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project, CIP No. 095003, in the amount of $370,000, be reallocated to this project until reimbursement is received. BACKGROUND The American Recovery and Reinvestment Act of 2009 was signed by President Obama on February 17, 2009, to stimulate the national economy. The ARRA funding for Local Street and Road (LS &R) System Preservation projects is divided into "Regional ARRA funding" and "State ARRA funding The terms "Regional ARRA Funding" and "State ARRA Funding" are being used to differentiate between urbanized regional ARRA funds that are provided directly to the regions and the State ARRA funds made available through the State. The Regional ARRA funding amount of $1,216,711 was authorized to the City of Pleasanton for construction of the Overlay of Various City Streets project, CIP No. 095014 and is currently under construction. The State ARRA funding available for the Alameda County LSR project is $4,740,000. Based on a formula that takes into account population, lane mileage, needs, and performance, Pleasanton is earmarked to receive a fixed amount of $370,000 from the State ARRA funding. In order to meet strict ARRA program guidelines and a restricted timeline, Bernal Avenue between Valley Avenue and Pleasanton Avenue was chosen for pavement rehabilitation. The project will consist of resurfacing approximately 278,000 square feet of roadway with open -grade 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, traffic loops, and video detection equipment. On June 16, 2009, the City Council adopted a resolution authorizing the application for ARRA 2009 Tier 1 funding for this project. On December 17, 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 March 16, 2010. There were nine (9) bids received, ranging from $399,429.50 received from Granite Construction Company of Watsonville, California, to $494,162 (see Attachment 1). The low bid is 17% below the engineer's estimate of $484,000. All bid documents were found to be in order and past work performed by Granite Construction Company was verified to be satisfactory. Therefore, staff is recommending award of the construction contract to Granite Construction Company as the lowest responsible bidder. Schedule The proposed schedule for the subject projects is as follows: Approval of Plans and Specifications and Award of Contract: 04/06/2010 Start of Construction: 05/03/2010 End of Construction: 06/30/2010 Page 2of3