REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the 2025 Annual Street Pavement Maintenance and Rehabilitation Project to Radius Earthwork Inc. and Approval of Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City’s street pavement network consists of approximately 590 lane miles of arterial, collector, residential, and local streets. Through the Pavement Maintenance Program, staff prioritizes various street segments for preventative maintenance and rehabilitation work based on condition, use, and available funding.
The 2025 Annual Street Pavement Maintenance and Rehabilitation Project (Project) consists of preventative maintenance and rehabilitation of approximately 15.2 lane miles of pavement along various street segments (Attachment 1). The scope of work includes repair and replacement of asphalt pavement; placement of slurry seal; adjustment of utility valves and covers; construction of accessible concrete ramps in accordance with the requirements of the Americans with Disabilities Act (ADA); replacement of traffic striping and pavement markings; and other necessary work to complete the Project.
The Project includes a CalRecycle grant. In January 2025, a CalRecycle grant was awarded to the City to incorporate recycled rubberized materials in pavement maintenance projects. The City will receive reimbursement of up to the $250,000 from CalRecycle based on the quantity of rubberized materials used. Staff plans to use a portion of the grant reimbursement on this Project and use remaining grant funds on future projects with rubberized asphalt pavements.
DISCUSSION
In March 2025, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, BidNet Direct. The RFB was viewed by various vendors, including contractors, suppliers, plan rooms, and builder exchanges, among others. Additional vendors were also able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to contractors and vendors who had viewed similar projects in the past.
On April 10, 2025, the bid opening for the Project was held via video conference. Four bids were received ranging from $8,667,777 to $10,960,960. The Bid Summary is included as Attachment 2. The lowest bid, submitted by Radius Earthwork Inc. (Radius) in the amount of $8,667,777, is 0.3 percent below the Engineer’s Estimate of $8,694,200. Radius’s bid was reviewed by staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be the lowest responsive and responsible bid. Staff recommends awarding the construction contract to Radius.
The award of contract will allow construction to commence in order to complete the pavement work during the summer and fall of 2025. The dates may be subject to change based on any unforeseen conditions discovered during construction or extended delivery dates by materials or equipment suppliers. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(c), “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing, and specifically includes the repair of existing highways and streets.
FISCAL IMPACT
The approximate cost of the contract is $8,667,777 plus a 10 percent contingency, or $866,778, for any potential change orders for a total not-to-exceed contract amount of $9,534,555.
Funding for the contract is available in the Annual Street Maintenance and Rehabilitation Program project in the Streets and Highways Capital Fund. Budget actions are recommended to recognize the $250,000 CalRecycle grant revenue and appropriate the funding to the Annual Street Maintenance and Rehabilitation Program project. In addition, staff recommends transferring $228,619 from the Buildings and Grounds project in the Water Utility Capital Fund and $198,409 from the Sewer Utility Fund to the Annual Street Maintenance and Rehabilitation Program project for the portion of the project costs associated with those funds. This Project involves removing and replacing water valve boxes and adjusting sanitary sewer manhole covers along with performing the permanent pavement restoration following water and sewer underground construction at various locations.
Budget Amendment
FY 2024/25
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund |
|
|
|
|
Revenues |
|
|
|
|
CalRecycle Grant TRP17-24 |
$0 |
$250,000 |
$250,000 |
|
|
|
|
|
|
Transfers From |
|
|
|
|
Water Utility Capital Fund |
$0 |
$228,619 |
$228,619 |
|
|
|
|
|
|
Sewer Utility Fund |
$0 |
$198,409 |
$198,409 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Annual Street Maintenance and Rehabilitation Program |
$19,451,565 |
$677,028 |
$20,128,593 |
|
|
|
|
|
|
|
|
|
|
|
Water Utility Capital Fund |
|
|
|
|
Transfers To |
|
|
|
|
Streets and Highways Capital Fund |
$0 |
$228,619 |
$228,619 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Buildings and Grounds |
$2,898,961 |
($228,619) |
$2,670,342 |
|
|
|
|
|
|
Sewer Utility Fund |
|
|
|
|
Transfers To |
|
|
|
|
Streets and Highways Capital Fund |
$0 |
$198,409 |
$198,409 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$1,908,780 |
($198,409) |
$1,710,371 |
COORDINATION
This report has been coordinated with the Finance Department, Water & Sewer Utilities Department, and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations
2. Award the Public Works Contract for the 2025 Annual Street Pavement Maintenance and Rehabilitation Project to Radius Earthwork Inc., the lowest responsive and responsible bidder, in the amount of $8,667,777 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project, in final forms approved by the City Attorney;
3. Authorize the City Manager to execute change orders up to approximately 10 percent of the original contract price, or $866,778, for a total project budget not to exceed amount of $9,534,555, in final forms approved by the City Attorney; and
4. Approve the following FY 2024/25 budget amendments:
a) In the Streets and Highways Capital Fund, recognize grant revenue of $250,000 from CalRecycle, recognize transfers of $228,619 from the Water Utility Fund and $198,409 from the Sewer Utility Fund, and increase the Annual Street Maintenance and Rehabilitation Program project by $677,028 (five affirmative Council votes required to appropriate additional revenue);
b) In the Water Utility Fund, establish a transfer to the Streets and Highways Capital Fund and reduce the Buildings and Grounds appropriation by $228,619 (majority affirmative Council votes required); and
c) In the Sewer Utility Fund, establish a transfer to the Streets and Highways Capital Fund and reduce the unrestricted ending fund balance by $198,409. (five affirmative Council votes required for the use of unused balances)
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Project Location Map
2. Bid Summary