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City reallocates $2.3M from contractor patch-and-seal to geobond to extend reach
Summary
Public Works Director BJ Gottlieb told the advisory board the city will shift $2.3 million previously budgeted for contracted crack patch-and-seal work into the geobond program because of a shrinking market of responsive contractors and to fund larger reconstruction projects.
Public Works Director BJ Gottlieb told the Public Infrastructure Advisory Board that the FY26 budget moves $2,300,000 that had been earmarked for contracted crack patch-and-seal into the city’s geo bond program.
Gottlieb said contractor availability and market dynamics have driven the decision: contractors are less willing to perform labor-intensive patch-and-seal work, instead preferring larger reconstructions that are faster and more profitable. He said the city has repeatedly received unresponsive bids for supplemental patch-and-seal phases, and shifting funds to the geo bond will extend the bond’s reach to more impactful reconstruction projects. “We got 4 bids over the last year. I’ve gotten 0 responsive bidders for those projects,” Gottlieb said.
Gottlieb said the city will continue in-house patch-and-seal work; crews will perform about 10 miles of patch-and-seal next year using city forces rather than the prior mix of in-house and contracted work. Staff also proposed hiring external inspectors for supplemental work ($239,000) and budgeting recurring lease payments of $11,500 per year for the streets and right-of-way yard leased from the county.
Board members asked whether moving the $2.3 million would reduce services to neighborhoods. Gottlieb said the shift aims to fund fewer but larger projects through the geobond and to avoid repeatedly bidding small supplemental projects that produce no responsive contractors. He said patch-and-seal will return when the market allows.
Ending: Staff said they will continue to monitor contractor availability and bring patch-and-seal proposals back to the board once procurement conditions improve.
