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11. Slurry Seal Program CUPERTINO PUBLIC WORKS DEPARTMENT Summary AGENDA ITEM ~ ~ AGENDA DATE August 4, 2009 SUBJECT AND ISSUE Review bids and award the contract for the 2009 Slurry Seal Program, Project No. 2009-06, to American Asphalt, in the amount of $633,021.81, and approve a construction contingency of $65,000.00 to cover any unforeseen work required to complete the project, for a total of $698,021.81 (continued from July 21). BACKGROUND On July 21, 2009, the City received bids for 2009 Slurry Seal Program, Project No. 2009-06, detailed below. Bid Summary The following is a summary of bids received for 2009 Slurry Seal Program, Project No. 2009-06: Bidder Base Bid Valle Slurry Seal $ 812,934.62 American As halt $ 633,021.81 En ineer's Estimate $ 591,777.02 The low bidder is American Asphalt, for the amount of $633,021.81. The engineer's estimate is $591,777.02. Since the low bid is within seven (7) percent of the Engineer's Estimate, staff recommends award of the construction contract to the low bidder. Upon staff s recommendation, Council deferred action on award of the contract to tonight's meeting in order to learn whether the State of California would take gas tax fiends due local jurisdictions as part of its budget process. The ,gas tax funds provide a portion of the revenues that were allocated to the Capital Improvement Program (CIP) Pavement Management Account during the City's recently concluded 2009-10 budget process. Since the July 21, 2009, Council meeting, the State has approved its current budget without taking the gas tax funds. So the original appropriation to the CIP Pavement Management Account will sufficiently support the contract award. 11-1 FISCAL IMPACT This action would require expenditure from the approved Five Year Capital Improvements Program for Pavement Management, Account No. 270-9450-9300, in the amount of $633,021.81, and additional expenditures thereafter up to the amount of $65,000.00 for additional work as approved by change order, for a total of $698,021.81. Sufficient funds are available in this account. STAFF RECOMMENDATION That the City Council award the contract for the 2009 Slurry Seal Program, Project No. 2009-06, to American Asphalt, in the amount of $633,021.81, and approve a construction contingency of $65,000.00 to cover any unforeseen work required to complete the project, for a total of $698,021.81 {continued from July 21). Submitted by: Attest as to bids received: Approved for submission: Ralph A. Qualls, Jr. Kimberly S ith David W. Knapp Director of Public Works City Clerk City Manager -z