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Public Works Agency <br />www.santa-ana.org/pw <br />Item # 21 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />January 20, 2026 <br />TOPIC: Award of a Construction Contract for Public Alley Improvements <br />AGENDA TITLE <br />Award of a Construction Contract to Cali State Paving, Inc., for the Construction of the <br />Alley Improvements Project (Project No. 26-6910) (General Fund) <br />RECOMMENDED ACTION <br />1. Approve the Project Cost Analysis for a total estimated construction delivery cost <br />of $765,625, which includes $612,500 for the construction contract, $91,875 for <br />contract administration, inspection, and testing, and $61,250 for unanticipated or <br />unforeseen work. <br />2. Award a construction contract to Cali State Paving, Inc., the lowest responsible <br />bidder, in accordance with the base bid in the amount of $612,500, subject to <br />change orders, for the construction of the Alley Improvements Program Project <br />(Project No. 26-6910), for a term beginning January 20, 2026 and authorize the <br />City Manager to execute the contract. <br />3. Determine that, pursuant to the California Environmental Quality Act, the <br />recommended actions are exempt from further review. Categorical Exemption <br />Environmental Review No. ER-2025-8 will be filed for Project No. 26-6910. <br />GOVERNMENT CODE §84308 APPLIES: No <br />DISCUSSION <br />The Public Works Agency Engineering Services Division (PWA) is responsible for the <br />administration and oversight of all Capital Improvement Projects in the City. The Alley <br />Improvements Program, one of the City's capital programs, aims to reconstruct the <br />City's existing public alley corridors with new concrete pavement, improving drainage <br />and upgrading both their functionality and aesthetics. The City's extensive network of <br />alleys totals 30 miles and staff has identified 12 miles of asphalt alleys that have <br />deteriorated to the point that they need to be fully reconstructed. The City Council has <br />approved an annual budget allocation of $1.5 million of Local Sales Tax (Measure X) <br />revenue to fund the Alley Improvement Program. While this project does not utilize the <br />full annual allocation, the remaining balance is planned to be applied toward an <br />additional alley improvement project that is currently in design. Each year, projects are <br />