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Rescind and Reapprove the Award of a Construction Agreement to Matich Corporation

Mayor and City Council
June 4, 2025

Document
Rescind and Reapprove the Award of a Construction Agreement to Matich Corporation
Meeting
June 4, 2025
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Mayor and City Council
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 4, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Lynn Merrill, Director of Public Works
Department: City Manager's Office
Subject: Rescind and Reapprove the Award of a Construction Agreement to Matich Corporation for the Pavement
Rehabilitation at Fourteen Locations in the amount of
$4,750,755.00 (Project No. SS25-004) All Wards
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino California:

1. Rescind the approval of the Construction Agreement awarded to Matich Corporation on May 7, 2025, in the of $4,750,755.00 for the Pavement Rehabilitation at Fourteen Locations (Project); and

2. Approve the award of the Construction Agreement awarded to Matich Corporation, in the of $4,750,755.00 for the Pavement Rehabilitation at Fourteen Locations (Project); and

3. Authorize the project construction, construction contingencies, construction management, staff administrative costs, and independent soil and pavement testing, in the total amount of $1,500,000 for construction of the project; and

4. Authorize the City Manager or designee to execute all documents with Matich Corporation; and

5. Authorize the City Manager or designee to expend the contingency fund, if necessary to complete the project.

Executive Summary
Awarding the Construction Agreement for Pavement Rehabilitation at Fourteen Locations will address critical roadway maintenance needs at several locations throughout the City. This agreement will enable the City to issue a Notice to Proceed to Matich Corporation, starting the process of upgrading and repairing deteriorating 2 4 7 0 pavement. The scope of work includes clearing, full concrete and asphalt construction, crack sealing, overlays, traffic striping, utility adjustments, and traffic control. The project will be funded through the RMRA/SB1 and Gas Tax budgets.

Background
As part of the City’s commitment to maintaining its streets, a Pavement Management Analysis (PMA) was conducted on November 24, 2021, to assess the Remaining Service Life (RSL) of all public streets. Based on this analysis, City staff developed a list of 35 locations, considering factors such as pavement condition, available funding, community input (via CRM), and coordination with planned infrastructure projects.

On June 26, 2024, the Mayor and the City Council approved Resolution No. 2024-142 of the Operating Budget of the CIP 2025-2029, which included the 35 locations list.

From this list, 14 locations have been selected for inclusion in the annual Road Maintenance and Rehabilitation Program (RMRA)/SB1.

On July 3, 2024, the Mayor and City Council adopted Resolution No. 2024-146, authorizing the Director of Finance to amend the FY 2024/25 Capital Improvement Plan. This amendment includes supplemental appropriations of $5,787,126.00 from the SB1 Fund and $1,355,877.50 from the Gas Tax Fund, totaling an additional appropriation of $7,143,003.50 for the Street Rehabilitation – 14 Locations (Project No. 13630).

On December 19, 2024, Hilltop Geotechnical, Inc. issued a Pavement Design Report for the fourteen locations, which included a comprehensive pavement evaluation. The evaluation involved the exploration of both surface and subsurface conditions of the streets, conducted between November 6 and November 8, 2024.

On May 7, 2025, the Mayor and City Council awarded a Construction Agreement to Matich Corporation, in the amount of $4,750,755.00 for Pavement Rehabilitation at fourteen locations (Project).

The project includes the following locations:
• North Mayfield Avenue from West 8th Street to 10th Street (Ward 1) • North Western Avenue from 8th Street to Union Street (Ward 1) • East Gilbert Street from North Waterman Avenue to Canyon Road (to the Bridge) (Ward 2)
• West 14th Street from North G Street to North E Street (Ward 2) • East Hardt Street from South Tippecanoe Avenue to Richardson Street (Ward 3) • East Holden Drive from the West End to the East End (Ward 3) • North Orange Street from 210 FWY and Highland Avenue (Extending the paving from Highland Avenue to Piedmont Drive is an additive) (Ward 4) • North Electric Avenue from West 40th Street to 48th Street (Ward 4) • North Varsity Avenue from West College Avenue to Universal Ave (Ward 5) • West College Avenue from University Parkway to North Citadel Avenue (Ward 5) • West Roosevelt Avenue, from Macy Street to University Parkway (Ward 6) 2 4 7 0 • North Macy Street from Roosevelt Avenue to West and East end of West Washington Avenue (including Lincoln Avenue from West End to University Parkway) (Ward 6) • West 34th Street from North Mountain View Avenue to North Sierra Way (Ward 7) • North Mountain View Avenue from West 30th Street to Edgerton Drive (Ward 7) Discussion
A Construction Agreement with Matich Corporation was awarded at the May 7, 2025, Mayor and City Council Meeting. Following the meeting, staff were informed that a City Council Member resides on one of the streets designated for improvements.

Out of an abundance of caution, it is recommended that the approval of the construction agreement be rescinded and reconsidered for approval, with the Council Member residing on one of the designated streets recusing themselves from voting on the matter.
2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No. 1d. Improved Operational & Financial Capacity - Create a framework for spending decisions and 1f. Create an asset management plan. Approval of the proposed project list will allow staff to move forward in addressing deferred street maintenance needs identified in the PMA, and secure project funding resources available through RMRA/SB1.

Fiscal Impact
The total project budget is $6,250,755, which includes $4,750,755 for the contract award and $1,500,000 in contingency. The project is fully funded, with $7,143,003.50 available $5,787,126 from RMRA/SB1 funds and $1,355,877.50 from Gas Tax funds.

There is no General Fund impact. This project is budgeted in the FY 2024/25 CIP and supported by Resolution 2024-146.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino California:

1. Rescind the approval of the Construction Agreement awarded to Matich Corporation on May 7, 2025, in the of $4,750,755.00 for the Pavement Rehabilitation at Fourteen Locations (Project); and

2. Approve the award of the Construction Agreement awarded to Matich Corporation, in the of $4,750,755.00 for the Pavement Rehabilitation at Fourteen Locations (Project); and

3. Authorize the project construction, construction contingencies, construction management, staff administrative costs, and independent soil and pavement testing, in the total amount of $1,500,000 for construction of the project; and

4. Authorize the City Manager or designee to execute all documents with Matich Corporation; and

5. Authorize the City Manager or designee to expend the contingency fund, if necessary to complete the project.

Attachments
Attachment 1 – May 7, 2025, Staff Report and Supporting Documents Ward
All Wards
Synopsis of Previous Council Actions
May 7, 2025- Mayor and Council awarded the Construction Agreement to Matich Corporation for the Pavement Rehabilitation in the amount of $4,750,755.00

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