CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #C2
DATE: April 8, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Neema Ghanbari, MS, PE, Public Works Director
RECOMMENDATION:
RECOMMENDATION TO ACCEPT THE CONSTRUCTION IMPROVEMENTS BY
SEQUEL CONTRACTORS FOR THE SCAG STBG STREET REHABILITATION, PROJECT 121 (FEDERAL PROJECT NO. STPL-5387-017), AND AUTHORIZE THE
CITY CLERK TO FILE THE NOTICE OF COMPLETION
SUMMARY
On February 3, 2024, the City’s Engineering Division applied for federal funding related to the Congestion Mitigation and Air Quality Improvement program (CMAQ) and Surface Transportation Block Grant Program (STBG) through the Southern California Association of Governments (SCAG). The City requested $1.5 million from federal STBG funds with a required local City match of $204,342.
SCAG initially placed this funding request on its contingency list. However, following ongoing follow-ups and meetings with Metro, Caltrans, and the SCAG team, the City was informed by LA Metro on March 6, 2025, that immediate action was needed to pursue a new funding opportunity. This opportunity pertained to the 'Citywide Street Restriping, Speed Feedback, and Traffic Calming' project in Hawaiian Gardens, which had been submitted as part of the SCAG 2024 Nomination.
On May 28, 2025, the City Council approved Willdan Engineering’s proposal in the amount of $100,160 for the provision of engineering design and federal grant administration services and approved the following street segments for this project:
Item Street Beginning End
1. Norwalk Boulevard Carson Street 226th Street
2. Pioneer Boulevard 221st Street 226th Street
3. Juan Avenue Carson Street 214th Street
Agenda Item #C2
April 8, 2026
On August 15, 2025, the City received the signed E-76 form from Caltrans, officially authorizing the City to proceed with the construction phase of the project.
On October 2, 2025, the City Clerk received eight (8) sealed bids for the Project. The lowest responsive bidder was Sequel Contractors, of Santa Fe Springs, California, with a bid amount of $1,335,200.
On October 22, 2025, the City Council awarded the construction contract to the lowest responsive bidder, Sequel Contractors in the amount of $1,335,200. A 10% construction contingency was set aside for a total construction budget of $1,469,200. The contractor was authorized to proceed with construction in early November 2025, and the project was completed in February 2026.
The project’s scope of work included cold milling existing Asphalt Concrete (AC); overlaying the full street width with Asphalt Rubber Hot Mix (ARHM); crack sealing; removing and replacing damaged curbs and gutters, sidewalks, and driveway approaches; installing new ADA-compliant curb ramps; Refreshing and replacing traffic striping and markings; and replacing vehicle detector loops. Also, in accordance with the adopted Bike Master Plan, the existing bike lanes on Norwalk Boulevard between Carson Street and 226th Street were upgraded to include a 5-foot-wide bike lane with a 2-foot buffer separating the bike lane from the vehicle travel lane on both sides of the roadway to improve visibility and safety for bicyclists.
One change order was issued to Sequel Contractors for the amount of $28,108.30 to provide additional improvements not included in the original scope of work. These improvements included the installation of additional pavement striping, curb markings, speed bump fog sealing and striping, as well as the installation of signage. The project also included additional enhancements to the City Hall parking lot.
The Project was completed on schedule and within budget with a final construction cost of $1,433,364.02.
FISCAL IMPACT
The design phase cost was $100,160 and was covered by the Engineering Division Contract Account Services account.*
The original project funding consisted of $1,500,000 in federal STBG funds, along with a required local City match of $204,342 to be funded through local Measure M funds. Based on the final construction cost, the funding amounts have been adjusted as follows:
Item Fund Budget
1. Federal STBG $1,373,000
2. Measure M/Local Match $181,000
3. General $100,160
Total $1,654,160
Agenda Item #C2
April 8, 2026
The final project cost was $1,653,069.64 and was completed under budget. The following table is a breakdown of the project’s costs and cost savings:
Project Description Budget Actual Costs Net Difference
Construction $1,335,200.00 $1,335,200.00 $0
Construction Contingency (10%) $134,000.00 $98,164.02 $35,835.98 Design* $100,160.00 $100,160.00 $0
Inspection & Material Testing $93,080.00 $89,545.62 $3,534.38 Labor Compliance & Project
Management $12,000.00 $30,000 ($18,000.00)
Estimated Project Cost $1,674,440.00 $1,653,069.64 $21,370.36
SUGGESTED ACTION
Approve Recommendation.
ATTACHMENT(S)
A. Project Location Map