Agenda Report
Fullerton City Council
MEETING DATE: APRIL 7, 2026
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, p.e., public works director PREPARED BY: DAVID GRANTHAM, P.E., CITY ENGINEER
juan zavala, p.e., principal civil engineer
SUBJECT: $2,017,000 contract with ONYX PAVING COMPANY FOR palm street area rehabilitation PROJECT
SUMMARY
Award $2,017,000 construction contract to Onyx Paving Company for the Palm Street Area Rehabilitation Project.
PROPOSED MOTION
Approve Project 44073 Palm Street Area Rehabilitation plans and specifications.
Approve bid alternate work on Bonita Place and include in the project scope of work.
Approve the following budget transfers and appropriations in Project 44073 Palm Street Area Rehabilitation:
$1,050,000 Infrastructure Fund (Fund 11) budget transfer and appropriation from Project 44400 Street Reconstruction, Rehabilitation and Repair to Project 44073 Palm Street Area Rehabilitation in the Capital Projects Fund (Fund 74) $12,500 Sewer Enterprise Fund (Fund 47) budget transfer and appropriation from Project 51419 Annual Sewer Replacement Program to Project 44073 Palm Street Area Rehabilitation in the Sewer Enterprise Fund (Fund 47) $1,395,000 Other Cities revenue and expenditure budget appropriations to Project 44073 Palm Street Area Rehabilitation for reimbursement by Brea and La Habra for expenses within their respective boundaries in the Capital Projects Fund (Fund 74).
Award $2,017,000 construction contract for Project 44073 Palm Street Area Rehabilitation Project to Onyx Paving Company and authorize City Manager, or designee, to execute and administer the contract, in a form approved by the City Attorney.
Authorize Public Works Director, or designee, to approve change orders for construction and professional engineering construction support services within the approved project budget.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject including bid alternate work on Bonita Place
Reject all bids
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year 2025-26 Adopted Capital Improvement Program (CIP) Budget has sufficient Infrastructure Funds and Sewer Enterprise Funds for the project. Staff recommends the following budget transfers and appropriations:
$1,050,000 Infrastructure Fund (Fund 11) budget transfer and appropriation from Project 44400 Street Reconstruction, Rehabilitation and Repair to Project 44073 Palm Street Area Rehabilitation in the Capital Projects Fund (Fund 74) $12,500 Sewer Enterprise Fund (Fund 47) budget transfer and appropriation from Project 51419 Annual Sewer Replacement Program to Project 44073 Palm Street Area Rehabilitation in the Sewer Enterprise Fund (Fund 47) $1,395,000 Other Cities revenue and expenditure budget appropriations to Project 44073 Palm Street Area Rehabilitation for reimbursement by Brea and La Habra for expenses within their respective boundaries in the Capital Projects Fund (Fund 74).
Staff attached a Budget Data Sheet / Summary of Bids and the Contractor Bid Schedule for reference (Attachments 1 and 2).
BACKGROUND AND DISCUSSION
Palm Street between Imperial Highway and La Habra Boulevard falls within Fullerton, Brea and La Habra city boundaries. Fullerton and Brea have discussed a partnership project to address the poor pavement conditions between Imperial Highway and Lambert Road over the past several years. La Habra expressed interest in expanding the project limits to La Habra Boulevard in 2024. All cities have interest in the partnership project to reduce public impact and costs due to the larger project scale. City Council approved the project Cooperative Agreement between cities of Fullerton, Brea and La Habra on September 16, 2025.
The Cooperative Agreement identifies roles, responsibilities and funding for the project during design and construction for each participating agency. Fullerton will serve as the lead agency, overseeing design and construction activities with both Brea and La Habra providing review, inspections and costs for improvements within their respective boundaries.
The Fullerton portion of the project would rehabilitate 0.5 miles of deteriorated street on Palm Street between Imperial Highway and Lambert Road, repair deteriorated and damaged curb, gutters and sidewalk and construct ADA-compliant curb ramps. The project included a bid alternative to rehabilitate 0.4 miles of Bonita Place from Imperial Highway to Palm Street. See Attachment 3 for project limits.
The conditions along Palm Street and Bonita Place rate generally very poor with areas of significant damage. Staff recommends asphalt concrete pavement grind and overlay over a chip seal to rehabilitate Palm Street pavement and grind and overlay to rehabilitate Bonita Place based on project pavement investigation, pavement conditions, traffic volume, construction operations and available budget.
The City received ten bids on March 26, 2026. Onyx Paving Company of Yorba Linda submitted the lowest responsible base bid totaling $1,737,000. The low bid is approximately 25% lower than the $2,300,000 engineers estimate due to lower than expected asphalt concrete pricing. Staff reviewed the bid and found it acceptable. The contractor will execute the standard City CIP Agreement.
The project included a bid alternative to rehabilitate Bonita Place. The low bidder cost for this work totaled $280,000. Staff recommends including the alternate bid in the project to avoid significantly higher future rehabilitation costs due to ongoing pavement damage that could require pavement reconstruction rather than grind and overlay. The project including the alternate bid would total $2,017,000.
Staff scheduled construction Sonora High School summer recess with anticipated project completion in August 2026. Each City would notify impacted residents and businesses of upcoming project construction and potential impacts.
Staff prepared an environmental assessment in accordance with California Environmental Quality Act Guidelines and determined that the project is categorically exempt.
Attachments:
Attachment 1 – Budget Data / Summary of Bids
Attachment 2 – Bid Schedule
Attachment 3 – Project Location Map
cc: City Manager Eddie Manfro
Contract with Onyx Paving Company for Palm Street Area Rehabilitation Project April 7, 2026 - Page 2