Title
Recommendation to Authorize the Interim City Manager to Execute an Agreement with Mar Con Engineering Inc., for the Alameda Day Center Project, No. HHS 25-01, in an Amount Not-To-Exceed $2,672,346.60, including Contingency.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). (Housing and Human Services 10021833)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The Day Center and Safe Sheltering Program (Day Center) is a safe and welcoming place for people who are unhoused and provides services, overnight emergency shelter and safe parking. Services include connection with social services such as housing, health, mental health, substance use treatment as well as classes, meals, wellness checks, once per week mobile showers and laundry, referrals and enrichment activities. The program is currently located at 431 Stardust Place, an Alameda Point building owned by the City of Alameda (City). This building is slated to be demolished as part of Phase 2 of the City Council approved development project, Rebuilding the Existing Supporting Housing of Alameda Point (RESHAP) Phase 2. The Day Center is being relocated to Alameda Point Building 2, Wing 3, located at 1041 W. Midway Ave.
On October 9, 2025, the City issued plans and specifications for the Alameda Day Center Project, No. HHS 25-01. Following a competitive bidding process, staff recommends that City Council authorize the City Manager to execute an agreement with Mar Con Engineering Inc., the lowest responsive and responsible bidder, for a total amount of $2,672,346.60, which includes a 10% contingency.
BACKGROUND
In October 2018, City Council declared a shelter crisis, opening a pathway for the City to receive State of California funding assistance to serve individuals experiencing homelessness. The first tranche of funds was received in January 2019 and appropriated by City Council for the creation of the Day Center and associated homeless services.
In September 2020, City Council approved the extension of service hours for the Day Center and related support services which grew the program to extended operations including overnight emergency shelter beds, overnight safe parking, and weekend hours. The Day Center now operates 23 hours daily, year-round. The Day Center program is a safe, indoor space for people experiencing homelessness to receive support and social services plus 16 beds for emergency overnight shelter and 25 safe parking spaces for individuals living in their vehicles who also receive Day Center services.
At the September 5, 2023 meeting, City Council authorized the City Manager to execute the RESHAP Disposition and Development Agreement (DDA) for the redevelopment of the site where the Day Center is currently housed. Demolition of the adjacent area in Phase 1 is complete, and the current Day Center location will be demolished in the next RESHAP phase.
On September 17, 2024, City Council approved relocating the Day Center program to Alameda Point Building 2, Wing 3 and authorized the City Manager to execute an agreement with Dialog Design LP for architectural services to design the space. On September 2, 2025, City Council authorized the City Manager to execute a First Amendment to extend the agreement which expires September 16, 2027.
In July 2025, City staff outlined a plan to spend down unexpended CDBG funds from prior fiscal years. Of the $814,392 remaining, staff is proposing to allocate $550,000 to fund the Alameda Day Center Project, for City Council approval under a separate agenda item. This project is an eligible activity under Department of Housing and Urban Development (HUD) regulations and is considered as a non-housing public improvement. City Council will hold a public hearing on December 16, 2025, to reprogram/reallocate CDBG funding which will be used for construction costs related to relocation.
DISCUSSION
To solicit the maximum number of bids and most competitive price, plans and specifications were provided to 17 separate builders’ exchanges throughout the Bay Area and California on October 9, 2025. Notices were placed on the City’s website and published in the Alameda Journal on October 10, 2025 and October 17, 2025. The bids were opened on November 5, 2025. After a bidding period of 27 days, seven contractors submitted bids. The bid results are as follows:
|
Bidder |
Location |
Bid Amount |
|
Rubicon Builders |
Danville, CA |
$1,975,000.00 |
|
CWS Construction Group Inc. |
Novato, CA |
$2,355,000.00 |
|
Mar Con Engineering Inc. |
Oakland, CA |
$2,429,406.00 |
|
Integra Construction Services Inc. |
Pleasanton, CA |
$2,454,000.00 |
|
Buhler Commercial Construction |
San Francisco, CA |
$2,500,000.00 |
|
GCJ Inc. |
Stockton, CA |
$2,540,000.00 |
|
Sustainable Urban Neighborhoods |
Oakland, CA |
$4,389,175.93 |
The two lowest bidders were rejected after being deemed non-responsive. Rubicon Builders was deemed non-responsive because the documentation submitted under the Bidder’s Statement of Financial Responsibility, Technical Ability and Experience (proposal sheet 5-4) did not meet the required criteria of at least five years of experience as a licensed Contractor performing similar work and the installation of five similar installations in the Bay Area during the five-year period. CWS Construction group Inc. was deemed non-responsive because the proposal submission requirements did not meet Section 2, Public Contract Code Instructions to Bidders, article 2-4, Submission of Bid, which indicates proposers must submit one (1) hard copy and one (1) USB flash drive of the proposal, and states “bids not submitted on the required forms or missing flash drive will not be accepted.” CWS proposal package did not include a USB flash drive.
Staff verified references for Mar Con Engineering Inc. and received positive feedback about the quality and timeliness of their work. Staff therefore recommends awarding an agreement to Mar Con Engineering Inc, in an amount not-to-exceed $2,672,346.60 which includes the base bid of $2,429,406 plus a 10% contingency in the amount of $242,940.60. The contractor is not guaranteed any of the contingency amount and the use of the contingency will be at the sole discretion of the City for work not originally anticipated in the plans and specifications. The project specifications require the contractor to pay prevailing wage. The contract is attached as Exhibit 1.
Staff anticipates this Day Center location will be suitable to house the Day Center and Safe Parking program for 10 or more years, pending future City Council approvals to fund programming.
The City will also be using $550,000 in reprogrammed CDBG funding for construction hard costs, pending City Council approval for a related item on this same agenda. CDBG funds must be used in compliance with HUD regulations and requirements. In accordance with 24 CFR Part 570, funds may be used to renovate closed buildings for use as an eligible public facility or rehabilitate such buildings for housing. The Alameda Day Center relocation is an eligible project.
ALTERNATIVES
• Award the Agreement as recommended
• Increase or reduce the scope/budget of the proposed Agreement before awarding. Per the Public Contract Code, this can only be done in a manner that does not materially alter the scope, character or cost of the project.
• Do not award the Agreement and provide alternative direction to staff.
FINANCIAL IMPACT
Funding for the Alameda Day Center Project is budgeted in the Capital Improvement Project C75500 - Day Center Relocation Project. Total funding for both construction and soft costs such as design, project management, permits, and environmental/historical review, includes the following sources:
|
Amount |
Source |
|
$1,250,000 |
Fiscal Year (FY) 2023-24 California Budget Bill Jr. (Chapter 38, Statutes of 2023, AB 102) |
|
$750,000 |
FY 2024-25 General Fund Residual Fund Balance allocation |
|
$750,000 |
FY 2025-27 Capital Improvement Project allocation of the Prohousing Incentive Grant |
|
$550,000 |
Community Development Block Grant (CDBG) (pending) |
|
$3,300,000 |
TOTAL |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Social Services Human Relations Board Charter and Ordinance authority “to improve social services in the community” (Alameda Municipal Code Section 2-11.5) and the Report on Homelessness Policies and Programs. This action is consistent with Goal 2 of “The Road Home: A Five-Year Strategic Plan to Prevent and Respond to Homelessness in Alameda.”
This project also addresses the City Fiscal Year (FY) 2023-26 Strategic Plan Priority to House All Alamedans and End Homelessness, specifically Project HH2c to relocate and expand the Day Center and overnight shelter.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with the CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).
CLIMATE IMPACT
The Social Vulnerability Assessment section of the Climate Action and Resiliency Plan states:
“adaptation strategies should consider how [the homeless] will receive emergency communications and how they will be sheltered. Proper, safe housing for all is an adaptation and resilience strategy. Planning strategies should always consider these vulnerable populations in adaptation efforts.”
Day Center program provides safe, warm, and needed shelter, providing basic human services, and access to case management for the unhoused in Alameda.
RECOMMENDATION
Authorize the Interim City Manager to execute an agreement with Mar Con Engineering Inc., for the Alameda Day Center Project, No. HHS 25-01, in an amount not-to-exceed $2,672,346.60, including contingency.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Agreement