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#NAMPO <br />CITY COUNCIL MEETING DATE: <br />JUNE 21, 2016 <br />TITLE: <br />AMEND SCOPE OF CONTRACT WITH <br />ALL AMERICAN ASPHALT FOR LOCAL <br />STREET SLURRY SEAL PROJECT <br />FISCAL YEAR 2014 -2015 <br />(PROJECT NO. 15 -6839) <br />(STRATEGIC PLAN NOS. 6, 18; 1C; 1G) <br />I Z;� <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />E] As Recommended <br />E] As Amended <br />0 Ordinance on 18' Reading <br />0 Ordinance on 2 "6 Reading <br />0 Implementing Resolution <br />0 Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Approve an increase of $103,630 to the All American Asphalt construction contract for the <br />Local Street Slurry Seal Project for Fiscal Year 2014 -2015 to add enhanced roadway <br />treatment from slurry seal to rubberized asphalt. <br />2. Approve an appropriation adjustment recognizing $103,630 in interest earnings on Gas Tax <br />revenue bond proceeds, transferring the funds to the Gas Tax Residential Street <br />Improvement revenue account, and appropriating the same into the Gas Tax Residential <br />Street Improvement expenditure account. <br />DISCUSSION <br />On July 7, 2015, City Council awarded a contract to All American Asphalt in the amount of <br />$2,150,000 to construct the Local Street Slurry Seal Project approved in the City's Capital <br />Improvement Program for Fiscal Year 2014 -15. The recommended local street segments are <br />located throughout Santa Ana and were identified by the City's Pavement Management System <br />as high priority streets for slurry seal (Exhibit 1). <br />In 2007, the City leveraged a portion of Gas Tax revenues to finance approximately $60 million in <br />roadway improvements via Bonds. The intent was to restore all local and residential streets in <br />the City which had been neglected for many years. All bond funds have been expended except <br />for $103,630 in interest accrued. <br />While the original scope of this project has been completed, final accounting of the Gas Tax <br />bonds indicates accrued interest. The City is obligated to either spend these funds for <br />constructing additional qualifying roadway improvements or the funds must be returned. The <br />Local Street Slurry Seal Project for Fiscal Year 2014 -2015 meets the expenditure requirements of <br />the original bond agreement. Additionally, due to economies of scale, the project pricing offers <br />20A -1 <br />