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BACKGROUND The subject project was authorized by the 2006/2007 Capital Improvement Program. The funding source for this work is from the Gas Tax. The project consists of the replacement of approximately 3,300 L.F. of curb and gutter, 4,300 S.F. of sidewalk/driveway, and 5 access ramps on Black Avenue, Division Street, Saint Mary Street, Bonita Avenue, and Stoneridge Drive. Deficient sections of curb and gutter along streets scheduled for resurfacing under the .Annual Street Resurfacing project for FY 2006/07 need to be replaced prior to the start of this work tentatively planned in August. Due to the fact that the 2007-08 CIP budget .has not yet been approved, but it is crucial to begin the curb and gutter replacements in early summer, staff recommends transfer of $110,900 from CIP NO. 065005 (Annual Sidewalk/Intersection Ramp Installation) to fully fund this project. Construction of CIP No. 065005 Is not scheduled to begin until Fall 2007, at the earliest, at which time 2007- 08 CIP funding should be identified and available for reimbursement of borrowed funds. It is proposed that funding appropriated in the 2007-08 budget for curb and gutter replacement be used to reinstate funding to CIP No. 065005 at a later date. The curb and gutter for the remaining streets under the Annual Street Resurfacing project is either not damaged or has been replaced by the City's Street Department. DISCUSSION Bids Sealed bids for this curb and gutter replacement project were opened on May 30, 2007. There was only one (1) bid received with a bid amount of $247,850 which is 30% higher than the engineer's estimate of $190,000 for the project. The limited number of bidders interested in submitting bids and the higher cost for this project was due to 1) the complexity of the project site in regard to traffic control which represents a higher risk to the contractor; 2) the high demand and lack of availability of concrete contractors in the current market; 3) .cost increases in cement and transportation. The unit price for concrete was verified to be reasonable compared to recent bids received by other local agencies. The engineer's estimate for this project utilized bid prices derived from past projects not fully accounting for the current volatility of concrete work in the Bay Area. Past work performed by Vanguard Construction was verified to be satisfactory. Therefore, staff recommends award of the construction contract to the lowest responsible bidder, Vanguard Construction. Veterans Memorial Building Sidewalk It is proposed that the removal and replacement of the sidewalk fronting the Veterans Memorial Building along Old Bernal Avenue be added to the project. The existing sidewalk has settled at various locations and is a potential tripping hazard. Reconstruction of the sidewalk was not included in the Veterans Memorial Building Page 2 of 3