DATE: 07/02/2025
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
2025-272
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
CONSTRUCTION CONTRACT WITH ALL AMERICAN ASPHALT IN THE AMOUNT OF $19,626,012 FOR THE CITYWIDE PAVEMENT REHABILITATION REBID, CAPITAL IMPROVEMENT PROJECT NO. ST-2025-26; NOTICE INVITING BIDS 25-069AS EXECUTIVE SUMMARY:
This staff report asks the City Council to approve the Construction Contract with All American Asphalt for the Citywide Pavement Rehabilitation Rebid Capital Improvement Project No. ST-2025-26. The project includes rehabilitating approximately 167 lane miles of local, collector, and arterial roads to preserve and extend the useful life of the asphalt pavement, provide a smoother travel surface for motorists and pedestrians, and protect pedestrians with Americans with Disabilities Act-compliant Street improvements.
RECOMMENDED ACTION:
That the City Council:
a. Adopt Plans and Specifications for the Citywide Pavement Rehabilitation Rebid, Capital Improvement Project No. ST-2025-26, Notice Inviting Bids 25-069AS. b. Award Notice Inviting Bids 25-069AS to All American Asphalt the lowest responsive, responsible bidder, for the total amount of $19,626,012, and waive all minor irregularities in the bidding document as submitted by the said bidder. c. Approve the Construction Contract with All American Asphalt for the Citywide Pavement Rehabilitation Rebid, Capital Improvement Project No. ST- 2025-26 in the amount of $19,626,012.
d. Authorize the City Manager, or his designee, to execute the Construction Contract with All American Asphalt in the amount of $19,626,012, including any nonsubstantive extensions, change orders, purchase orders, and amendments up to 10%, which is equivalent to $1,962,601.
e. Authorize the City Manager, or his designee, to issue a purchase order to All American Asphalt in the amount of $19,626,012.
f. Authorize a budgetary transfer in the amount of $4,384,930 from the Citywide Street Pavement Rehabilitation Capital Improvement Project No. ST-2021-01 to the Citywide Street Pavement Rehabilitation (2025) Capital Improvement Project No. ST-2025-26, within Road Maintenance and Rehabilitation Account Fund 221.
BACKGROUND & HISTORY:
The Citywide Pavement Rehabilitation Rebid Capital Improvement Project No. ST-2025- 26 originally consisted of the street segments recommended for repair by the final year of the Five-Year Pavement Management Plan (PMP). The project was originally advertised late last year and was awarded by the City Council on December 4, 2024.
However, the construction contract was subsequently terminated after the City and the contractor were unable to agree on the specified slurry material included in their bid. To enhance efficiency and cost-effectiveness, staff combined this project with the first year, or Zone 1, of the recently adopted Ten-Year Pavement Management Plan. This initiative encompasses the rehabilitation of various local, collector, and arterial streets throughout the City, as illustrated in Exhibit 1.
This combined effort is expected to deliver multiple benefits, including improved slurry seal applications and extended pavement service life to protect the City’s infrastructure investment, and reduced mobilization costs for contractors. Additionally, purchasing materials in larger quantities is anticipated to result in more favorable unit pricing.
Combining the two projects resulted in savings of over 13% or $3 million in construction costs.
The project also includes the repair of Green River Road, located north of the 91 Freeway, which was deferred from last year's project due to the extended approval process of an encroachment permit from Caltrans. This project will continue to preserve the existing pavement, extend the life of the asphalt, and provide a smoother surface for both motorists and pedestrians. Furthermore, it will ensure compliance with accessibility requirements under the Americans with Disabilities Act (ADA).
In addition to the combined PMP areas, the bid solicitation included three (3) addalternate locations: Cherokee Road Tract, Parkridge Avenue, and California Avenue. Due to a rutting along California Avenue, in alignment with a past utility trench project, additional geotechnical investigation was conducted on the appropriate rehabilitation methods. The inclusion of California Avenue will be contingent upon the geotechnical investigation's findings and recommendations. Once the report is received in July or August, staff will assess the appropriate treatment options and negotiate any necessary scope or pricing adjustments with the contractor. If the recommended repairs are feasible within the remaining project budget, staff will return to the City Council with a proposed contract change order for approval. Therefore, staff is not recommending the award of the California at this time and will bring back this item at a future Council meeting once costs and funding sources are identified.
ANALYSIS:
The Plans and Specifications for the project were completed and reviewed by City staff and are ready for adoption and award. As specified in the bid package, the City shall award the contract for the Project to the lowest responsive, responsible bidder as determined from the lowest total for the Bid Schedule.
The project was advertised on May 8, 2025, soliciting bids, pursuant to Corona Municipal Code section 3.08.90, Public projects - formal bidding procedure, and purchasing policy through the City’s PlanetBids bidding portal. Three hundred fifty-five (355) prospective bidders were notified of the project through the PlanetBids bidding portal, and fifty (50) prospective bidders downloaded the bid document files. Four (4) bids were received through the PlanetBids bidding service.
No. Contractor Location Bid Total With Alt.
1 All American Asphalt Corona, CA $19,626,012
2 R.J. Noble Company Orange, CA $23,272,232.97
3 Calmex Engineering, Inc. Bloomington, CA $25,269,724.65 4 S E Pipe Line Construction Santa Fe Springs, CA $25,588,532.03 Staff has reviewed all bids and recommends awarding the contract to All American Asphalt as the lowest responsive, responsible bidder based on the Base Bid Schedule, Add Alternate Bid Items 1, and Add Alternate Bid Items 3 for a total contract amount of $19,626,012. All licenses and references for All American Asphalt have been reviewed and verified by City staff, and all other documentation is in order.
Notably, the bid from All American Asphalt came in approximately 13% lower than the Engineer’s Estimate of $22,713,483, which is attributed to economies of scale achieved by combining multiple project areas into a single bid package. This bundling strategy resulted in competitive pricing and cost efficiencies that benefit the City.
City staff will perform the project management, and a contract consultant will perform the construction management and inspection services. Construction is anticipated to start in September and is expected to be completed by summer of 2026.
FINANCIAL IMPACT:
The estimated project costs are outlined as follows:
Construction.………………………………………………………………………………………
. $19,626,012
Contingency
(10%)……………………………………………………………………….………….$1,962,60
1 Construction Support (Inspection, materials testing, staff time)(10%) …………… ..$1,962,601
Total Project Cost
….………………………………..………………….………………….…$23,551,214
The project budget will be available from the following sources:
Project No. Project Name Fund FY 2026
Total Balance
Appropriatio
n/ Transfer
Revised
Balance
ST-2021-01 Citywide
Street
Pavement
Rehabilitation
RMRA Fund
221
4,384,930 (4,384,930) -
ST-2025-26 Citywide
Street
Pavement
Rehabilitation
(2025)
Measure X
120
2,738,617 - 2,738,617
ST-2025-26 Citywide
Street
Pavement
Rehabilitation
(2025)
RMRA Fund
221
8,242,348 4,384,930 12,627,278
ST-2025-26 Citywide
Street
Pavement
Rehabilitation
(2025)
Measure A
227
10,618,734 - 10,618,734
Project
Grand Total
25,984,628 - 25,984,628
ENVIRONMENTAL ANALYSIS:
These actions are categorically exempt pursuant to Section 15301(c) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project which consists of minor repairs and maintenance to existing facilities does not have a significant impact of the environment and is therefore exempt from CEQA. This action involves minor repairs, maintenance, and alteration of existing highways, streets, sidewalks, or similar features involving negligible or no expansion of use beyond that currently existing from the requirements of CEQA. A Notice of Exemption will be filed prior to the start of construction.
PREPARED BY: HONGZHI QILIN, ASSOCIATE ENGINEER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Location Map
2. Exhibit 2 – Construction Contract