City Council Staff Report Page 1 of 4 September 22, 2026 Staff Report
Agenda Item No. 3.9
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 McKim Corporation, in the Amount of $641,564, Approving a Total Construction Budget, in the Amount of $769,877, and Appropriating $799,877 From Various Funds to the Dyer Street Pavement Rehabilitation Project - Phase 2, City Project No. 26-38
EXECUTIVE SUMMARY
Staff recommends the City Council adopt a resolution approving the award of a construction contract to McKim Corporation, in the amount of $641,564, approving a total construction budget in the amount of $769,877, and appropriating $799,877 from various funds to the Dyer Street Pavement Rehabilitation Project - Phase 2, City Project No. 26-
38. STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
BACKGROUND
The City’s 2021 Bicycle & Pedestrian Master Plan (BPMP) identified Dyer Street as needing roadway rehabilitation and as a gap in the City’s bicycle network. On May 23, 2017, City Council adopted Resolution No. 5073-17, accepting $872,000 of Federal One Bay Area Grant 2 (OBAG2) funds for the Dyer Street Rehabilitation Project.
On August 10, 2021, the City Council adopted Resolution No. 5816-21, awarding the construction contract for the Dyer Street Rehabilitation Project (City Project No. 18-20).
The work comprised:
• Repairing uplifted or damaged sidewalks, curbs & gutters and upgrading ramps • Grinding down the roadway pavement and applying a new asphalt concrete layer Agenda Item No. 3.9
City Council Staff Report Page 2 of 4 September 22, 2026 • Incorporating buffered bike lane striping in each direction along with complete streets elements accounting for improved visibility, parking, and bus stop incorporation (this last improvement was identified in the 2012 Bicycle & Pedestrian Master Plan and, again, in the 2021 update)
The project was substantially completed in February 2022 and, on June 14, 2022, City Council adopted Resolution No. 5950-22, accepting the completion of work for Phase I of the Dyer Street Rehabilitation Project, City Project No. 18-20.
Staff determined that further improvements on Dyer Street were warranted and sought additional funding to implement a second phase. On February 24, 2026, City Council adopted Resolution No. 2026-021, accepting $50,000 from the Transportation Fund for Clean Air (TFCA) for the Dyer Street Pavement Rehabilitation Project - Phase 2.
On May 12, 2026, the City Council adopted Resolution No. 2026-057, adopting a list of projects for Fiscal Year 2026-2027 funded by SB 1: The Road Repair and Accountability Act of 2017. The list of projects includes the Dyer Street Pavement Rehabilitation Project - Phase 2 (to be named City Project No. 26-38).
CIP Project No. 26-38 includes approximately 145,000 square feet of roadway surface rehabilitation on Dyer Street from Deborah Drive to Union City Boulevard. Additionally, bicycle improvements will be made by integrating approximately 0.8 miles of traditional class II and buffered class II lanes into the roadway, as well as minor pedestrian and transit stop upgrades to improve the quality of those alternative modes of travel.
Project specifics were presented to the City’s Bicycle Pedestrian Advisory Committee (BPAC) on July 21, 2026. The BPAC was able to openly discuss project details, express concerns, and voice their support for the project. The BPAC was supportive of the project, citing improvements in bicycle safety and the need to fill the bicycle network gap.
On August 21, 2026, plans and specifications for the project were released and advertised for bids (Attachment 1).
On September 8, 2026, the City received twelve (12) bids (see Exhibit A), with the lowest responsive and responsible base bid of $566,963.50 submitted by McKim Corporation of Gilroy, California. The twelve bids received indicate a competitive bidding process, with the two lowest bids within 5% of each other.
DISCUSSION
The low bid is approximately 27% below the engineer’s estimate of $780,000. McKim Corporation has done work for Union City previously, completing the Decoto Road Pavement Rehabilitation Project in 2024-25, with additional reference checks being satisfactory.
The recommended total construction budget of $769,877 includes the base bid amount of $566,964, additional bid alternate items (BA1 through BA6) totaling $74,600, and a construction contingency of $128,313, approximately 20% of the construction contract amount. Including the construction budget and the inspection services, the total project Agenda Item No. 3.9
City Council Staff Report Page 3 of 4 September 22, 2026 budget is $799,877.
Construction of this project is anticipated to start in October 2026 and be completed by the end of November 2026.
FISCAL IMPACT
The Dyer Street Pavement Rehabilitation Project - Phase 2, City Project No. 26-38, in the amount of $799,877, will be funded as follows:
Amount Fund Name Account
$573,129 SB 1 Road Maintenance & Rehab Fund 251-92638-57128 $133,301 ACTIA Streets & Roads Fund 253-92638-57128
$93,447 ACTIA Bike and Pedestrian Paths Fund 254-92638-57128 $799,877 Total
There are available fund balances within these funds to support this project.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Approving the award of the construction contract to McKim Corporation, in the amount of $641,564, including additional bid alternate items (BA1 through BA6), for the construction of the Dyer Street Pavement Rehabilitation Project - Phase 2, City Project No. 26-38.
2. Approving a total construction budget in the amount of $769,877 for the construction contract, including a construction contingency of $128,313, approximately 20% of the construction contract amount.
3. Appropriating from the following funds to the Dyer Street Pavement Rehabilitation Project – Phase 2, City Project No. 26-38:
a. $133,301 from ACTIA Streets & Roads Fund
b. $ 93,447 from ACTIA Bike & Pedestrian Paths Fund
c. $573,129 from SB 1 Road Maintenance & Rehab Fund
Prepared by: Carly Kasper, Civil Engineer I
Submitted by: Marilou Ayupan, Public Works Director
Agenda Item No. 3.9
City Council Staff Report Page 4 of 4 September 22, 2026 Attachments
1. Attachment 1 – Notice of Bid
2. Draft Resolution
3. Exhibit A – Bid Summary