Agenda Item
DATE: 8/12/2025
TO: HONORABLE MAYOR AND CITYCOUNCIL
FROM: JOAN MALLOY, CITYMANAGER
SUBJECT: ADOPT A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO DISNEY CONSTRUCTION, INC., IN THE AMOUNT OF $5,533,333, FOR THE AT-GRADE PEDESTRIAN CROSSING AT BART, CITY PROJECT NO. 14-14, APPROVING A TOTAL CONSTRUCTION BUDGET OF $6,086,666, AND REJECTING
THE APPARENT LOW BID BYR&S CONSTRUCTION MANAGEMENT INC
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution awarding a construction contract to Disney Construction, Inc. (Disney), in the amount of $5,533,333, for the At-Grade Pedestrian Crossing at BART, City Project No. 14-14, approving a total construction budget of $6,086,666, and rejecting the apparent low bid by R&S Construction Management Inc.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal C, Strategy 2: Economic, Community Development, and Public Safety – Facilitate the build out of the greater Station District Area through the construction of the Quarry Lakes Parkway, completion of the pedestrian rail crossing, and implementing the recommendations of the SouthernAlameda County Regional Rail Integration Study to make the Station District a passenger rail hub served byACE.
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
BACKGROUND
Since the early 2000s, the vision of the Union City Intermodal Station Project has been to create a two-sided Bay Area Rapid Transit (BART) Station with a new east entrance to the Station District Area, a 30-acre-plus planned Transit-Oriented Development (TOD) site, located along both sides of 11
th Street. The completion of the at-grade pedestrian crossing will finally convert the BART Station into a two-sided station by constructing a new concrete walkway across the existing Union Pacific Railroad (UPRR) Oakland Subdivision tracks to connect BART with the public East Plaza in the Station District Area. In addition to the new concrete stairs on both sides of the railroad tracks, concrete ramps will also be built to meet ADA accessibility requirements.
The overall construction budget for this project, including the UPRR costs for installing concrete railroad panels, railroad signals, safety gates, and making signal timing improvements for the project, is $7.2 million and the City has partnered with multiple agencies to undertake this project, including BART, the Alameda County Transportation Commission (“Alameda CTC”), the Metropolitan Transportation Commission (MTC) and UPRR.
On July 9, 2019, the City Council of Union City adopted Resolution No. 5503-19, which authorized the City Manager to enter into an agreement with Union Pacific Railroad to allow the City to construct a public at-grade crossing on the Oakland Subdivision tracks located adjacent to the Union City BART Station. In late 2021, the improvements to the east side of the station were completed as part of the Union City Intermodal Station, Phase 2A project. The At-Grade Pedestrian Crossing at BART is the only remaining project component to achieve a two-sided BART station.
Safe Routes to BART (SR2B) is a voter-approved Measure RR capital funds grant program that is designed to help local agencies improve access for BART customers who walk or bike to BART stations. On December 14, 2023, the City submitted a grant funding application to the SR2B Program, Cycle 3, in the maximum amount of $3 million for the construction phase of the At-Grade Pedestrian Crossing at BART, City Project No. 14-14. The project funding application included “Letters of Support” from the City’s Bicycle and Pedestrian Advisory Committee (BPAC), Bike East Bay and San Joaquin Regional Rail Commission. On March 1, 2024, BART’s Board of Directors awarded the City $3 million for the At-Grade Pedestrian Crossing at BART, which the City Council accepted with the adoption of Resolution No. 6298-24 on May 14, 2024.
The Alameda CTC’s Countywide Transportation Plan (CTP) and the Metropolitan Transportation Commission’s Plan Bay Area (PBA) 2050 Plus are both voter-approved Regional Measure 3 (RM 3) Dumbarton Corridor Improvements programs designed to finance highway and transit improvements along or parallel to the Dumbarton-Decoto Road corridor. In early 2023, the southern Alameda County cities of Fremont and Newark, as well as AC Transit and Alameda County Transportation Commission (Alameda CTC), prepared a list of eligible capital improvement projects that were ready for construction within the next five years. The At-Grade Pedestrian Crossing at BART Project was selected to be eligible for the list and, in early 2023, the City submitted the initial project information in a grant request for $3 million to Alameda CTC and MTC for their review and comments. On June 24, 2024, the MTC Commission unanimously approved the staff recommendation for programming the requested funds for the At-Grade Pedestrian Crossing at BART, City Project No. 14-14.
The City submitted anAllocation Request package to Alameda CTC and MTC for the $3 million in Regional Measure (RM 3), Dumbarton Corridor Improvements program funds and MTC approved the grant funds in December 2024. The City Council accepted the funds with the adoption of Resolution No. 2025-020 on February 11, 2025.
On May 13, 2025, the City Council adopted a resolution authorizing the City Manager to execute a consulting services agreement with MNS Engineers, Inc., in the amount of $642,532, to provide construction management and inspection services for this project.
DISCUSSION
Staff released the plans and specifications and advertised for bids for the construction contract for the At-Grade Crossing at BART on May 9, 2025. On June 12, 2025, the City received three (3) bids; however, after the bid opening, the apparent low bidder, R&S Construction Management, Inc. (R&S), withdrew its bid pursuant to Public Contract Code section 5100 et seq. due to errors in its bid. In addition, there were some discrepancies between the specifications and the bid form provided in the City’s bid package. For these reasons, on July 8, 2025, the City Council adopted Resolution No. 2025-092 rejecting all bids.
City staff re-advertised the project for bids on July 11, 2025. Six (6) bids were received on July 31, 2025, which ranged from $5,227,531 to $6,030,457, a difference of $802,926 or 15%. The bid by the apparent low bidder, R&S Construction Management Inc., (R&S), is $5,227,531, which is $305,802 (or approximately 6%) lower than the bid by the next lowest bidder, Disney Construction, Inc. (Disney).
However, because R&S withdrew their bid during the previous bidding process, it was, in fact, prohibited from participating in this second bidding process. Specifically, Public Contract Code, Section 5105, prohibits a contractor from bidding on the same project again, if they had previously withdrawn a bid on the project after bid opening. Although the City had previously rejected all bids and re-bid the project, it is technically still the same project, and the courts have held that there needs to be significant changes when the project is rebid for it to be considered a new project.
Based on the guidance from the City Attorney’s office, staff recommends that the apparent low bid by R&S be rejected, and that the project be awarded to Disney, the second lowest responsive and responsible bidder.
Disney’s bid, in the amount of $5,533,333, is $1,333,333, or approximately 32%, higher than the engineer’s estimate of $4.2 million.
There may be several factors why the bids are much higher than the engineer’s estimate: 1) the need to work within the difficult-to-access and constrained BART and UPRR rights-of-way; 2) meeting the requirements of both these agencies, which includes working under UPRR’s flagperson at all times; 3) the need to wait for as long as 3 months before starting any work while these agencies issue their permits; and, 4) the need to design, apply for, and secure a shoring plan from UPRR, which could take an unspecified amount of time. In addition, the work entails architectural elements, such as granite and decorative metal railings, which require specialized subcontractor work and are some of the most expensive line items across all bids. Another requirement is to test the soils to be excavated and formulate a disposal strategy, something that involves an unspecified amount of effort and cost. In staff’s assessment, these appear to be some of the main reasons that the contractors are seeking premium compensation to work on this challenging project.
Following the standard practice of allocating a contingency amount to address any unforeseen conditions that may require additional work, the Public Works Department recommends a 10% construction contingency to ensure a successful project. The estimated project budget for the construction phase is as follows:
Construction Contract $5,533,333
Construction Contingency (10%) $553,333
Total Construction Cost $6,086,666
City staff have not worked with Disney Construction, Inc. in the past, but staff is satisfied with the reference checks submitted with the bid proposal.
The construction phase will begin once all permits are received from BART and UPRR, which is expected to take approximately three months. The project is anticipated to be completed by mid-to-late 2026.
FISCAL IMPACT
The construction contract with Disney Construction, Inc., in the amount of $5,533,333, and the construction contingency of 10%, in the amount of $553,333, will bring the total project construction cost to $6,086,666. Construction of this project will be funded with $3,000,000 in Safe Routes to BART (SR2B) funds in the Capital Projects Grants Fund (Account Number 41091414-57128), $2,375,468 of remaining RM 3 funds in the Capital Projects Grants Fund (Account Number 41091414-57128), and $711,198 of Public Improvement Fund monies (Account Number 41691414-57128), which were budgeted in the approved Five-Year Capital Improvement Plan (CIP) for Fiscal Year 2025-2026 to Fiscal Year 2029-2030, for the At-Grade Pedestrian Crossing at BART, City Project No. 14-14.
There is no impact on the General Fund.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Awarding a construction contract to Disney Construction, Inc., in the amount of $5,533,333, for the At-Grade Pedestrian Crossing at BART Project, City Project No. 14-14; and
2. Approving a total construction budget, in the amount of $6,086,666, for the construction contract and construction contingency; and
3. Rejecting the bid by the apparent low bidder, R&S Construction Management Inc., per Public Contract Code Section 5105, which prohibits a contractor from bidding if they had previously withdrawn a bid on the same project after the bid opening.
Prepared by:
Farooq Azim, City Engineer
Submitted by:
MarilouAyupan, Public Works Director
ATTACHMENTS:
Description Type
Attachment 1 - Letter to R&SRejecting Bid Attachment
Draft Resolution Resolution
ExhibitA - Bid Sunnary Exhibit
Exhibit B- Bid Results Exhibit
REVIEWERS:
Department Reviewer Action Date
Public Works Ayupan, Marilou Approved 8/7/2025 - 8:45 PM City Manager’s Department Malloy , Joan Approved 8/8/2025 - 4:00AM