TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ted Semaan, Interim Public Works Director
Gilbert Gamboa, Acting City Engineer
Gilbert Ramos, Associate Engineer
SUBJECT:Title
Consideration of Accepting as Complete Work Performed by Sequel Contractors, Inc. for the Cycle 2 Street Resurfacing Project at Marine Avenue and 14th Streets (No Budget Impact) (Interim Public Works Director Semaan).
A) ACCEPT
B) AUTHORIZE
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council:
1) Formally accept as complete the Sequel Contractors, Inc. (Sequel) construction agreement for the Cycle 2 Street Resurfacing Project at Marine Avenue and 14th Streets Project (Cycle 2 Street Resurfacing Project);
2) Authorize the filing of the Notice of Completion with the County Recorder; and
3) Authorize the release of the retention amount of $84,003.03 to Sequel Contractors, Inc.
FISCAL IMPLICATIONS:
The construction agreement with Sequel for the Cycle 2 Street Resurfacing Project at Marine Avenue and 14th Streets Project was awarded for $1,648,236.00, with an authorized construction contingency of $165,000.00. Two change orders were approved for the project, totaling $31,824.62, which brings the total amount spent under the agreement to $1,680,060.62. After acceptance of the work and filing the Notice of Completion, and expiration of the 35-day lien period, the retention amount of $84,003.03 will be released to the contractor. Any remaining funds will be returned to the Gas Tax Fund.
BACKGROUND:
The City is responsible for the repair and maintenance of approximately 106 linear miles of roadway that vary in age and condition. These streets require annual resurfacing treatments (mill and overlay or full reconstruction) to maintain a uniformly high standard. Based on the 2024 Pavement Management Program Report’s Pavement Condition Index (PCI) rating, staff prioritized several low-scoring street segments to be resurfaced over the next three fiscal years. These street segments need attention and are planned to receive resurfacing treatments to preserve the life of the pavements for each segment.
On March 2, 2021, the City Council awarded a Professional Design Services agreement to RAK Development Inc., dba Kreuzer Consulting Group, for the Cycle 2 Street Resurfacing Project. The scope of services entailed the preparation of plans, specifications, cost estimates, bidding documents, and design support services during the construction phase. Plans and specifications for the Cycle 2 Street Resurfacing Project were completed in September 2024.
On January 21, 2025, following a competitive bid process for the Cycle 2 Street Resurfacing Project, the City Council awarded a construction contract to Sequel. Subsequently, in February 2025, the City authorized an on-call contract Task Order Solicitation with Z&K Consultants, Inc. to provide Construction Management and Inspection services for the project.
The pre-existing Pavement Condition Index (PCI) for each street is listed below.
1. Marine Avenue from Blanche Road to Valley Drive had a PCI of 54
2. 14th Street from Ardmore Avenue to Deegan Place had a PCI of 47
3. 14th Street from Laurel Avenue to Pacific Avenue had a PCI of 44
The corresponding PCI for Marine Avenue was increased to 100 after full reconstruction. After being milled and overlaid, the two segments of 14th Street saw their PCI increase to a range of 85-95.
DISCUSSION:
The Cycle 2 Street Resurfacing Project began construction in April 2025 and was substantially complete in August 2025. The project scope along Marine Avenue included a full section reconstruction of the roadway, installation of rolled curb, reconstruction of parking pads, and the installation of two American with Disabilities Act (ADA) pedestrian access ramps. The project scope of work along 14th Street included a mill and overlay of the roadway, installation of curb, gutter, and sidewalk, and the installation of nine ADA pedestrian access ramps. The contractor completed the change order work and remaining punch list items in September 2025.
Two change orders were required to complete the Cycle 2 Street Resurfacing Project. Change Order No. 1 increased the contract quantities for concrete, asphalt, and brick removals, as well as the reinstallation of rolled curbs and concrete pavement behind the curb, as requested by the City. Change Order No. 2 authorized the following extra work: installation of thermoplastic treatments at adjacent stop bars and crosswalks, reinstallation of the rolled curb and brick, provision of time and materials for crews on standby, importation of fill material to meet compaction requirements, and completion of slot pave sections.
Cycle 2 Street Resurfacing Project (Funding Recap)
$1,648,236.00 Original Contract Award
+$ 165,000.00 Original Contingency Authorization
$1,813,236.00 Total Available Budget
$1,648,236.00 Contract Work Completed
+$ 3,207.30 Change Order No. 1 - Increase in Contract Quantities
+$ 28,617.32 Change Order No. 2 - Extra Work and Working Days
+$1,680,060.62 Total Contract Work and Change Orders
$1,813,236.00 Total Available Budget
-$1,680,060.62 Total Contract Work and Change Orders
$133,175.38 Total Remaining Budget
Sequel has satisfactorily completed all work and is now requesting formal acceptance of the project. The five percent retention will be released 35 days after recordation of the Notice of Completion with the County Recorder and no project related claims filed with the City. All work inspected by Z&K Consultants, Inc. was found to be in conformance with the plans and specifications and of good quality. City staff have also reviewed and approved the final work.
Consistent with industry standards, a one-year warranty inspection will be conducted in summer 2026. Any areas observed during the warranty period that require remediation will be repaired at that time. The warranty work is included in the construction contract.
PUBLIC OUTREACH:
One community meeting was held on July 23, 2024, to communicate the design intent and construction impacts to the public. The meeting was publicly noticed on the City’s project website and by mail to residents on all affected streets. The community meeting was a hybrid meeting with in-person and virtual participation.
Additional public outreach included two initial project start-of-construction notices mailed to nearby residents. Construction notices were distributed to area residents by the City staff and by Sequel. City staff maintained regular communication with the adjacent property owners to keep them updated on the project schedule and impacts during construction. Throughout the duration of the project, construction updates were posted on the City’s project webpage.
ENVIRONMENTAL REVIEW:
The City reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and determined that the project qualified for a Categorical Exemption pursuant to Section 15301 Class 1 (Existing Facilities) of the State CEQA Guidelines.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Location Map