TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: John Ristow
Matt Loesch
SUBJECT: See Below DATE: May 26, 2026
Approved
Date:
6/3/26
COUNCIL DISTRICTS: 1, 2, 3, 7, 8, 9, 10
SUBJECT: Report on Bids and Award of Contract for the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project
RECOMMENDATION
(a) Report on bids and award of a contract for the construction of the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project to the lowest responsive, responsible bidder, MCK Services, Inc., in the amount of $5,563,345.51; and
(b) Approve a 10% contingency in the amount of $556,335.
SUMMARY AND OUTCOME
Award of this contract to MCK Services, Inc. enables the construction of the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project (Project), which will resurface and rehabilitate approximately 13 miles of streets within the Local and Neighborhood Streets Network. Approval of the 10% contingency provides funding for any unanticipated work necessary for the proper completion or construction of the Project.
BACKGROUND
The Department of Transportation (DOT) will maintain approximately 201 miles of roadway during the 2026 construction season. As part of this effort, the Project will resurface approximately 13 miles of streets in poor to failed condition in the Local and Neighborhood Streets Network.
COUNCIL AGENDA: 6/16/26
FILE: 26-716
ITEM: 2.28
HONORABLE MAYOR AND CITY COUNCIL
May 25, 2026
Subject: Report on Bids and Award of Contract for the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project
Resurfacing is a robust maintenance measure used to extend the useful life of a street and involves removing one to three inches of damaged asphalt concrete and replacing it with a new layer. Pavement resurfacing is typically performed in two phases:
preparation and final surface application. The preparation phase includes upgrading existing curb ramps to be compliant with the Americans with Disabilities Act (ADA) and installing new curb ramps where needed. The ADA work is conducted in advance using a combination of major and minor contracts to provide more job opportunities for local and small businesses. Preparation also includes grinding, hauling, and disposal of several inches of damaged roadway. The final surface application consists of installing a new layer of asphalt over the entire street, replacing roadway striping and raising utility lids to the new roadway surface.
The City’s Local and Neighborhood Streets Network consists of approximately 1,552 miles of streets within San José, organized into 135 geographically contiguous pavement maintenance zones. Pavement maintenance zones support planning and delivery of paving projects by maximizing the amount of paving work completed at one time within a neighborhood area and ensuring pavement maintenance is proportionally distributed throughout each Council District. DOT anticipates completing pavement maintenance for approximately 91% of all streets within the Local and Neighborhood Streets Network by the end of the current three-year plan (2026-2028).
DOT uses a pavement management software to track roadway condition data and store maintenance history. This data is used to generate a candidate list of streets to be considered for the annual pavement maintenance program. The candidate list is analyzed by staff using the following criteria to create the final list of streets:
• Funding availability and funding use restrictions;
• Streets on the Local and Neighborhood Streets 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 streets to create continuous segments for consistency within neighborhoods and project efficiency; and
• Multi-year geographic spread across San José and the street network.
DOT staff cross-referenced the zones selected for maintenance with census tracts designated by the Metropolitan Transportation Commission as “Equity Priority Communities,” formerly known as “Communities of Concern,” to better track equity in service delivery. There are approximately 266 miles of streets in the Local and Neighborhood Streets Network that are within Equity Priority Community tracts. It is
HONORABLE MAYOR AND CITY COUNCIL
May 25, 2026
Subject: Report on Bids and Award of Contract for the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project
estimated that 256 of these miles (roughly 96%) will be maintained by the end of the current three-year plan (2026-2028).
DOT has maintained a total of 228 Equity Priority Community miles since 2019 and will be maintaining an additional 8.17 Equity Priority Community miles in 2026. This is approximately 9% of the 94 miles of streets in the Local and Neighborhood Streets Network selected for maintenance in 2026. The Project will maintain 1.49 Equity Priority Community miles, which is about 3% of the anticipated 46 resurfacing miles in 2026.
The Attachment to this memorandum, “List of Streets,” contains the list of streets to be maintained as a part of the Project. The list may change if unforeseen circumstances arise or new information regarding other projects becomes available.
Construction is scheduled to begin in August 2026 with a substantial completion in October 2026.
ANALYSIS
Bids were opened on April 23, 2026, with the following results:
Contractor
Bid Amount Variance
Amount
Over/(Under)
Percent
MCK Services, Inc.
(Martinez) $5,563,345.51 ($806,654.49) (13)
DeSilva Gates Construction LLC
(San José) $5,900,557.20 ($469,442.80) (7)
O'Grady Paving, Inc.
(Mountain View) $5,923,535.67 ($446,464.33) (7)
Engineer's Estimate $6,370,000.00 -- --
The low bid submitted by MCK Services, Inc. is 13% below the Engineer’s Estimate.
Staff anticipated higher paving costs in 2026; however, paving costs in the low bid accounted for 68% of the total project cost, compared to an average of 75% in 2025, leading to a larger variance between the Engineer’s Estimate and the low bid. Paving costs were the largest source of this variance. Additionally, striping costs were significantly lower than expected. Striping in the low bid was 44% less than the Engineer’s Estimate, which was based on 2025 pricing. Striping was the second-largest source of variance between the low bid and the Engineer’s Estimate.
MCK Services, Inc. has successfully delivered multiple paving projects for the City of San José with similar project scope and size during the 2025 construction season, including: 10490 – 2023-2025 Local Streets Resurfacing Option Term 2; 10491 – 2025
HONORABLE MAYOR AND CITY COUNCIL
May 25, 2026
Subject: Report on Bids and Award of Contract for the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project
Local Streets Resurfacing East; 10493 – 2025 Local Streets Remove and Replace; and 10522 – 2025 Major Streets Resurfacing.
Contingency
San José Municipal Code Section 27.04.050 provides for a standard contingency of 10% on all public works contracts except those involving the renovation of building or buildings. The standard 10% contingency is appropriate for the Project.
Wage Theft Prevention Policy Check
The Office of Equality Assurance reviewed bidders for compliance with the City’s Wage Theft Prevention Policy on February 26, 2026, and again on April 24, 2026. No wage theft issues were identified.
Project Labor Agreement Applicability
The City’s Project Labor Agreement is applicable to the Project because the Engineer’s Estimate is more than $730,000.
Local and Small Business Outreach
The recommended contractor, MCK Services, Inc., is not a local or small business enterprise. No local companies were listed as subcontractors.
EVALUATION AND FOLLOW-UP
DOT provides an ongoing evaluation of the City’s pavement condition and provides periodic reports on this topic to the Transportation and Environmental Committee. In addition to the project discussed in this memorandum, two additional major street projects and one additional local and neighborhood streets pavement maintenance project are scheduled for City Council action this spring.
FISCAL IMPACTS
The Project supports the Transportation and Aviation Services City Service Area goal to preserve and improve transportation assets and facilities. The pavement maintenance performed by the Project will extend the useful life of the streets. Funding for the Project is included in the 2025-2027 Adopted Biennial Capital Budget in the Pavement Maintenance – Measure T Bond appropriation (Fund 498). The Project will have no net operating and maintenance costs to the General Fund.
HONORABLE MAYOR AND CITY COUNCIL
May 25, 2026
Subject: Report on Bids and Award of Contract for the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project
1. TOTAL COST OF PROJECT:
Project Delivery* $563,302
Construction 5,563,346
Contingency 556,335
TOTAL PROJECT COSTS $6,682,983
Costs expended to date $104,550
TOTAL REMAINING PROJECT COSTS $6,578,433
*Project delivery includes $112,660 for design services and bidding and $450,642 for construction management and inspection services.
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
Utility Adjustment $936,000
New Paving 4,315,828
Thermoplastic Striping 207,518
Other Construction Costs 104,000
TOTAL CONTRACT AMOUNT $5,563,346
BUDGET REFERENCE
The table below identifies the fund and appropriation 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
2025-2027
Adopted
Biennial
Capital
Budget Page
Last Budget
Action (Date,
Ord. No.)
498 415Y Pavement
Maintenance –
Measure T Bond
$59,421,307 $5,563,345.51 947 10/21/2025
31252
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, and the Planning, Building, and Code Enforcement Department
HONORABLE MAYOR AND CITY COUNCIL
May 25, 2026
Subject: Report on Bids and Award of Contract for the 10628 – 2026 Local Streets Resurfacing South Pavement (Measure T) Project
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the June 16, 2026 City Council meeting.
When construction commences, the contractor will provide advance notification regarding working hours, Project duration, and any appropriate schedule and lane closures to affected businesses, schools, and residents, as stated in the specifications.
To inform traveling motorists of upcoming construction activities and potential traffic delays, changeable message signs may be used on selected streets stating the scheduled date and time for work to occur on the street.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
CEQA
Categorically 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/ /s/
JOHN RISTOW MATT LOESCH
Director of Transportation Director of Public Works
For questions, please contact Jennifer Seguin, Deputy Director, Department of Transportation, at [email protected] or Katherine Brown, Assistant Director of Public Works, at [email protected].
ATTACHMENT:
List of Streets
Attachment – List of Streets
List of Streets
CD Street Name Street From Street To
1 CENTURY DR CITY LIMIT MIDDLETOWN DR
2 HARWELL CT FLINTWELL WY E END
2 SOUTHWIND DR TENNANT AV SOUTHVIEW DR
2 SOUTHCREEK CT SOUTHVIEW DR W END
2 SOUTHBROOK CT SOUTHBROOK DR S END
2 SOUTHBROOK DR SILVER LEAF RD SOUTHVIEW DR
2 SOUTH TERRACE CT SOUTHVIEW DR W END
2 SOUTHPORT CT SOUTHVIEW DR E END
2 SOUTHFIELD CT SOUTHVIEW DR W END
2 SOUTHGATE CT SOUTHVIEW DR E END
2 SOUTHOAKS CT SILVER LEAF RD E END
3 28TH ST N JULIAN ST E FIVE WOUNDS LN
3 28TH ST N FIVE WOUNDS LN SANTA CLARA ST E
7 SUNBURST DR LEWIS DR SOUTHSIDE DR
7 SUNWOOD DR SUNBURST DR LEWIS DR
7 HUNKEN DR LEWIS RD INDEPENDENCE DR
7 GARDEN DR LEWIS RD 1090' N/O HAGA DR
7 LEO AV S 7TH ST W END
8 CREEKVIEW MEADOW
CT
CREEKVIEW MEADOW
LN E END
8 HIDDEN MEADOW CT MEADOWLANDS LN N END
8 HIGH MEADOW CT HIGH MEADOW LN S END
8 PINE MEADOW CT SCENIC MEADOW LN E END
8 SCENIC MEADOW CT SCENIC MEADOW LN E END
8 HEARTLAND WY SAN FELIPE RD 1030' N/OF SAN FELIPE
RD
8 WINDWARD CT CASTLE CANYON WY S END
8 MUIR PL CT RAVENS PLACE WAY S END
9 OLYMPIA AV CAMDEN AV CITY LIMIT
9 ROSS CL ROSS AV ROSS CR
9 PASATIEMPO DR ROSS AV SAMSON WY
9 DEL PASO AV SAMSON WY CAMDEN AV
9 JAN WY DEL PASO AV EWER DR
9 JAN AV EWER DR NELSON WY
Attachment – List of Streets
CD Street Name Street From Street To
9 SAMSON WY NELSON WY EWER DR
9 SAMSON WY EWER DR SAMSON CT
9 EWER DR ROSS AV CAMDEN AV
9 NELSON WY CAMDEN AV ROSS AV
9 LANCASTER DR CAMDEN AV ROSS AV
9 BRADFORD WY ROSS AV CAMDEN AV
9 BERRY WY LEIGH AV 115'W/LEIGH AV
9 NELSON WY LEIGH AV 115'W/LEIGH AV
9 CHARMERAN AV LEIGH AV 115'W/LEIGH AV
9 HOMERITE DR LEIGH AV 180'W/LEIGH AV
9 NEW JERSEY AV CAMDEN AV 185'S/CAMDEN AV
9 RONDEAU DR EWER DR NOREEN DR
9 MILROY PL RONDEAU DR KIRK RD
9 MANDA DR SILVERWOOD DR HILLSDALE AV
9 SILVERWOOD DR GAVOTA DR WOODFORD DR
9 GAVOTA AV HILLSDALE AV LOLLIE CT
10 SUISSE DR SNELL AV DUNN AV
10 DUNN AV SANTA TERESA BL CURIE DR
10 ROCKING HORSE CT SNELL AV E END
10 MINDY WY SNELL AV GALEN DR
10 GALEN DR CURIE DR CESSNA CT
10 ELDER CT GALEN DR W END
10 HALEY CT GALEN DR N END
10 DEWEY WY CURIE DR ELVIS DR
10 JESSE JAMES DR ELVIS DR CURRENT DR
10 CURRENT DR JESSE JAMES DR SUISSE DR
10 DRIFTER DR SUISSE DR COZY DR
10 COZY DR DRIFTER DR GLIDER DR
10 COZY CT COZY DR S END
10 GLIDER DR SUISSE DR ELVIS DR
10 ELVIS DR DUNN AV RADIANT DR
10 RADIANT DR ELVIS DR SUISSE DR
10 JASON CT SANTA TERESA BL S END
10 LONG CT SANTA TERESA BL S END
Attachment – List of Streets
CD Street Name Street From Street To
10 SANTA TERESA CT SANTA TERESA BL S END
10 PISMO CT CURIE DR S END
10 DIDION WY CURIE DR WEYBRIDGE DR
10 DIDION CT WEYBRIDGE DR S END
10 WEYBRIDGE DR DIDION WY CURIE DR
10 SPRINGER DR SANTA TERESA BL CANOAS CK
10 OAKBERRY WY SPRINGER WY SANTA TERESA BL
10 NATURE DR SANTA TERESA BL COTTLE RD
10 NATURE CT NATURE DR E END
10 EL PORTAL WY COTTLE RD SPODE WY
10 SPODE WY EL PORTAL WY SPRINGER WY
10 SPRINGER WY LOS PINOS WY CANOAS CK
10 HUTTON CT SANTA TERESA BL S END
10 VALE CT SANTA TERESA BL S END
10 BAVA CT SANTA TERESA BL S END
10 URLIN CT SANTA TERESA BL S END
10 TEABERRY CT SANTA TERESA BL S END
10 SNOWBERRY CT SANTA TERESA BL S END
10 BARCLAY CT SANTA TERESA BL S END
10 SPODE WY CUL-DE-SAC
(1) SPODE WY S END
10 SPODE WY CUL-DE-SAC
(2) SPODE WY S END
10 EL PORTAL WY SPODE WY SPODE WY