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7.1.E. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> July 27, 2015 <br /> SUBJECT <br /> Award of Contract - 2014 -2015 Asphalt Rubber Chip Seal and Spot Repair Project <br /> RECOMMENDATION <br /> By motion: <br /> 1. Approve the contract documents and award the standard form construction contract <br /> (Section 00520) for the 2014 -2015 Asphalt Rubber Chip Seal and Spot Repair Project <br /> to American Pavement Systems, Inc. of Modesto for their responsive and responsible <br /> low bid of $1,074,158.95 and authorize the City Manager to increase the contract <br /> amount, if necessary, up to 10% of the original contract amount. <br /> 2. Confirm the determination that the Project is exempt from the provisions of CEQA. <br /> BACKGROUND <br /> The City's Roadway Management Program addresses on -going roadway pavement <br /> repair and replacement needs. The Roadway Management Program inventories, <br /> assesses, and tracks maintenance of the City's roadways. The 2014 -2015 Asphalt <br /> Rubber Chip Seal and Spot Repair Project is part of the Roadway Management <br /> Program. <br /> An asphalt rubber chip seal is the initial part of a two -step roadway resurfacing process <br /> known as cape seal. Cape seal consists of an application of asphalt rubber chip seal <br /> followed by a slurry seal. Cape seals are generally used on lower traffic <br /> volume /residential roadways. <br /> The application of asphalt rubber chip seal and slurry seal are two separate trade <br /> specialties. The City contracts and coordinates individually for the chip seal application <br /> and the slurry seal application. Contracting separately for specialty work results in more <br /> cost effective projects and a higher quality product. <br /> ANALYSIS <br /> Roadway pavements require repair and regular maintenance for a variety of reasons, <br /> including deterioration due to aging, traffic loads, weather, and intrusive tree roots. The <br /> purpose of this project is to replace deteriorated sections of roadway pavement and to <br /> place an asphalt rubber chip seal over the roadway surface. The chip seal combined <br /> with the slurry seal result in a cape seal. Cape seal is a cost - effective preventive <br /> maintenance measure that provides a new wearing surface, seals and protects the <br />