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11. Bid slurry seal programC O P E RT 1 N 0 PUBLIC WORKS DEPARTMENT Summary AGENDA ITEM ~ ~ AGENDA DATE Julv 21, 2009 SUBJECT AND ISSUE Review bids and awazd the contract for the 2009 Slurry Seal Program, Project No. 2009-06 to the lowest, qualified bidder contingent on staff providing the results of the bid opening at the meeting. BACKGROUND On May 5, 2009, staff delivered a report on the pavement management projects to be constructed during the Summer of 2009. The City of Cupertino has put the majority of these pavement maintenance projects out to bid, and the contracts were to be awarded after July 1St, 2009 when the necessary funds would become available. One project, the 2009 Slurry Seal Program, Project No. 2009-06, which will provide pavement restoration to various streets throughout the ci1:y, is scheduled to bid on July 21, 2009. The possible cancellation of both August 2009 Council meetings will delay a portion of pavement maintenance work and the award of the project until September. In order to avoid any delay of the project, staiCf would like to request that Council award fine contract for the 2009 Slurry Seal Program, Projf:ct No. 2009-06 to the lowest, qualified bidder at the July 21St ,City Council meeting contingent on staff providing the results of the bid opening at the meeting. FISCAL IMPACT The Engineer's estimate for the project is appro~:imately $600,000.00. Funds are available in the Five Year Capital Improvements Program for Pavement Management, Account No. 270-9450- 9300. 11-1 STAFF RECOMMENDATION Staff recommends that Council award the contract for the 2009 Slurry Seal Program, Project No. 2009-06 to the lowest, qualified bidder contingent on staff providing the results of the bid opening at the meeting. Submitted by: '~2~J c~ cc.u c.( Ralph A. Qualls, Jr. Director of Public Works Approved for submission: S L~~~-- David W. Knapp City Manager ~~ -2 EXHIBITS BEGIN HERE CUPERTINO Sumnnary PUBLIC WORKS DEPARTMENT AGENDA ITEM 11 AGENDA DATE July 21, 2009 SUBJECT AND ISSUE Review of bids for 2009 Slurry Seal Program, Project No. 2009-06. BACKGROUND Earlier this afternoon, 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 x;009 Slurry Seal Program, Project No. 2009-06: Bidder Base Bid En ineer's Estimate $ 591,777.02 American Asphalt $ 633,021.81 Valley Slurry Seal $ 812,934.62 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 would normally recommend award of the construction contract to the low bidder. However, the State of California has not forwarded approxim~itely $500,000.00 of Proposition 42 funds that are currently due the City. These Proposition 42 funds were appropriated as revenue to the City's CIP Fiscal Year 2009-10 Pavement Management fund and would provide a portion of the funding for award of this project. Further, the State of California's current fiscal year budget proposal has the potential to delay the City's receipt of the current and future Proposition 42 and other revenues due the City for an indefinite period. Since it is possible that this situation will be clarified prior to the August 4, 2009, Council meeting, staff recommends that t}ie decision to award a construction contract or reject all bids be deferred to that meeting. FISCAL IMPACT There will be no fiscal impact at this time if the decision to award a construction contract is deferred to the next meeting. STAFF RECOMMENDATION That the City Council defer action on award of a contract for the 2009 Slurry Seal Program, Project No. 2009-06 to its August 4, 2009, meeting. Submitted by: Attest as to bids received: Approved for submission: 7 G~~~ ~~. Ralph A. Qualls, Jr. Kimberly Smith David W. Knapp Director of Public Works City Clerk City Manager