REPORT TO COUNCIL
SUBJECT
Title
Award Contract to Pavement Coatings Co. in the Amount of $951,353.25 for Homestead Road Slurry Seal 2026 B Project and Find that the Project is Exempt from the California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to CEQA Guidelines Section 15301(c) (PW27-02)
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $951,353.25 to Pavement Coatings Co. of Sacramento, CA;
- Make a finding of a categorical exemption from the California Environmental Quality 3. Act (CEQA) pursuant to CEQA Guidelines Section 15301(c);
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Approve a 10% contingency in the amount of $95,135.
Report
BASIS FOR RECOMMENDATION
The Homestead Road Slurry Seal 2026 B Project (ST-25-08) was advertised on PlanetBids on July 17, 2026. Eighteen (18) prospective bidders requested bid documents. Sealed bids were opened on August 5, 2026, with four (4) bids received. Pavement Coatings Co. submitted the lowest responsive and responsible bid of $951,353.25 (Attachment 1 - Bid Summary).
The Homestead Road Slurry Seal 2026 B Project consists of the installation of 840,000 square feet of slurry seal on segments of Homestead Road. The Project also includes spot asphalt repairs, utility iron adjustments, and installation of thermoplastic pavement striping, markings, legends, green bike lane markings, and raised pavement markers.
A portion of the Project limits falls within the City of Cupertino’s jurisdiction. Staff is finalizing a cost share agreement with the City of Cupertino that will outline the terms of its payment for the work done within its city limits.
This Project provides an opportunity to advance some elements of the Active Transportation Plan. Striping will be brought up to current standards and full-time bike lanes will be installed on Homestead Road, with the full build out of the bikes lanes being completed in 2027 as part of a final pavement rehabilitation project (roughly another 72,000 sq ft) consistent with the Council-approved Homestead Bike Lane Study.
Bicycle striping improvements include:
• Installing bike stencils to clearly delineate the bike lane; and
• Installing Class IIB Buffered Bike Lane from Blaney Avenue to approximately 800 feet east of Blaney Avenue.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c), which applies to the minor alteration of existing streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities, and other alterations such as the addition of bicycle facilities, and other similar alterations involving negligible or no expansion of use beyond that which presently exists.
FISCAL IMPACT
Budgeted funds for the Homestead Road Slurry Seal 2026 B Project is available in Fund 2561 - 2016 Measure B - Santa Clara VTA Subfund under Project 825290 - Pavement Rehabilitation.
The City of Cupertino will pay its share of the project cost based on the percentage of contract work done within its jurisdiction as described in the cost share agreement.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sean Smith, Acting Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract
3. Project Summary Sheet