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6 THE CITY OF fLa L'EA SANTON© CITY COUNCIL AGENDA REPORT August 18, 2009 Community Development Engineering Division TITLE: APPROVAL OF PLANS AND SPECIFICATIONS, REVIEW OF BIDS, AND AWARD OF CONSTRUCTION CONTRACT TO GALLAGHER BURK, INC. IN THE AMOUNT OF $979,749 FOR OVERLAY OF VARIOUS CITY STREETS ARRA 2009, CIP NO. 095014 SUMMARY Plans and specifications were prepared for the subject project, which consists of approximately 570,000 square feet of pavement resurfacing on the following three (3) portions of major arterial roadway: 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. Bids have been received and staff is recommending award of the construction contract to the lowest responsible bidder, Gallagher Burk, Inc. in the amount of $979,749. The objective of the resurfacing project is to keep streets in a safe and smooth riding condition by overlaying the existing street surface with a new layer of asphalt concrete. RECOMMENDATION 1. Approve the plans and specifications for the subject project. 2. Review the bids received and award the construction contract to Gallagher Burk, Inc. of Oakland, California, for a low bid amount of $979,749. 3. Authorize the City Manager to enter into the construction contract. 4. Authorize the Director of Community Development to approve and execute contract change orders for a contingency amount not to exceed $146,962 (15% of the contract amount) for necessary related project work. FINANCIAL STATEMENT The project will be funded exclusively from the federal government's American Recovery and Reinvestment Act (ARRA). Because the ARRA is a reimbursement based program, staff is proposing to meet project cash flow by utilizing currently funded CIP Streets projects that will not incur costs during this fiscal year. Staff estimates receipt of ARRA funding within six months after completion of the project.