City Council Staff Report Page 1 of 4 September 22, 2026 Staff Report
Agenda Item No. 3.12
DATE: September 22, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving the Award of a Construction Contract to Mark Lee and Yong Kay, Inc., DBA Bay Construction Company, in the Amount of $322,130, Approving a Total Construction Budget in the Amount of $370,450, and Authorizing a Budget Transfer, in the Amount of $470,450, from Quarry Lakes Parkway, City Project No. 18-04, to the Block 6 Interim Transit Facility Project, City Project No. 26-19
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving the award of a construction contract to Mark Lee and Yong Kay, Inc., DBA Bay Construction Company (“Bay Construction”), in the amount of $322,130, approving a total construction budget, including contingency of 15% of the contract, in the amount of $370,450, and authorizing a budget transfer, in the amount of $470,450, from Quarry Lakes Parkway, City Project No. 18-04, to the Block 6 Interim Transit Facility Project, City Project No. 26-19.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following City Council priority:
Goal D: Environmental Sustainability and Infrastructure Strategy 2: Implement the City’s capital improvement plan.
BACKGROUND
The Union City Transit Facility currently operates out of the Union City Corporation Yard (“Corp Yard”) located on 7th Street and Chesapeake Drive. The transit facility provides bus parking for both Union City Transit and Dumbarton Express, as well as parking for Union City Transit demand-response vehicles, such as the FLEA Microtransit vans. It also provides parking for transit staff and office space for transit operations.
On November 4, 2025, the City Council adopted Resolution No. 2025-148, authorizing the City Manager to execute the Second Amendment to the Agreement with Gillig, LLC, reducing the number of battery-electric thirty-five-foot (35’) heavy-duty fixed-route transit Agenda Item No. 3.12
City Council Staff Report Page 2 of 4 September 22, 2026 buses (BEBs) to be purchased from fourteen (14) to eight (8). The eight (8) BEBs were received at the end of December 2025.
To support charging the new BEB fleet, the City needs to modify the Corporation Yard by installing dedicated electric transit chargers at each bus stall and the associated Electric Vehicle Supply Equipment (EVSE) to maintain a reliable connection between the Pacific Gas & Electric (PG&E) source and the BEBs. An interim transit facility will be required during construction to maintain the Corp Yard's operational efficiency.
Additionally, Phase 1 of the Union City Quarry Lakes Parkway Project requires reconstruction of the southern wall of the Corp Yard to realign 7th St and Line M Channel, which also requires an interim transit facility during construction.
Block 6 Parking Lot (“Block 6”), located at 11th Street and Decoto Road behind the Union City BART Station, is a City-owned lot identified as a suitable temporary location to serve as an interim Transit Facility during the construction of the aforementioned projects.
The Block 6 Interim Transit Facility Project seeks to install modifications to the existing Block 6 site, including updated striping, fencing, and security features to make it suitable to serve as an interim transit facility during the construction of the Quarry Lakes Parkway – Phase 1 Project and the BEB Electrification Project.
On February 10, 2026, City Council adopted Resolution No. 2026-017, accepting $16,728,000 from the Regional Measure 3 (RM 3) Dumbarton Corridor Improvements Program of the Metropolitan Transportation Commission, increasing the revenue projections in the Capital Project Grants Fund by $16,728,000 and appropriating the $16,728,000 to the Quarry Lakes Parkway (QLP) Project, City Project No. 18-04. The approved allocation of RM 3 Dumbarton Corridor Improvement Project for the QLP Project includes one million dollars ($1,000,000) for the construction of an interim bus facility.
On August 4, 2026, the City of Union City released a Notice Inviting Bids for the Block 6 Interim Transit Facility Project, City Project No. 26-19 (Attachment 1).
On August 31, 2026, the City received two bids (see Exhibit A), with the lowest responsive and responsible bid in the amount of $322,130, submitted by Mark Lee and Yong Kay, Inc., DBA Bay Construction Company, of Oakland, California.
DISCUSSION
The low bid is approximately 6% above the engineer’s estimate of $305,000. Although the City has no prior experience with Mark Lee and Yong Kay, Inc., DBA Bay Construction Co., the reference checks were satisfactory.
The total construction budget of $370,450 includes the construction contract amount of $322,130 and a construction contingency of $48,320, which is approximately 15% of the contract amount.
In addition to the construction budget, other services and activities are necessary to support implementation of the project during the construction phase. These include Agenda Item No. 3.12
City Council Staff Report Page 3 of 4 September 22, 2026 construction management and inspection services in the amount of $74,710 and relocation of the transit operations trailer from the Corporation Yard to the Block 6 parking lot in the amount of $25,290. These services will be procured separately in accordance with applicable City procurement requirements and other applicable laws.
Including the construction budget and these additional construction-phase costs, the total project budget is $470,450.
Construction of this project is anticipated to begin in October 2026 and be completed by the end of December 2026.
FISCAL IMPACT
The total project budget for Block 6 Interim Transit Facility Project, City Project No. 26- 19, in the amount of $470,450, will be funded with monies received from the Regional Measure 3 Dumbarton Corridor Improvements Program of the Metropolitan Transportation Commission, of which one-million dollars ($1,000,000) was allocated towards the interim transit facility construction.
The amount of $470,450 will be transferred from the Quarry Lakes Parkway (Account Number 410-91804-57128) to the Block 6 Interim Transit Facility Project (Account Number 410-92619-57128).
There is no impact on the General Fund.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Awarding a construction contract to Mark Lee and Yong Kay, Inc., DBA Bay Construction Co., in the amount of $322,130, for the construction of the Block 6 Interim Transit Facility Project, City Project No. 26-19; and
2. Approving a total construction budget, in the amount of $370,450, for the construction contract and contingency; and
3. Authorizing a budget transfer of $470,450 from the Quarry Lakes Parkway (Account Number 410-91804-57128) to the Block 6 Interim Transit Facility Project (Account Number 410-92619-57128).
Prepared by: Carly Kasper, Civil Engineer I
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Notice of Bid
2. Attachment 2 – Project Sheet
3. Draft Resolution
Agenda Item No. 3.12
City Council Staff Report Page 4 of 4 September 22, 2026
4. Exhibit A – Bid Summary