CITY COUNCIL STAFF REPORT
DATE: AUGUST 26, 2026 CONSENT CALENDAR
SUBJECT: AWARD OF A CONTRACT AND APPROVAL OF TASK ORDER FOR THE 2026 SLURRY SEAL PROJECT (CITY PROJECT NO. 26-02) INCLUDING
APPROVAL OF A CONSTRUCTION CONTRACT TO UNION PAVEMENT
SERVICES, INC. IN THE AMOUNT OF $734,147; APPROVAL OF A TASK ORDER UNDER ON-CALL AGREEMENT NO. 25Q158 WITH DUDEK,
INC., IN AN AMOUNT NOT TO EXCEED $194,400 FOR CONSTRUCTION
MANAGEMENT AND INSPECTION SERVICES
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Award of this contract will allow the City to proceed with construction of the 2026 Slurry Seal, City Project No. 26-02 (“Project”), including approval of the associated agreement for construction management and inspection services.
RECOMMENDATION:
1) Award a construction contract to Union Pavement Services, Inc. in the amount of $734,147 for the 2026 Slurry Seal, City Project No. 26-02; 2) Authorize the City Manager to approve a task order for construction management and inspection services from an on-call engineering services firm, Dudek, Inc., in an amount not to exceed $194,400;
3) Delegate authority to the City Manager or designee to approve and execute construction contract change orders up to a total amount of $150,000 with all change orders reported and filed to the City Council; and 4) Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure forms for Union Pavement Services and Dudek are included as Attachment A.
City Council Staff Report
August 26, 2026 -- Page 2
Award 2026 Slurry Seal, CP 26-02
BACKGROUND:
On July 8, 2026, City Council approved the plans, specifications, and estimates (PS&E) for the proposed slurry seal project. This Project will incorporate residential and collector streets. The Project will include approximately 2 million square feet of slurry seal. A copy of the Street List and Maps are included in Attachment B.
STAFF ANALYSIS:
The Project was advertised for bidding in The Desert Sun, industry plan rooms and PlanetBids, an online electronic bid system on July 9, 2026. On July 30 th, 2026, five (5) bids were received as shown in Table 1 below.
Table 1
Company Location Bid Amount
Union Pavement Services, Inc. Jurupa Valley, CA $734,147.00 American Asphalt South, Inc. Riverside, CA $773,415.38
Pavement Coatings Co. Jurupa Valley, CA $776,312.00
Roy Allan Slurry Seal, Inc. Santa Fe Springs, CA $801,101.70 All American Asphalt Corona, CA $821,661.00
Bid Analysis
Staff reviewed all bid documents submitted by the apparent low bidder and determined that Union Pavement Services (“the Contractor”) complies with the instructions to bidders and has submitted the lowest responsive and responsible bid in the amount of $734,147.
Staff recommends City Council approve the bid submitted by the Contractor. A copy of the proposed draft agreement is included as Attachment C and a copy of the Contractor’s bid is included as Attachment D.
Construction Management Services
The general scope of work for the construction management services includes a full-time on-site individual who represents the City, generates construction documents, manages document control, coordination with stakeholders and utility companies, conducts community outreach services, coordinates meetings, schedule inspections, perform special inspections, conducts project administration, verifies quantities for invoicing, verifies change order requests, conducts independent cost analysis, and assist with project close out. There will also be a quality control construction manager assigned to the project. Staff sent a request for proposals for construction management and inspection services to its on-call consultant, Dudek.
Staff recommends City Council approve a task order in the amount of $194,400 under an on-call agreement for construction management services with Dudek.
Local Business Preference Compliance
Section 7.03.08 of the Palm Springs Municipal Code (“PSMC”), “Local Business City Council Staff Report
August 26, 2026 -- Page 3
Award 2026 Slurry Seal, CP 26-02
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 workforce resides within the Coachella Valley. American Asphalt South, Inc is not considered a local business but has demonstrated sufficient evidence of good faith efforts to subcontract the supply of materials to local businesses.
Time of Completion
The work shall be diligently performed to completion before the expiration of 40 working days from the issuance of a notice to proceed. Working days are defined as Monday through Friday, excluding weekends and City recognized holidays.
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 has determined that the 2026 Slurry Seal, City Project No. 26-02, 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 2 below. Sufficient funds have been budgeted to cover the cost of construction.
Table 2
Project Costs Amount
Gas Tax Funds $355,591.41
Measure A Funds $778,246.28
Project Administration ($20,000)
Construction Administration/Inspection ($194,400)
Construction Contract ($734,147)
Contingency (20%) ($150,000)
Total Budget Remaining $35,290.69
City Council Staff Report
August 26, 2026 -- Page 4
Award 2026 Slurry Seal, CP 26-02
REVIEWED BY:
Acting City Engineer: Francisco Jaime
Assistant City Manager: Flinn Fagg
City Manager: Teresa Gallavan for Scott Stiles
ATTACHMENTS:
A. Public Integrity Disclosures
B. Street List and Map
C. Construction Agreement
D. Contractor’s Bid