CITY COUNCIL STAFF REPORT
Meeting Date: August 17, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: AWARD THE CONSTRUCTION CONTRACT FOR THE 2026 STREET RESURFACING PROJECT NO. 01-26 AND AUTHORIZE THE CITY
MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH
MCK SERVICES, INC.
SYNOPSIS
The 2026 Street Resurfacing Project No. 01-26 provides for the installation of ADA compliant curb ramps, curb and gutter replacement, monument preservation, utility adjustments, thermoplastic striping, and pavement resurfacing treatments within two residential neighborhoods in the City. The purpose of this item is to consider acceptance of the lowest responsive and responsible bid submitted by MCK Services, Inc. and to authorize the award of the construction contract.
DISCUSSION
Background
The 2026 Street Resurfacing Project No. 01-26 is an approved project in the City’s FY 2026–2031 Capital Improvement Plan (CIP). The project scope includes localized pavement failure repairs (potholes), installation of new ADA-compliant curb ramps, limited curb and gutter replacement, monument preservation, utility adjustments, and a final pavement resurfacing treatment, followed by re-striping, consistent with the City’s approved Pedestrian and Bicycle Master Plan.
In November 2016, Pleasant Hill voters approved Measure K, a half-cent transactions and use (sales) tax. The tax took effect on April 1, 2017, for a 20-year period and generates approximately $5.5 million annually. A portion of these funds is allocated each year to support the City’s Street Resurfacing Program (SRP).
The SRP provides for the ongoing maintenance of the City’s 110 miles of roadway pavement.
Each street within the City’s network is evaluated on a 2- to 3-year cycle, with the most recent pavement condition survey completed in spring 2025. For program management purposes, the City is divided into 24 Residential Street Zones (RSZs). Based on survey data, each street is assigned a Pavement Condition Index (PCI) rating. The ratings for all streets within each RSZ are averaged to determine the overall condition of the zone. RSZs are then ranked by average PCI to establish maintenance priorities.
Because lower PCI ratings correspond to higher future maintenance and rehabilitation costs, neighborhoods with the lowest average PCI are prioritized to prevent further deterioration and to minimize long-term resurfacing costs.
Staff is focusing this year’s Street Resurfacing Program funds on selected streets within two scheduled residential neighborhoods: RSZ 14, with an average PCI of 38, and RSZ 4, with an average PCI of 59 (see attached street list). All selected streets in these neighborhoods will benefit from resurfacing treatments.
Based on the pavement survey, field evaluations, and a value-engineering analysis, staff recommends pavement resurfacing treatments including base failure repairs, mill-and-fill with hot-mix asphalt (HMA), partial-depth recycling with an HMA overlay, and wedge grinding with an HMA overlay for streets in both RSZ 4 and RSZ 14. Final thermoplastic striping, consistent with the approved Pedestrian and Bicycle Master Plan, will be installed once resurfacing is complete.
These treatments will extend pavement life and improve ride quality at a lower cost than full reconstruction. The selected streets were chosen because they do not conflict with utility projects, are scheduled for resurfacing under the Pavement Management System, and make the best use of available program funds.
Fiscal Year 2026/2027 (FY26/27) SB1 gas tax funds in the amount of $971,038 have been allocated and approved by the City Council for use on this project.
A total of 17 ADA-compliant curb ramps will be installed in RSZ 4 and RSZ 14 as part of the 2026 Street Resurfacing Project. This work will be funded through the FY 26/27 ADA Improvement Program and is required to ensure compliance with federal ADA standards for newly resurfaced roadways.
As part of project coordination, staff identified necessary manhole and valve adjustments along the selected streets and notified the Central Contra Costa Sanitary District (CCCSD) and the Contra Costa Water District (CCWD). Both agencies have been informed of the planned work and may either perform the work themselves or have the City-hired contractor complete it concurrently with the resurfacing project. If the City-hired contractor performs the work, the agencies will reimburse the City for the associated costs, with an estimated reimbursement of $195,300 from CCWD and $201,600 from CCCSD, for a combined total of $396,900.
Street Monumentation Program
As part of the City’s Street Monumentation Program, and in compliance with State requirements governing the protection and re-establishment of existing survey monuments, Leptein, Cronin, Cooper, Morris & Poore, Inc. (LCC, Inc.), a licensed surveying firm, has identified approximately 26 street survey monuments within RSZ 4 and RSZ 14 that require monument preservation, including box and lid replacement. LCC, Inc. will provide the professional surveying services necessary to complete this work.
Alternate A
When preparing the bid package, staff anticipated the possibility of higher-than-expected bid prices due to global market instability and uncertainties in asphalt supply, including Valero’s departure from the California market. To minimize the risk of exceeding the project budget, the Monti Circle segment was separated from the base bid and included as Bid Alternate A.
Environmental Review
The 2026 Street Resurfacing Project No. 01-26 will remove and replace existing facilities in kind.
The new facilities will be located on the same sites as the existing ones and will serve the same purpose and capacity as the current system. Accordingly, the Zoning Administrator has determined that the project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations, Title 14, 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 June 18, 2026, and advertised in the Contra Costa Times on June 25, 2026. A total of 8 bids were received and publicly opened and read on Thursday, July 22, 2026, at 2:00 p.m. at City Hall.
In accordance with the project bid documents, the City will award the contract based on the lowest responsive and responsible total base bid. The table below summarizes the base bid and Alternate “A” bid amounts, with the lowest bid indicated in bold.
CONTRACTOR BID PRICE ALT “A”
1 MCK Services* $3,810,494.84 $278,474.00
2 Bay Cities Paving & Grading Inc. $4,078,569.04 $459,769.44 3 DeSilva Gates Construction $4,190,000.00 $414,000.00
4 McGuire and Hester $4,364,553.00 $357,782.50
5 Radius Earthwork, Inc. $4,444,746.24 $564,911.36
6 Ghilotti Construction Company, Inc. $4,555,330.25 $423,264.75 7 Ghilotti Bros., Inc. $4,892,267.60 $423,432.00
8 Argonaut Constructors, Inc. $4,988,939.75 $725,234.00 The Engineer’s Estimate (EE) for project construction is $4,900,000 for the base bid. The lowest bidder, MCK Services, Inc., submitted a bid of $3,810,494.84, which is 22 percent below the EE.
Based on an analysis of the top three bids and the competitive pricing, within approximately five percent, staff finds the bid prices to be favorable and reasonable. Therefore, the bid submitted by MCK Services, Inc. is acceptable.
MCK Services, Inc. has successfully completed previous pavement repair and rehabilitation projects for the City, including the Contra Costa Boulevard Improvement Project and the 2025 Street Resurfacing Project. The firm has satisfactorily performed its past contracts, consistently meeting City standards. Based on their experience, performance history, and demonstrated professional competency, staff concludes that MCK Services, Inc. is a responsible bidder and recommends acceptance of their bid.
Alternate A
Given the favorable bid received for the base bid project work, staff recommends the inclusion of Alternate A, in the amount of $278,474.00, into the project scope. Work included in Alternate A consists of base failure repairs, wedge grinding with a hot-mix asphalt (HMA) overlay, utility adjustments, and final striping on Monti Circle. Public contracting rules allow the City Council to add Alternate A to the project at the time of award.
MCK Services, Inc.’s bid proposal documentation is complete, and staff has determined that they are the lowest responsive and responsible bidder. Under public contracting requirements, the City Council must award the construction contract to the lowest responsive, responsible bidder or reject all bids. Staff therefore recommends that the City Council award the construction contract to MCK Services, Inc.
The project construction cost (base bid) is $3,810,494.84. It is reasonable to include a construction contingency of 15 percent, or $571,574.23, which is typical for a construction project of this type.
The total construction cost with added Alternate A and contingency is $4,660,543.07.
In support of the monument preservation work required for the 2026 Street Resurfacing Project, the City will utilize LCC Engineering & Surveying, Inc. to perform professional surveying services. The consultant’s not-to-exceed cost for these services is $30,900, which includes field investigation, monument referencing, preparation of pre- and post-construction corner records, and production of final as-built monument maps. These services are necessary to comply with State monumentation requirements and to ensure all affected street monuments within RSZ 4 and RSZ 14 are properly preserved or replaced prior to pavement rehabilitation.
FISCAL IMPACT
The project construction costs are funded as identified in the 2026-2031 CIP (MK-1) and summarized in the table below:
Project Revenues Project Expenditures
Street Resurfacing Program $4,165,983.07 Construction Cost $3,810,494.84 Utility Reimbursement $396,900.00 Alternate A $278,474.00 ADA Improvement Program $ 50,000.00 Contingency (15%) $571,574.23 Bike and Ped Program $ 80,000.00 Engineering Serves
- Monument Preservation $32,340
Total $4,692,883.07 Total $4,692,883.07
The Engineering Division has confirmed with the Finance Division that sufficient funds will be available for this project at the time of construction.
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
Staff recommends that City Council take the following action:
1. Move to adopt the resolution to accept the bid and award a construction contract for the 2026 Street Resurfacing Project No. 01-26, and authorize the City Manager to execute a construction contract with MCK Services, Inc.
2. Move to authorize the City Manager to execute an Engineering Services Contract with LCC Engineering & Surveying, Inc. for monument preservation work of the 2026 Street Resurfacing Project.
ALTERNATIVES TO RECOMMENDED ACTION
No alternatives recommended.
ATTACHMENT(S)
Attachment: Proposed Resolution
Project Map and List of Streets
Agreement – MCK Services, Inc.
Agreement – LCC Engineering & Surveying, Inc
Prepared by: Shawn Hung, Associate Engineer
Reviewed by: Ann James, Public Works Director
Approved by: Ethan Bindernagel, City Manager