REPORT TO COUNCIL
SUBJECT
Title
Award Contract to Interstate Grading & Paving, Inc. in the Amount of $1,830,602.50 for Pavement Rehabilitation 2025 - SB1, Waiver of Minor Bid Irregularity, and Finding of California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to CEQA Guidelines Section 15301(c) (PW25-04)
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Make a determination to waive the minor bid irregularity for Interstate Grading & Paving, Inc. and award a contract in substantially the same form as Attachment 3 to the report in the amount of $1,830,602.50 to Interstate Grading & Paving, Inc. of South San Francisco, CA;
- Making a finding of categorical exemption from the California Environmental Quality 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 $183,060.
Report
BASIS FOR RECOMMENDATION
The Pavement Rehabilitation 2025 - SB1 Project, Project No. ST-23-08, was advertised on Demandstar on May 16, 2025. Thirteen (13) contractors requested bid documents. Sealed bids were opened on June 4, 2025, with two (2) responsive bids received. Interstate Grading & Paving, Inc. submitted the lowest responsive and responsible bid of $1,830,602.50 (Attachment 1 - Bid Summary). A list of street segments is included as Attachment 2.
The bid submitted by Interstate Grading & Paving Inc. contained minor mathematical errors that resulted in a different total base bid amount of $1,830,602.50 instead of the submitted amount of $1,830,556.50. In accordance with the City's bid requirements, the unit prices prevail and were used to compute the total base bid.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c), minor alteration of existing facilities, mechanical equipment, highways and streets involving negligible or no expansion of use beyond that which presently exists.
FISCAL IMPACT
Budgeted funds for various citywide pavement rehabilitation projects are available under Project 825290 - Pavement Rehabilitation, Project 831680 - Adjust Sewer Utilities in Support of Paving Projects and Project 831550 - Adjust Water Utilities in Support of Paving Projects. The project budget financial summary is included as Attachment 4 to this report.
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: Chip Taylor, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. 2025 Paving Location List
3. Draft General Construction Contract
4. Budget 825290, 831680, 831550