CITY COUNCIL STAFF REPORT
Meeting Date: August 18, 2025
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO.___-25 AWARDING A CONSTRUCTION CONTRACT FOR THE 2025 POTHOLE REPAIR AND ASPHALT
CONCRETE (AC) PATHWAY OVERLAY PROJECT NO. 01-25 AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONSTRUCTION CONTRACT WITH RAPID GRADING SERVICES
SYNOPSIS
The 2025 Pothole Repair and AC Pathway Overlay Project No. 01-25 will include pavement repairs (dig-outs) on arterial, collector, and residential streets, as well as a surface treatment for selected AC pathways throughout the City. The purpose of this item is to consider acceptance of the lowest responsive and responsible bid, submitted by Rapid Grading Services, and to seek authorization to award the construction contract.
DISCUSSION
Background
In November 2016, Measure K, a half-cent transactions and use tax (or sales tax), was approved by Pleasant Hill voters. The tax took effect April 1, 2017, for a 20-year period. The Measure generates approximately $5.5 million in needed revenue each year, and a portion of these funds has been allocated to the Street Resurfacing Program (SRP).
The City’s SRP provides for on-going maintenance of the City’s 110 miles of roadway pavement.
The condition of each street in the City’s network is evaluated every two to three years. The most recent pavement survey was completed in the spring of 2025. Staff uses this data, in part, to identify needed street resurfacing repairs on our arterial, collector and residential streets.
The 2025 Pothole Repair and AC Pathway Overlay Project (Project) consists of two main components: (1) localized dig-out repairs on deteriorated pavement sections, and (2) overlay improvements on selected AC pathways.
In order to maintain our arterial and collector streets in good condition, the Project identified approximately 110,000 square feet of the most critical pavement failures to be repaired on the arterials and collectors identified on the attached Project List of streets. The project also includes approximately 14,000 square feet of residential pothole repairs. Addressing these concerns now will help prevent increased future repair costs, as delayed maintenance will lead to further deterioration and more expensive rehabilitation efforts.
Staff has also identified several City maintained asphalt concrete (AC) pathways (see attached list) in need of a surface maintenance treatment. These pathways, which serve pedestrians and bicyclists, will benefit from a surface treatment to improve user safety.
Environmental Review
The 2025 Pothole Repair and AC Pathway Overlay Project (Project No. 01-25) involves the removal and replacement of existing street and pathway facilities in-kind. The new improvements will be constructed at the same locations as the existing facilities and will serve the same purpose and capacity as the current infrastructure.
Accordingly, the Zoning Administrator has determined that the 2025 Pothole Repair and AC Pathway Overlay Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to Title 14, California Code of Regulations, Chapter 3, Section 15301 (Class 1: Existing Facilities) and Section 15302 (Class 2: Replacement or Reconstruction).
Analysis
The Notice Inviting Bids for the project was distributed to construction exchanges on May 1, 2025, and the project was advertised in the Contra Costa Times on May 5, 2025. A total of five bids were received and publicly opened on Wednesday, June 4, 2025, at 2:00 p.m. at City Hall.
In accordance with the bid documents, the City bases the project award on the lowest responsive, responsible total base bid. The table below summarizes the base bid amounts received, with the apparent low bid highlighted in bold.
CONTRACTOR BID PRICE
1 RAPID GRADING SERVICES $1,079,000
2 QA CONSTRUCTORS INC. $1,171,930
3 KEREX ENGINEERING, INC. $1,175,550
4 JV LUCAS PAVING, INC. $1,189,310
5. MCK SERVICES, INC. $1,266,500
The Engineer’s Estimate (EE) for the project construction is $1,000,000 and the lowest bidder’s Rapid Grading Services bid is $1,079,000 which is $79,000 more than the EE. A detailed analysis of Rapid Grading Services bid revealed that it is within 8.1 percent of the average cost of the next two lowest responsive bidders, so staff considers its bid price reasonable relative to other competitive construction bids received.
Rapid Grading Services is a reputable paving contractor based in the City of Hayward. Staff has contacted various project references listed by the contractor and these references indicated that Rapid Grading Services has satisfactorily completed their contracts of similar size and scope; therefore, their bid is acceptable. Staff believes that Rapid Grading Services has the experience and professional competency that will result in a satisfactory product for the City.
Rapid Grading Services bid proposal documentation is complete, and staff has determined them to be the lowest responsive, responsible bidder. Bidding rules require that the City Council award the construction contract to the lowest responsive, responsible bidder or reject all bids. Staff recommends the City Council award the construction contract to Rapid Grading Services.
The project construction cost (base bid) is $1,079,000. It is reasonable to include a construction contingency of 15 percent or $161,850, which is typical for a construction project of this type.
FISCAL IMPACT
The project construction costs are funded as identified in the 2024-2029 Capital Improvement Plan (CIP) and summarized in the table below:
Project Revenues Project Expenditures
Street Resurfacing $1,240,850 Construction Cost $1,079,000 Contingency (15%) $161,850
Total $1,240,850 Total $1,240,850
Engineering Division staff has confirmed with the Finance Division that monies are available for construction of this Project.
PUBLIC CONTACT
Public Contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt Resolution awarding the contract to Rapid Grading Services.
ALTERNATIVES TO RECOMMENDED ACTION
No alternatives recommended
ATTACHMENT(S)
Proposed Resolution
Exhibit 1 - Attachment to the Proposed Resolution
List of Streets
Prepared by: Shawn Hung, Associate Engineer
Reviewed by: Ann James, Public Works Director
Approved by: Ethan Bindernagel, City Manager