STAFF REPORT
14 Meeting Date:
August 12, 2025
SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR ZONE 6 STREET SLURRY
AND REHABILITATION
RECOMMENDATION: It is recommended that the City Council:
1. Award and authorize the City Manager to execute a contract with Pavement Coating Co., in the amount of $1,291,801.50 for the Zone 6 Street Slurry Seal and Rehabilitation project;
2. Award and authorize the City Manager to issue a task order to Onward Engineering, in the amount of $84,510 to provide construction management and inspection services;
3. Authorize the City Manager to approve project-related expenses and construction change orders for unforeseen circumstances in an amount not to exceed $130,000;
4. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) – Existing Facilities.
Appropriation: $0 Fund: N/A
Submitted By: Mark McAvoy Approved:
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
SUMMARY OF THE MATTER
This report recommends that the City Council award a construction contract to Pavement Coating Co. in the amount of $1,291,801.50 for the Zone 6 Street Slurry Seal and Rehabilitation Project and authorize a task order with Onward Engineering for construction management and inspection services. The project area, bounded by High Drive, North Coast Highway, and Lower Cliff Drive, is shown in Attachment 1. The scope includes pavement and concrete repairs, drainage modifications, slurry sealing, and re-striping.
The total estimated project cost is $1,506,311.50, which is within the approved budget of $1,550,000. This project supports the City’s Infrastructure Management goals by improving roadway conditions and enhancing public safety. The project has been reviewed under CEQA and is categorically exempt pursuant to Section 15301(c) of the CEQA Guidelines.
DISCUSSION
Staff completed a public bid process for the project in accordance with California Public Contract Code requirements. On July 31, 2025, six (6) bids were received. The following is a summary of the bids sorted by bid amount:
AWARD OF CONSTRUCTION CONTRACT FOR ZONE 6 STREET SLURRY AND
REHABILITATION
August 12, 2025
Table of Bid Results
Bidder Total Bid Amount
1. Pavement Coatings Co. $1,291,801.50
2. Roy Allan Slurry Seal, Inc. $1,311,488.50
3. American Asphalt South, Inc $1,316,578.40
4. Union Pavement Services, Inc. $1,363,127.70
5. Excel Paving $1,539,849,60
6. All American Asphalt $1,666,698.50
Following a review of the bids, staff determined that the lowest bidder, Pavement Coatings Co., is qualified, properly licensed, and responsive. Pavement Coatings Co. has performed street resurfacing projects for the City in the past with successful results. Therefore, staff recommends that the contract be awarded to Pavement Coatings Co. in the amount of $1,291,801,50..
The street resurfacing work requires full-time inspection services and extensive community outreach. Task order proposals were received from four (4) on-call consultants, including Dudek, Accenture, Annealta Group, and Onward Engineering. The proposals were evaluated based on team qualifications, performance of similar work, cost reasonableness, and the ability to provide services within the required timeline. The proposal submitted by Onward Engineering ranked highest, and the proposed fee of $84,510 is reasonable for the scope of work and less than the other two proposals. It is recommended that a task order be awarded to Onward Engineering for construction management and inspection services.
A comprehensive public outreach effort by City staff and Pavement Coatings Co. will be implemented as part of this project (Attachment 2). This includes social media updates, mailed notices, website postings, door hanger notices, project information signs, phone inquiry responses, and changeable message signs.
Work is expected to begin in September 2025 and be completed by December 2025.
FINANCIAL ANALYSIS
With the low bid amount of $1,291,801.50, the $84,510 to provide construction management and inspection services, and the contingency costs for unforeseen conditions which are estimated not to exceed $130,000, the total project cost is $1,506,311.50. The project budget of $1,550,000 is sufficient to cover projected project costs. No additional appropriation is requested.
ENVIRONMENTAL ANALYSIS
The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) (Existing Facilities). The exemption applies to repair, maintenance, and minor alteration of existing public streets involving negligible or no expansion of use. The project includes pavement resurfacing, concrete repairs, and related improvements within existing rights-of-way, which qualify under this exemption.
AWARD OF CONSTRUCTION CONTRACT FOR ZONE 6 STREET SLURRY AND
REHABILITATION
August 12, 2025
ATTACHMENTS
1. Project Limits Map (Pgs. 3)
2. Professional Services Agreement for Pavement Coating Company (Pgs. 4-7) Report Prepared By: Coordinated With:
Joshua Mcdonald, Associate Civil Engineer Frank Lopez, Assistant City Engineer Thomas Perez, City Engineer