Item 476/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 1/13/2026
Subject: Award a contract to American Asphalt South, Inc., for on-call Reclaimed Asphalt Pavement (RAP) slurry seal services, IFB S-1384. (Intial Half Year Cost: Not to exceed $550,000)(Action Item)
OBJECTIVE
To receive authorization to award a contract to American Asphalt South, Inc., for the on-call Reclaimed Asphalt Pavement (RAP) Slurry Sealing IFB No. S-1384 on various city streets.
BACKGROUND
The Public Work Streets Division performs annual pavement maintenance to extend roadway life and reduce long -term repair costs. To comply with the City’s 5 -Year Pavement Management Plan (PMP) and complete slurry seal work that is not performed in -house, the City issued a formal Invitation for Bids (IFB) for on -call slurry seal services, including slurry application and optional equipment, and operator services.
DISCUSSION
An IFB was issued and posted for on-call slurry seal, equipment, and operator services on Planet Bids for vendors to bid on. The bid was post ed from October 24, 2025 and closed on November 24, 2025. Four (4) responsive bids were received. American Asphalt South, Inc. submitted the lowest responsive bid with a total evaluated amount of $690,000, based on estimated quantities for Type 1 and Type II slurry seal. The remaining bidders ranged from $1,240,000 to $3,450,000. Awarding the contract to American Asphalt South ensures competitive pricing and supports delivery of pavement preservation projects in accordance with the City’s 5-Year Pavement Management Plan (PMP). The bid results are as follows:
Item 476/2025
Company Name Type I
(1,000,000
Sq. Ft)
Type I Cost Type II
(2,500,000
Sq. Ft.)
Type II Cost TOTAL BID
AMOUNT
American Asphalt
South, Inc.
$0.19 $190,000 $0.20 $500,000 $690,000
Union Pavement
Services, Inc.
$0.34 $840,000 $0.36 $900,000 $1,240,000
Horizons
Construction
Company Int. Inc
$0.84 $840,000 $0.85 $2,125,000 $2,965,000
Pavement Coatings,
Inc.
$1.00 $1,000,000 $0.98 $2,450,000 $3,450,000
The licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order.
FINANCIAL IMPACT
The contract amount under the agreement shall not exceed $550,000 for the initial performance period of the agreement (January 1, 2026 to June 30, 2026) which includes $345,000 for Part I: Type I and Type II RAP Slurry seal services and $210,000 for equipment and operator services (Option A).
If exercised, the four (4) optional renewal years shall each have a not to exceed amount of $1,100,000 per fiscal year, which includes $690,000 for Part I: Type I and Type II RAP slurry seal services and $410,000 for equipment and operator services (Option A), subject to annual budget appropriations.
This contract will be funded with the annual City Operating Budget and Gas Tax available in the 2025-26 Street Division Budget.
RECOMMENDATION
It is recommended that the City Council:
Award a contract to American Asphalt South, Inc. for on -call slurry seal, equipment, and operator services, in the amount not to exceed $550,000 for the initial performance period from January 1, 2026 to June 30, 2026 , with four (4) optional one -year term renewals in the amount not to exceed $1,100,00 per year, to be exercised at the City’s discretion;
Authorize the City Manager, or designee, to execute the agreement and make minor modification as appropriate thereto on behalf of the City; and
Item 476/2025
Authorize the City Manager, or designee, to execute option year amendments, within the approved budget , and make minor modifications as appropriate thereto on behalf of the City.
By: Raul Leyva, Public Works Supervisor
ATTACHMENT(S)
1. Bid Results
2. Agreement