TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:June 10, 2025
SUBJECT: 2026 Pavement Overlay (CI 5735) and Slurry (MI 2661) Programs RECOMMENDATION:
1. Adopt resolution approving a preliminary list of streets that will be funded in part with FY 2025-26 Senate Bill 1 (SB1) Road Maintenance and Rehabilitation Account (RMRA) revenue for construction of the 2026 Pavement Overlay Program (CI 5735).
2. Approve Professional Services Agreement with Pavement Engineering Inc. (PEI) (Santa Clarita, CA) in an amount not to exceed $278,118, plus extra services of $27,882 to provide engineering design services, for the 2026 Pavement Overlay (CI 5735) and Slurry Program (MI 2661), with a term ending June 30, 2027.
3. Approve expenditure in the amount of $210,580 ($191,348 engineering design services, $19,232 extra services) from A/C #137-5310-631-8300 (Gas Tax Fund - Pavement Overlay Program, CI 5735).
4. Approve budget appropriation and expenditure in the amount of $95,420 ($86,770 engineering design services, $8,650 extra services) from A/C #132- 0000-311-1000 (Gas Tax Fund, Fund Balance) to A/C #132-5310-631-5500 (Gas Tax Fund - Pavement Slurry Program, MI 2661).
5. Find that this action is not a project as defined under the California Environmental Quality Act (CEQA).
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$95,420 Increase to FY 2024-25 Gas Tax Fund Budget. The City is expected to receive an estimated $3.4 million in RMRA revenue in FY 2025-26. The total estimated 2026 Pavement Overlay and Slurry Program cost is $20 million and will
2026 Pavement Overlay (CI 5735) and Slurry (MI 2661) Programs June 10, 2025
1 2
8 3
be funded primarily from Gas Tax, Transportation Development Act (TDA), and RMRA revenue. $15.8 million is included in the Proposed FY 2025-27 Capital Improvement Program Budget for the 2026 Pavement Overlay and Slurry Program. Additional funding for construction, depending on the result of the bids, may be requested at the time of construction contract award.
BACKGROUND:
The City is responsible for maintaining approximately 380 miles of streets valued at over $700 million. Performing regular maintenance through pavement repairs, sealing, resurfacing, and overlay programs is critical to maintaining those streets and preventing more costly repairs in the future.
Staff has completed the preliminary design (in-house) for the 2026 Pavement Program and has established a list of streets and proposed pavement rehabilitation and preservation treatments. The proposed 2026 Pavement Overlay and Slurry Program preliminarily includes eight miles of pavement overlay on arterial streets, 12 miles of overlay on collector and residential streets, two miles of micro-surfacing on collector streets, 28 miles of slurry seal primarily on residential streets, as well as the installation and modification of approximately 120 curb ramps to comply with Americans with Disabilities Act (ADA) requirements (Attachment #1).
Based on the type of pavement maintenance treatments, these programs will be split into two different contracts: the 2026 Pavement Overlay Program to include overlay, micro-surfacing, curb ramps, and pavement repairs (CI 5735), and the 2026 Pavement Slurry Program for applying slurry treatments on residential streets (MI 2661).
The Road Repair and Accountability Act of 2017 (SB 1) established the RMRA to address deferred maintenance on the state highway and local street and road systems. SB 1 requires that funds be used for road maintenance, safety projects, pedestrian and bicycle safety projects, transportation facilities, and drainage projects. The RMRA is funded by a gasoline excise tax, a diesel excise tax, vehicle registration surcharges, and zero-emission vehicle registration surcharges.
RMRA revenue is split 50/50 between state highway and local street and road projects. SB 1 appropriates the RMRA revenue to cities and counties using the same formula based on registered vehicles and total road mileage. The City’s share of RMRA revenue in 2017 was approximately $2.2 million, which has increased to an estimated $3.3 million in FY 2024-25, with a projected $3.4 million in FY 2025-26. SB 1 requires each agency to file a list of projects to be funded with RMRA revenues annually with the State Controller’s Office. The list of FY 2025-26 RMRA proposed projects is due to the California Transportation Commission (CTC) by July 1, 2025.
2026 Pavement Overlay (CI 5735) and Slurry (MI 2661) Programs June 10, 2025
1 2
8 3
DISCUSSION/ANALYSIS:
Staff is continuing with the established approach for delivering the Pavement Program and is in the process of finalizing project design, including plans, specifications, and estimates for bidding purposes. A civil engineering consultant will assist in verifying the proposed pavement treatments, preparing striping plans and technical specifications, and providing design support during the bidding and construction phases. Similar to recent years, staff is also performing key in-house tasks, including field surveys of curb ramps, pavement condition assessments, georeferencing, field marking of repair areas, mapping, and cost estimating.
In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, on April 11, 2025, the City publicly advertised a formal Request for Proposals/Qualifications (RFP/Q) for engineering professional services in connection with 2026 Pavement Overlay (CI 5735) and Slurry Program (MI 2661). The RFP/Q was published in the Thousand Oaks Acorn newspaper and on the City’s e-procurement website.
Unlike the low bid requirements of the Public Contract Code, contracts for professional, management, general or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary for more than a satisfactory performance of the services solicited. The award of an RFP/Q is based upon a variety of factors that demonstrate best value to the agency for the solicited scope of service. The cost of the service may be considered as one of those factors; however, the lowest cost is not the sole factor in deciding who will be awarded the contract.
On May 8, 2025, the City received three proposals as follows:
Name Location
1. Pavement Engineering, Inc. Santa Clarita, CA
2. Nichols Consulting Engineers, CHTD. Fountain Valley, CA
3. Huitt-Zollars, Inc. Thousand Oaks, CA
A five-member panel of Public Works staff evaluated each proposal for content, qualifications, and quality. PEI was selected to provide pavement engineering and design services, based on:
1. Experience with program materials and qualifications.
2. Key personnel experience with similar projects.
2026 Pavement Overlay (CI 5735) and Slurry (MI 2661) Programs June 10, 2025
1 2
8 3
3. Knowledge of scope and project approach; and
4. Best overall qualifications and proposal.
Staff recommends City Council approve the Professional Services Agreement with PEI for a not-to-exceed amount of $278,118 plus extra services of $27,882 (Attachment #2).
2026 Pavement Program Estimated Cost
Design and Support Services (this action) $ 306,000 Monument Preservation (future) $ 450,000
Testing and Inspection Services (future) $ 900,000
Pavement Overlay Construction (future) $14,175,000
Pavement Slurry Construction (future) $ 2,500,000
Contingency (future) $ 1,669,000
TOTAL $20,000,000
Following the completion of the final design, staff will return to City Council for authorization to bid the project in Fall 2025. The following is a preliminary project schedule:
Complete Design Fall 2025
Bid Process and Award Winter 2026
Construction Spring 2026 to Fall 2026
In addition, staff recommends City Council adopt a resolution (Attachment #3) approving the preliminary list of streets that will be funded in part with RMRA revenues for the construction of the 2026 Pavement Overlay Program (CI 5735).
Funding sources include RMRA, gas tax, and TDA revenues, consistent with prior- year allocations for pavement maintenance.
Community Outreach: Staff will develop a comprehensive outreach campaign to keep residents informed and up to date. The outreach plan will include a project logo, slogan, project webpage Toaks.gov/streets, and a dedicated project phone number (805-449-2487). In addition, staff will notify residents prior to construction using City social media outlets, changeable message signs, and project identification boards. Notices will be distributed to local utilities and homeowners' associations impacted by street closures. Public outreach will continue as work progresses on this project with regular updates sent through all City communication outlets.
2026 Pavement Overlay (CI 5735) and Slurry (MI 2661) Programs June 10, 2025
1 2
8 3
This action is not a project as defined under the CEQA, pursuant to CEQA Guidelines Section 15060(c)(3), because it will not result in a direct or reasonably foreseeable indirect physical change in the environment.
These projects meet City Council’s Top Ten Priorities #7, “Public Works + Infrastructure Investments across the community.”
CIP PROJECT PRIORITY (as outlined in proposed FY 2025-26 and FY 2026- 27 CIP Program Budget)
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made. The completed Levine Act form is included in the Agreement (Attachment #2).
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family. 2026 Pavement Overlay (CI 5735) and Slurry (MI 2661) Programs June 10, 2025
1 2
8 3
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Saeed Zolfaghari, Associate Engineer
Attachments:
Attachment #1 – 2026 Pavement Overlay and Slurry Program Map Attachment #2 – Agreement with Pavement Engineering Inc.
Attachment #3 – Resolution
DPW: 850-20\ev\Council\2025\061025\CI5735 MI2661\2026 Pavement Overlay and Slurry Program staff report.docx