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ADOPT RESOLUTION TO AUTHORIZE THE STREET RESURFACING ON FEDERAL-AID STREETS FISCAL YEAR 2020-21 PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve Notice of Exemption No. NOE 23-25 under the California Environmental Quality Act for the Street Resurfacing on Federal-Aid Streets Fiscal Year 2020-21, Project No. WD21006/Federal Project No. CRRSTPL-5008(208).
2. Approve the plans and specifications for the Street Resurfacing on Federal-Aid Streets Fiscal Year 2020-21, Project No. WD21006/Federal Project No. CRRSTPL-5008(208).
3. Award a Construction Contract in the amount of $3,545,028.60 to United Pavement Maintenance, Inc. of Hughson, CA, for the Street Resurfacing on Federal-Aid Streets Fiscal Year 2020-21, Project No. WD21006/Federal Project No. CRRSTPL-5008(208).
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 resurface three street segments located on Benjamin Holt Drive from Grisby Place to Plymouth Road, Carolyn Weston Boulevard from Manthey Road East to Manthey Road West, and Hammer Lane from Kelley Drive to 460 feet west of Mariners Drive for a total distance of approximately one mile (Attachment A). The project was included in the 2021-26 Five-Year Capital Improvement Plan (CIP).
On March 27, 2025, the City received four bids for this project. It is recommended that Council award a Construction Contract to the lowest responsive bidder, United Pavement Maintenance, Inc., in the amount of $3,545,028.60. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE23-25 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 summer 2025, weather permitting.
This project is federally funded and subject to federal Disadvantaged Business Enterprise (DBE) requirements.
DISCUSSION
Background
The City of Stockton receives an annual allocation of federal Regional Surface Transportation Program (RSTP) funds. These funds must be used on streets classified by the Federal Highway Administration as arterial or collector Federal Aid Urban (FAU) routes. The City typically uses RSTP funds for the resurfacing of FAU street segments that have a poor pavement condition rating. This rating is established by the City’s pavement management system, which rates the pavement condition of all streets on a scale ranging from poor (Pavement Condition Index (PCI) = 0) to excellent condition (PCI = 100). Benjamin Holt Drive from Grisby Place to Plymouth Road has a current PCI of 33. Carolyn Weston Boulevard from Manthey Road East to Manthey Road West has a current PCI of 51. Hammer Lane from Kelley Drive to 460 feet west of Mariners Drive has a current PCI of 35.
The general locations for the Fiscal Year (FY) 2020-21 RSTP allocation were identified in the 2021-26 Five-Year CIP. The federal funding available to the City for the Street Resurfacing on Federal-Aid Streets FY 2020-21 project is $4,729,705, which was allocated and programmed by the San Joaquin Council of Governments. There is no match required, as the City will use toll credits to meet the match requirement of 11.47 percent. Toll credits are derived from toll revenue collected by the State from applicable toll roads. Toll credits do not provide additional funding to the City but can be used to eliminate the local match requirement. Using toll credits effectively allows the City to fund the project with 100 percent federal funds. In December 2024, Caltrans issued the authorization to proceed with this project.
For the FY 2020-21 RSTP allocation, the City identified Benjamin Holt Drive from Grisby Place to Plymouth Road, Carolyn Weston Boulevard from Manthey Road East to Manthey Road West, and Hammer Lane from Kelley Drive to 460 feet west of Mariners Drive (Attachment A). The street segments are arterial roadways with high traffic volumes and low pavement condition ratings.
The project includes asphalt concrete overlay, base failure repairs, slurry seal, full-depth reclamation up to 19 inches in depth, pavement grinding and cold planning up to 6 inches in depth, removal and installation of pavement markings/striping, lowering and raising existing utilities to finish grade, installing curb ramps to meet Americans with Disabilities Act compliance, and installation of traffic loops. The project will resurface approximately one mile of roadway. The project was included in the 2021-26 Five-Year CIP.
Since the project is funded with federal transportation dollars, DBE program rules apply. DBE rules require that the prime contractor either meet a calculated project specific DBE participation goal or undertake and document good faith efforts to do so. If the apparent low bidder does not meet the project goal, a Good Faith Efforts Evaluation must be made examining several specific factors. Failure to meet the goal or provide evidence of adequate good faith efforts are grounds for rejecting the bidder as non-responsive.
A DBE is a socially and economically disadvantaged small business owned by a woman or by a specified ethnic group that has been properly certified by Caltrans. There groups include:
• African American
• Asian Pacific American
• Native American
• Women
• Hispanic American
• Subcontinent Asian American
A DBE goal of 22 percent was established for this project. The goal was calculated by examining the breakdown of the types of work to be performed and the availability of certified DBE companies in our market area to perform the work. A pre-bid meeting was held on January 15, 2025, to emphasize the DBE requirements and to provide information on how to meet the project DBE goals.
The federal funding restrictions prohibit the use of the Local Employment Ordinance Stockton Municipal Code (SMC) section 3.68.095) and the Local Business Preference Ordinance, (SMC section 3.68.090).
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 federal regulations prohibit the use of such agreements.
Due to funding requirements, the project must be awarded within six months of funding allocation. Funds for this project were allocated on December 14, 2024.
Present Situation
On January 6, 2025, the Street Resurfacing on Federal-Aid Streets FY 2020-21, Project No. WD21006/Federal Project No. CRRSTPL-5008(208), was advertised for bids. On March 27, 2025, four bids were received with the following results:
COMPANY NAME BID AMOUNT
United Pavement Maintenance, Inc. (Hughson, CA) $3,545,028.60
R&R Pacific Construction (Woodland, CA) $3,734,400.00
Dirt Dynasty, Inc. (Farmington, CA) $4,405,202.00
George Reed, Inc. (Modesto, CA) $4,884,337.00
Engineer’s Estimate $4,023,407.90
The bid from United Pavement Maintenance, Inc., the lowest responsive bidder, is regular in all respects. United Pavement Maintenance, Inc. has the proper license to perform the work and has proposed a DBE participation goal of 80 percent. It is recommended that Council approve the plans and specifications and award a Construction Contract to United Pavement Maintenance, Inc. of Hughson, CA, in the amount of $3,545,028.60, for the Street Resurfacing on Federal-Aid Streets FY 2020-21, Project No. WD21006/Federal Project No. CRRSTPL 5008(208).
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 project is also subject to National Environmental Protection Act requirements and received a categorical exclusion from Caltrans Environmental Division. The resolution will approve the filing of Notice of Exemption No. NOE 23-25 under CEQA.
Construction is anticipated to begin and be completed by summer 2025, weather permitting.
FINANCIAL SUMMARY
There is sufficient funding available in the Street Resurfacing on Federal-Aid Streets FY 2020-21, Project No. WD21006/Federal Project No. CRRSTPL-5008(208), to award a Construction Contract to United Pavement Maintenance, Inc. in the amount of $3,545,028.60.
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