Public Works Agency
www.santa-ana.org/pw
Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 3, 2026
TOPIC: Approve a Cooperative Cost Reimbursement Agreement and Award a Construction Contract to Onyx Paving Company Inc. for the Construction of the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue Project
AGENDA TITLE
Cooperative Cost Reimbursement Agreement with the City of Costa Mesa and Award a Construction Contract to Onyx Paving Company, Inc. for the Construction of the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue Project (Project No. 21-6978) (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute a Cooperative Cost Reimbursement Agreement with the City of Costa Mesa for improvements on Fairview Street within the Costa Mesa jurisdiction from Southern City Limits to Alton Avenue (Agreement No. A-2026-XXX).
2. Approve an appropriation adjustment recognizing $96,000 in cost reimbursements from the City of Costa Mesa into the Select Street Construction, Expense Reimbursement revenue account (No. 05917002-57000), and appropriate the same amount to the Select Street Construction, Improvements Other Than Buildings expenditure account (No. 05917660-66220) for the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue Project. (Requires five affirmative votes.)
3. Approve an amendment to the Fiscal Year 2025-26 Capital Improvement Program to include an additional $96,000 in construction funds for the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue Project (No. 21- 6978).
4. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,410,000, which includes $2,728,000 for the construction contract, $409,200 for contract administration, inspection, and testing, and a $272,800 for unanticipated or unforeseen work.
Fairview Street Rehabilitation from Southern City Limits to Alton Avenue March 3, 2026
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5. Award a construction contract to Onyx Paving Company, Inc. the lowest responsive bidder, in accordance with the base bid and alternates in the amount of $2,728,000, subject to change orders, for construction of the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue Project (No. 21-6978), for a term beginning March 3, 2026, and authorize the City Manager to execute the contract.
6. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2026-3 will be filed for Project No. 21-6978.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The rehabilitation of Fairview Street from the City’s southern limits to Alton Avenue (Exhibit 1) was approved by the City Council in the FY 24/25 Capital Improvement Program Project No. 21-6978. The Project will rehabilitate a segment of Fairview Street from the City’s southern limits (Sunflower Avenue) to Alton Avenue by removing and replacing failed asphalt sections, reconstructing raised medians, and replacing the damaged concrete curbs, gutters, sidewalk, driveways, and curb ramps. The project also includes traffic improvements, such as enhanced traffic striping and pavement markings, as well as traffic signal modifications that incorporate video detection at the intersections. Once completed, these improvements will enhance the ride quality and visual appearance of the street. Pedestrian facility improvements will also comply with Americans with Disabilities Act (ADA) standards.
The City of Costa Mesa shares the right-of-way within the project area; therefore, a Cooperative Cost Reimbursement Agreement is required for the City of Costa Mesa to fund the portion of the improvements within the Costa Mesa city limits (Exhibit 2). The Cooperative Cost Reimbursement Agreement between the City of Santa Ana and the City of Costa Mesa defines the roles and responsibilities of each party and establishes each city’s estimated share of the project costs. The City of Costa Mesa’s cost share, in an amount not to exceed $96,000, includes $7,000 in construction administration, inspection, and testing costs. The City of Costa Mesa will immediately forward the payment of $96,000 upon award of the construction contract.
Project Advertisement and Contractor Procurement
To provide an opportunity for local vendors to submit bids, the City notified a total of 80 regional vendors via PlanetBids, many of which are Santa Ana based. A total of seven (7) responsive bids were received including one (1) bid from a Santa Ana contractor.
As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on November 17, 2025 and November 24, 2025. The project was also Fairview Street Rehabilitation from Southern City Limits to Alton Avenue March 3, 2026
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advertised in PlanetBids from November 13, 2025 to December 11, 2025. Bids were received electronically via PlanetBids on December 11, 2025.
A copy of construction plans, contracts, specifications, and all related reference materials (such as The Greenbook) are available for public review at the City’s Public Works Agency, Central Files office located in City Hall.
Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID +
ALTERNATES
1 Onyx Paving Company, Inc. Yorba Linda, CA $2,728,000
2 R.J. Noble Company Orange, CA $ 2,742,000
3 Hardy & Harper, Inc. Lake Forest, CA $ 2,980,000
4 Toro Enterprises, Inc. Oxnard, CA $ 3,207,010
5 Vido Samarzich, Inc. Santa Ana, CA $ 3,241,720
6 Excel Paving Co. Long Beach, CA $ 3,448,860
7 All American Asphalt Corona, CA $ 3,461,115
NR RCCI Azusa, CA Non-Responsive
A total of eight (8) bids were received and seven (7) were deemed responsive. Staff determined that RCCI’s bid was non-responsive because it did not meet contract specification requirements to self-perform more than 50% of the total contract value.
Onyx Paving Company, Inc. submitted the lowest responsive base bid in the amount of $2,673,000 (Exhibit 3). As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. The add-alternate scope of work in the bid package is the installation of a traffic video detection system at Fairview Street and Segerstrom Avenue to improve traffic control. The total bid including the add-alternate scope of work is in the amount of $2,728,000 and still collectively lower than the other bids including the alternative. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract, including the add-alternate scope, to Onyx Paving Company, Inc. (Exhibit 4).
Onyx Paving Company, Inc. has previously performed work as a prime contractor in the City of Santa Ana within the past three (3) years, including two Local Street Preventative Maintenance Projects and the Fremont Elementary and Spurgeon Intermediate Safe Routes to School Projects. The Contractor satisfactorily completed these projects and staff recommends awarding the construction contract to Onyx Paving Company, Inc. for the construction of the Project.
Project Delivery
To deliver a complete project, in addition to the construction contract, the estimated total project delivery cost includes a budget allocation for construction administration, inspection, and testing. Construction administration and inspection may be performed by either Staff or consultants and includes construction management, inspection of the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue March 3, 2026
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Contractor’s work to ensure contract compliance, workmanship and quality, materials testing, and implementation of the labor requirements.
Any of the allocated construction administration funds not spent are considered project savings and are returned to the respective fund balance upon close out of the project.
As indicated in the Cost Analysis and as summarized in the table below, the estimated total construction delivery cost of the project is $3,410,000.
Project Item Total
Construction Contract Bid Amount $2,728,000
Construction Administration $218,240
Inspection $136,400
Testing $54,560
Unanticipated or Unforeseen Work $272,800
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $3,410,000
Project Schedule and Contract Time
The project is estimated to be completed in August 2026 barring unforeseeable conditions such as rain, natural disasters, or other delays beyond the control of the City and of the Contractor. The contract time for this project is 65 working days, as specified in the bid documents. Working days are counted in accordance with the City’s Standard Specifications, which exclude weekends, City-observed holidays, and inclement weather days that prevent work.
The contractor was required to submit a construction schedule as part of their bid to expedite delivery of the project. The projected completion dates based on the submitted schedule is August 2026, which is within the allotted 65 working days. If the contractor fails to deliver on time, they will be assessed a penalty of $7,620 per calendar day as specified in the bid documents.
Project Milestones
Milestone Estimated
Completion
Notes
Administrative Startup March 2026 Contract execution, bonds, insurance
Material Procurement April 2026 Procurement may take place concurrently with construction.
Contractor Mobilization April 2026 Start of construction activities Project Completion August 2026 Based on 65 working days Fairview Street Rehabilitation from Southern City Limits to Alton Avenue March 3, 2026
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Project Phasing
The contractor will be constructing this project in a singular phase, fulfilling the scope of work as outlined in the contract documents. The contractor is responsible for determining the scheduling and sequencing of activities based on their proposed means and methods.
Public Outreach
The project scope will impact nearby businesses and residents. To ensure timely and effective communication, the following notification measures will be implemented prior to the start of construction:
• Electronic message signs will be installed two weeks in advance of construction activities to provide early notice of the project’s start date, • A project information sign will be posted at the construction site, including contact information for public inquiries,
• Residents and businesses within 1,000 feet of the project limits will receive door hangers or mailed notifications at least two weeks before construction begins, • A second round of notification will be issued 48 hours prior to the start of construction to residents and businesses adjacent to the limits of work, and • The City will also disseminate information through its official website and social media platforms to keep the public informed of construction activities, including any lane closures.
The Contractor is required to issue construction notices to adjacent residents and businesses at least two weeks before construction begins. Additionally, the contractor is required to install signage at the project site indicating project details and contact information.
ENVIRONMENTAL IMPACT
Pursuant to the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review pursuant to Section 15301(c) of the CEQA Guidelines for projects consisting of repair/maintenance of existing facilities. The proposed project continues to meet these parameters of the CEQA Guidelines, and Categorical Exemption Environmental Review No. ER-2026-3 will be filed for Project 21-6978 (Exhibit 5).
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $3,410,000. All funds are available for expenditure in Fiscal Year 2025-2026.
Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers into Fiscal Year 2026-2027 (Exhibit 6).
The proposed contract authorizes staff a maximum of 10% for construction contract change orders for unanticipated or unforeseen work. Staff will return to City Council for authorization and appropriation of additional funding if necessary.
Fairview Street Rehabilitation from Southern City Limits to Alton Avenue March 3, 2026
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With the approval of the requested appropriation adjustment, the cost reimbursement will be recognized in the Select Street Construction, Expense Reimbursement revenue account (05917002-57000) and appropriated for spending in the Select Street Construction, Improvements Other Than Buildings expenditure account (No. 05917660- 66220).
Fiscal
Year
Accounting
Unit –
Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account
Description
Amount
CURRENT BUDGET
2025-26
05917665-
66220
(21-6978)
Select Street
Construction
HUTA Gas Tax -
RMRA,
Improvements
Other Than
Buildings
$3,314,000
APPROPRIATION ADJUSTMENT
2025-26
05917660-
66220
(21-6978)
Select Street
Construction
Select Street
Construction,
Improvements
Other Than
Buildings
$96,000
TOTAL $3,410,000
EXHIBIT(S)
1. Location Map
2. Cooperative Cost Reimbursement Agreement
3. Bid Proposal
4. Construction Contract
5. Environmental Determination
6. Capital Improvement Project Worksheet
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director, Public Works Agency Approved By: Alvaro Nuñez, City Manager