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BACKGROUND The American Recovery and Reinvestment Act of 2009 was signed by President Obama on February 17, 2009, to stimulate the national economy. A total of $23.8 million dollars of ARRA funding was allocated to Alameda County for eligible federal aided local streets and roads projects for the Transportation Improvement Program (TIP). Based on a formula that takes into account population, lane mileage, needs, and performance, Pleasanton is earmarked to receive $1,588,105 from the ARRA. In order to meet ARRA program guidelines and a restricted timeline, three eligible federal -aided street routes were chosen for pavement rehabilitation. These routes are: 1) Santa Rita Road between Mohr Avenue and Valley Avenue; 2) Stoneridge Drive between West Las Positas Boulevard and Santa Rita Road; and 3) Stoneridge Drive between Foothill Road and Stoneridge Mall Road. The project will consist of resurfacing these street sections, approximately 570,000 square feet of roadway, with open graded asphalt concrete overlay construction. This project also includes isolated base repair; replacing damaged concrete curb and gutter; replacing non compliant ADA access ramps; adjusting appurtenances to grade; and installing pavement markers, new bike lanes, sub drains, roadway legends, striping, and traffic loops. On March 3, 2009, the City Council adopted a resolution authorizing the application for ARRA 2009 Tier 1 funding for this project. On June 3, 2009, approval to proceed with the construction of this project was received from the Department of Transportation. DISCUSSION Bids Sealed bids for this project were opened on July 21, 2009. There were nine (9) bids received, ranging from $979,749, received from Gallagher Burk, Inc. of Oakland, California, to $1,111,698 (Attachment 1). The low bid is 33% below the engineer's estimate of $1,467,000. The low bid is primarily a reflection of a 51% drop in the Asphalt Price Index which is determined monthly by the California Department of Transportation. Past work performed by Gallagher Burk, Inc. was verified to be satisfactory. Therefore, staff is recommending award of the construction contract to the lowest responsible bidder, Gallagher Burk, Inc. Schedule The proposed schedule for the subject projects is as follows: Approval of Plans and Specifications and Award of Contract: 08/18/09 Start of Construction: 09/15/09 End of Construction: 11/20/09 Budget Based on previous similar projects, staff is requesting a 15% project contingency in the amount of $146,962 to fund unforeseen change orders. Typical pavement change orders relate to isolated soil conditions that require its removal and replacement. Unsuitable soils are not known until such time as the pavement is removed during local Page 2 of 3