Item 17 - Cooperative Cost Reimbursement Agreement for the Fairview Street Rehabilitation

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Fairview Street Rehabilitation from Southern City Limits to Alton Avenue March 3, 2026 Page 2 5. Award a construction contract to Onyx Paving Company, Inc. the lowest responsive bidder, in accordance with the base bid and alternates in the amount of $2,728,000, subject to change orders, for construction of the Fairview Street Rehabilitation from Southern City Limits to Alton Avenue Project (No. 21-6978), for a term beginning March 3, 2026, and authorize the City Manager to execute the contract. 6. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2026-3 will be filed for Project No. 21-6978. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The rehabilitation of Fairview Street from the City's southern limits to Alton Avenue (Exhibit 1) was approved by the City Council in the FY 24/25 Capital Improvement Program Project No. 21-6978. The Project will rehabilitate a segment of Fairview Street from the City's southern limits (Sunflower Avenue) to Alton Avenue by removing and replacing failed asphalt sections, reconstructing raised medians, and replacing the damaged concrete curbs, gutters, sidewalk, driveways, and curb ramps. The project also includes traffic improvements, such as enhanced traffic striping and pavement markings, as well as traffic signal modifications that incorporate video detection at the intersections. Once completed, these improvements will enhance the ride quality and visual appearance of the street. Pedestrian facility improvements will also comply with Americans with Disabilities Act (ADA) standards. The City of Costa Mesa shares the right-of-way within the project area; therefore, a Cooperative Cost Reimbursement Agreement is required for the City of Costa Mesa to fund the portion of the improvements within the Costa Mesa city limits (Exhibit 2). The Cooperative Cost Reimbursement Agreement between the City of Santa Ana and the City of Costa Mesa defines the roles and responsibilities of each party and establishes each city's estimated share of the project costs. The City of Costa Mesa's cost share, in an amount not to exceed $96,000, includes $7,000 in construction administration, inspection, and testing costs. The City of Costa Mesa will immediately forward the payment of $96,000 upon award of the construction contract. Project Advertisement and Contractor Procurement To provide an opportunity for local vendors to submit bids, the City notified a total of 80 regional vendors via PlanetBids, many of which are Santa Ana based. A total of seven (7) responsive bids were received including one (1) bid from a Santa Ana contractor. As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on November 17, 2025 and November 24, 2025. The project was also