PURPOSE

Staff is requesting City Council appropriation of AB 2928 funds and interest allocations, approval of contract documents, and award of a construction contract for Bid Schedule (BS) No. 1132, 2002-2003 AB 2928 Street Improvement Project.

BACKGROUND

Under Assembly Bill 2928, the State established a Traffic Congestion Relief Fund in the State Treasury for allocation of street maintenance and reconstruction funds to cities and counties.  The City of Burbank�s FY 02/03 AB 2928 allocation was $266,448.36.  These funds earned interest totaling $27,159.92 in FY 02/03 and $5,218.41 in FY 03/04 to date.  The City also has $59,641.83 left over from last year�s AB 2928 project, bringing the total AB 2928 funds available to $358,468.52. 

BS No. 1132 has been developed to utilize these AB 2928 funds.  The original scope of work for this project included street resurfacing with asphalt-rubber hot mix (rubberized asphalt), repair of uplifted curb, gutter, and driveways, and new gutter construction on Kenneth Road between Olive Avenue and Amherst Drive. By using rubberized asphalt, the City will be recycling approximately 6,600 used tires.  The location of these improvements is shown on Exhibit A.

ANALYSIS

The bid opening for BS No. 1132, 2002-2003 AB 2928 Street Improvement Project occurred on Tuesday, February 3, 2004.  Ten bidders submitted proposals ranging from $287,214.31 to $398,509.54 (Exhibit B.)  E.C. Construction Co. of South El Monte, California submitted the apparent low bid, 17.9% under the engineer's estimate of $350,000.  This contractor has completed several projects with the City, the most recent being the Vanowen Street Improvement Project, with satisfactory results. 

This project uses "Traffic Congestion Relief Fund" monies; therefore, funds (including accrued interest) not appropriated and spent are to be returned to the grantor (State of California) for reallocation (Exhibit C.)  Staff would like to take advantage of the low unit prices and increase the project scope and total amount of the contract, thereby using the entire $358,468.52 available to the best benefit of the City of Burbank.  The increase in the project scope will provide for the repair of Kenneth Road from Amherst Drive to Andover Drive, which was not originally included in Bid Schedule No. 1132.    

Construction of this project is planned to occur between April and May 2004. An environmental review categorized this project as exempt by Categorical Exemption under CEQA Section 15301(c).

FISCAL IMPACT

The FY 02/03 AB 2928 funds totaling $266,448.36 were placed in revenue account no. 125-PW000-48010-1031 and the FY 02/03 accrued interest totaling $27,159.92 was placed in revenue account no. 125-PW000-45015-1028.  At the end of FY 02/03, the balance of these revenue accounts was placed in the Gas Tax Fund Balance.  Staff is requesting that the City Council appropriate these funds from the Fund Balance to Project Number 125-PW21E-70002-0000-13725.  Staff is also requesting that the FY 03/04 accrued interest totaling $5,218.41 in revenue account no. 125-PW000-45015-1028 also be appropriated to Project Number 125-PW21E-70002-0000-13725. 

Appropriating these funds will add them to the $59,641.83 remaining in Project Number 125-PW21E-70002-0000-13725 from last year�s project, bringing the total available for BS No. 1132 to $358,468.52. 

RECOMMENDATION

Staff recommends that the City Council adopt the attached resolution approving and adopting contract documents, plans and specifications; determining the lowest responsible bidder; accepting the bid; authorizing execution of a contract for BS No.  1132, 2002-2003 AB 2928 Street Improvement Project with E.C. Construction Co.; and amending the fiscal year 02/03 City budget.

Attachment:  Exhibits A, B, C

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