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Cq��FAOR��P• City Council Staff Report
DATE: August 3, 2016 CONSENT CALENDAR
SUBJECT: APPROVAL OF A REIMBURSEMENT AGREEMENT IN THE AMOUNT
OF $43,717 WITH SMOKE TREE, INC., FOR RECONSTRUCTION OF
SMOKE TREE LANE AS PART OF THE 2016 PAVEMENT
REHABILITATION PROJECT, CITY PROJECT NO. 16-01
FROM: David H. Ready, City Manager
BY: Engineering Services Department
SUMMARY
This action will approve a Reimbursement Agreement between the City of Palm Springs
and Smoke Tree, Inc., a California corporation, in the amount of $43,717, to
accommodate the City's reconstruction of Smoke Tree Lane, a private street owned by
Smoke Tree, Inc., extending from E. Palm Canyon Drive to the Smoke Tree Ranch
entrance.
RECOMMENDATION:
1 . Approve Reimbursement Agreement (Agreement No. ) with Smoke Tree, Inc., a
California corporation, in the amount of $43,717 to accommodate reconstruction of
Smoke Tree Lane as part of the 2016 Pavement Rehabilitation Project, City Project
No. 16-01; and
2. Authorize the City Manager to approve a Construction Contract Change Order in the
amount of $43,717 with Matich Corporation, (A6878) to include the reconstruction of
Smoke Tree Lane as part of the 2016 Pavement Rehabilitation Project, City Project
No. 16-01; and
3. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On June 17, 2016, Smoke Tree, Inc., a California corporation, ("STI"), submitted a
request that the City consider including reconstruction of Smoke Tree Lane as part of its
next Citywide pavement overlay project.
ITEM NO.
City Council Staff Report
August 3, 2016 --Page 2
Smoke Tree Lane Reimbursement Agreement
Subsequently, on July 6, 2016, the City Council awarded a construction contract
(Agreement No. 6878) to Matich Corporation, a California corporation, in the amount of
$5,328,933 for the 2016 Pavement Rehabilitation Project, City Project No. 16-01, (the
'Project'). The Project includes reconstruction and overlay of approximately 2,700,000
square feet of asphalt concrete pavement on 75 street segments in various locations
throughout the City, representing repairs to approximately 5% of the City street network.
Staff submitted a request to Matich Corporation for a proposal to include reconstruction
of Smoke Tree Lane extending from the south right-of-way line of East Palm Canyon
Drive, south to the main entry to Smoke Tree Ranch, as generally depicted in Figure 1.
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Figure 1
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City Council Staff Report
August 3, 2016--Page 3
Smoke Tree Lane Reimbursement Agreement
Smoke Tree Lane is a private street owned by STI, and was not surveyed as part of the
City's Pavement Maintenance Report, a Pavement Condition Index (PCI) value has not
been assigned; however, the pavement is in poor condition and likely has a PCI less
than 50 warranting reconstruction.
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Staff received a proposal from Matich Corporation to include reconstruction of Smoke
Tree Lane as part of the Project, with a cost of $43,717 as identified on its proposal
included as Attachment 1. Two options were proposed, and STI has requested the City
proceed with Option 2 which will construct a new 3" asphalt overlay.
Staff recommends that the City accommodate STI's request; although Smoke Tree
Lane is a private street, it provides access to the public between the Smoke Tree
Village and Smoke Tree Commons shopping centers and is an important commercial
street for that area.
Staff has prepared a Reimbursement Agreement with STI to accommodate including
the reconstruction of Smoke Tree Lane as part of the Project. A copy of the
Reimbursement Agreement is included as Attachment 2; upon execution of the
agreement, STI will be required to submit full payment of $43,717 to the City to
accommodate this additional work on their private street.
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City Council Staff Report
August 3, 2016-- Page 4
Smoke Tree Lane Reimbursement Agreement
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires Guidelines for
Implementation of the California Environmental Quality Act ("CEQA"). The Guidelines
are required to include a list of classes of projects which have been determined not to
have a significant effect on the environment and which are exempt from the provisions
of CEQA. In response to that mandate, the Secretary for Resources identified classes
of projects that do not have a significant effect on the environment, and are declared to
be categorically exempt from the requirement for the preparation of environmental
documents. In accordance with Section 15301 "Existing Facilities," Class 1 projects
consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor
alteration of existing public structures, facilities, mechanical equipment or topographical
features involving negligible or no expansion of use beyond that existing at the time of
the lead agency's determination. Therefore, in accordance with Section 15301(c), staff
has determined that the 2016 Pavement Rehabilitation Project, City Project No. 16-01,
is considered categorically exempt from CEQA. A Notice of Exemption has been
prepared and filed with the Riverside County Clerk.
FISCAL IMPACT:
Under the terms of the Reimbursement Agreement, STI will submit full payment of
$43,717 for the cost to include reconstruction of Smoke Tree Lane as part of the
Project. A final verification of quantities of items involved with reconstruction of Smoke
Tree Lane will be completed after construction, and adjustment of the initial payment
made by STI will be determined, whether reimbursement by the City due to
overpayment, or an additional payment made by STI to accommodate increased costs.
100% of the cost to perform this work on behalf of STI on its private street will be paid
by STI pursuant to the Reimbursement Agreement.
SUBMITTED:
Marcus L. Fuller, MPA, P.E., P.L.S. David H. Ready, Esq.
Assistant City Manager/City Engineer City Manager
Attachments:
1. Matich Proposal
2. Reimbursement Agreement
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ATTACHMENT 1
05
PORATION
+N--n--dn-e nhaft-Wusn,n SO" PROPOSAL
Company: City of Palm Springs
Attention: Mike Lytar
Re.: Smoketree Lane
Bid Date: 6/27/2016
From: Mark T. Hickman
Item No. Description Quantity Unit Unit Price Total
Option No. 1
1 Mobilization/Supervision 1 LS $ 3,000.00 $ 3.000.00
2 Traffic Control 1 LS $ 3,000.00 $ 3,000.00
3 Roadway Pulverization 9" 22,500 SF $ 0.18 $ 4,050.00
4 Unclassified Excavation(Export)2 1/2" 175 CY $ 21.00 $ 3,675.00
5 Pulverized Base Material 6 1/2" 22,500 SF $ 0.11 $ 2,475.00
6 Asphalt Concrete C-2 2 1/2" 341 TN $ 55.50 $ 18,925.50
7 Double Adjust Valves 3 EA $ 690.00 $ 2,070.00
8 Double Adjust Manholes 1 EA $ 813.00 $ 813.00
9 Loops 4 EA $ 310.00 $ 1,240.00
$ 39,248.50
Option No. 2
1 Mobilization/Supervision 1 LS $ 3,000.00 $ 3,000.00
2 Traffic Control 1 LS $ 3.000.00 $ 3,000.00
3 Roadway Pulverization 9" 22,500 SF $ 0.18 $ 4,050.00
4 Unclassified Excavation (Export)3" 209 CY $ 21.00 $ 4,389.00
5 Pulverized Base Material 6" 22,500 SF $ 0.11 $ 2.475.00
6 Asphalt Concrete C-2 3" 405 TN $ 56.00 $ 22,680.00
7 Double Adjust Valves 3 EA $ 690.00 $ 2,070.00
8 Double Adjust Manholes 1 EA $ 813.00 $ 813.00
9 Loops 4 EA $ 310.00 $ 1,240.00
$ 43,717.00
NOTES: The Work Described above Must be Done Concurrently with the 16-01 Project.
The Quantities are Estimated Only and Payment Will be by Actual Quantity.
Department of Industrial Relations No.1000004260
P.O.Box 10,Highland,CA 92346 Tel:909-382-7400 Fax:909382-0113 License 149783 A
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ATTACHMENT 2
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REIMBURSEMENT AGREEMENT
Smoke Tree Lane Pavement Reconstruction
THIS REIMBURSEMENT AGREEMENT ("Agreement") is made and entered into
on , 201 , by and between the City of Palm Springs, a California
charter city and municipal corporation ("City"), and Smoke Tree, Inc., a California
corporation, ("Smoke Tree"). City and Smoke Tree are individually referred to as "Party"
and are collectively referred to as the "Parties".
RECITALS
A. On July 6, 2016, the City Council awarded a construction contract
(Agreement No. ) to Matich Corporation, a California corporation, in the amount of
$5,328,933 for the 2016 Pavement Rehabilitation Project, City Project No. 16-01,
("Project").
B. Smoke Tree is the owner of a private street identified as Smoke Tree Lane
extending south of East Palm Canyon Drive, as identified on Exhibit "A".
C. Smoke Tree has requested that the City include reconstruction of Smoke
Tree Lane as part of the Project, subject to Smoke Tree reimbursing the City for all
costs related to the reconstruction of Smoke Tree Lane.
D. City has received a proposal from Matich Corporation to reconstruct
Smoke Tree Lane, as identified on its proposal dated June 27, 2016, incorporated
herewith as Exhibit "B".
E. Smoke Tree has requested that City proceed to include reconstruction of
Smoke Tree Lane as part of the Project, in accordance with "Option No. 2" identified on
the proposal submitted by Matich Corporation, and has agreed to grant City a non-
exclusive temporary easement necessary for City to perform reconstruction of Smoke
Tree Lane.
F. City is agreeable to including reconstruction of Smoke Tree Lane as part
of the Project subject to Smoke Tree's agreement to reimburse the City for all costs
related to its reconstruction.
In consideration of these promises and mutual agreements, City agrees as
follows:
AGREEMENT
1. SERVICES OF CITY
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, City shall include reconstruction of Smoke Tree Lane as identified as
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"Option No. 2" in accordance with the proposal from its construction contractor, Matich
Corporation, included herewith as Exhibit "B".
1.2 Compliance with Law. All work and services rendered under this
Agreement shall comply with all applicable federal, state, and local laws, statutes and
ordinances and all lawful orders, rules, and regulations.
2. GRANT OF TEMPORARY EASEMENT
2.1 Right of Entry and Temporary Construction Easement. By execution
of this Agreement, Smoke Tree hereby grants to City a non-exclusive and temporary
construction easement (the "Easement") over that portion of Smoke Tree Lane
extending from the south right-of-way line of East Palm Canyon Drive, south to the main
entry to Smoke Tree Ranch, as generally depicted on Exhibit "A", incorporated herewith
and by this reference made a part hereof. The Easement shall be made available to
City, its construction contractor, Matich Corporation, and any subcontractors performing
work under contract for the City as part of the Project.
3. ADVANCE PAYMENT TO CITY
3.1 Agreement Sum. As set forth in Exhibit "B", and identified as "Option No.
2", the total estimated cost for reconstruction of Smoke Tree Lane is $43,717. Smoke
Tree hereby agrees to pay the City the total sum of $43,717 upon execution of this
Agreement. Subject to Section 3.2, the Parties acknowledge the final verified total cost
for reconstruction of Smoke Tree Lane may differ from the total sum identified herein
this Section 3.1 and adjustments as provided in Section 3.2 below shall be made.
3.2 Final Payment Adjustment. At the completion of the Project, the City will
perform an analysis of final quantities of work completed, and any adjustment to the
total cost for reconstruction of Smoke Tree Lane shall be identified. In the event the final
verified total cost for reconstruction of Smoke Tree Lane exceeds the original payment
made pursuant to Section 3.1, Smoke Tree shall pay the City the additional amount
owed within thirty (30) days receipt of written notice from City. In the event the final
verified total cost for reconstruction of Smoke Tree Lane is less than the original
payment made pursuant to Section 3.1, Smoke Tree shall pay the City the additional
amount owed within thirty (30) days receipt of written notice from City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this
Agreement.
4.2 Schedule of Performance. Upon receipt of payment pursuant to Section
3.1, City shall promptly coordinate scheduling of the reconstruction of Smoke Tree Lane
with the City's contractor, Matich Corporation, to be scheduled as part of and
concurrently with construction of the Project. City shall coordinate with Smoke Tree on
the schedule for reconstruction of Smoke Tree Lane, and shall provide seventy-two (72)
hours' notice prior to initiating work on Smoke Tree Lane.
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4.3 Force Maieure. The time for performance of services to be rendered
under this Agreement may be extended because of any delays due to unforeseeable
causes beyond the control and without the fault or negligence of City. Unforeseeable
causes include, but are not limited to, acts of God or of a public enemy, acts of the
government, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes,
freight embargoes, and unusually severe weather.
4.4 Term. Unless earlier terminated pursuant to Section 4.5, this Agreement
shall continue in full force and effect until the completion of the reconstruction of Smoke
Tree Lane, and a determination of the final verified total cost, and payment by Smoke
Tree (or reimbursement by City) in accordance with Section 3.2.
4.5 Termination Prior to Expiration of Term. The Parties acknowledge that
upon receipt of payment in accordance with Section 3.1, the City will initiate efforts with
its construction contractor, Matich Corporation, to include reconstruction of Smoke Tree
Lane as part of the scope of its contract and will assume responsibility therefore for any
costs related to this additional work. Therefore, the Parties agree that upon execution
this Agreement may not be terminated.
4.6 Warranty and Hold Harmless. The City shall assign to Smoke Tree all
rights and remedies the City may have against Matich Corporation, and any
subcontractors performing work under contract for the City as part of the Project, for
work performed on or to Smoke Tree Lane. Smoke Tree shall defend and hold
harmless City, its elected and appointed officials, from any and all claims, damages, or
demand arising out City, Matich Corporation, and any subcontractors thereof,
performance of its obligations under City's contract with Matich Corporation.
5. ENFORCEMENT OF AGREEMENT
5.1 California Law. This Agreement shall be construed and interpreted both
as to validity and to performance of the parties in accordance with the laws of the State
of California. Legal actions concerning any dispute, claim, or matter arising out of or in
relation to this Agreement shall be instituted in the Superior Court of the County of
Riverside, State of California, or any other appropriate court in such county, and Smoke
Tree covenants and agrees to submit to the personal jurisdiction of such court in the
event of such action.
5.2 Interpretation. This Agreement shall be construed as a whole according
to its fair language and common meaning to achieve the objectives and purposes of the
Parties. The terms of this Agreement are contractual and the result of negotiation
between the Parties. Accordingly, any rule of construction of contracts (including,
without limitation, California Civil Code Section 1654) that ambiguities are to be
construed against the drafting party, shall not be employed in the interpretation of this
Agreement. The caption headings of the various sections and paragraphs of this
Agreement are for convenience and identification purposes only and shall not be
deemed to limit, expand, or define the contents of the respective sections or
paragraphs.
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5.3 Waiver. No delay or omission in the exercise of any right or remedy of a
non-defaulting party on any default shall impair such right or remedy or be construed as
a waiver. No consent or approval of City shall be deemed to waive or render
unnecessary City's consent to or approval of any subsequent act of Smoke Tree. Any
waiver by either party of any default must be in writing. No such waiver shall be a
waiver of any other default concerning the same or any other provision of this
Agreement.
5.4 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies
of the parties are cumulative. The exercise by either party of one or more of such rights
or remedies shall not preclude the exercise by it, at the same or different times, of any
other rights or remedies for the same default or any other default by the other party.
5.5 Legal Action. In addition to any other rights or remedies, either party
may take legal action, in law or in equity, to cure, correct, or remedy any default, to
recover damages for any default, to compel specific performance of this Agreement, to
obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the
purposes of this Agreement.
6. MISCELLANEOUS PROVISIONS
6.1 Notice. Any notice, demand, request, consent, approval, or
communication that either party desires, or is required to give to the other party or any
other person shall be in writing and either served personally or sent by pre-paid, first-
class mail to the address set forth below. Notice shall be deemed communicated
seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
Either party may change its address by notifying the other party of the change of
address in writing.
To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Smoke Tree: Tracy Conrad
Smoke Tree Inc.
1850 Smoke Tree Lane
Palm Springs, California 92264
6.2 Integrated Agreement. This Agreement contains all of the agreements of
the parties and supersedes all other written agreements.
6.3 Amendment. No amendments or other modifications of this Agreement
shall be binding unless through written agreement by all Parties.
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6.4 Severability. Whenever possible, each provision of this Agreement shall
be interpreted in such a manner as to be effective and valid under applicable law. In the
event that any one or more of the phrases, sentences, clauses, paragraphs, or sections
contained in this Agreement shall be declared invalid or unenforceable by valid
judgment or decree of a court of competent jurisdiction, such invalidity or
unenforceability shall not affect any of the remaining phrases, sentences, clauses,
paragraphs, or sections of this Agreement, which shall be interpreted to carry out the
intent of the parties.
6.5 Successors in Interest. This Agreement shall be binding upon and inure
to the benefit of the Parties' successors and assignees.
6.6 Third Party Beneficiary. Except as may be expressly provided for in this
Agreement, nothing contained in this Agreement is intended to confer, nor shall this
Agreement be construed as conferring, any rights, including, without limitation, any
rights as a third-party beneficiary or otherwise, upon any entity or person not a party to
this Agreement.
6.7 Recitals. The above-referenced Recitals are hereby incorporated into the
Agreement as though fully set forth in this Agreement and each Party acknowledges
and agrees that such Party is bound, for purposes of this Agreement, by the same.
6.8 Authority. The persons executing this Agreement on behalf of the Parties
warrant that they are duly authorized to execute this Agreement on behalf of Parties and
that by so executing this Agreement the Parties are formally bound to the provisions of
this Agreement.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
dates stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Douglas C. Holland, James Thompson,
City Attorney City Clerk
"SMOKE TREE"
Smoke Tree, Inc.
Date: By :
Tracy Conrad
President
Date:
(name)
(secretary)
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CAUFOtr'UM ALL44MRPOSE ACKNOWLEDGMENT CIVIL CODE§1189
( M N M
A rotary public or other officer completing this certificate verifies only the identity of the individual vho signed the
document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document.
State of California )
County of )
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s)of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose rtame(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),
or the entity upon behalf of which the person(s)acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature
Signature of Notary Public
Place Notary Sea/Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:
Document Date: Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies)Claimed by Signerrs)
Signer's Name: Signer's Name:
❑Corporate Officer — Trtle(s): ❑Corporate Officer — Trtle(s):
❑Partner — ❑limited ❑General ❑Partner — ❑Limited ❑General
❑Individual ❑Attorney in Fact ❑Individual ❑Attorney in Fact
❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator
❑Other: ❑ Other:
Signer Is Representing: Signer Is Representing:
02015 National Notary Association •www.Natb"Notary.org • 1-800-US NOTARY("W-876-8827) Item #5907
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EXHIBIT "A"
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EXHIBIT " B "
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MRCPHORATION
PROPOSAL
Company: City of Palm Springs
Attention: Mike Lytar
Re.: Smoketree Lane
Bid Date: 6f2712016
From: Mark T. Hickman
Item No. Description Quantity Unit Unit Price Total
Option No. 1
1 Mobilization f Supervision 1 LS $ 3,000.00 S 3,000.00
2 Traffic Control 1 LS $ 3,000.00 S 3,000.00
3 Roadway Pulverization 9" 22,500 SF S 0.18 S 4.050.00
4 Unclassified Excavation(Export)2 112" 175 CY S 21.00 S 3,675,00
5 Pulverized Base Material 6 112" 22,500 SF S 0.71 S 2 475,00
6 Asphalt Concrete C-2 2 112" 341 TN S 55.50 S 18,925,50
7 Double Adjust Valves 3 EA $ 690-00 S 2,070,00
8 Double Adjust Manholes 1 EA $ 813.00 S 813.00
9 Loops 4 EA $ 310.00 $ 1,240.00
S 39,248.50
Option No.2
1 Mobilization/Supervision 1 LS $ 3,000.00 S 3,000.00
2 Traffic Control I LS $ 3,000-00 S 3,000.00
3 Roadway Pulverization 9" 22,500 SF S 0_18 S 4,05&00
4 Unclassified Excavation(Export)3" 209 CY $ 21.00 S 4,389.00
5 Pulverized Base Material 6" 22,500 SF $ 0.11 $ 2,475.00
6 Asphalt Concrete C-2 3" 405 TN $ 56.00 S 22.680.00
7 Double Adjust Valves 3 EA S 69000 S 2,070.00
8 Double Adjust Manholes 1 EA S 813.00 S 813.00
9 Loops 4 EA S 310-00 S 1240.00
S 43,717 00
NOTES: The Work Described above Must be Dttre Concurrently with the 16-01 Project,
The Quantities are Estimated Only and Payment Will be by Actual Quantity.
Department of Industrial Relations No. 1000004260
P.O.Box 10,Highland,CA 92346 Tel:909-382-7400 Fax:909-382-0113 License 149783 A
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EXHIBIT "A"
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EXHIBIT " B "
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NCPH
RORATION
PROPOSAL
Company: City of Palm Springs
Attention: Mike Lylar
Re.: Smicketree Lane
Bid Date: 6/27/2016
From: Mark T. Hickman
Item No. Description Quantity Unit Unit Price Total
Option No. 1
1 Mobilization l Supervision 1 LS S 3,000.00 $ 3,000.00
2 Traffic Control 1 LS S 3,000.00 S 3,000.00
3 Roadway Pulverization 9" 22,500 SF $ 0.18 S 4,050.00
4 Unclassified Excavation(Export)2 1/2" 175 CY S 21.00 S 3,675.00
5 Pulverized Base Material 6 1/2" 22,500 SF S 0.11 S 2,475.00
6 Asphalt Concrete C-2 2 112" 341 TN S 55.50 $ 18,925.50
7 Double Adjust Valves 3 EA $ 690.00 S 2,070.00
8 Double Adjust Manholes 1 EA $ 813.00 S 813.00
9 Loops 4 EA $ 310.00 S 1.240.00
$ 39.248.50
Option No.2
1 Mobilization f Supervision 1 LS $ 3,000,00 $ 3,000.00
2 Traffic Control 1 LS $ 3,000.00 $ 3,00090
3 Roadway Pulverization 9" 22,500 SF $ 0.18 $ 4,050.00
4 Unclassified Excavation(Export)3" 209 CY $ 21.00 S 4,389.00
5 Pulverized Base Material 6" 22,500 SF S 0.11 $ 2,475.00
6 Asphalt Concrete C-2 3" 405 TN S 56.00 $ 22.680.00
7 Double Adjust Valves 3 EA $ 690.00 $ 2,070,00
8 Double Adjust Manholes 1 EA $ 813.00 $ 813.00
9 Loops 4 EA $ 310-00 $ 1,240.00
$ 43,717,00
NOTES: The Work Described above Must be Done Concurrently with the 16-01 Prcyect.
The Quantities are Estimated Only and Payment Will be by Actual Qu tlty.
Depadment of Industrial Relations No. 1000004260
P.O.Box 10,Highland,CA 92346 Tel:909-382-7400 Fax:909-382-0113 License 149783 A
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