TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:February 24, 2026
SUBJECT: 2026 Pavement Overlay (CI 5735, CI 5809, CI 5676 and MI 2626) and Slurry Programs (MI 2626, MI 2661)
RECOMMENDATION:
1. Approve project plans, specifications, and Addenda Nos. 1 and 2, for the 2026 Pavement Overlay Program (CI 5735, CI 5809, CI 5676, MI 2626).
2. Award construction contract to Sully-Miller Contracting Company (Sully-Miller) of Brea, CA for the 2026 Pavement Overlay Program (CI 5735, CI 5809, CI 5676, MI 2626) in the amount of $14,497,587.40, plus a contingency of $832,109.
3. Approve deductive Change Order No. 1 to construction contract with Sully-Miller (Brea, CA) for the 2026 Pavement Overlay Program (CI 5735, CI 5809, CI 5676, MI 2626) in the deductive amount of $1,388,850 for removing bid Schedule ‘J’.
4. Approve project plans, specifications, and Addenda Nos. 1 and 2, for the 2026 Slurry Program (MI 2626, MI 2661).
5. Award construction contract to Roy Allan Slurry Seal, Inc., of Santa Fe Springs, CA for the 2026 Slurry Program (MI 2626, MI 2661) in the amount of $1,780,373.40, plus a contingency of $153,050.
6. Approve budget appropriation in the amount of $1,068,892, as detailed in the Budget Appropriation Summary.
7. Approve budget appropriation and transfer in the amount of $816,184, $700,965 from A/C #001-0000-311-1000 (General Fund – Fund Balance) to A/C #001-9720-631-9153 (General Fund Transfer to DevFee Rd Improvement) and from A/C #539-0000-311-1000 (Dev Fee Misc Streets CW – Fund Balance) to A/C #539-000-561-0100 (Operating Transfers in / from General Fund, CI 5809), and $115,219 from A/C #001-0000-311-1000 (General Fund – Fund Balance) to A/C #001-9720-631-9153 (General Fund Transfer to DevFee Rd Improvements) and from A/C #539-0000-311-1000 (Dev Fee Misc Streets CW – Fund Balance) to A/C #539-0000-561-0100 (Operating Transfers in / from General Fund, MI 2661).
8. Authorize expenditures in the amount of $13,960,846.40 for the 2026 Pavement Overlay Program (CI 5735, CI 5809, CI 5676, MI 2626), $13,108,737.40 for construction contract, $832,109 for construction contingency, and $20,000 for City
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furnished material and supplies, and $1,933,424 for the 2026 Slurry Program (MI 2626, MI 2661), $1,780,373.40 for construction contract and $153,050 for construction contingency, as further detailed in the Expenditure Summary.
9. Delegate authority to the City Engineer to approve changes to the design, plans, and specifications of the projects on work directives and change orders up to the project’s approved contingency amount.
10. Find that the Projects are Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
$1,885,076 Increase to Adopted FY 2025-26 Capital Budget. $816,184 Increase to Adopted FY 2025-26 General Fund Budget, $928,963 Increase to Adopted FY 2025-26 Gas Tax Fund Budget, $49,971 Increase to Adopted FY 2025-26 Developer Fee Fund Budget, and $89,958 Increase to Adopted FY 2025-26 Wastewater Capital Fund Budget is requested for the 2026 Pavement Overlay (CI 5735, CI 5809, CI 5676, MI 2626) and Slurry (MI 2626, MI 2661) Programs. The total project costs for the Pavement Overlay Project and Slurry Program Project are $15,764,825, and $2,448,382. See Attachment #1 Budget Appropriation Summary and Attachment #2 Expenditure Summary for details.
BACKGROUND:
The City is responsible for maintaining approximately 384 miles of streets, representing one of its largest infrastructure assets. Regular maintenance through pavement repairs, sealing, resurfacing, and overlay programs is critical to preserving this asset, maintaining safe travel conditions, and extending pavement service life.
The City has traditionally maintained street surfaces using a combination of overlays, micro-surfacing, and slurry seal treatments. Arterial streets typically receive overlays, while residential and collector streets are treated using preventive maintenance methods such as slurry seals or thin overlays. For the 2026 program, staff are implementing a balanced mix of pavement preservation treatments to optimize cost effectiveness, extend pavement life, and promote competitive bidding. These treatments include pavement overlay, micro-surfacing, slurry seal, and thin maintenance overlay applications, which together provide flexibility in addressing varying pavement conditions throughout the City’s street network.
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In addition to the pavement program, the City continues to implement its Citywide Concrete Replacement and Sidewalk Repairs Program and Citywide Curb Ramps Program to address aging concrete infrastructure and improve accessibility in compliance with the Americans with Disabilities Act.
On June 10, 2025, City Council adopted a resolution in accordance with State requirements to remain eligible for SB1 gas tax funding. On the same date, City Council approved a design services agreement with Pavement Engineering, Inc. in the amount of $191,348 to prepare plans and specifications for the 2026 Pavement Program.
On December 2, 2025, City Council approved a Professional Services Agreement with D. Woolley and Associates, Inc., of Tustin, CA, in the amount of $890,000 to preserve existing survey monuments citywide for the 2026 Pavement Overlay Program (CI 5735) Project, with a term ending June 30, 2027.
Staff completed the project plans and specifications with in-house resources in November 2025.
DISCUSSION/ANALYSIS:
The 2026 Pavement Overlay and Surface Treatment Program proposes to resurface approximately 50 miles of streets citywide using a variety of pavement preservation treatments (Attachment #3). The program includes 6.5 miles of pavement overlay on arterial streets, 18.0 miles of overlay on collector and residential streets, 0.4 miles of micro-surfacing on collector streets, 25.4 miles of slurry seal primarily on residential streets.
Based on the type of pavement maintenance treatments, the overall program will be delivered through two separate construction contracts. The first, the 2026 Pavement Overlay Project (CI 5735, CI 5809, CI 5676 and MI 2626), includes pavement overlay, thin maintenance overlay (TMO), and pavement rehabilitation at Hill Canyon Treatment Plant (HCTP), Willow Reservoir, and Calle Abedul. The second, the 2026 Pavement Slurry Project (MI 2626, MI 2661), includes slurry seal and micro-surfacing treatments, primarily on residential and collector streets. CI 5676 includes paving work at HCTP and MI 2626 includes pavement work at City facilities that is delivered through both the overlay and slurry contracts. Separating the program into two contracts allows the City to solicit competitive bids from contractors specializing in each pavement treatment type, enhancing bid competitiveness and ensuring cost-effective delivery. Staff will closely coordinate and manage both contracts to ensure consistent quality, scheduling, and traffic management throughout the citywide program.
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On December 2, 2025, City Council authorized staff to advertise the 2026 Pavement Overlay Project and the 2026 Pavement Slurry Program for construction bids. The Notice Inviting Bids for both projects was publicly advertised in the Thousand Oaks Acorn newspaper and posted on the City’s procurement website on December 5, 2025.
2026 Pavement Overlay Project (CI 5735, CI 5809, CI 5676, MI 2626) Bids for this project were publicly opened on January 21, 2026, with the following results:
BIDDERS FOR OVERLAY BASE BID
PRICE
1. Sully-Miller Contracting Co. (Brea, CA) $14,497,587.40
2. All American Asphalt (Corona, CA) $14,957,453.10
3. Toro Enterprises, Inc. (Oxnard, CA) $15,424,249.86
4. C.A. Rasmussen, Inc. (Valencia, CA) $17,837,466.38
5. Granite Construction Co. (Santa Barbara, CA) $19,936,228.35 Sully-Miller was the apparent low bidder. Their bid of $14,497,587.40 is approximately 13 percent lower than the engineer’s estimate of $16,700,000.
Staff is recommending removal of bid Schedule J in the amount of $1,388,850 from the bid via Change Order No. 1 (Attachment #4) in this action. The technical specifications for the Slurry Project allowed bidders the option to use either polymer-modified slurry (PMES) or rubberized slurry (REAS). Based on prior experience, rubberized slurry has shown probable performance issues in cul-de- sacs, including susceptibility to power steering burns, tearing, scuffing, and reduced durability under low-speed turning movements. To address these concerns and improve long-term performance in such areas, staff included Bid Schedule J as a deductive alternate specifically for upgrading from rubberized slurry to a higher-performing option. Since the apparent low bidder on the Slurry Project is using polymer-modified slurry, Bid Schedule J is no longer necessary and can be removed without impacting project quality or performance objectives. 2026 Pavement Overlay (CI 5735, CI 5809, CI 5676, MI 2626) & Slurry Programs (MI 2626, MI 2661)
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The overall project cost for the Overlay Project is as follows:
2026 Pavement Overlay Project (CI 5735, CI 5809, CI
5676 and MI 2626) Cost
Construction Contract, City Items (this action) $ 14,497,587.40 Construction Contingency (this action) $ 832,109.00 City Furnished Material and Supplies (this action) $ 20,000.00 Deductive Change Order Bid Schedule J ($ 1,388,850.00)
Testing and Inspection (separate action) $ 558,545.00 Testing and Inspection - extra services (separate action) $ 55,854.00 Total Construction Phase Cost $ 14,575,245.40
Monument Survey Services (previously approved) $ 890,000.00 Monument Preservation Extra Services (previously
approved) $ 89,000.00
Design Support Services (previously approved) $ 191,348.00 Extra Services (previously approved) $ 19,232.00 Total Previously Approved (Design Phase) $ 1,189,580.00 Total Project Cost $ 15,764,825.40
The project budget is as follows:
2026 Pavement Overlay (CI 5735, CI 5809, CI 5676
and MI 2626) Budget
Gas Tax (Fund 132) $ 1,700,000
Gas Tax (Fund 133) $ 350,000
Gas Tax (Fund 135) $ 3,500,000
Gas Tax (Fund 137) $ 1,045,652
Gas Tax – SB1 (Fund 138) $ 7,828,963
Miscellaneous Developer Fees (Fund 539) $ 700,965 Water – Capital Program (Fund 613) $ 383,350 Wastewater – Capital Program (Fund 624) $ 256,198 TOTAL PAVEMENT OVERLAY BUDGET $ 15,765,128
Total Budget Encumbered (Design Phase) ($ 1,189,580) Total Budget Available for Construction $ 14,575,548 2026 Pavement Overlay (CI 5735, CI 5809, CI 5676, MI 2626) & Slurry Programs (MI 2626, MI 2661)
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Water and wastewater budgets include the cost of work associated with adjusting water valve covers and wastewater maintenance holes, pavement repair at HCTP, and the Willow Lane Reservoir overlay. Costs associated with utility adjustments may be partially offset through reimbursement agreements, which will be processed separately in accordance with applicable approval authority.
The Sully-Miller bid package was reviewed and found to be in order. Sully-Miller has satisfactorily completed similar projects for Thousand Oaks including the 2018, 2020, 2022, and 2024 Pavement Program, and their references are acceptable.
The bid protest period has elapsed with no formal protests received. Award of the construction contract to Sully-Miller is recommended.
2026 Pavement Slurry Program (MI 2626, MI 2661)
Bids for the 2026 Pavement Slurry Program (MI 2626, MI 2661) were publicly opened on January 21, 2026, with the following results:
BIDDERS FOR SLURRY BID PRICE
1. Roy Allan Slurry Seal, Inc. (Santa Fe Springs, CA) $ 1,780,373.40
2. American Asphalt South, Inc. (Riverside Valley, CA)$ 1,985,728.15
3. Pavement Coatings Co. (Jurupa Valley, CA) $ 2,015,115.00
4. All American Asphalt (Corona, CA) $ 2,765,482.00
Roy Allan Slurry Seal, Inc. Santa Fe Springs, CA, is the apparent low bidder. Their bid of $1,780,373.40 is approximately 30 percent lower than the engineer’s estimate of $2,600,000.
The overall Pavement Slurry Program costs are as follows:
2026 Pavement Slurry (MI 2661 and MI 2626) Cost
Construction Contract (this action) $ 1,780,373.40
Construction Contingency (this action) $ 153,050.00
Testing and Inspection (separate action) $ 381,399.20 Testing and Inspection - extra services (separate action) $ 38,139.00 TOTAL Construction Phase Cost (this action) $ 2,352,961.60 Design Support Services (previously approved) $ 86,770.00 Extra Services (previously approved) $ 8,650.00
TOTAL Project Cost $ 2,448,381.60
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The project budget is as follows:
2026 Pavement Slurry (MI 2661 and MI 2626) Budget
Gas Tax (Fund 132) $ 714,650.60
Gas Tax (Fund 137) $ 1,250,000.00
Miscellaneous Developer Fees (Fund 539) $ 399,971.00 Wastewater – Capital Program (Fund 624) $ 83,760.00 MI 2661 SLURRY TOTAL BUDGET $ 2,448,381.60
Total Budget Encumbered (Design Phase) ($ 514,958.20) Total Available Budget for Construction $ 1,933,423.40 The Roy Allan Slurry Seal, Inc. bid package was reviewed and found to be in order.
A bid protest was received and reviewed by the City. Based on further review and confirmation with Ventura County, the bid was determined to comply with the contract requirements and the protest was denied. Roy Allan Slurry Seal, Inc. has satisfactorily completed similar projects for the City, and their references are acceptable. Award of the construction contract to Roy Allan Slurry Seal, Inc. is recommended.
PROJECT PRELIMINARY SCHEDULE
Construction Phase March 2026 to November 2026 This project is determined Categorically Exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. The work consists of repair, maintenance, and minor alteration of existing public infrastructure with no expansion of use.
Community Outreach: Staff has developed a comprehensive outreach campaign to keep residents informed and up to date. Similar to prior years, a complete branding plan that includes a project logo, slogan, project webpage (www.toaks.co/paving), and a dedicated project phone number (805-449-2487) will be utilized.
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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 Home Owner Associations impacted by street closures. Public outreach will continue as work progresses on this project with regular updates sent through all the City's communication outlets.
This project meets City Council’s Top Ten Priorities #9, “Public Works Infrastructure Investments”.
CIP PROJECT PRIORITY (as outlined in FY 2025-26 & FY 2026-27 CIP Program Budget)
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
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.
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, Senior Engineer
Attachments:
Attachment #1 – Budget Appropriation Requests Summary Detail Attachment #2 – Expenditure Authorization Requests Detail Attachment #3 – 2026 Pavement Program Map
Attachment #4 – Change Order No. 1 to 2026 Pavement Overlay Program (CI 5735, CI 5809, CI 5676, MI 2626)
Documents Provided Under Separate Cover:
#1 – Project plans, specifications, and Addenda Nos. 1 and 2 for the 2026 Pavement Overlay Program
#2 – Project plans, specifications, and Addendum Nos. 1 and 2 for the 2026 Pavement Slurry Project
DPW: 850-20\ev\Council\022426\CI5735 CI 5809 CI5676 MI 2626 MI 26612026 Pavement Overlay staff report.docx