To: Members of the Public Works Commission
From: Jason Hauser, Project Manager
Title
Update: Award of Contracts for the 2026 Pavement Maintenance Program Projects
Body
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Executive Summary
Maintaining the Town’s streets is important for public safety, travel efficiency, and as a means to extend the useable life of the streets. This is an annual Pavement Maintenance Program (PMP) for the Town’s Street system and is intended to preserve the Town’s Street infrastructure. Preservation and rehabilitation treatments work to extend the lifespan of street segments at the lowest lifecycle cost. Once street segments reach the end of their lifespan, reconstruction projects are identified. The PMP and reconstruction projects meet the Town’s Vision Statement goals of:
• Providing outstanding community services including police, fire, emergency medical, parks, recreation, water and transportation
• Ensure a Town government accountable for its vision, mission and values
In addition to these goals, the Public Works Department looks to elevate value in delivering the PMP projects. These goals are seen below, with Low Downtime, High Safety, Reliability and Low Lifecycle Cost being achieved with all maintenance projects.
The Town of Castle Rock annually budgets for needed maintenance to the Town’s Street infrastructure. The Town Council approved rotating five-year PMP will be performing at various locations within the Central regionalized area. All maintenance activities are summarized on the map (Attachment A).
The approved PMP budget for this year is $19,000,000. The total of the low bid results for the identified work is $13,824,546. Staff recommends adding contingencies for the various maintenance projects for unforeseen conditions totaling $1,382,455, or 10% of the contract amounts, for a total authorization of $15,207,001.
Per language included in the Invitation to Bid, the low bid results reflect the known scope of work at the time of bid and allow Staff to add additional work using an alternate bid schedule after bids are submitted and prior to the project being presented to Town Council. As a result, the revised amount for the identified work is $16,582,786, with a Town managed 10% contingency of $1,658,279, for a total authorization of $18,241,065. Remaining balance is anticipated to be used to fund the Minor Misc. Pavement and Sidewalk Repairs Project.
Additionally, the Invitation to Bid for both asphalt overlay projects states that a contractor may bid on both projects but may only receive an award for one. Since Schmidt Construction was the low bidder on both Asphalt Overlay #1 and #2, the Town exercised this provision and recommended awarding Schmidt Construction Asphalt Overlay #1 and awarding Asphalt Overlay #2 to the second-lowest bidder, Chavez Construction. Awarding the projects to two separate contractors helps ensure project timelines can be met concurrently and provides the Town with greater flexibility should additional scope be added during the construction season.
Town staff is comfortable with these contingency amounts and believes the work can be managed in compliance with the plans and specifications. Contingency funds will only be used if needed during the project, and any remaining contingency may be used to further expand the scope of work.
A summary of the individual contracts with low bid amounts plus contingency, and the contractors are shown below. See (Attachment B) for Bid Proposal Summary for all bids that were submitted.
Notification and Outreach Efforts
Staff has developed specific public coordination outreach to ensure that residences and businesses will understand construction impacts and how this may affect access to individual businesses and residences. Public outreach will occur in numerous forms such as; 1) the Public Outreach Open House, 2) Town newsletters, 3) HOA letters, 4) Town social media, 5) Door notifications, 6) Press releases, 7) the Town website, and others. Residents and businesses will be notified of actual dates that work is to be completed adjacent to their properties, and traffic control plans will be developed and managed to ensure worker and public safety.
Town staff will host an in-house, Public Outreach Open House in March. This Public Outreach Open House will consist of detailed maps of the maintenance work to let concerned residents know which streets will receive treatments and how it may affect them. The locations will be communicated on the Public Outreach Open House mailer. Staff plans to coordinate with neighborhood Home Owners Associations (HOA). Furthermore, press releases will be published before the start of PMP construction season to notify the public of work locations and dates.
History of Past Town Council, Boards & Commissions, or Other Discussions
Town Council approved the Town’s rotating five-year PMP regionalized area plan for residential streets at the November 1, 2011 Town Council meeting. The Town’s five-year regional plan divides the town into five regionalized areas. Primary streets can be included in any year of the five-year program. The program will then annually rotate around these five areas excluding primary streets and downtown Castle Rock such that every fifth-year repairs to an area’s residential street system will occur. In addition to the regionalized five-year PMP, the Public Works Department has developed the Strategic Asset Management Plan (SAMP) to maximize value from each asset for our stakeholders. Staff has begun making adjustments to the regionalized plan to better align with SAMP policies of working to obtain the lowest total lifecycle cost.
Discussion
The Town’s goal for the PMP is to preserve and extend the life of the Town’s streets by making the most cost-effective annual improvements to selected street segments. These goals are met when proper street maintenance is administered to these segments.
Staff determines which streets require maintenance by evaluating street condition ratings in addition to a subjective analysis. A pavement maintenance management program, the Cartegraph Pavement Asset Module, establishes these condition ratings. This program establishes a condition rating based on staff field observation for the streets, and rates them from poor to excellent condition. Different types of street maintenance treatments, such as crack seal, slurry seal, mill & overlay, and reconstruction are identified based on the condition of the roadway.
The most commonly used and cost-effective pavement maintenance activity is crack sealing. Crack seal material is placed into pavement cracks, generally 1/8 of an inch and larger to seal and fill to prevent the intrusion of water and incompressible material into the crack, and to reinforce the adjacent pavement. This year under the PMP, the Town will apply crack seal material as part of the Slurry Seal Project.
Slurry Seal is a form of maintenance to keep a newer street in good condition. This type of seal is thin in nature and meant to keep water out of minor cracks and improve skid resistance. This year the Town will complete approximately 47 lane-miles of slurry seal, which is 6% of the Town’s streets. A lane-mile is a single lane width by a mile long.
Another category of street maintenance is an asphalt mill and overlay. This treatment removes and replaces a layer of asphalt without compromising the original pavement section. This work is costlier than a slurry seal and is typically used on streets with more than one distress. These distresses include minor alligator or fatigue cracking, joint reflective cracking, longitudinal and transverse cracking, thermal cracking, potholes, raveling, and rutting.
This year, the Town will complete approximately 50 lane-miles of mill and overlay, which is approximately 6% of the Town’s streets. Due to the size of the project, Public Works has decided to split the mill and overlay work into two projects to improve competition, pricing, and schedule flexibility. Asphalt Overlay #1 will complete approximately 24 lane-miles (about 3% of the Town’s streets), while Asphalt Overlay #2 will complete approximately 27 lane-miles (about 4% of the Town’s streets). The Invitation to Bid for both projects states that a contractor may bid on both projects but may only receive an award for one; since Schmidt Construction was the low bidder on both Asphalt Overlay #1 and #2, the Town exercised this provision and recommends awarding Schmidt Construction Asphalt Overlay #1 and awarding Asphalt Overlay #2 to the second-lowest bidder, Chavez Construction.
Staff also evaluates the condition of the Town’s concrete curb, gutter, and public sidewalks within project limits. These contracts will remove and replace damaged concrete infrastructure that is a hazard to pedestrians or to the traveling public.
The invitation to bid for construction of the various projects was advertised in December 2025. Bids were opened for the projects in January 2026.
Budget Impact
A list showing the various PMP projects and the bid results is attached (Attachment B). All bids were checked for accuracy, references were checked, and all documents were reviewed for contract compliance. Staff believes that each of the recommended bidders is qualified to perform the work associated with the respective maintenance contract. A summary of the individual contracts with bid amount plus contingency and the contractors are shown on the following table:
It is anticipated that concrete repairs will begin in early April. The asphalt overlay, pavement and sealing aspects of the projects will occur in the summer months. All PMP projects are expected to be completed in the fall.
Staff Recommendation
Staff recommends Public Works Commission recommend Town Council approve the resolutions as introduced by title.
Proposed Motion
“I move that the Public Works Commission recommend that Town Council approve the attached Resolution as introduced by title.”
Alternative motions:
“I move to recommend that Town Council approve the attached Resolution as introduced by title, with the following conditions: (list conditions)”
“I move to continue this item to the Public Works Commission meeting on (date) to allow additional time to (list information needed)”
Attachments
Attachment A: Project Map
Attachment B: Project Bid Proposal Summary