RESOLUTION NO. 2026-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
APPROVING THE AWARD OF A CONSTRUCTION AGREEMENT WITH
SCC ELECTRIC INC., IN THE AMOUNT OF $167,500, APPROVING A TOTAL CONSTRUCTION BUDGET OF $185,000, APPROVING A TOTAL PROJECT BUDGET OF $235,000, AND APPROVING A BUDGET
TRANSFER, IN THE AMOUNT OF $50,000 FROM THE GENERAL
LIABILITY SELF-INSURANCE FUND, FOR THE CITY HALL - MOBILE GENERATOR TAP BOX PROJECT, CITY PROJECT NO. 22-29
WHEREAS, the performance of the existing generator has degraded due to maintenance issues and age; and
WHEREAS, a secondary backup power option will ensure that City Hall and the Police Department have a backup power source available if the generator malfunctions or if the power grid is down for an extended period of time; and WHEREAS, on September 22, 2025, the City of Union City released a Request for Bids for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29; and WHEREAS, on October 31, 2025, the City of Union City received and opened five bids. SCC Electric Inc. submitted the lowest bid that was deemed both responsive and responsible, and subsequent reference checks were found satisfactory; and WHEREAS, the lowest bid exceeds the engineer’s estimate of $110,000 ($100,000 plus a 10% contingency amount of $10,000) by $57,500, a difference that reflects developments that occurred after the RFP was released, including both a revised cost for conduit boring under the Police Department parking lot and a revision to the location of the tap box to the opposite side of the parking lot, as well as significant cost increases from the previous contractor quotes used as the baseline for the RFP. Staff requests an additional $50,000 to cover the funding shortage (which includes increasing the approximate 10% contingency to $17,500); and
WHEREAS, the current budget for this project is $185,801 in General Fund Account Number 110-92229-57100, leaving a $49,199 shortfall; therefore, a budget transfer of $50,000 is requested. Staff recommends that the $50,000 be transferred from Fund 614 – the General Liability Self-Insurance Fund to General Fund Account Number 110-92229-57100. In the General Liability Self-Insurance Fund, the City requested that BCJPIA return $650,000 to the City last September 2025. For the past several years, ERMA dividends have been accruing to our Contingency Account at BCJPIA. The total in our Contingency Account was just over $700,000 as of March 31, 2025, so, with the concurrence of the City Manager, the City requested that BCJPIA return $650,000 of those contingency funds to the City. Staff determined that the City did not need such a large amount in our Contingency Account at BCJPIA, and that the funds would be better utilized if the City had access to them. After this $50,000 transfer from the General Liability Self-Insurance Fund, $600,000 will remain for future City needs, such as other unfunded and needed CIP projects.
Resolution No. 2026-XXX
Award Construction Contract to SCC Electric Inc.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby approves the award of a Construction Contract with SCC Electric Inc. of Novato, California, in the amount of $167,500, for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29.
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby approves a Total Construction Budget of $185,000 for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29.
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby approves a Total Project Budget of $235,000 for the City Hall – Mobile Generator Tap Box Project, City Project No. 22-29.
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby approves a budget transfer of $50,000 from Fund 614, the General Liability SelfInsurance Fund.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on January 13, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:
THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachments:
1. Exhibit A – Bid Summary