AGENDA REPORT
Meeting Date: December 9, 2025
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Manu Dhaliwal, Associate Project Manager
Subject: AWARD OF A CONTRACT TO THE LOWEST RESPONSIBLE
BIDDER, CJ CONCRETE CONSTRUCTION, INC., FOR THE
STREET AND ALLEY IMPROVEMENTS FISCAL YEAR 25/26
WITHIN THE CITY OF BEVERLY HILLS, CALIFORNIA, IN THE
AMOUNT OF $10,353,332.50; AND
APPROVAL OF THE PLANS AND SPECIFICATIONS
THEREFOR WITH RESPECT TO DESIGN CRITERIA; AND
APPROVAL OF AN APPROPRIATION FROM THE
WASTEWATER ENTERPRISE FUND IN THE AMOUNT OF
$154,425.00; AND
APPROVAL OF AN APPROPRIATION FROM UNALLOCATED
MEASURE M FUNDS IN THE AMOUNT OF $700,000.00; AND
APPROVAL OF A PURCHASE ORDER IN THE AMOUNT OF
$11,388,665.75 TO CJ CONCRETE CONSTRUCTION, INC. FOR
THE PROJECT; AND
PURSUANT TO THE PROVISIONS OF THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), CITY COUNCIL WILL
ALSO CONSIDER FINDING THE PROJECT EXEMPT FROM
FURTHER REVIEW UNDER CEQA
Attachments: 1. Agreement with CJ Concrete Construction, Inc.
2. Categorical Exemption
3. Project Location Map
______________________________________________________________________________ BEVERL
HILLS
di
Meeting Date: December 9, 2025
RECOMMENDATION
Staff recommends City Council approve the award of a contract to the lowest responsible bidder, CJ Concrete Construction, Inc., for the construction of pavement repairs and maintenance in the amount of $10,353,332.50; approve the plans and specifications for the project with respect to design criteria; approve a construction contingency of 10% in the amount of $1,035,333.25; approve an appropriation from the Wastewater Enterprise Fund in the amount of $154,425.00; approve an appropriation from the Measure M Local Transit Fund in the amount of $700,000.00; approve the issuance of a purchase order to CJ Concrete Construction, Inc. in the amount of $11,388,665.75; and, pursuant to the provisions of the California Environmental Quality Act (CEQA), City Council will also consider finding the project exempt from further review under CEQA.
INTRODUCTION
This report is a request for City Council approval to award a contract to the lowest responsible bidder for the Street and Alley Improvements project.
DISCUSSION
The City utilizes a Pavement Management Program (PMP) to assess the condition of all streets in the City’s 151-mile network and make informed decisions regarding the timing and type of repairs needed. The condition of each street segment is determined through a formula that produces a Pavement Condition Index (PCI). The PCI ranges from 0 to 100 with 100 representing a new street surface and 25 or less being very poor or failed.
The program this year focused equally on alleys and streets in need of repair, including one alley located in the Business Triangle. The life of each street varies depending on a number of factors, including traffic volumes, truck or bus traffic, underlying soil, number of utility cuts and drainage considerations. In general, these improvements will increase the serviceability life of the pavement (with the appropriate maintenance and preservation program) by at least 25 years. The project will rehabilitate approximately 2.53 miles of streets and 2.76 miles of alley, which equates to 3.5% of the City’s total street and alley infrastructure. The project will also install traffic-rated water meter boxes where necessary.
This project also includes the construction of 38,500 square feet of sidewalk repairs to address lifted or damaged sections of sidewalk throughout the City. The locations for sidewalk repairs will be chosen based on the severity of damage to the section.
On October 9, 2025, a Notice Inviting Bids was published on the City’s PlanetBids page. 11 contractors downloaded the project construction documents as prime contractors. On October 30, 2025, six (6) bids were received and opened as follows:
CJ Concrete Construction, Inc. $10,353,332.50
Paveco Construction, Inc. $10,462,756.28
Engineer’s Estimate $10,500,000.00
PALP dba Excel Paving Company $11,348,847.41
Sequel Contractors Inc. $11,377,095.48
Sully-Miller Contracting Company $12,764,663.20
Toro Enterprises, Inc. $13,053,822.85
The above bid amounts were tabulated using unit prices, which take precedence over the submitted total bid amounts. All documents submitted by these bidders were in order and the apparent low bidder is CJ Concrete Construction, Inc.
Meeting Date: December 9, 2025
CJ Concrete Construction, Inc. is a licensed contractor in good standing that has experience completing similar projects with other nearby cities like Culver City and Pasadena.
Staff recommends that the lowest responsible bid be accepted and a contract awarded to CJ Concrete Construction, Inc.
ENVIRONMENTAL ASSESSMENT
The Project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.), the State CEQA Guidelines[1] (California Code of Regulations, Title 14, Section 15000 et seq.), and the environmental regulations of the City. Upon review by Public Works Department staff, the project appears to qualify for a Class 1 Categorical Exemption (Existing Facilities) in accordance with the requirements of Section 15301 of the state CEQA Guidelines. This exemption is applicable to the maintenance or minor alteration of existing public facilities involving negligible or no expansion of existing or former use. Therefore, it is recommended that City Council find the Project exempt from further review under the provisions of CEQA.
FISCAL IMPACT
A construction contingency allowance in the amount of $1,035,333.25 has been included in the total purchase order amount of $11,388,665.75. Any change orders that require expenditures from this allowance shall be made only upon written request in accordance with the Beverly Hills Municipal Code §3-3-110 regarding change orders.
Funds for this project are available as shown in the table below.
Funding for the meter box purchases are to be shared between the Water and Wastewater Funds. With the adoption of volumetric wastewater rates that rely on Advanced Metering Infrastructure (AMI) data for billing, the City’s rate consultant analyzed the appropriate allocation of AMI meter replacement costs between the Water and Wastewater Enterprises. Based on this analysis, 57.4% of the costs are attributable to the Water Enterprise and 42.6% to the Wastewater Enterprise.
For this purchase totaling $362,500, the cost allocation results in $208,075 charged to the Water Fund and $154,425 charged to the Wastewater Fund. Sufficient funding for the Water Fund portion is available in Fund 800-CIP 669. Staff is requesting an appropriation of $154,425 from the Wastewater Fund balance into Fund 840-CIP 669 to cover the Wastewater portion and an appropriation of $700,000 previously unallocated Measure M (Fund 340) to CIP 0195.
[1] The CEQA Guidelines and Statute are available online at https://www.califaep.org/statute_and_guidelines.php Meeting Date: December 9, 2025
Funds for this project as requested and/or budgeted in the Fiscal Year 2025/26 Capital Improvement Program are as follows:
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
80006003-850000-00669 Water Meter Replacement $208,075.00 84005401-850000-00669 Wastewater Fund $154,425.00
34012505-850000-00195 Measure M $1,000,000.00
33012402-850000-00195 Measure R $300,000.00
12012402-850000-00195 Gas Tax $5,118,629.00
60012402-850000-00195 Infrastructure Street and Sidewalk $2,812,479.17 12112402-850000-00195 RMRA $1,795,057.58
TOTALS $11,388,665.75
Jeff Muir,
Director of Finance
Shana Epstein,
Director of Public Works
Approved By Approved By
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this 9th day of December, 2025, by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as “City”, and CJ Concrete Construction, Inc.
10142 Shoemaker Avenue
Santa Fe Springs, CA 90670
hereinafter referred to as “Contractor”;
W I T N E S S E T H
In this consideration of their covenants the parties hereto agree as follows:
1. Contractor shall furnish all labor, materials and equipment necessary to perform the following work in the City of Beverly Hills, California, strictly in accordance with the Notice to Bidders, Proposal form, Plans and Specifications for such improvement, Standard Contractual Requirements and inclusive of Addendums, each of which documents are made a part of this Contract as though fully set forth herein:
STREET AND ALLEY IMPROVEMENTS FY25/26
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of Ten Million Three Hundred Fifty-Three Thousand Three Hundred Thirty-Two Dollars and Fifty Cents ($10,353,332.50) in the manner provided in subject Plans and Specifications and subject to adjustment provided therein.
3. Concurrently with the execution of this Contract, Contractor shall file with the City the bonds and certificates of insurance specified in said Standard Contractual Requirements.
4. This Contract shall not be assigned without the written permission of the City Council.
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written.
ATTEST:
____________________________________________
HUMA AHMED, City Clerk
CITY OF BEVERLY HILLS,
A municipal corporation
____________________________________________
SHARONA R. NAZARIAN, PsyD, Mayor
APPROVED AS TO CONTENT:
____________________________________________
NANCY HUNT-COFFEY, City Manager
CONTRACTOR:
____________________________________________
____________________________________________
SHARON L’HEUREUX DRESSEL, Risk Manager
____________________________________________
____________________________________________
SHANA E. EPSTEIN, Director of Public Works
____________________________________________
DAREN GRILLEY, Assistant Director of Public Works/
City Engineer
____________________________________________
ANTHONY RODSTEIN, Purchasing Services Manager
APPROVED AS TO FORM:
____________________________________________
LAURENCE S. WIENER, City Attorney
FUNDS AVAILABLE:
____________________________________________
JEFFREY S. MUIR, Director of Finance
Attachment 2
Manu Dhaliwal
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research
P.O. Box 3044, Room 113
Sacramento, CA 95812-3044
County Clerk
County of: '°awe
12400 Imperial Highway
From: (Pubic Agency: '<o3Po"Poon
345 Foothill Rd
Beverly Hills, CA 90210
(Address)
Norwalk, CA 90650
Project Title: Street & Alley Improvements FY25/26
Project Applicant: Oity ofBeverly His
Project Location - Specific:
Various locations withing the City of Beverly Hills
Project Location - city: Bee His Project Location - County: '9sges Description of Nature, Purpose and Beneficiaries of Project:
Asphalt grind & pave maintenance, concrete sidewalk/gutter/driveway/curb ramp r&r.
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[] Categorical Exemption. State type and section number: Class 15301 Existing Facilities; (c) □ Statutory Exemptions. State code number: _
Reasons why project is exempt:
310-285-2513 Area Code/Telephone/Extension:
This project is exempt because it involves pedestrian sidewalk installation, traffic signal installation, and repairs to existing pavement surfaces with no increase in the roadway footprint or additional lanes.
Class 15301 Existing Facilities; (c) Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety, and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes) Lead Agency
contact Person: Manu Dhalia!
If filed by applicant:
1. Attach certified document of exemption finding.
2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________ Date: 11/12/25 Title: Associate Project Manager ■ Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code.
Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.
Date Received for filing at OPR: _
Revised 2011
□
Attachment 3
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Date: 10-08-2025
LEGEND
TYPE
ALLEY
INTERSECTION
STREET
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