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DISCUSSION Bids Sealed bids for this slurry sealing project were opened on February 20, 2013. There were a total of seven bids received, ranging between the low bid amount of $203,200, from VSS International to $285,515.45. The low bid is approximately 36.5% lower than the engineer's estimate of $320,000 (see attached Bid Summary). Staff also noted that five of the contractors submitted bids that were 25% to 30% lower than the engineer's estimate. After discussing the bids with contractors, staff suspects that the low bid amounts received from the contractors were due to their desire to secure projects and line up work for the summer months. This project was bid earlier in the construction season than previous slurry seal jobs have been bid. The City intends to bid next year's slurry seal project early in the season as well to capture lower construction pricing. Valley Slurry Seal officially changed their name to VSS International in the early part of 2013. Past work performed by VSS International, a.k.a. Valley Slurry Seal, was verified to be satisfactory. Therefore, staff recommends award of the construction contract to VSS International. Budget The project was authorized under the FY 2012/2013 Capital Improvement Program (CIP) budget for design and construction with an approved budget of $215,000. This funding includes Gas Tax and Measure B monies. Additionally, staff is recommending the transfer of $9,100 of VRF funds from the Annual Resurfacing of Various City Streets project, CIP NO. 125003, to complete the total funding for the project. Schedule The proposed schedule for the subject project is as follows: Approval of Plans & Specifications and Award of Contract: 03/19/2013 Start of Construction: 05/13/2013 End of Construction: 06/17/2013 Submitted by: Fiscal Review: Approve. by: Brian Dolan Emily Nelson Fialho Director of Director of Finance City Manager Community Development Attachments: 1. Vicinity Map 2. Bid Summary 3. Funding and Estimated Expenditure Summary Page 3 of 3