DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Awarding a Contract to Bay Cities Paving & Grading, Inc., for the FY 26 Pavement Improvement Project, Project No. 05347, in the Amount of $10,063,947.60 and Authorizing an Administrative Change Order Budget of $1,436,052.40
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RECOMMENDATION
Recommendation
That the City Council adopts a resolution (Attachment II) approving Addendum No. 1 & No. 2 consisting of revisions to the plans and specification for the FY26 Pavement Improvement Project (PIP) and awarding the contract for the project to Bay Cities Paving & Grading, Inc., in the amount of $10,063,947.60 and authorizing an administrative change order budget of $1,436,052.40 for a total not to-exceed contract amount of $11,500,000.
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SUMMARY
The City maintains a total of 679 lane-miles of pavement on 292 centerline miles of roadway.
The FY26 PIP is scheduled to treat 129 lane-miles, including 24 lane-miles of rehabilitation, 13 lane-miles of micro-surfacing, and 91 lane-miles of crack sealing (Attachment III & IV). This represents approximately 19% of the City's total maintained lane-miles. The proposed improvements will repair failed pavement segments and improve street surfaces.
On March 17, 2026, the project received seven (7) bids. Six of the seven bids were under the Engineer's Estimate of $11,650,000. At $10,063,947.60, the low bid received is $1,586,052.40 or 13.6% under the Engineer's Estimate.
Staff recommends award of the contract to the responsible low bidder, Bay Cities Paving & Grading, Inc., in the amount of $10,063,947.60, and authorization of an administrative change order budget of $1,436,052.40 at the discretion of the Director of Public Works. The change order budget may be used for additional work, including the addition of streets not included in the base bid, such as West A Street (Hathaway Avenue to I-880 Northbound ...
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