TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: John Ristow
Matt Loesch
SUBJECT: See Below DATE: April 7, 2025
Approved
Date:
4/15/25
COUNCIL DISTRICT: Citywide
SUBJECT: Report on Bids and Award of Contract for the 10508 – 2025 Major Streets Sealing Project
RECOMMENDATION
a) Report on bids and award a contract for the construction of 10508 – 2025 Major Streets Sealing Project, to the lowest responsive, responsible bidder, Graham Contractors, Inc., in the amount of $7,445,538.90; and
b) Approve a 10% percent contingency in the amount of $744,553.89.
SUMMARY AND OUTCOME
Award of the contract to Graham Contractors, Inc. enables the construction of the 10508 – 2025 Major Streets Sealing Project (Project) which will seal approximately 39 miles of streets along the Major Street Network. Approval of the 10% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the Project.
BACKGROUND
The Department of Transportation (DOT) will maintain approximately 228 miles of roadway during the 2025 construction season, including 53 miles on the Major Street Network and 175 miles on the Local and Neighborhood Streets Network. Of that total, this Project will seal 39 miles of streets to extend pavement life and improve overall COUNCIL AGENDA: 4/29/25
FILE: 25-444
ITEM: 5.2
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Report on Bids and Award of Contract for the 10508-2025 Major Streets Sealing Project
roadway conditions. The Major Street Network consists of 944 miles of the City’s most heavily traveled streets, which collectively carry over 85% of the traffic in the city.
Pavement maintenance is typically performed in two separate phases: preparation and a final surface application. The preparation phase includes American with Disabilities Act (ADA) compliant curb ramp installations and retrofits and the removal and replacement of any structurally failed areas of pavement prior to the commencement of the pavement surface treatment. The final surface treatment, also known as micro- surfacing application, is applied to the entire street after the preparation phases are complete. Micro-surfacing is the application of a thin layer of asphalt emulsion blended with rock, approximately 3/8 of an inch in depth, to the pavement.
To reduce the overall timeframe for completing the preparation work, DOT is managing multiple projects for the concrete and curb ramp improvements, most of which are currently in the construction phase. This Project will provide sealing of the pavement and is the final phase of the pavement treatment.
DOT utilized information provided by Streetsaver, the City’s pavement management system, to generate a candidate list of streets for pavement maintenance. The candidate list was then thoroughly analyzed by staff using the following criteria to create the final list of streets:
• Funding availability and funding use restrictions;
• Streets on the Major Street Network;
• Streets not affected by current or future street-related projects; • Maintenance history and prescribed treatment schedules; • Streets associated with planned safety, bikeway or other “complete streets” projects;
• Community and City Council office feedback regarding roadway conditions and priority street segments;
• Relative location of street segments to create multiple, continuous segments, consistency within neighborhoods, and project efficiency; and • Multi-year geographic spread across the city and street network.
As part of DOT’s equity analysis in the development of the 2025 Major Streets Paving Program, staff cross-referenced the selected streets relative to census tracts designated by the Metropolitan Transportation Commission as “Equity Priority Communities.” Based on this analysis, DOT will maintain 10 miles designated as Equity Priority Communities with this Project, roughly 19% of the 53 miles of Major Streets selected for maintenance during the 2025 construction season.
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Report on Bids and Award of Contract for the 10508-2025 Major Streets Sealing Project
The Attachment to this memorandum contains the list of streets to be maintained with a micro-surfacing application via this Project. The list may change if unforeseen circumstances arise or new information regarding other projects becomes available.
Construction is scheduled to begin June 2025, with a substantial completion in November 2025.
ANALYSIS
Bids were opened on March 6, 2025, with the following results:
Contractor
Bid Amount Variance
Amount
Over/(Under)
Percent
Graham Contractors, Inc.
(San Jose) $7,445,538.90 ($342,184.60) (4%)
Engineer’s Estimate $7,787,723.50 -- --
Pavement Coatings Co.
(Sacramento) $7,949,445.05 $161,721.55 2%
The low bid submitted by Graham Contractors, Inc. is 4% below the Engineer’s Estimate. The bids are lower than the Engineer’s Estimate, likely due to a decrease in material prices compared to the expected price. Staff expected prices to increase for the microsurfacing and tack oil items, but these prices did not change as much as anticipated when compared to last year. The microsurfacing bid item cost went down by $4 per ton, to $351 per ton. The tack coats bid item went up from $405 to $525 compared to last year. Thermoplastic striping item prices went up slightly compared to the 2024 Major Streets Sealing Project.
Graham Contractors, Inc. has previously completed paving projects for the City of San José, including the 10407 – 2024 Major Streets Sealing Project with a beneficial use of November 2024 and 10254 – 2023 Major Streets Sealing Project accepted in October 2024.
Contingency
San José Municipal Code Section 7.04.050 provides for a standard contingency of 10% on all public works contracts except those involving the renovation of building or buildings. The standard contingency is appropriate for this Project.
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Report on Bids and Award of Contract for the 10508-2025 Major Streets Sealing Project
Wage Theft Prevention Policy Check
The Office of Equality Assurance reviewed bidders for compliance with the City’s Wage Theft Prevention Policy on January 16, 2025 and again on January 31, 2025. No wage theft issues were identified.
Project Labor Agreement Applicability
The City’s Project Labor Agreement is applicable to this project because the Engineer’s Estimate is over $1.21 million.
Local and Small Business Outreach
The recommended contractor is a local but not a small business enterprise. No local or small business enterprises were listed as subcontractors on the Project.
EVALUATION AND FOLLOW-UP
DOT provides an ongoing evaluation of the City’s pavement conditions and provides periodic reports on this topic to the Transportation and Environmental Committee. In addition to the Project discussed in this memorandum, one additional major streets pavement maintenance project and five additional local and neighborhood street pavement maintenance projects are scheduled for City Council action this spring.
COST SUMMARY/IMPLICATIONS
This Project supports the Transportation and Aviation Services City Service Area goal to Preserve and Improve Transportation Assets and Facilities. By performing pavement maintenance with this Project, the extension of the useful life of the project streets will defer more costly reconstruction. The source of funding for this Project is through the Construction Excise Tax Fund - State Gas Tax Pavement Maintenance (F480). This project will have no net operating and maintenance costs to the General Fund.
1. TOTAL COST OF PROJECT
Programmatic Project Delivery $ 313,097
Construction 7,445,539
Contingency 744,554
TOTAL PROJECT COSTS $ 8,503,190
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Report on Bids and Award of Contract for the 10508-2025 Major Streets Sealing Project
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
New Paving $3,200,317
Pavement Striping 3,888,522
Loop Detectors 92,800
Other Construction Costs 263,900
TOTAL CONTRACT AMOUNT $ 7,445,539
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the contract recommended as part of this memorandum and remaining project costs, including project delivery, construction, and contingency costs.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Amount for
Contract
2024-2025
Capital
Budget Page
Last Budget
Action (Date,
Ord. No.)
480 406C Pavement
Maintenance –
SB1 Road
Repair &
Accountability
Act 2017
$32,129,885 $7,445,539 1012 02/11/2025,
Ord. 31176
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office and the Planning, Building and Code Enforcement Department.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 29, 2025 City Council meeting.
When the project commences the contractor will provide advance notification regarding working hours, duration of project, and any appropriate schedule and lane closures to affected businesses and residents, as stated in the specifications. To inform traveling motorists of upcoming construction activities and potential traffic delays, changeable
HONORABLE MAYOR AND CITY COUNCIL
April 7, 2025
Subject: Report on Bids and Award of Contract for the 10508-2025 Major Streets Sealing Project
message signs may be used on selected streets stating the scheduled date and time for work to occur on the street.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Exempt, File No. ER24-313, CEQA Guidelines Section 15301(c), Existing Facilities.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
Matt Loesch
Director of Public Works
/s/
John Ristow
Director of Transportation
For questions, please contact Jennifer Seguin, Deputy Director, Department of Transportation, at [email protected] or (408) 794-6453 or Mathew Nguyen, Deputy Director, Department of Public Works at
[email protected] or (408) 535-8300.
ATTACHMENT: List of Streets
ATTACHMENT
List of Streets
Street Name Street From Street To Council
District
1st St Alma Ave William St 3
10th St Keyes St Tully Rd 3, 7
Alma Ave Minnesota Ave Senter Rd 3, 6, 7
Blossom Hill Rd Camden Ave Meridian Ave 9, 10
Camden Ave Olympia Ave Hillsdale Ave 9
Flickinger Ave Doxey Pl Hostetter Rd 4
Hamilton Ave 100’ E of Greylands Dr Meridian Ave 6
Hedding St Chestnut St Oakland Rd 3, 6
Jackson Ave Berryessa Rd Alum Rock Ave 4, 5
Meridian Ave Curtner Ave Blossom Hill Rd 9
Moorpark Ave Lawrence Expy Saratoga Ave 1
Rainbow Dr De Anza Blvd Johnson Ave 1
River Oaks Pkwy River Oaks Pl Montague Expy 4
Silver Creek Valley Rd Farnsworth Dr Hellyer Ave 2, 8