DATE: September 2, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: AWARD OF PUBLIC WORKS AGREEMENT FOR THE VISTA WAY FEDERAL HIGHWAY ADMINISTRATION (FHWA) OVERLAY PROJECT
RECOMMENDATION
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Staff recommends that the City Council award a Public Works Agreement (PWA) to Eagle Paving LLC, in the amount of $1,183,000, for the proposed Vista Way Federal Highway Administration (FHWA) Overlay project; authorize the City Engineer to execute Contract Change Orders up to the amount of $236,000 as may be necessary; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
In March 2023, both directions of SR 78 near El Camino Real were closed due to a sinkhole resulting from a metal storm drain culvert failure. In order to make the necessary repairs, California Department of Transportation (Caltrans) required the closure of SR 78 in both directions for two months. During the emergency repair closure, motorists traveling on SR 78 were detoured onto Vista Way, causing accelerated damage to the roadway asphalt due to substantial increase in vehicular traffic on Vista Way.
In accordance with the Federal Highway Administration (FHWA) Emergency Relief (ER) Program, City staff submitted a damage assessment form (DAF) requesting road repair funds for a two-inch asphalt rehabilitation for the project’s portion of Vista Way. The project limits extend along Vista Way from El Camino Real to College Boulevard.
In October 2023, City staff was notified that the FHWA ER DAF funding request was approved. In March 2024, City Council accepted the FHWA ER program funds.
Upon City Council’s acceptance of the funding opportunity, staff proceeded to follow Caltrans’ Local Assistance Procedures to request allocation of the construction funds. This entailed submitting plans, specifications, cost estimate, right-of-way certification, and a National Environmental Policy Act (NEPA) approval document. Due to staff turnover, the submission was delayed to August 2025. The request was then approved December 2025 by Caltrans, prompting staff to begin preparations to advertise the project for construction bids.
The project was advertised on May 27, 2026, in accordance with City Procurement Policy AD-21. Ten bids were received on July 28, 2026 and publicly opened (Attachment 1). After Staff performed a detailed analysis of the bids, it was determined that Eagle Paving LLC was the lowest responsive and responsible bidder.
Construction is anticipated to begin early November 2026 and be completed in approximately two months.
FISCAL IMPACT
Construction costs for the proposed project, including staff time, inspection, and project contingency, are estimated to be $1,587,000. A contingency of $236,000 is requested to address any potential site conditions that may require field change orders, avoiding schedule delays and ensuring Vista Way is re-opened within the expected timeline. The available FHWA construction funds are $1,560,539. The ER Program provides an amount not to exceed 88.53 percent Federal reimbursement for actual construction expenses. The City’s Measure X Street Restoration/Asphalt Overlay account 902159419517.5703.10600 will provide funding for the remaining 11.47 percent City share, equal to the amount of approximately $182,029 required to complete the work. This infrastructure account has an available balance of $3,782,365; therefore, there are sufficient funds available for the City Match.
|
DESCRIPTION |
COSTS |
FHWA ER - Street Restoration/Asphalt Overlay |
Measure X - Street Restoration/Asphalt Overlay |
|
|
|
822193523274.5703.10600 |
902159419517.5703.10600 |
|
PWA |
$ 1,183,000 |
$ 1,047,310 |
$ 135,690 |
|
Contingency |
$ 236,000 |
208,931 |
27,069 |
|
City Staff |
$ 118,000 |
104,465 |
13,535 |
|
Inspections |
$ 50,000 |
44,265 |
5,735 |
|
Total Costs |
$ 1,587,000 |
$ 1,404,971 |
$ 182,029 |
|
Available FY26-27 Funds |
$ 1,560,539 |
$ 3,782,365 |
Therefore, sufficient funding is available for the proposed project.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The bid documents were previously reviewed by the City Attorney and approved as to form. The contract must be awarded to the lowest responsible bidder whose bid is responsive to the call for bids. “Responsible bidder” means a bidder who has demonstrated the attributes of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract. City Council also has authority to reject all bids and re-advertise.
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Prepared by: Luis Cardenas, Associate Engineer
Reviewed by: Brian Thomas, Acting Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS
1. Bid Tabulation Sheet
2. Project Overview Map