsible and responsive bidder; and
WHEREAS, on May 29, 2026, the City issued an advertisement inviting construction bids for the Project on iSupplier, the Bids/Contracts webpage of the City’s website, and in various local newspapers; and
2 WHEREAS, on July 2, 2026, after a competitive bidding process, the City Clerk received four bids for the Project; and
WHEREAS, two of the four bids remained valid for award at the time of Council action pursuant to the bid documents on file with the Capital Contracts Division of Oakland Public Works; and
WHEREAS, Mar Con Builders, Inc.’s bid contained errors and was subsequently withdrawn by the bidder; and
WHEREAS, the remaining bids were as follows: McGuire and Hester ($5,055,898); and Redgwick Construction, Co. ($5,235,509); and Ghilotti Bros., Inc. ($4,734,250); and WHEREAS, the bid submitted by Ghilotti Bros., Inc. was found by the Department of Workplace and Employment Standards (DWES) to not meet the 33% Local and Small Local Business Enterprise (LBE/SLBE) participation requirement (16.5% LBE and 16.5% SLBE) for this Project with a total credited LBE/SLBE participation of 17.88% and therefore was not considered for contract award; and
WHEREAS, the remaining two bids submitted were found by DWES to meet the 33% L/SLBE participation requirement (16.5% LBE and 16.5% SLBE) for this Project, with McGuire and Hester receiving a 5% bid discount and Redgwick Construction, Co. receiving a 4% bid discount for both exceeding the minimum LBE/SLBE requirement; and WHEREAS, after applying earned bid discounts pursuant to the City’s LBE/SLBE Program, as analyzed in the Compliance Analysis Memorandum by DWES, the adjusted bids were as follows: McGuire and Hester ($4,803,103.10); and Redgwick Construction, Co. ($5,026,088.64); making McGuire and Hester the lowest responsive and responsible bidder after application of earned bid discounts; and
WHEREAS, McGuire and Hester’s bid of $5,055,898 is approximately 25% above the Engineer’s Estimate of $4,038,721; and
WHEREAS, pursuant to Section 902(e) of the Charter of the City of Oakland and OMC
2.04.020(D), the City Council finds and determines that contracting for the construction work is in the public interest because of economy or better performance, including because the City does not maintain the equipment and construction workforce necessary to perform the Project within the required construction and grant-delivery schedule; and WHEREAS, the City Council finds and determines that the performance of these contracts shall not result in the loss of employment or salary by any person having permanent status in the competitive service; and
WHEREAS, the City Council previously considered the environmental effects of the Project in connection with Resolution No. 89331 C.M.S., and the City Council finds that it remains within the scope of the Project previously considered and that no subsequent Project changes, changed circumstances, or new information require additional environmental review; ; and 3 WHEREAS, the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080.25(b), based upon the statutory criteria documented in the administrative record, and is independently exempt pursuant to CEQA Guidelines section 15301(c), and the City Council finds that none of the exceptions to the applicable categorical exemption set forth in CEQA Guidelines section 15300.2 applies; now, therefore be it
RESOLVED: That the City Council hereby awards a construction contract to McGuire and Hester, as the lowest responsible and responsive bidder, for Project No. 1003980, East 12th Street Bikeway Project, in accordance with the Project plans and specifications and McGuire and Hester's bid, in an amount not to exceed Five Million Fifty-Five Thousand Eight Hundred NinetyEight Dollars ($5,055,898.00), and authorizes the City Administrator to execute the contract on behalf of the City, subject to satisfaction of all conditions required by law and the solicitation documents; and be it
FURTHER RESOLVED: That the contractor shall comply with all City contracting and compliance program requirements that apply to this contract, including the LBE/SLBE Program requirements, as verified by the Department of Workplace and Employment Standards; and be it FURTHER RESOLVED: That, prior to execution of the contract, the contractor shall provide a faithful performance bond and a payment bond, each in an amount not less than 100% of the contract price; and be it
FURTHER RESOLVED: If the apparent low bidder fails or refuses to execute the contract or furnish the required bonds and insurance within the time specified in the bid documents, the City Administrator is authorized to award the contract to the next lowest responsive and responsible bidder at that bidder’s bid price, or reject all bids and re-advertise; and be it
FURTHER RESOLVED: That the City Administrator is authorized to enter into a contract with McGuire and Hester on behalf of the City of Oakland and to execute any amendments or modifications of the construction contract within the limitations of the project specifications, including as-needed change orders to the construction contract up to 25% of the original contract award amount; and be it
FURTHER RESOLVED: That the plans and specifications for Project No. 1003980 on file with the City are approved for purposes of this contract award, and that subsequent modifications during construction may be approved only to the extent authorized by the contract, this Resolution, the Oakland Municipal Code, and other applicable law; and be it FURTHER RESOLVED: That, pursuant to OMC 2.04.050(I)(5), and based upon the findings stated above, the City Council waives, to the extent necessary for this award, the sixtyday award requirement in OMC 2.04.050(E) and any requirement for further advertising or competitive bidding for this Project; and be it
FURTHER RESOLVED: That the City Administrator is hereby authorized to reject all other bids; and be it
4 FURTHER RESOLVED: That the City Council adopts the CEQA findings set forth above and in the accompanying City Administrator's report and supporting record, and authorizes and directs the City Administrator or designee to file a Notice of Exemption; and be it FURTHER RESOLVED: That the contract shall be reviewed and approved by the City Attorney for form and legality prior to execution and placed on file in the Office of the City Clerk.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES – BROWN, FIFE, GALLO, HOUSTON, RAMACHANDRAN, UNGER, WANG AND
PRESIDENT JENKINS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California