CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: AWARD CONSTRUCTION CONTRACTS WITH DESERT CONCEPTS CONSTRUCTION, INC. AND ONYX PAVING COMPANY, INC. FOR ON-
CALL ASPHALT REPAIR AND REPLACEMENT SERVICES
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:
This action will award construction contracts to Desert Concepts Construction, Inc. in the amount of $960,000 and Onyx Paving Company, Inc. in the amount of $640,000 for on- call asphalt repair and replacement services for an initial three-year term.
RECOMMENDATION:
1. Approve Construction Contract No. 26B076 with Desert Concepts Construction, Inc., to provide on-call asphalt repair and replacement services in an amount not to exceed $960,000 for an initial three-year term commencing on May 28, 2026, and continuing through May 27, 2029, with two one-year extension options at the City’s sole discretion;
2. Approve Construction Contract No. 26B077 with Onyx Paving Company, Inc., to provide on-call asphalt repair and replacement services in an amount not to exceed $640,000 for an initial three-year term commencing on May 28, 2026, and continuing through May 27, 2029, with two one-year extension options at the City’s sole discretion;
3. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure forms (Attachment C) submitted in April of 2026, Desert Concepts Construction, Inc., and Onyx Paving Company, Inc., are registered in the state of California.
City Council Staff Report
May 27, 2026 -- Page 2
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BACKGROUND:
The Public Works Department requires the services of qualified and properly licensed contractors to provide on-call asphalt repair and replacement services at various locations throughout the City to support ongoing roadway maintenance, accessibility improvements, and related capital and operational needs.
The City owns, operates, and maintains approximately 416 lane miles of public roadway infrastructure requiring continuous asphalt pavement maintenance, repair, and rehabilitation to preserve structural integrity, ensure public safety, and maintain compliance with applicable federal, state, and local standards.
The City is establishing on-call delivery contracts under which services shall be performed on an as-needed basis and authorized solely through written purchase orders issued by the City’s Public Works Department. For each purchase order, the City will determine the specific location, scope, quantities, construction methods, and schedule of work based on operational priorities, pavement conditions, and available funding. No minimum quantity of work is guaranteed under this agreement.
Work may include planned maintenance activities, accessibility improvements, capital improvement support, and unanticipated or emergency repairs necessary to address pavement failures, safety hazards, or operational deficiencies within the public right-of- way.
This agreement is intended to provide the City with a flexible, cost-effective, reliable mechanism for delivering consistent, high-quality asphalt pavement services while minimizing disruption to the traveling public.
The City’s current agreement for on-call asphalt repair and replacement services is with Onyx Paving Company, Inc., (Onyx) under Agreement No. 24B082 (24B082), in an amount not to exceed $900,000. The agreement began on May 13, 2024, and continues through May 12, 2027. Services are provided on an as-needed basis throughout the City.
The City’s current agreement with Onyx is nearing its not-to-exceed limit, requiring solicitation of these needed services. Additionally, the City previously awarded a single contract for these services, and has determined awarding on-call agreements with two vendors would provide greater flexibility and redundancy in service delivery. Staff recommend awarding two contracts for these services, with a primary and a secondary, to ensure continued availability of on-call asphalt services without interruption.
STAFF ANALYSIS:
The contracts with Desert Concepts Construction, Inc., and Onyx Paving Company, Inc., are on-call, as-needed type contracts. The bids were used to determine the lowest, responsive, responsible bidders and to set the unit rates for the contracts; however, the City Council Staff Report
May 27, 2026 -- Page 3
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actual amount of the contracts is based on the budgeted amount set by the Department and will therefore not match the bid amounts.
On March 16, 2026, the Procurement and Contracting Department issued Invitation for Bids (IFB 26-05) for on-call asphalt repair and replacement services based on the specifications provided by the Public Works Department. IFB 26-05 was advertised in the local newspaper, and published on the PlanetBids website with notification to 536 registered vendors. This outreach resulted in the submission of 5 bids.
The following contractors submitted bids for consideration by the April 15, 2026, deadline.
Vendor Location Bids
Desert Concepts Construction, Inc. Indio, CA $547,625.00 Onyx Paving Company, Inc. Yorba Linda, CA $828,000.00
Hardy & Harper, Inc. Lake Forest, CA $918,000.00
Granite Construction Company Indio, CA $923,902.75
Paveco Construction, Inc. Baldwin Park, CA $1,785,003.10 The Departments’ intent for this solicitation is to award two contracts to the lowest, responsive and responsible bidders. Desert Concepts Construction, Inc., will be the primary contract holder and Onyx Paving Company, Inc. will be the secondary. The department will reach out to the primary contract holder first and if they are unable to perform the work, the department will reach out to the secondary contract holder. The unit pricing is fixed for the first year and subject to a CPI increase in the following years.
Therefore, staff recommend approval of Construction Contracts (26B076) with Desert Concepts Construction, Inc., and (26B077) with Onyx Paving Company, Inc. for on-call asphalt repair and replacement services for the initial three-year term in the amounts not to exceed $960,000 and $640,000, respectively, effective May 28, 2026, through May 27, 2029, subject to two one-year optional renewals at the sole discretion of the City.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council Strategic Plan Broad Goal of Infrastructure and Facilities.
City Council Staff Report
May 27, 2026 -- Page 4
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FISCAL IMPACT:
The total not-to-exceed amount of both contracts for the initial three-year term is $1,600,000. This includes $960,000 for Desert Concepts Construction, Inc. and $640,000 for Onyx Paving Company, Inc.
Funding is available in both the current Fiscal Year 2025-26 and 2026-27 budgets and will be budgeted in subsequent years.
Public Works: 1006515-40105 & 60025; 5206570-40105 & 50119 Gas Tax: 1333090-80000
Measure A -Local: 1343085-80000
Measure J: 2603080-80000
Measure J Deferred Maintenance: 2603205-50119
REVIEWED BY:
Assistant Director Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Construction Contract (26B076) – Desert Concepts Construction, Inc.
B. Construction Contract (26B077) – Onyx Paving Company, Inc.
C. Public Integrity Disclosure Forms