REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Eric Tello, Assistant Civil Engineer
Subject:
title
Accept Lowest Responsive and Responsible Bid and Award Construction Contract to Sequel Contractors, Inc. in the Amount of $6,783,480 for the 2025 Arterial Rehabilitation Project (CC1771)
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Statement of Issue:
On May 28, 2026, bids were publicly opened for the 2025 Arterial Rehabilitation Project. City Council action is requested to award the construction contract to Sequel Contractors, Inc., the lowest responsive and responsible bidder.
Financial Impact:
The total estimated cost for the project is $7,761,828, as itemized below:
|
Base Bid submitted by Sequel Contractors, Inc. |
$ 6,783,480 |
|
10% Contingency |
$ 678,348 |
|
Supplemental Services |
$ 300,000 |
|
Total Construction Cost |
$ 7,761,828 |
Funding for this project is available within the current fiscal year budget as outlined below:
|
RMRA |
Acct. 124790008.82300 |
$ 3,686,441 |
|
RMRA |
Acct. 124790009.82300 |
$ 2,321,354 |
|
Measure M |
Acct. 21390044.82300 |
$ 504,306 |
|
Measure M |
Acct. 21390039.82300 |
$ 566,990 |
|
OCTA |
Acct. 125490002.82300 |
$ 682,737 |
|
Total Funds Available |
$ 7,761,828 |
Recommended Action:
recommendation
A) Accept the lowest responsive and responsible bid submitted by Sequel Contractors, Inc. in the amount of $6,783,480; and,
B) Authorize the Director of Public Works to approve change orders up to 10% contingency in potential construction change orders; and,
C) Approve the appropriation of $682,737 to account 125490002.82300; and,
D) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney.
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Alternative Action(s):
Do not award the contract, reject all bids, and provide an alternative direction to staff.
Analysis:
The scope of work for this project includes three project locations as follows: the arterial rehabilitation of Bolsa Avenue; the construction of a new storm drain segment on Frankfort Avenue; and the rehabilitation of five downtown alley segments. The project was advertised as a single project to solicit a contractor to provide best value for similar scope of work.
The arterial rehabilitation of Bolsa Avenue will be approximately two (2) miles, from Bolsa Chica Street to Goldenwest Street. The street improvements will include installation of asphalt concrete pavement, traffic loops, updated signing and striping, limited replacement of concrete curbs, gutters, sidewalks and access ramps, and landscape replacement. This street segment has been chosen per the Pavement Management Plan which lists Bolsa Avenue with an average existing Pavement Condition Index (PCI) rating of 47 on a scale of 0 to 100, with 100 rating being the best condition. A PCI rating of 47 reflects that the pavement is in very poor condition, warranting the rehabilitation of this segment.
The Bolsa Avenue portion of this project uses sustainable paving material called Rubberized Asphalt Concrete (RAC). RAC contains crumb rubber derived from 100% California waste tire rubber, reduces tire noise, and provides a skid-resistant surface. A 2-inch layer of RAC includes over 2,000 waste tires per lane mile. This project will divert approximately 20,000 waste tires that would otherwise end up in a landfill.
The proposed storm drain improvement along Frankfort Avenue includes the installation of approximately 100 linear feet of new storm drain pipe, which will connect to an existing catch basin. The construction of this new segment will alleviate flooding of upstream alleys during large storm events.
The five (5) downtown alley segments that will be rehabilitated are located between 8th Street, 11th Street, Walnut Avenue, and Pecan Avenue. The alley improvements include a 2-inch grind and overlay, minor utility adjustments, and the construction of a new driveway alley approach. The alleys have a combined PCI rating of 36 which warrants these improvements.
On May 28, 2026, bids were publicly opened with the following results:
|
Bidder’s Name |
Bid Amount |
|
Sequel Contractors, Inc. |
$6,783,480 |
|
All American Asphalt |
$6,839,576 |
|
R.J. NOBLE COMPANY |
$6,926,305 |
|
Hardy & Harper, Inc. |
$7,015,000 |
|
Hillcrest Contracting, Inc. |
$8,136,634 |
|
Onyx Paving Company, Inc. |
$8,319,808 |
|
Excel Paving |
$8,829,355 |
As stated above, the total project cost is estimated to be $7,761,828, which includes the construction contract of $6,783,480, a ten percent (10%) construction contingency of $678,348, and supplemental expenses of $300,000 for inspection, materials testing, and geotechnical services. There are 200 working days in the project schedule, representing approximately ten (10) calendar months.
Staff has reviewed Sequel Contractors, Inc.’s bid and determined it to be responsive to the bid requirements. Staff has also evaluated the bidder’s qualifications and determined the firm to be responsible based on its experience performing similar rehabilitation projects. Award of the construction contract to Sequel Contractors, Inc. is recommended at the July 7, 2026, City Council meeting.
Environmental Status:
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15031c under Class 1 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. RCA Contract Summary
2. Sequel Contractors Construction Contract
3. Vicinity Map
4. PowerPoint Presentation