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ADOPT RESOLUTION TO AUTHORIZE THE LOCAL STREET RESURFACING PROGRAM FISCAL YEAR 2025-26 SB1 - CAPE SEAL PROJECT (DISTRICTS 2, 4, AND 6)
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE19-26 under the California Environmental Quality Act for the Local Street Resurfacing Program Fiscal Year 2025-26 SB1 - Cape Seal, Project No. WD26003.
2. Approve the plans and specifications for the Local Street Resurfacing Program Fiscal Year 2025-26 SB1 - Cape Seal, Project No. WD26003.
3. Award a Construction Contract in the amount of $816,640 to American Pavement Systems, Inc. of Modesto, CA, for the Local Street Resurfacing Program Fiscal Year 2025-26 SB1 - Cape Seal, Project No. WD26003.
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 cape seal treatment to approximately five centerline miles of various residential roadways Citywide (Attachments A and B). Cape seal is the process of placing a chip seal on an existing surface and then placing a slurry seal layer on top of the chip seal to improve rideability and extend the roadway’s life expectancy. The project was included in the 2025-30 Five-Year Capital Improvement Plan (CIP).
On May 28, 2026, the City received three bids for this project. It is recommended that Council award a Construction Contract to the lowest responsive bidder, American Pavement Systems, Inc., in the amount of $816,640. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE19-26 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Construction is anticipated to begin and be completed by fall 2026, 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 highway 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 $8.4 million in SB1 RMRA Program funding was allocated to the City for Fiscal Year (FY) 2025-26 and approved by Council on April 1, 2025, by Resolution No. 2025-04-01-1215. 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 surfacing 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 FY 2025-26 SB1 - Cape Seal, Project No. WD26003, was included in the 2025-30 Five-Year CIP. The project will apply a cape seal treatment to approximately five centerline miles of various residential roadways Citywide (Attachments A and B). The project includes removing and replacing pavement striping and legends and applying a cape seal. Cape seal is the process of placing a chip seal on an existing surface and then placing a slurry seal layer on top of the chip seal. Chip seal is a roadway surface treatment consisting of a layer of asphalt rubber binder with a layer of embedded aggregate. Slurry seal is a mixture of water, asphalt emulsion, finely crushed rock, and additives applied in a thin layer to an asphalt pavement surface. This treatment improves rideability and extends 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 condition and projected traffic load to forecast how roadway segments will decline over time. The forecasts are used to evaluate the cost and benefit of repair options and identify the optimal pavement resurfacing plan. Roadways with a Pavement Condition Index (PCI) ranging between 50 and 65 are suitable for this treatment. The City’s Pavement Management System identified these roadway segments to have a PCI range between 50 to 65. This treatment extends the life span by a minimum of seven 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 not applied to this project as the estimated construction cost was less than $1 million.
Present Situation
On May 6, 2026, the Local Street Resurfacing Program FY 2025-26 SB1 - Cape Seal, Project No. WD26003, was advertised for bids. On May 28, 2026, three bids were received with the following results:
COMPANY NAME BID AMOUNT
American Pavement Systems, Inc. $816,640
(Modesto, CA)
Pavement Coating Co. $919,994
(Sacramento, CA)
VSS International, Inc. $928,325
(West Sacramento, CA)
Engineer’s Estimate $914,550
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. The Local Employment Ordinance, SMC section 3.68.095, also applies to this project.
The bid from American Pavement Systems, Inc., the lowest responsive bidder, is regular in all respects and has the proper license to perform the work. It is recommended that Council approve the plans and specifications, and award a Construction Contract to American Pavement Systems, Inc. of Modesto, CA, in the amount of $816,640, for the Local Street Resurfacing Program FY 2025-26 SB1 - Cape Seal, Project No. WD26003.
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. NOE19-26 under CEQA.
Construction is anticipated to begin and be completed by fall 2026, weather permitting.
FINANCIAL SUMMARY
There are sufficient funds available in the Local Street Resurfacing Program FY 2025-26 SB1, Project No. WD26003, to award a Construction Contract to American Pavement Systems, Inc. in the amount of $816,640.
Attachment A - Project Vicinity Map
Attachment B - Street List