ITEM 6-K

Council Meeting:  July 25, 1989                      Santa Monica, California

To:       Mayor and City Council

From:     City Staff

Subject:  Award of Contract for 1988-89 Street Resurfacing Program

INTRODUCTION

This report recommends that the City Council award a contract for 
the  1988-89 Street Resurfacing  Program  to  Sully  Miller  
Contracting  Co.,  the  lowest responsible bidder, in the amount of 
$759,199.51.

BACKGROUND

Each fiscal year, the City Council authorizes a City-wide street 
resurfacing program which  includes  resurfacing,  cold  plane  and  
reconstruction intersections,  slurry  sealing  and  curb,  gutter  and  
sidewalk construction/repair in various areas of the City.  The 
criteria used to determine which streets are to be resurfaced during 
a given year are age, surface and subsurface  condition, complaints  
received, types  of use (commercial or residential), traffic volumes, or 
projected change of use or volume, etc.

The following streets are proposed to be resurfaced or slurry sealed 
under the 1988-89 Street Resurfacing Program:

     Street                 Limits

     TO BE RESURFACED:

     5th St.  . . . . . . . Bay St. to Ocean Park Blvd.,
     9th St.  . . . . . . . Montana Ave. to San Vicente Blvd.,
     20th St. . . . . . . . North of Santa Monica Freeway to Arizona Ave.,
     Michigan Ave.  . . . . Lincoln Blvd. to 14th St.,
     Strand St. . . . . . . Main St. to 4th St.

     TO BE SLURRY SEALED:

     5th St.  . . . . . . . Wilshire Blvd. to Montana Ave.,
     5th St.  . . . . . . . Ocean Park Blvd. to Hill St.,
     9th St.  . . . . . . . Santa Monica Blvd. to Wilshire Blvd.,
     23rd St. . . . . . . . Montana Ave. to Wilshire Blvd.,
     25th St. . . . . . . . Montana Ave. to San Vicente Blvd.,
     Alta Ave.  . . . . . . 4th St. to 7th St.,
     Hollister Ave. . . . . Main St. to 3rd St.,
     Oak St.  . . . . . . . Euclid St. to 14th St.,
     Pine St. . . . . . . . 17th St. to 18th St.,
     Airport Infield Areas

     INTERSECTIONS TO BE RECONSTRUCTED:

     4th St. and Pico Blvd.
     Main St. and Pico Blvd.
     Main St. and Ocean Park Blvd.

Assessments

Council has initiated proceedings to assess commercial properties for 
street resurfacing and gutter construction  contiguous  to  these  
properties. Commercial property owners are assessed for the full cost 
of  gutter construction  (about $9.50 per lineal foot) and one-half the 
cost of resurfacing (about $7.50 per square foot).

This is a cash assessment (no bonds will be issued). Unpaid 
assessments are to be placed on the property owners' 1990-91 tax 
bill.  Assessments are expected to generate approximately $48,400 in 
revenue. Residential properties will not be assessed.

Bid Package

The Notice Inviting Bids was published on June 13 and 14, 1989, in 
the Evening Outlook and in four construction journals.  The notice 
was sent to four minority business associations and six contractors' 
associations. Plans and specifications were issued to ten contractors 
and subcontractors. Bids were opened and read publicly by the 
Deputy City Clerk on July 7, 1989.

Five bids were received as follows:

     Sully Miller Contracting Co.         $759,119.51
     Vernon Paving Company              $784,510.64
     Damon Construction Company*        $828,171.16
     Excel Paving Company               $839,361.00
     Goal/DBA Best Western Paving Co.   $906,177.33
     City Engineer's Estimate:          $765,103.00
     *WMBE Contractor

Sully Miller Contracting Co. has been the successful bidder for the 
City's street resurfacing program for several years and staff has been 
satisfied with their performance.

BUDGET/FINANCIAL ANALYSIS

                                Funds Required

                          Contract        $759,119.51

                          Contingencies     26,903.02

                          Total Required  $786,022.53

Appropriation authority for implementation  of the 1988-89 Street  
Resurfacing program is available as follows:

General Fund:

     Street Resurfacing Program (01-770-421-000-965). . $391,755.53

Water Fund:

     Resurfacing (25-770-421-000-947) . . . . . . . . . . . . . .   205,267.00

Wastewater Fund:

     Resurfacing (31-770-421-000-960) . . . . . . . . . . . . . .   105,000.00

Airport Fund:

     Airport Fund (33-710-631-000-903)                            84,000.00

TOTAL FUNDS AVAILABLE . . . . . . . . . . . . . . . . . . . . . .  $786,022.53

RECOMMENDATIONS

It is recommended that the City Council:

1.   Award a contract for the 1988-89 Street Resurfacing Program to 
Sully Miller Contracting Co., the lowest responsible unit price bidder, 
in the amount of $759,119.51; and

2.   Authorize the City Engineer to issue any change orders necessary 
to complete additional work to the extent of funds available in 
accordance with the Administrative Instruction on Change Orders.

Prepared by:  Stanley E. Scholl, Director of General Services