Public Works Agency
www.santa-ana.org/pw
Item # 11
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 7, 2026
TOPIC: Local Street Preventative Maintenance Fiscal Year 25/26
AGENDA TITLE
Award of a Construction Contract to Onyx Paving Company, Inc. for the Local Street Preventative Maintenance FY 25/26 Project (No. 26-6907) (Non-General Fund)
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $99,990 of spendable fund balance in the Sanitary Sewer Service Revenue, Prior Year Carry Forward and Capital Recovery Charges, Transfer from Fund 056 revenue accounts, and appropriate to the Sewer – Interfund Transfer, Transfer to Fund 054 and Capital Recovery Charges, Improvements Other Than Buildings expenditure account (Requires five affirmative votes).
2. Approve an appropriation adjustment recognizing $134,431 of spendable fund balance in the Public Works Water Revenue, Prior Year Carry Forward and Water Utility Capital, Transfer from Fund 060 revenue accounts, and appropriate to the Water – Interfund Transfer, Transfer to Fund 066 and Water Utility Capital Projects, Contract Services-Professional expenditure accounts (Requires five affirmative votes).
3. Approve an amendment to the Fiscal Year 2026-2027 Capital Improvement Program to include an additional $234,421 in construction funds for the Local Street Preventative Maintenance FY 23/24 Project (No. 26-6490).
4. Approve the Project Cost Analysis for a total estimated construction delivery cost of $4,211,250, which includes $3,369,000 for the construction contract, $505,350 for contract administration, inspection, and testing, and a $336,900 for unanticipated or unforeseen work.
5. Award a construction contract to Onyx Paving Company, Inc., the lowest responsible bidder, in accordance with the base bid and bid alternates in the amount of $3,369,000, subject to change orders, for construction of the Local
Local Street Preventative Maintenance Fiscal Year 25/26 July 7, 2026
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Street Preventative Maintenance FY 25/26 Project (No. 26-6907), for a term beginning July 8, 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-2026-39 will be filed for Project No. 26-6907.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The Public Works Agency engineering staff use a comprehensive Pavement Management Program that accounts for pavement condition, age, and usage, among other factors, to prioritize and make informed recommendations for street improvement projects. As part of the fiscal year 2025-26 budget adoption, the City Council approved the 2025-26 Capital Improvement Program (CIP), which included funding the annual Local Street Preventive Maintenance project to preserve the quality of the City's street network. The local street segments included within this project have been identified as high priority for rehabilitation and preventative maintenance (Exhibit 1). The recommended work consists of localized replacement of asphalt concrete pavement; cold milling; asphalt overlay; slurry seal; crack sealing; striping; signage; and replacement of damaged concrete curbs, gutters, sidewalks, and curb ramps. Once completed, these changes will improve the City's overall pavement condition, enhance the street's visual appearance, upgrade ride quality, and support compliance with Americans with Disabilities Act (ADA) standards.
A copy of construction plans, contracts, specifications, and all related reference materials (such as The Greenbook) is available for public review at the City’s Public Works Agency, Central Files office located in City Hall.
Project Advertisement and Contractor Procurement
To provide an opportunity for local vendors to submit bids, the City notified 2,354 regional vendors via PlanetBids, many of whom are Santa Ana-based. Furthermore, staff specifically reached out to Santa Ana vendors to encourage their participation in bids. A total of six bids were received. One bid was received from Santa Ana contractors.
As required by law, a Notice Inviting Bids was published in the Orange County Register on May 4, 2026. The project was also advertised in PlanetBids from April 30, 2026 to May 21, 2026. Bids were received electronically via PlanetBids on May 21, 2026. No bid protest was submitted by any bidder during the bid protest period.
Local Street Preventative Maintenance Fiscal Year 25/26 July 7, 2026
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Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID +
ALTERNATES
1 Onyx Paving Company, Inc. Yorba Linda, CA $3,369,000
2 All American Asphalt Corona, CA $3,470,800
3 Hardy & Harper, Inc. Lake Forest, CA $3,503,570
4 Excel Paving Co. Long Beach, CA $3,764,322
5 R.J. Noble Company Orange, CA $3,791,952
6 Vido Samarzich, Inc. Santa Ana, CA $4,166,200
A total of six bids were received, and all six were deemed responsive. Onyx Paving Company, Inc. submitted the lowest responsive base bid in the amount of $3,345,000 (Exhibit 2). As specified in the bid documents, the lowest bid shall be determined on the basis of Base Bid. The add-alternate scope of work in the bid package includes the installation of speed humps. The total bid including the add-alternate scope of work is in the amount of $3,369,000 and is 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 to Onyx Paving Company, Inc. (Exhibit 3).
Onyx Paving Company, Inc. has previously performed work as a prime contractor in the City of Santa Ana within the past three years, including Fairview Street Rehabilitation (South City Limit to Alton Avenue) and Local Street Preventative Maintenance FY 24-
25. 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 Contractor’s work to ensure contract compliance, workmanship and quality, materials testing, and implementation of the labor requirements.
Any allocated construction administration funds not spent are considered project savings and are returned to the respective fund balance upon project closeout.
As indicated in the Cost Analysis and as summarized in the table below, the estimated total construction delivery cost of the project is $4,211,250.
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Project Item Total
Construction Contract Bid Amount $3,369,000
Construction Administration $269,520
Inspection $168,450
Testing $67,380
Unanticipated or Unforeseen Work $336,900
TOTAL ESTIMATED CONSTRUCTION DELIVERY
COST $4,211,250
Project Schedule and Contract Time
The project completion date is October 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 October 2026, which is within the allotted 65 working days. If the contractor fails to deliver on time, they will be assessed a penalty of $8,700 per calendar day as specified in the bid documents.
The actual completion date will depend on the contractor’s schedule, material procurement timelines, and any unforeseen delays. Based on a typical project timeline, the estimated project completion is provided below:
Project Milestones
Milestone Estimated
Completion Date
Notes
Administrative Startup July 2026 Contract execution, bonds, insurance
Material Procurement July 2026 Procurement may take place concurrently with construction.
Contractor Mobilization July 2026 Start of construction activities Project Completion October 2026 Based on 65 working days Project Phasing
The contractor will be constructing this project in the following phases:
1. Phase I: Localized asphalt repairs, curb, gutter, sidewalk, ramp repairs, and upgrades.
2. Phase II: Performing grind and asphalt capping and installing slurry seal.
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3. Phase III: Installation of roadway markings and signs.
Public Outreach
The project scope spans across multiple neighborhoods, with the majority of the work in the Madison Park and Delhi neighborhoods, and will impact nearby businesses and residences. 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. 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.
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 existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities. The proposed project continues to meet these CEQA Guidelines parameters and Categorical Exemption Environmental Review No.
ER-2026-39 will be filed for Project 26-6907 (Exhibit 4).
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $4,211,250. With the approval of the requested appropriation adjustment, all funds will be available for expenditure in Fiscal Year 2026-2027. Any remaining balances not expended at the end of the fiscal year will be presented to the City Council for approval of carryovers into Fiscal Year 2027-2028 (Exhibit 5).
The proposed contract authorizes staff a maximum of 10% for construction contract change orders. Staff will return to City Council for authorization and appropriation of additional funding if necessary.
With the approval of the requested appropriation adjustments, a portion of the accumulated fund balance will be appropriated for spending in the Capital Recovery Charges, Improvements Other Than Buildings expenditure account (No. 05417647- 66220). The spendable portion of the fund balance is estimated at $540,453 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $99,990.
Additionally, a portion of the accumulated fund balance will be appropriated for Local Street Preventative Maintenance Fiscal Year 25/26 July 7, 2026
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spending in the Water Utility Capital Projects and Water Capital Project expenditure account (No. 06617647-66301). The spendable portion of the fund balance is estimated at $3,415,341 as of June 30, 2026, which is sufficient to allow for the recommended appropriation of $134,431. Funds will be budgeted and available for this item in the accounts below.
Fiscal
Year
Accounting Unit
– Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description Amount
CURRENT BUDGET
2026-27
01117660-
66220
(26-6907)
General Fund
Pub Wks-Road
Maintenance,
Improvements Other
Than Buildings
$493,281
2026-27
03217662-
66220
(26-6907)
Measure M –
Street
Construction
Measure M2 Local
Fairshare St,
Improvements Other
Than Buildings
$3,483,548
APPROPRIATION ADJUSTMENT
2026-27
05417647-
66220
(27-6490)
Sanitary
Sewer Capital
Capital Recovery
Charges, Improvements
Other Than Buildings
$99,990
2026-27
06617647-
66301
(27-6490)
Water
Acquisition &
Construction
Water Utility Capital
Projects, Water Capital
Project
$134,431
TOTAL $4,211,250
EXHIBIT(S)
1. Location Map
2. Bid Proposal
3. Construction Contract
4. Environmental Determination
5. Capital Improvement Project Worksheet
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director of Public Works Agency Approved By: Alvaro Nuñez, City Manager