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Rejection of Bids For Local <br />Street Slurry Seal 2010 <br />October 18, 201 O <br />Page 2 <br />A total of six bids were received. The lowest bid was submitted by American Asphalt South (AAS) <br />for $845,030, which is above the Engineer's estimate of $693,540. In its bid, AAS indicated that it <br />would use an alternate slurry seal material in lieu of the specified material. The material submitted <br />by AAS was not accepted by City staff. As provided in the specifications, the low bidder requested <br />a hearing with the Executive Director of the Public Works Agency to appeal this decision. A <br />hearing was subsequently held by the Executive Director of the Public Works Agency with all the <br />bidders to review the alternate material proposed by AAS. <br />With the delay caused by the hearing process and the investigation, construction of the project <br />probably would not start until late November or early December, 2010. During that time the <br />temperature will be low and frequent rains may occur during which slurry seal cannot be placed. <br />Based on the above, staff recommends that all bids be rejected and the project will be readvertised <br />early next year. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Raul Godinez II <br />Executive Director <br />Public Works Agency <br />RG/WA <br />Exhibit 1: Project Location Map <br />23A -2 <br />