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ADOPT RESOLUTION TO AUTHORIZE THE LOCAL STREET RESURFACING PROGRAM FISCAL YEAR 2024-25 SB1 - MILL AND OVERLAY PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE 04-25 under the California Environmental Quality Act for the Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Mill and Overlay, Project No. WD25003.
2. Approve the plans and specifications for the Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Mill and Overlay, Project No. WD25003.
3. Award a Construction Contract in the amount of $1,215,000 to Rapid Services, LLC dba Rapid Grading Services of Hayward, CA, for the Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Mill and Overlay, Project No. WD25003.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City is responsible for maintaining 781 centerline miles of streets. The project will apply a mill and overlay treatment to approximately one centerline mile of residential and collector roadways Citywide (Attachment A). Mill and overlay is the process of milling the existing deteriorated asphalt and overlaying a new asphalt layer to improve rideability and extend the roadway’s life expectancy. The project was included in the 2024-29 Five-Year Capital Improvement Plan (CIP).
On February 13, 2025, the City received nine bids for this project. On February 14, 2025, Consolidated Engineering, Inc., the second lowest bidder, submitted a bid protest contending specialty documents were not submitted in accordance with the bid requirements. After a thorough review, Public Works, in coordination with the City Attorney’s Office, determined the bid protest to be without merit.
It is recommended that Council award a Construction Contract to the lowest responsive bidder, Rapid Services, LLC dba Rapid Grading Services (Rapid Grading Services), in the amount of $1,215,100. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE04-25 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project.
Construction is anticipated to begin summer 2025 and be completed by fall 2025, weather permitting.
DISCUSSION
Background
On April 28, 2017, the Governor signed Senate Bill 1 (SB1), known as the Road Repair and Accountability Act of 2017. SB1 funding provides for basic road maintenance, rehabilitation, and critical safety needs on both the State highways and local streets and road systems. The California Transportation Commission (CTC) is responsible for oversight of funding and/or programs created with the approval of SB1.
SB1 provides funding for the Road Maintenance and Rehabilitation Account (RMRA) Program. Other programs include the Local Partnership Program, the Active Transportation Program, State Highway Operation and Protection Program, and Local Streets and Roads Program. The RMRA funding is part of the City’s overall Gas Tax allocation; however, RMRA funds can only be expended on projects that meet eligibility criteria and have been approved by the CTC. RMRA funds are accounted for and reported separately from regular Gas Tax funds.
Approximately $8.27 million in SB1 RMRA Program funding was allocated to the City for Fiscal Year (FY) 2024-25 and approved by Council on May 14, 2024, by Resolution No. 2024-05-14-1220. The project list was subsequently approved by the CTC and provides for multiple resurfacing projects that may consist of slurry sealing, micro-surfacing, cape seal, and/or an asphalt overlay. These projects are all being delivered separately based on the type of resurfacing treatment. A cost-effective method of maintaining streets is to provide treatment for streets that are in fair to good condition. The preservation of streets in this condition is critical, as rehabilitation costs rise exponentially as pavement deteriorates.
The Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Mill and Overlay, Project No. WD25003, was included in the 2024-29 Five-Year CIP. The project will apply a mill and overlay treatment to approximately one centerline mile of residential and collector roadways Citywide (Attachment A). The project includes removing and replacing pavement striping and legends, installation of Americans with Disability Act curb ramps, and the application of mill and overlay. Mill and overlay is the process of milling the existing deteriorated asphalt and overlaying a new asphalt layer to improve rideability and extend the roadway’s life expectancy.
The list of roads for this project was developed from the City of Stockton Pavement Management System. The system analyzes variables such as current pavement conditions and projected traffic load to forecast how roadway segments will decline over time. The forecasts are used to evaluate the cost and benefits of repair options and identify the optimal pavement resurfacing plan. Roadways with a Pavement Condition Index ranging between 0 and 50 are suitable for this treatment. The City’s pavement management system identified the following roadway segments that warrant resurfacing:
• Gibson Street from El Dorado Street to West Ingram Street (PCI = 20)
• Delhi Avenue from Commerce Street to Lincoln Street (PCI = 37)
• Concord Avenue from Walnut Street to Bedford Street (PCI =0)
• Hunter Street from Martin Luther King Jr Boulevard to 1st Street (PCI = 31)
• Gordon Verner Circle (entrance) from Gordon Verner Circle to Carolyn Weston Boulevard (PCI = 28)
• Stanfield Drive from Kelley Drive to Estate Drive (PCI = 17)
• Quail Lake Drive from March Lane to Mallard Creek Circle (PCI = 40)
Mill and overlay of the selected local roads are anticipated to extend their life span by a minimum of 10 years.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. On August 20, 2024, by Motion No. 2024-08-20-1203, Council extended the CWTA term to August 25, 2029. The CWTA was applied to this project as the estimated construction cost is over $1 million.
Present Situation
On January 14, 2025, the Local Street Resurfacing Program FY 2024-25 SB1 - Mill and Overlay, Project No. WD25003, was advertised for bids. On February 13, 2025, nine bids were received with the following results:
COMPANY NAME BID AMOUNT ADJUSTED BID AMOUNT
(local preference applied)
Rapid Grading Services $1,215,000.00 $1,215,000.00
(Hayward, CA)
Consolidated Engineering, Inc. $1,384,285.00 $1,384,285.00
(Valley Springs, CA)
United Pavement Maintenance, Inc. $1,372,247.00 $1,372,247.00
(Hughson, CA)
Tom Mayo Construction, Inc. $1,441,225.00 $1,412,400.50
(Stockton, CA)
Soracco, Inc. $1,441,967.00 $1,413,127.66
(Lodi, CA)
McGuire and Hester $1,606,290.00 $1,606,290.00
(Sacramento, CA)
B&M Civil, LLC $1,777,650.00 $1,777,650.00
(Rancho Cordova, CA)
Zara Construction, Inc. $2,193,500.00 $2,193,500.00
(Sacramento, CA)
Dirt Dynasty, Inc. $2,098,310.00 $2,056,343.80
(Farmington, CA)
Engineer’s Estimate $1,745,650.00
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Tom Mayo Construction, Inc., Soracco, Inc., and Dirt Dynasty, Inc. are located within San Joaquin County and are entitled to a two percent bid preference. Application of the Local Business Preference has an effect on the bid order, but not on the low bid. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.
On February 14, 2025, Consolidated Engineering, Inc., the second lowest bidder, submitted a bid protest claiming that Rapid Grading Services did not submit appropriate documentation to satisfy the City’s bid requirements.
On March 3, 3025, the City received a bid advisory from the Foundation for Fair Contracting regarding the lowest bidder, Rapid Grading Services. The claim against Rapid Grading Services alleged failures to comply with prevailing wages and the apprenticeship program.
Public Works staff, in coordination with the City Attorney’s Office, reviewed the bid protest and bid advisory and determined it was without merit as Rapid Grading Services satisfied all bid requirements.
The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(c) of the CEQA Guidelines. As a result, the project has been granted a categorical exemption. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. NOE 04-25 under CEQA.
Construction is anticipated to begin summer 2025 and be completed by fall 2025, weather permitting.
FINANCIAL SUMMARY
There is sufficient funding available in the Local Street Resurfacing Program FY 2024-25 SB1, Project No. WD25003, to award a Construction Contract to Rapid Grading Services in the amount of $1,215,000.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map