Item #06
Date: June 2, 2026
To: Mayor and City Council
From: Jeramy Chapdelaine, Public Works Director
John Mallen, Consulting City Engineer
Subject: CDBG Pavement Rehabilitation - Phase 3 Project Award, Contract 24-10 Recommendation:
Pass a Resolution 2026-XX to award a contract in the amount of $3,189,249.00 to Lamon Construction Co., Inc. for pavement rehabilitation of streets in the neighborhood north of State Route 20 and west of D Street in Marysville under the Community Development Block Grant (CDBG) Program, based on Contract Number No. 24-10, CDBG Pavement Rehabilitation - Phase 3 Project, Improvement Plans / Contract Documents and Contractor’s submitted bid package and 2) authorize the Finance Director to make a supplemental appropriation to a Capital Project (e.g. Streets Capital Projects 60-610-5405).
Rationale for Recommendation:
As required by the City of Marysville’s Municipal Code, Chapter 2.76, Purchases, a formal bid was advertised, opened, tabulated, and staff is requesting Council authorization to award the project to lowest responsive bid by the lowest responsible bidder.
Background:
The Community Development Block Grant (CDBG) is a federal program that provides funding to states, cities, and counties for community development activities, with the goal of benefiting low- and moderateincome people, addressing blight, and improving infrastructure. Administered by the California Department of Housing and Community Development (HCD), the City of Marysville, has benefitted from these federal grant funding in the past for various facilities and equipment projects and until recently applied the program funds towards much needed street paving that are in the low-and moderate-income neighborhoods.
On August 1, 2025, HCD executed the agreement with the city for the grant and the project was advertised for bid on February 27, 2026.
On April 9, 2026, bids were opened and the City Engineer subsequently tabulated and reviewed the bids.
See Attachment 3 Bids Results for a tabulation of bids.
Discussion & Analysis:
Marysville has a good number of low to moderate income census tracts as well as a good number of streets that have deferred maintenance. When the two criteria overlap, a pavement rehabilitation project can be initiated as it would be eligible to be funded by the CDBG program.
The City currently has already complete two projects to rehabilitate the pavement in East Marysville. For this agenda’s item, Phase 3 of the CDBG Pavement Rehabilitation Project centers around the Marysville neighborhood bounded by:
14 th St to the north, D Street to the east, 10th St / SR-20 to the south and J St to the west.
Street segments slated for paving include:
• Bid Schedule A1 - I Street (Featherside Way - North end) • Bid Schedule A2 - H Street (10th Street - 14th Street) • Bid Schedule A3 - G Street (10th Street - 14th Street) • Bid Schedule A4 - F Street (10th Street - 14th Street) • Bid Schedule A5 - 11th Street (J Street - D Street)
• Bid Schedule A6 - 12th Street (H Street - D Street)
• Bid Schedule A7 - 13th Street (I Street - D Street)
• Bid Schedule A8 - E Street (10th Street - 14th Street) The bid proposals included a base bid with a bid additive alternate to include an additional area that includes D Street from 10th Street to 14th Street and the portions of 11th, 12th, & 13th Streets east of D Street to the end. The additional bid cost for this additional work was $367,810.00. With the project already exceeding the grant amount, staff does not recommend including the additive alternate bid schedule in contract award.
Funding Gap / Bid Variance Explanation:
Current bid pricing exceeded earlier planning estimates due in part to escalation in construction costs, including fluctuations in petroleum and asphalt-related materials, contractor pricing, and overall market conditions affecting paving projects.
The engineer’s estimate was intentionally developed using conservative assumptions and worst-case quantity estimates to provide adequate coverage for potential field conditions and quantity variations. Final contractor payment will be based on actual installed quantities verified during construction rather than estimated quantities.
Staff anticipates opportunities to reduce quantities in certain areas as field conditions are finalized and construction progresses. These adjustments may reduce overall project costs and minimize the projected funding gap.
As a contingency measure, if project costs remain above available grant funding after final quantity reconciliation and cost management efforts, staff proposes utilizing available SB-1 Road Maintenance and Rehabilitation Account (RMRA) funds as a contingency funding source, if necessary, to ensure project completion.
Alignment with City Council Goal(s):
Goal #3: Improve Infrastructure
Legal Review:
The Attachment 2 provisions and contracts have been reviewed by the City Attorney and is used as the City’s boilerplate contract document.
Fiscal Impact:
Contract $3,189,249.00
10% Contingency $318,924.90
Construction Management & Inspections $106,418.45
Labor Compliance $65,000.00
Project Total $3,679,592.35
The CDBG grant total is $3,300,000.00, that total also includes $36,336.84 for project design and bidding and an estimated $85,000 for general admin.
Based on current estimates, the projected funding gap is approximately $500,929.19; however, staff anticipates this amount may decrease following final quantity reconciliation during construction.
Funding Gap Strategy
Based on current estimates, project costs exceed available CDBG funding. However, staff anticipates the actual funding gap may be reduced because construction quantities included in the engineer’s estimate were developed using conservative assumptions and final payment will be based on verified field quantities.
Staff expects opportunities to reduce quantities in select project areas as construction progresses. Staff will actively manage project quantities and costs throughout construction to minimize any funding shortfall.
If a funding gap remains following final quantity reconciliation and project closeout, available SB-1 Road Maintenance and Rehabilitation Account (RMRA) funds are proposed as a contingency funding source, if necessary, to ensure project completion.
Attachment(s)
Attachment 1 – Bid Results
Attachment 2 – Lamon Construction Co., Inc. Bid
Attachment 3 - Project – Contract from Project Special Provisions Proposal Attachment 4 – Resolution
Attachment 5 - Project Plans & Specifications