v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
Contract Award and CIP Budget Transfer: Accept Bids and Award a Contract to Pavement Coatings Co. for “Pavement Major Rehabilitation FY23/FY24/FY25” (STM0411/0414/0404) Project; and Amend the FY26 CIP Program Budget by Transferring Funds to STM0411
Report Number: 26-0135
Location: No specific geographic location
Department: Engineering and Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15302 Class 2 (Replacement or Reconstruction).
Recommended Action
Adopt a resolution: (1) accepting bids and awarding a public works contract to Pavement Coatings Co. for the “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25” (STM0411, STM0414, and STM0404) project; and (2) amending the fiscal year 2025-26 Capital Improvement Program (CIP) budget by transferring $980,850.00 from the available balance of “Pavement Major Rehabilitation FY26 ” (STM0416) project to CIP Project STM0411, for completion of the project. (4/5 Vote Required)
SUMMARY
On May 8, 2026, the Director of Engineering and Capital Projects received seven (7) sealed bids for the “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25 ” (STM0411, STM0414, and STM0404) project. After review of the bids, staff recommends awarding a public works contract to the lowest responsive and responsible bidder, Pavement Coatings Co. Adoption of the resolution would: (1) accept bids and award the public works contract to Pavement Coatings Co. in the amount of $9,899,577; (2) amend the fiscal year 2025-26 CIP Budget b y transferring $ 980,850 fro m the available fund balance of “Pavement Major Rehabilitation FY26” (STM0416) project to CIP project STM0411.
P a g e | 2
ENVIRONMENTAL REVIEW
The Project was reviewed for compliance with the California Environmental Quality Act (CEQA), and it was determined the Project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), which consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use; Section 15302 Class 2 (Replacement or Reconstruction), which consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpo se and capacity as the structure replaced; and where the exceptions listed in State CEQA Guidelines Section 15300.2 would not apply in that no cumulative impacts were identified, no significant effects on the environment were identified, the project is not adjacent to a scenic highway, no historical resources would be affected by the action, and the project was not identified on a list of hazardous waste sites pursuant to Section 65962.5 of the Government Code. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25” (STM0411, STM0414, and STM0404) project will primarily consist of the following improvements:
Roadway rehabilitation at various locations; and
Pavement striping and markings; and
Curb and gutter improvements at various locations; and Curb ramp improvements at various locations.
Bidding Process
On April 17, 2026, Engineering and Capital Projects Department advertised and solicited bids for the project.
Seven (7) sealed bids were received on May 8, 202 6. The submitted base bid totals from the prime contractors were as follows:
Ranking Contractor Submitted Base Bid
1 Pavement Coatings Co. $ 9,899,577.00
2 Eagle Paving LLC $ 10,325,217.00
3 Calmex Engineering, Inc. $ 10,511,361.20
4 Rove Engineering $ 10,826,725.75
5 Romero General Construction Corp. $ 11,011,011.00
6 Hazard Construction Eng LLC $ 11,129,599.50
7 R.J. Noble Company $ 12,882,000.00
The low bid of $9,899,577.00 by Pavement Coatings Co. is approximately 21% below the Engineer’s estimate of $12,623,500.00 . Staff has included an Additional Street List to the contract to complete more street locations, at the City’s option , with this contract if there are remaining funds within the project budget.
P a g e | 3
Pavement Coatings Co. is currently an active licensed contractor (License No. 303609) with the following classification: A-General Engineering.
Staff recommends accepting bids and awarding the public works contract for the “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25 ” (STM0411 / STM0414 / STM0404) ” project to the lowest responsive and responsible bidder, Pavement Coatings Co., and transferring $980,850.00 in Transportation Sales Tax funds from the available fund balance of “Pavement Major Rehabilitation FY26” (STM0416) to CIP project STM0411 to cover the projected construction costs as shown in more detail in the Current-Year Fiscal Impact section below.
Disclosure Statement
Attachment 1 is a copy of the Contractor’s Disclosure Statement.
Wage Statement
The Contractor that is awarded the contract and its subcontractors are required to pay prevailing wages to persons employed by them for work under the proposed contra ct. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California.
This project is also subject to the City’s Project Labor Agreement (PLA). The Contractor and all subcontractors shall comply with all applicable terms and conditions of the PLA.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found that Mayor John McCann has property holdings within 1,000 feet of the boundaries of the property which is the subject of this action.
However, the decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities, a nd the member’s property will not be affected disproportionately to other properties receiving the same services. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(d)(1)), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.)
CURRENT-YEAR FISCAL IMPACT
Adoption of the resolution amends the fiscal year 2025 -26 CIP budget by transferring $ 980,850.00 in Transportation Sales Tax funds from the available balance of the “Pavement Major Rehabilitation FY26 ” (STM0416) to CIP project STM0411 for the completion of the project. STM0416 remains within the planning and allocation phase of the pavement program, and there is currently no construct ion contract or activity that will be impacted as a result of this action.
A summary of expected project costs and available funding for STM0411 is as follows.
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount $ 9,899,577
B. Additional Street List $2,500,000
C. Contract Contingency $1,249,933
D. Construction Support $1,520,000
E. Design Support $186,140
P a g e | 4
F. Survey $6,210
Total Funds Required to Complete Project $ 15,361,860
FUNDS AVAILABLE FOR CONSTRUCTION
A. 227- Transportation Sales Tax – STM0411 $3,448,040.00 B. 227 – Transportation Sales Tax - STM0414 $7,327,021.00 C. 221 – Transportation Grants - Gas Tax - STM0414 $63,052.00 D. 227 – Transportation Sales Tax -STM0404 $3,542,897.00 E. Transfer Transportation Sales Tax Funds from STM0416 $980,850.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $15,361,860.00
ONGOING FISCAL IMPACT
The proposed award and funds transfer will have no ongoing fiscal impact. All costs associated with the completion of CIP project STM0411 will be covered within the project budget, with no additional funding required. Upon completion of the project, the improvements will require routine roadway maintenance.
These expenses will be considered as part of the annual budget development process in future years.
ATTACHMENTS
1. Disclosure Statement
2. Bid Proposal
Staff Contact: Luis Schaar, PE, City Engineer / Director of Engineering & Capital Projects Rosina Constanza, PE, Assistant Director of Engineering Nolan Huelsman, PE, Principal Civil Engineer
José Serrato, PE, Senior Civil Engineer
Kyra Wright, Associate Engineer