DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt Resolutions Approving Addenda Nos. 1 Through 4 and Awarding a Contract to DeSilva Gates Construction, LLC, for the La Vista Park Project, Project No. 06914 in the Amount of $32,850,547 in Addition to Approving $3,942,066 in Administrative Construction Contingency, and Authorizing the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with Langan, and to Execute Amendment No. 1 to the Memorandum of Understanding with the Hayward Area Recreational District for the Funding, Operation and Maintenance of La Vista Park
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution:
(1) Approving Addenda Nos. 1 through 4, which were issued to make minor revisions to the plans and specifications and to answer bidder clarification questions, and awarding a contract to DeSilva Gates Construction, LLC in the amount of $32,850,547 and authorizing an Administrative Construction Contingency budget of $3,946,066, for a total not-to-exceed contract amount of $36,792,613, and authorizing the City Manager to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Langan to increase their contract amount by $486,600, for a total not-to-exceed amount of $980,026 (Attachment II); and
(2) Appropriating $19,444,000 from Park-in-Lieu Funds (fund 206) to Fund 405 and authorizing the City Manager to execute Amendment No. 1 to the Memorandum of Understanding (MOU) with the Hayward Area Recreational District (HARD) for the Funding, Operations, and Maintenance of La Vista Park (Attachment III).
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SUMMARY
Since 2017, the City and HARD have worked toward a shared vision of constructing and operating La Vista Park, a new destination park in South Hayward, east of the intersection of Mission Boulevard and Tennyson Road. The addition of a destination park will create a much-needed amenity and attraction for South Hayward, the City, and the entire region.
On April 23, 2025, four (4) construction bids were received ranging from $32,850,547 to $34,945,319. The low bid was $32,850,547, which was $6,412,763, or 24.3% above the Engineer’s Estimate of $26,437,784. Of the 4 bids, 3 bids were within $121,000, or 0.4% of each other, indicating a competitive bidding environment and that the low bid reflects a reasonable cost of the project.
Staff is requesting City Council approval of Addenda Nos. 1 through 4, which
were issued to make minor revisions to the plans and specifications and to answer bidder
clarification questions. Staff recommends awarding the construction contract to the lowest
responsive and responsible bidder, DeSilva Gates LLC, of Dublin, CA, with the amount
of $32,850,547, and approving an Administrative Construction Contingency (change
orders) Budget of $3,942,066 for a total of $36,792,613.
Langan is the geotechnical engineering consultant for the La Vista Park project and has performed geotechnical investigations and provided design recommendations and geotechnical reports for the La Vista Park project. Staff is requesting City Council approval to amend the PSA with Langan to include airborne asbestos dust monitoring and geotechnical services during construction of the slope stabilization keyway and park improvements. Langan’s services during construction would increase the contract amount by $486,600 to a not-to-exceed limit of $980,026.
Due to the low bid exceeding the Engineer’s Estimate, an additional $6,444,000 is needed to fully fund the project. The City negotiated with HARD and both parties agreed the City will increase funding from Park-in-Lieu fees to cover this amount. Staff is requesting City Council approval to amend the MOU with HARD to include this additional funding.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Approving Addenda Nos. 1 through 4
Attachment III Resolution Appropriating Funds