DATE: October 21, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Approving Addenda Nos. 1 Through 7, Denying the Request for Bid Relief of DeSilva Gates Construction, and Awarding a Construction Contract to DeSilva Gates Construction in the Amount of $5,269,800, in Addition to Approving $526,980 in Administrative Construction Contingency for the Hayward Executive Airport - Taxiway A1 and Taxiway Z West Reconstruction Project, Project Nos. 06819, 06864, and 06890
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) approving Addenda Nos. 1 through 7, which were issued to make revisions to the plans and specifications and to answer bidder clarification questions, denying the request for bid relief submitted by the low bidder DeSilva Gates Construction and awarding a construction contract to DeSilva Gates Construction in the amount of $5,269,800 and authorizing an Administrative Construction Contingency budget of $526,980, for a total not-to-exceed contract amount of $5,796,780 for the Taxiway A1 and Taxiway Z West Reconstruction Project, Project Nos. 06819, 06864, and 06890.
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SUMMARY
The Hayward Executive Airport is owned and operated by the City of Hayward. The Airport is obligated to preserve the safe and beneficial use of airfield facilities, including runways, taxiways, aprons, and other infrastructures, by preserving and maintaining airfield pavements to industry-standard levels. This project reconstructs two taxiways at the Airport. On April 15, 2025, the City Council approved the plans and specifications and authorized the solicitation of construction bids for construction of the project.
On May 27, 2025, City received three (3) construction bids, each for the base bid plus two alternate bids for a grand total bid amount of $5,269,800, $7,711,243, and $7,886,170. (Attachment III). All bids received were over the Engineer’s Estimate (EE) of $4,897,540. The apparent low bid was $5,269,800, which was $372,260, or 7.6% above the EE. The second low bid at the time of bid opening was $7,726,170 which contained arithmetic errors. The corrected bid amount was $7,886,170, or $2,988,630 (61%) above the EE, making this the highest bid. The third bid at the time of bid opening was $7,809,263 which also contained errors. The corrected bid was $7,711,243, or $2,813,703 (57%) above the EE, making this the second low bid.
On June 2, 2025, the apparent low bidder, DeSilva Gates Construction, submitted a letter requesting the City to grant bid relief in accordance with Caltrans Standard Specifications. They contended errors made in their submitted bid would prevent them from executing the project efficiently and effectively. After careful review of the request, staff recommends denying it because the criteria for bid relief have not been met.
Staff is requesting City Council’s approval of Addenda Nos. 1 through 7, which were issued to revise the plans and specifications and to answer bidder clarification questions. Staff recommends awarding the construction contract to the responsible low bidder, DeSilva Gates Construction of Dublin, CA, in the amount of $5,269,800, and approving an Administrative Construction Contingency (change order) Budget of $526,980 for a total of $5,796,780.
Staff informed DeSilva Gates Construction of the denial of their bid relief request and the subsequent award of the contract to them. DeSilva Gates Construction indicated they are prepared to proceed with construction of the project.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution