AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO LUNA
PUBLIC WORKS DIRECTOR
SUBJECT:
title
PUBLIC WORKS SERVICES AGREEMENT FOR STREET PAVEMENT MAINTENANCE SERVICES MASTER AGREEMENT
summary
Summary:
The City of Signal Hill maintains approximately 36.3 section miles of arterial, collector, and local streets within its jurisdiction, and is responsible for preserving and improving this roadway network through ongoing pavement maintenance, rehabilitation, and reconstruction activities. To strategically plan roadway maintenance and track pavement conditions, the Citywide Pavement Management Program (PMP) provides a comprehensive evaluation of the City’s street network, establishes pavement condition ratings, forecasts future maintenance and rehabilitation needs, and identifies the most cost-effective long-term strategy for maintaining and improving the City’s roadway infrastructure.
In 2022, the City Council approved the PMP which was prepared by Buckman Infrastructure Group, Inc. In 2025, the City worked with Bucknam Infrastructure Group, Inc. to conduct an updated pavement management analysis and prepare the 2026 PMP update. The updated PMP establishes a five-year pavement capital improvement strategy for Fiscal Years 2026-27 through 2030-31. Staff evaluated long-term pavement funding strategies, project prioritization, and implementation methods to better implement the recommendations, and developed a proposed pavement strategy that separates major pavement rehabilitation projects from routine pavement maintenance work in order to maximize available funding and reduce future deferred roadway liabilities.
Staff issued a Request for Proposals (RFP) for Master Pavement Maintenance Services for as-needed pavement maintenance and preservation services, including slurry seal, microsurfacing, localized pavement repairs, and related maintenance activities. Following review of the submitted qualifications, experience, responsiveness, and rate schedules, staff recommends award of master agreements to All American Asphalt Incorporated, Paveco Incorporated, and Hardy & Harper Incorporated as the best qualified firms to support the City’s pavement preservation program.
This staff report requests that the City Council receive and file the 2026 PMP, adopt the proposed Five-Year Pavement Capital Improvement Program, and authorize implementation of the City’s proposed pavement preservation strategy through approval of the proposed master pavement maintenance agreements. If approved, the Public Works Department would enter into one-year master pavement agreements with All American Asphalt Incorporated, Paveco Incorporated, and Hardy & Harper Incorporated commencing July 1, 2026, for a not-to-exceed amount of $1,000,000 per agreement.
Strategic Plan Goals:
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
Goal No. 5 High Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services.
recommendation
Recommendation:
Staff recommends the City Council:
1. Receive and file the Update of Pavement Management Program dated January 20, 2026, prepared by Bucknam Infrastructure Group, Inc.;
2. Adopt the 2025 Citywide Pavement Management Program and Five-Year Pavement Capital Improvement Program;
3. Authorize the City Manager to enter into a one (1) year Master Services Agreement with All American Asphalt Incorporated, to provide on-call as needed street, sidewalk, and public right-of-way maintenance and repair services for a not-to-exceed amount of one million dollars ($1,000,000.00) in a form approved by the City Attorney.
4. Authorize the City Manager to enter into a one (1) year Master Services Agreement with Paveco Incorporated, to provide on-call as needed street, sidewalk, and public right-of-way maintenance and repair services for a not-to-exceed amount of one million dollars ($1,000,000.00) in a form approved by the City Attorney.
5. Authorize the City Manager to enter into a one (1) year Master Services Agreement with Hardy & Harper Incorporated, to provide on-call as needed street, sidewalk, and public right-of-way maintenance and repair services for a not-to-exceed amount of one million dollars ($1,000,000.00) in a form approved by the City Attorney.
body
Fiscal Impact:
The proposed Five-Year Pavement Capital Improvement Program identifies approximately $8,950,000.00 in planned pavement rehabilitation and maintenance funding through Fiscal Year 2030-31. Funding allocations were developed collaboratively with the Finance Department and incorporate multiple transportation-related revenue sources, including Measure R, Measure M, Proposition C, RMRA (SB1), Special Gas Tax, and Capital Improvement Program Reserves.
The proposed funding distribution is summarized below:
|
Funding Source |
FY 2026-27 |
FY 2027-28 |
FY 2028-29 |
FY 2029-30 |
FY 2030-31 |
Total |
|
Measure R |
$300,000 |
$150,000 |
$50,000 |
$200,000 |
$200,000 |
$900,000 |
|
Measure M |
$590,000 |
$170,000 |
$170,000 |
$200,000 |
$200,000 |
$1,330,000 |
|
Proposition C |
$340,000 |
$650,000 |
$230,000 |
- |
- |
$1,220,000 |
|
RMRA (SB1) |
$500,000 |
$750,000 |
$200,000 |
$250,000 |
$250,000 |
$1,950,000 |
|
Special Gas Tax |
$750,000 |
$750,000 |
$500,000 |
$400,000 |
$400,000 |
$2,800,000 |
|
CIP Reserves |
- |
- |
$250,000 |
$250,000 |
$250,000 |
$750,000 |
|
|
$2,480,000 |
$2,470,000 |
$1,400,000 |
$1,300,000 |
$1,300,000 |
$8,950,000 |
The Public Works Department coordinated with the Finance Department to develop the proposed funding allocation strategy for the FY 2026-28 Capital Improvement Program Budget and to identify projected funding allocations for future fiscal years as outlined above., as outlined above.
The proposed funding strategy supports the implementation of both major rehabilitation projects and ongoing pavement preservation activities consistent with the PMP recommendations. The availability of the proposed funding strategy for the PMP will be assessed as part of the budget approval process to ensure revenues and expenditures track as anticipated.
Background:
The City of Signal Hill maintains approximately 36.3 section miles of arterial, collector, and local streets that support residential neighborhoods, commercial corridors, and regional circulation throughout the City. Preserving the condition and functionality of this roadway network remains a critical long-term infrastructure responsibility for the City. To assist with infrastructure planning and funding prioritization, the City utilizes a Pavement Management Program to evaluate pavement conditions, forecast maintenance and rehabilitation needs, establish improvement priorities, and guide long-term investment strategies for roadway improvements throughout the City.
The purpose of the PMP is to provide planning and management tools that continuously assess existing pavement conditions, forecast future deterioration, and identify the most cost-effective maintenance and rehabilitation strategies for the City’s roadway network. The PMP also supports the City’s continued eligibility for State and regional transportation funding programs.
In 2022, the City Council received and filed an updated PMP prepared by Bucknam Infrastructure Group, Inc. The 2022 PMP established a citywide Pavement Condition Index (PCI) of 73.7 and developed a long-term roadway maintenance strategy centered on preventive maintenance, rehabilitation, and reconstruction. Since the adoption of the 2022 PMP, the City has continued to implement pavement preservation and rehabilitation projects, utilizing RMRA (SB1), Measure R, Measure M, Proposition C, and other transportation-related funding sources to improve roadway conditions and reduce long-term deferred maintenance throughout the City. Over the last several years, the City successfully completed several pavement improvement projects identified in the previous PMP, including the Spring Street Bicycle Lane Gap Closure Project, Palm Avenue Improvements Project, Cherry Avenue and Jessie Nelson Circle Improvements Project, and California Avenue Reconstruction Project. These projects included roadway rehabilitation, pavement reconstruction, ADA improvements, striping improvements, traffic loop installation, utility adjustments, and related public right-of-way improvements intended to improve roadway conditions, extend pavement life, and enhance public safety throughout the City.
In 2025, the City retained Bucknam Infrastructure Group, Inc. to complete an updated pavement management analysis and prepare the 2026 PMP update. The updated PMP analyzed approximately 36.3 section miles of arterial, collector, and local streets and developed a five-year pavement capital improvement strategy for Fiscal Years 2026-27 through 2030-31. The updated PMP utilized the City’s MicroPAVER pavement management database to evaluate pavement conditions throughout the City. Pavement sections were inspected and assigned PCI ratings ranging from 0 to 100, with higher values representing better pavement conditions.
The updated analysis identified:
• A weighted PCI of 77.3 for the arterial and collector network;
• A weighted PCI of 67.1 for the local street network; and
• An overall citywide weighted PCI of 72.7.
The updated PMP further noted that the City’s arterial and collector network conditions improved significantly due to the substantial number of arterial overlay and rehabilitation projects completed since adoption of the 2022 PMP. The PMP also identified the following maintenance needs throughout the City:
• Approximately 32% of the arterial and collector network requires slurry seal maintenance;
• Approximately 14% of the arterial and collector network requires overlay or reconstruction work;
• Approximately 22% of the local network requires slurry seal maintenance; and
• Approximately 30% of the local network requires overlay or reconstruction work.
Staff worked closely with the consultant during the development of the updated PMP to identify and establish a plan for implementation.
Analysis:
During the development of the updated PMP, staff conducted multiple coordination meetings with the pavement management consultant to evaluate the most effective implementation strategy for future pavement improvements. Through these discussions, staff determined that separating preventative pavement maintenance activities from major rehabilitation and reconstruction work would provide the City with greater flexibility to address roadway needs more proactively and efficiently, and developed a proposed pavement delivery strategy to maximize available funding and reduce future deferred maintenance liabilities.
Under the proposed strategy, the City would continue to deliver major roadway rehabilitation projects requiring grind-and-overlay or reconstruction through separate public works construction contracts. At the same time, the City would establish a citywide pavement preservation program utilizing master maintenance agreements to complete preventative maintenance treatments such as slurry seal, microsurfacing, crack sealing, localized patching, and related maintenance work on an as-needed basis throughout the five-year PMP cycle.
This approach would allow the City to:
• Address priority rehabilitation projects identified within the PMP;
• Preserve streets currently in fair-to-good condition before significant deterioration occurs;
• Reduce long-term deferred maintenance liabilities;
• Improve long-term pavement performance and lifecycle costs; and
• Deliver pavement preservation work more efficiently through flexible on-call contracting mechanisms.
Staff coordinated with the City Attorney’s Office regarding procurement requirements associated with the implementation of this strategy. Based on the City Attorney’s review, the City could separate maintenance-related resurfacing work from major public works construction activities and procure maintenance services through a separate RFP process, provided the work remained within applicable Public Contract Code limitations associated with maintenance activities.
RFP Circulation Process
Following review and approval by the City Attorney and consistent with the City’s Purchasing Guidelines, on April 23, 2026, the City posted a Notice Inviting Proposals for the Street Pavement Maintenance Services RFP at the City’s public notice locations, distributed the notice to subscribers through the City’s website, and posted the solicitation through the City’s PlanetBids portal. The City posted the RFP on PlanetBids, the City’s website, and the City’s public notice locations in accordance with Signal Hill Municipal Code Section 1.08.010.
The RFP established a qualifications-based procurement process for as-needed pavement maintenance services and identified that agreements would be awarded to the best-qualified vendors based on experience, qualifications, and rate schedules. A total of 29 prospective proposers were notified of the RFP through PlanetBids, and 26 firms downloaded the contract documents. Proposals were due to the City on May 13, 2026.
The City received seven complete proposals prior to the submission deadline that met all City and proposal requirements. The following list identifies the firms that submitted complete and responsive proposals by the May 13, 2026, proposal deadline:
|
Contractor |
|
1 |
All American Asphalt Inc. |
|
2 |
Gentry General Engineering, Inc |
|
3 |
Onyx Paving Company Inc. |
|
4 |
Paveco |
|
5 |
Hardy & Harper, Inc |
|
6 |
Ruiz Concrete and Paving Inc. |
|
7 |
PALP dba Excel Paving Company |
Evaluation Process
Public Works staff reviewed the submitted proposals, qualifications, experience, responsiveness, and rate schedules. The City’s Selection Committee, consisting of the Public Works Director, Associate Engineer, and Contracts Manager, evaluated the proposals using the following criteria:
A. Ability to perform the specific tasks
B. Qualifications of the specific firm’s experience working on similar projects
C. Reasonableness of the schedule to complete each task element
D. Rate schedule provided
Selection
After careful evaluation, the City’s Selection Committee determined All American Asphalt Incorporated, Paveco Incorporated, and Hardy & Harper Incorporated to be the most qualified contractors for the as-needed street, sidewalk, and public right-of-way pavement maintenance services.
Staff conducted reference checks and confirmed that All American Asphalt Incorporated, Paveco Incorporated, and Hardy & Harper Incorporated possess the experience and qualifications necessary to perform the required services and understand the operational needs of the City under the proposed agreements. The proposed agreements will enable the Public Works Department to secure timely professional services, augment staff resources, and provide essential support throughout the term of the agreements. The amount of work assigned to each contractor will depend on City priorities, specific service needs, workforce availability, and funding availability. Based on the required services, City staff will direct the appropriate contractor to complete the work in accordance with the agreement’s scope of services and approved rate schedules. If approved by the City Council, the proposed master agreements would become effective on July 1, 2026, for a one-year term, with a not-to-exceed contract amount of $1,000,000 per agreement.
Based on the findings and recommendations of the updated PMP, staff recommends that the City Council adopt the 2026 Citywide Pavement Management Program and Five-Year Pavement Capital Improvement Program to continue guiding the City’s long-term pavement maintenance and rehabilitation efforts. Staff further recommends approval of the proposed Master Pavement Maintenance Agreements with All American Asphalt Incorporated, Paveco Incorporated, and Hardy & Harper Incorporated to support implementation of the City’s new pavement preservation strategy, which will allow the Public Works Department to more proactively address preventative maintenance needs, preserve roadway conditions, reduce long-term deferred maintenance costs, and efficiently deliver pavement improvement projects throughout the City on an as-needed basis.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachments:
A. Citywide 2026 Pavement Management Program
B. Master Pavement Agreement with All American Asphalt, Incorporated
C. Master Pavement Agreement with Paveco Incorporated
D. Master Pavement Agreement with Hardy & Harper Incorporated