APPROVAL OF PLANS AND AWARD OF CONSTRUCTION CONTRACT TO ALL AMERICAN ASPHALT FOR THE FISCAL YEAR 2026-2027 ARTERIAL ROADWAY REHABILITATION PROJECT, CITY PROJECT NO. 27-102

The scope of work for the Fiscal Year (“FY”) 2026-27 Arterial Street Rehabilitation Project entails the rehabilitation of Palm Dr between Yorba Linda Blvd to Rose Dr, (Attachment 1), totaling approximately one mile of roadway. In general, the work consists of pavement rehabilitation; replacement of damaged sidewalk, curb, and gutter, curb ramp upgrades and new striping, markings, and pavement legends.

The City solicited competitive bids for the project. A total of eleven (11) bids were received for this project on August 28, 2026. These bids consisted of four portions: Bid “A” + Additive Bid “B” + Additive Bid “C”+ Additive Bid “D”. Bid "A" is the base bid which entails street rehabilitation and concrete work. Additive Bid "B" is for an alternate pavement rehabilitation design which includes geogrid. Additive Bid "C" is for adjusting sewer manholes for the Orange County Sanitation District (OC San). Additive Bid “D” Schedule is for water valve adjustments for Golden State Water Company. A Master Reimbursement Agreement between OC San and the City has been coordinated for reimbursement of the manhole adjustment costs for this project and future street rehabilitation projects. The grand total of all bids was used as the basis in determining the low bid for this project. The contract will be for the amount represented by the sum of Bid "A" with the removal of line items 4A, 7, and 17 from Bid "A", and adding Additive Bid "B" and Additive Bid "C" Schedules. The removal of the line items listed above coincides with awarding the pavement rehabilitation design alternate and removal of the Orange County Flood Control’s manhole adjustments since they will contract the manhole adjustment work under a separate contract. The low bid received from All American Asphalt was found to be the lowest responsive and most responsible bid received. Staff recommends that City Council award a construction contract to All American Asphalt in the amount of $1,291,412.00. In addition to the construction cost, staff recommends City Council award a ten percent (10%) construction contingency amount of $129,141.20 to cover any unforeseen conditions found during construction.

A component of this project requires the allocation of funding for inspection and construction management services. The City requested five (5) quotes from its on-call list of construction management and inspection consultants for the FY 26-27 Arterial Roadway Rehabilitation Project. After reviewing the quotes, it was determined that Berg & Associates submitted the most favorable proposal, and staff recommends approving a purchase order in the total amount of $80,319.36.

The total construction contract cost, including contingency, and construction management and inspection, amounts to $1,500,872.56.

It is recommended that the City Council:

1. Approve the Engineered Plans and Specifications prepared by the Engineering Department for the FY 2026-2027 Arterial Roadway Rehabilitation Project, City Project No. 27-102; and
2. Approve a Public Works Agreement with All American Asphalt for the FY 2026-2027 Arterial Roadway Rehabilitation Project in the amount of $1,291,412.00; and
3. Reject all other bids received and authorize return of the bid bonds; and
4. Authorize the Acting City Administrator to approve contract change orders up to ten percent (10%) of the contract amount, or $129,141.20, for a total construction contract not-to-exceed amount of $1,420,553.20; and
5. Approve a purchase order with Berg & Associates, Inc to provide construction inspection and construction management services for a not-to-exceed amount of $80,319.36; and
6. Approve a Master Reimbursement Agreement between the City of Placentia and Orange County Sanitation District for costs associated with manhole adjustments on street rehabilitation projects; and
7. Adopt Resolution No. R-2026-63, a Resolution of the City Council of the City of Placentia, California, authorizing a budget amendment in Fiscal Year 2026-27 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
8. Authorize the Acting City Administrator and/or her designee to execute all necessary documents, in a form approved by the City Attorney.

The item conforms to Strategic Plan Goal No. 3, Maintain and enhance streets, parks, and public facilities to ensure they are well-appointed, clean, attractive, and reflective of the City’s commitment to quality.

The scope of work for the FY 2026-27 Arterial Street Rehabilitation Project includes the rehabilitation of Palm Dr between Yorba Linda Blvd to Rose Dr, which entails pavement rehabilitation; replacement of damaged sidewalk, curb, and gutter, curb ramp upgrades and new striping, markings, and pavement legends. A total of about 340,000 square feet of roadway will be rehabilitated as part of this project.

OC San has agreed to reimburse the City the amount of $42,000.00 for the contractor to perform the work to adjust their manholes. The Master Reimbursement Agreement between OC San and the City of Placentia addresses reimbursement to the City for costs associated with manhole adjustments for street rehabilitation projects as performed by the City’s awarded contractor. The Master Reimbursement Agreement will remain effective for a term of ten years which will be beneficial in reimbursements on future manhole adjustment work for street rehabilitation projects.

On August 28, 2026, the City received eleven (11) bids from contractors. The following table provides the total bid amounts received from each contractor and these amounts reflect base bid "A" and additive bids "B", "C" and "D" which form the basis of award:

After reviewing the bids, it was determined that All American Asphalt submitted the lowest responsible bid. Upon review and analysis, staff determined the bid proposal to be responsive and valid. Line items 4A, 7, and 17 are being removed from Base Bid "A", while Additive Bid "B" and Additive Bid "C" Schedules are being included. The removal of the line items from the base bid and the inclusion of the additive bid schedules listed above coincide with awarding the pavement rehabilitation design alternate and removal of the Orange County Flood Control’s manhole adjustments since they will contract the manhole adjustment work under a separate contract. Additive Bid "D" schedule was also removed from the scope since the Golden State Water Company determined they were able to contract the utility adjustment work under a separate contract. The removal of these line items and additive bid schedules reduces the construction amount by $91,400 to $1,291,412.00. Based upon All American Asphalt’s reference check, and submitted bid, staff recommends awarding a construction contract to All American Asphalt for the FY 2026-27 Arterial Street Rehabilitation Project.

A component of this project requires the allocation of funding for inspection and construction management services. The City requested five (5) quotes from its on-call list of construction management and inspection consultants for the FY 26-27 Arterial Roadway Rehabilitation Project. The following table provides the total amounts received from each consultant:

After reviewing the quotes, it was determined that Berg & Associates submitted the most favorable proposal, and staff recommends approving a purchase order in the total amount of $80,319.36 for Berg & Associates for inspection and construction management services.

Staff recommends that City Council award a construction contract to All American Asphalt in the amount of $1,291,412.00. In addition to the construction cost, staff recommends City Council award a ten percent (10%) construction contingency amount of $129,141.20 to cover any unforeseen conditions found during construction. The total construction contract cost, including contingency, and construction management and inspection, amounts to $1,500,872.56.

The total construction cost for the Fiscal Year 2026-27 Arterial Street Rehabilitation Project amounts to $1,500,872.56. This cost consists of the bid amount submitted by All American Asphalt in the amount of $1,291,412.00, a construction contingency in the amount of $129,141.20, and construction inspection and management services with Berg & Associates in the amount of $80,319.36.

The City was awarded a CalRecycle Rubberized Pavement Grant in the amount of $121,000.00, and $51,700.00 is allocated for the FY 26-27 Arterial Roadway Rehabilitation Project, which will be used to fund the pavement material for the project. The remaining $69,300 will be allocated to a street rehabilitation project at a later date.

Staff is also requesting the City enter into a Master Reimbursement Agreement with OC San for the adjustment of manholes. As a part of this agreement, OC San will be providing the City with $42,000 worth of funding for this work. Staff recommends City Council adopt Resolution No. R-2026-63, a budget amendment in Fiscal Year 2026-27 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures. This budget amendment will allocate $51,700 of the CalRecycle Pavement Grant to this Project. 

Funding for this project is supported by numerous sources as outlined below: