Purpose

To request Council�s approval to amend the FY 2006-2007 budget to appropriate $926,708.32 from the City�s State Gas Tax Fund, approve contract documents, and award of a construction contract for Bid Schedule No. 1205, Olive Avenue and Alameda Avenue Improvement Project.

Background

The Olive Avenue and Alameda Avenue Improvement Project will resurface Olive Avenue between Parish Place and Virginia Avenue, and Alameda Avenue between Lincoln Street and Shelton Street (Exhibit A), producing over one mile of resurfaced roadway.  The scope of work includes concrete repairs, pedestrian ramp construction, and resurfacing of both streets with rubber asphalt pavement.  The rubber asphalt used on this project will recycle over 8,000 used tires.

Analysis:

Bid Schedule No. 1205 was advertised for construction bids on February 14 and 17, 2007. A bid opening was held on March 6, 2007, and seven (7) contractors submitted bids ranging from $1,247,620.00 to $1,716,013.00 (Exhibit B).

Shawnan of Downey, California submitted the lowest bid of $1,247,620.00, which is 26.6 percent below the engineer�s estimate of $1,700,000.00. This contractor has previously performed work similar to the scope of work in this project for the City of Burbank with satisfactory results.  In addition to the construction contract amount, staff recommends a ten percent reserve for contingencies for this project, or $124,762.00.  The contingency amount is based on previous experience and is commensurate with the nature and complexity of the project, and will allow staff to address any incidental work and unforeseen field conditions that could be encountered during construction.

An environmental review categorized this project as exempt by Categorical Exemption under CEQA Section 15301(c).

Construction of the project is planned to start in May 2007 and be completed by July 2007.

Fiscal Impact:

Money from the City�s State Gas Tax Fund will be utilized to fund this project.   Currently, $445,673.68 is available in account number 125.PW21E.70002.0000.17524 (Olive/Alameda Improvement). 

The proposed resolution will amend the FY 2006-2007 budget to appropriate an additional $777,211.76 from account number 125.PW000.48010.1088.00000 (State Gas Tax Proposition 42), $40,497.02 from account number 125.PW000.45015.1032.00000 (State Gas Tax Interest), and $108,999.54 from account number 125.PW21F.70002.0000.00000 (State Gas Tax � Street Improvements).

Recommendation

Staff recommends that Council adopt the proposed resolution amending the FY 2006-2007 budget to appropriate $926,708.32 from the City�s State Gas Tax Fund, approving the contract documents, and awarding the construction contract to Shawnan for Bid Schedule No. 1205, Olive Avenue and Alameda Avenue Improvement Project.

Attachments:  Exhibits A and B

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