DATE: May 6, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: CONSTRUCTION CHANGE ORDER NO. 3 WITH RAC CONSTRUCTION & ENGINEERING, INC.
RECOMMENDATION
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Staff recommends that the City Council authorize the City Engineer to execute Construction Change Order No. 3 with RAC Construction & Engineering, Inc. ("RAC"), in the amount of $83,900, for a total not-to-exceed contract amount of $1,013,504, to the McNeil Street Improvements Project for additional construction services for work similar to the approved project.
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BACKGROUND AND ANALYSIS
McNeil Street is located within Oceanside's Eastside community and is only partially paved. The proposed McNeil Street Improvements Project ("Project") is a Capital Improvement Program (CIP) project that is completing the westerly portion of McNeil Street, and includes construction of new asphalt pavement, curb and gutter, vegetated swale parkways (green street initiative), and sidewalk. The Project is also rehabilitating the existing easterly improvements of McNeill Street, including sidewalk, curb ramps, curb and gutter, and cross gutters to meet current standards.
On June 22, 2022, the City Council approved the spending plan for the American Rescue Plan Act (ARPA) Coronavirus and Local Fiscal Recovery Funds, which provided financing for the Project design.
In January 2024, the City Engineer approved a Professional Services Agreement Task Order with REC Consultants, Inc. for engineering consulting and design services.
On July 17, 2025, staff advertised the construction documents for the McNeil Street Improvements project. On September 4, 2025, thirteen bids were received and publicly opened; the apparent lowest responsive and responsible bidder was RAC, with a bid amount of $766,351.
On October 1, 2025, City Council awarded the Public Works Agreement (PWA) to RAC and authorized the City Engineer to execute Change Orders up to the amount of $200,000 as necessary ...
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