CITY COUNCIL STAFF REPORT
DATE: JUNE 10, 2026 CONSENT CALENDAR
SUBJECT: AWARD OF A CONTRACT AND APPROVAL OF TASK ORDERS FOR THE 2026 PAVEMENT REHABILITATION PROJECT (CITY PROJECT
NO. 26-01) INCLUDING APPROVAL OF A CONSTRUCTION CONTRACT
TO MATICH CORPORATION, A CALIFORNIA CORPORATION, IN THE AMOUNT OF $8,072,751.23; APPROVAL OF A TASK ORDER UNDER ON-CALL AGREEMENT NO. 25Q158 WITH DUDEK, INC., IN AN
AMOUNT NOT TO EXCEED $268,000 FOR CONSTRUCTION
MANAGEMENT AND INSPECTION SERVICES; AND APPROVAL OF A
TASK ORDER UNDER ON-CALL AGREEMENT NO. 23PO41 WITH TSG
ENTERPRISES, INC., DBA THE SOLIS GROUP, IN AN AMOUNT NOT TO EXCEED $11,750 TO PROVIDE COMMUNITY WORKFORCE
AGREEMENT ADMINISTRATION
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Approval of this item will award a contract for the construction of the 2026 Pavement Rehabilitation Project, including approval of associated agreements for construction management services and community workforce agreement administration.
RECOMMENDATION:
1. Award a construction contract to Matich Corporation in the amount of $8,072,751.23 for the 2026 Pavement Rehabilitation, City Project 26-01(“Project”);
2. Authorize the City Manager to approve a task order for project management and inspection services from an on-call engineering services firm, Dudek, Inc., in an amount not to exceed $268,000;
3. Authorize the City Manager to approve a task order for Community Workforce Agreement (CWA) administration services from an on-call CWA firm, TSG Enterprises, Inc., dba The Solis Group, in an amount not to exceed $11,750;
4. Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $1,341,934 with all change orders reported to the City Council; and
5. Authorize the City Manager or designee to execute all necessary documents.
City Council Staff Report
June 10, 2026 -- Page 2
Award 2026 Pavement Rehabilitation Project, CP 26-01
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure forms for Matich Corporation, Dudek, Inc., and The Solis Group are included as Attachment A.
BACKGROUND:
On June 29, 2023, the City Council reviewed and approved the Final Report for the City of Palm Springs Pavement Management Program 2023 Update. The 2023 Update re- assessed the condition of all city streets and identified and characterized different types of failures of each street segment in order to determine an overall Pavement Condition Index (PCI). The PCI is rated from 100 (perfect condition/new) to 0 (worst condition).
Specific ranges of PCI ratings are given a letter grade and an associated condition, as shown in Table 1.
Table 1
PCI Range Grade Condition Description
90-100 A Good Little or no distress.
70-89 B Satisfactory
Little or no distress, with the exception of utility
patches in good condition, or minor to moderate
hairline cracks; lightly weathered.
50-69 C Fair Light to moderate weathering, light load-related base failure, moderate linear cracking.
25-49 D Poor Moderate to severe weathering, moderate levels of base failure, moderate to heavy linear cracking.
0-24 E Very Poor
Extensive weathering, moderate to heavy base
failure, failed patches, extensive network of
moderate to heavy linear cracking.
All streets require regular maintenance to improve the condition and extend the life of the pavement, with the type of maintenance dictated by the PCI index. The following Table 2 lists the various typical maintenance treatment applied per Condition/PCI range.
Table 2
Condition Grade PCI
Range
Typical Maintenance Treatment
Good A 90-100 Do nothing
Satisfactory B 70-89
60-69Fair C 50-59
Slurry Seal & Crack Seal
Edge Grind and 2" Overlay
Poor D 25-49 AC (Asphalt/Concrete) Surface Reconstruction Very Poor E 0-24 Full Depth AC and Base Reconstruction Reconstruction Structure (PCC)
City Council Staff Report
June 10, 2026 -- Page 3
Award 2026 Pavement Rehabilitation Project, CP 26-01
STAFF ANALYSIS:
On March 25, 2026, City Council approved the plans, specifications, and estimates for the proposed street paving project. The Project was advertised for bidding in The Desert Sun, industry plan rooms and the PlanetBids electronic bid system on March 26, 2026, and on April 16, 2026, bids were received. Following the initial bid opening, the City received a bid protest from Vance Corporation. Upon review, the City determined that a material defect existed within the bid documents and subsequently rejected all bids.
The Project was re-advertised for bidding in The Desert Sun, industry plan rooms and the PlanetBids electronic bid system on April 23, 2026, and on May 14, 2026, the following bids were received:
Company Location Bid Amount
Matich Corporation Cabazon, CA $8,072,751.23
Granite Construction Co. Indio, CA $8,495,000.00
Calmex Bloomington, CA $8,512,345.05
R.J. Noble Company Orange, CA $9,128,586.70
Note: There were a total of three (3) Bid Schedules (A, B, & C). Bid Schedule C was not selected.
The totals above are based on Bid Schedules A+B.
Scope of Work
The Project will include approximately 2.1 million square feet of pavement rehabilitation and associated utility/monument cover adjustments across various arterials, collectors, and residential streets. As part of the street reconstruction, any curb ramps adjacent to the streets selected for complete AC surface reconstruction will be brought up to current Americans with Disabilities Act (ADA) standards. A copy of the street list and map is included as Attachment B.
Time of Completion
The work shall be diligently prosecuted to completion before the expiration of 45 working days from the issuance of a notice to proceed. Working days are defined as Monday through Friday, excluding weekends and City recognized holidays.
Bid Analysis
The lowest responsive bid was submitted by Matich Corporation (Matich) in the amount of $8,072,751.23 for Base Bid Schedule A and additive Bid Schedule B. The Engineer’s Estimate for the Project was $8,500,000. Due to limited available funding, Bid Schedule C will not be included in the award. Staff recommend the City Council award a construction contract to Matich. The proposed agreement is included as Attachment C.
The bidding documents received from Matich are included as Attachment D.
Construction Management Services
Staff issued a Request for Proposals (RFP) for Construction Management (CM) and City Council Staff Report
June 10, 2026 -- Page 4
Award 2026 Pavement Rehabilitation Project, CP 26-01
Inspection services to one of their on-call CM firms. The requested RFP was written to ensure that the selected firm demonstrated successful experience and capacity to provide construction management with inspection services required by the City. Dudek provided a proposal in the amount of $268,000. Staff recommend the City Council approve a task order under On-Call Agreement 25Q158 with Dudek, Inc., not to exceed $268,000.
Project Labor Agreement (PLA) and Administration
This Project is subject to the City’s Community Workforce Agreement dated August 31, 2021, which is on file with the City. The Contractor and all Subcontractors of any tier are to include contractual provisions in all contracts they enter for the performance of the work requiring the Contractor and all Subcontractors to comply with the provisions of the PLA prior to the commencement of work and at no additional cost. Staff issued a Request for Proposals (RFP) from our on-call Community Workforce Administration Services firm, TSG Enterprises, Inc., dba The Solis Group (“TSG”). Staff recommend the City Council approve a task order under On-Call Agreement 23PO41 with TSG not to exceed $11,750.
Local Business Preference Compliance
Section 7.03.08 of the Palm Springs Municipal Code, “Local Business Preference Program”, requires prime contractors to use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose work force resides within the Coachella Valley. Matich Corporation has demonstrated sufficient evidence of good faith efforts to subcontract the supply of materials to local businesses.
ENVIRONMENTAL ASSESSMENT:
In accordance with the California Environmental Quality Act (“CEQA”) Guidelines Section 15301 “Existing Facilities”, Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use. Therefore, Staff have determined that the 2026 Pavement Rehabilitation, City Project No. 26-01, is considered categorically exempt from CEQA.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
The estimated construction and administrative costs to complete the project are shown in Table 3 on the following page.
City Council Staff Report
June 10, 2026 -- Page 5
Award 2026 Pavement Rehabilitation Project, CP 26-01
Table 3
Project Costs Amount
Measure J Funds – Pavement Rehab FY 26 Budget $8,895,569 Measure J Funds – Pavement Rehab Share of FY 27 Budget $616,875 Measure A Funds $217,000
Project Administration ($35,000)
Construction Administration/Inspection ($268,000)
Community Workforce Agreement Administration ($11,750)
Construction Contract ($8,072,751.23)
Contingency ($1,341,934)
Total $0
Sufficient funds have been budgeted to cover the cost of construction.
REVIEWED BY:
City Engineer: Joel Montalvo
Director of Finance & Treasurer: Kristopher J. Mooney
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Public Integrity Disclosure Forms
B. Street List and Map
C. Construction Agreement
D. Contractor’s Bid