HomeMy WebLinkAbout2020-11-09 City Council Agendas (4)
City of Palo Alto (ID # 11567)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 11/9/2020
City of Palo Alto Page 1
Summary Title: Gas Main Replacement Project 23
Title: Approval of Contract Number C21179815 With Daleo, Inc., in the
Amount of $6,417,876 for Gas Main Replacement Project 23 (GS-13001) in
the Evergreen, Ventura, College Terrace, Research Park, Greer Tract,
Midtown, and Charleston Terrace Neighborhoods; and Authorization for the
City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed
$641,788, for a Total Not-to-Exceed Amount of $7,059,644
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the Council:
1. Approve and authorize the City Manager or designee to execute contract C21179815
with Daleo, Inc. an amount not–to-exceed $6,417,876 for the Gas Main Replacement
Project 23 (GMR Project 23) Capital Improvement Program (GS-13001); and
2. Approve and authorize the City Manager or designee to negotiate and execute one or
more change orders to the contract with Daleo, Inc., for related additional, but
unforeseen, work which may develop during the project, the total value of which shall
not exceed $641,788 or 10% of the contract amount, for a total not-to-exceed amount
of $7,059,664.
Background
This project is part of the Council-approved Capital Improvement Program (CIP) designed to
ensure reliable gas services for the City of Palo Alto residents and customers. The project
targets replacement of Polyvinyl Chloride (PVC) mains and services that are nearing their
operational life expectancy and have become embrittled over time. These natural gas pipelines
are susceptible to cracking during earth movement and could result in leaking gas mains and
services. The project also targets replacement of steel mains and services that are identified to
be severely corroded due to the lack of cathodic protection (electrical current on steel
pipelines) resulting from previously installed isolation fittings on the pipeline. Over time, these
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ALTO
City of Palo Alto Page 2
mains and services have developed leaks and are usually discovered during the City’s mobile
and walking leak survey.
Repairs to these pipelines require specialized tooling and are very time consuming and difficult.
Gas service is temporarily interrupted when the pipe is damaged by construction activities or a
leak on a distribution main is found. The damaged section is cut out and a new section of
pipeline is installed; but when a leak on a service is located, the service is typically replaced in
its entirety. Accelerated replacement of PVC and severely corroded steel mains and services is
required to remain on track with the City of Palo Alto (City)’s planned CIP schedule and
minimize the impact on resources due to the maintenance and replacement of sections of main
and services. The sections of PVC and steel pipelines identified for replacement on this project
have contributed to 59 individual leak responses from 2006 to 2019. PVC and severely
corroded steel material failures will continue to contribute to increasing gas maintenance
expenses resulting from gas leaks.
As part of the planning and design process, staff coordinated this project with other City
departments to minimize interference with other contractors and their schedules. Work on
sections of Ash Street and sections of Embarcadero Road will be followed by a Public Works’
street paving project.
Discussion
Project Description
The work to be performed under the contract C21179815 (Linked Document) is for installation
of approximately 22,300 linear feet of polyethylene (PE) gas main, 142 new PE gas service
pipelines, and to reconnect 64 existing PE gas services to the new gas main within the City of
Palo Alto (project locations are shown in Attachment C).
Replacing the gas distribution system with PE will enhance the reliability of the gas distribution
system, make the system more resilient against corrosion and earth movements, eliminate
potential leaks, reduce maintenance costs, and extend the useful life of the gas system. In
addition, unlike PVC gas main and services, the new PE pipelines will be installed with a metallic
tracer wire, which dramatically increases the accuracy of pipeline locating and reduces
construction dig-ins. Construction dig-ins are the City’s 2nd through 6th highest ranking risk
scores on the Distribution Integrity Management Plan (DIMP) due to the potential of
homeowners, Contractors, and City Staff damaging a mismarked pipeline.
Bid Process
On August 20, 2020, the City posted a notice inviting formal bids (IFB) for the GMR 23 Project
on the City’s electronic procurement system, PlanetBids. The bidding period was 30 calendar
days. Two (2) contractors submitted bids on September 18, 2020 as listed on the attached Bid
Summary (Attachment B).
City of Palo Alto Page 3
Bid Name/Number Gas Main Replacement Project 23 (GS-13001),
IFB Number 179815
Proposed Length of Project 265 working days
Number of Vendors notified through
PlanetBids
955
Number of Builder’s Exchanges notified
through PlanetBids
3
Number of Bid Packages Downloaded by
Vendors
31
Total Days to Respond to Bid 30
Pre-Bid Meeting? Yes (Mandatory)
Number of Vendors at Pre-Bid Meeting 8
Number of Bids Received: 2
Bid Price Range $6,417,876 to $6,923,782
Staff has reviewed all bids submitted and recommends that Daleo, Inc., be declared the lowest
responsible and responsive bidder. Daleo’s bid is approximately 3.7 percent below the Project
Engineer's estimate of $6,667,165. The contingency amount of $641,788, which equals 10
percent of the total contract, is requested for additional unforeseen work that may develop
during the project. Additional work is common with construction projects because during
construction there may be previously unknown obstructions and ground conditions that require
changes in how construction will proceed, leading to change orders that may create additional
costs. A contingency fund is necessary to prevent significant delays in the project to handle
these unforeseen conditions, which could otherwise result in longer road closures and
disruptions. Any unspent contingency funds are returned to reserves at the end of the project.
Staff confirmed with the Contractor's State License Board that Daleo, Inc., has an active license
on file. Staff checked references supplied by the contractor for previous work performed and
found no significant complaints. Staff also confirmed that Daleo, Inc., is registered and in good
standing with the Department of Industrial Relations (DIR).
Resource Impact
The total not-to-exceed amount is $7,059,664, which includes the contract amount of
$6,417,876 and a 10% contingency of $641,788. Funding for the contract amount ($6,417,876)
and 10% contingency ($641,788) are available in the FY 2021 Adopted Capital Budget for
project number GS-13001, Gas Main Replacement Project 23. This project includes funding
transfers of $92,384 to the General Fund as an estimate for Street Cut Fees.
City of Palo Alto Page 4
Summary of Project Costs for GMR Project 23 (GS-13001)
Pre-Design/Design Costs $183,355
Construction Costs $6,417,876
10% Contingency $641,788
Staff Time (Includes Engineering, Operations, & Inspection) $485,800
Trench Cut Fees $92,384
TOTAL $7,821,203
The size of this project significantly exceeds the City’s in-house construction resources, making
it necessary to contract out the work.
Policy Implications
The approval of this contract and implementation of this project is consistent with existing City
goals, policies, programs, and plans including:
Utilities Strategic Plan
The recommendation conforms with the 2018 Utilities Strategic Plan Priority 4 Strategy 1:
“Establish a proactive infrastructure replacement program, based on planned replacement
before failure to support reliability and resiliency.”
Distribution Integrity Management Plan (DIMP)
This project is consistent with the City’s 2019 DIMP plan which is compliant with the
Department of Transportation (DOT) 49 CFR Part 192, Subpart P, “Gas Distribution Pipeline
Integrity Management” requirements.
This contract is on the City’s construction contract template, which permits the City to
terminate without cause/for convenience by providing written notice to the contractor. In the
event the City finds itself facing a challenging budget situation, and it is determined that City
resources need to be refocused elsewhere, the City can terminate for convenience. Other
options include termination due to non-appropriation of funds or amending the contract to
reduce the cost, for example, by reducing the scope of work.
Stakeholder Engagement
Utilities infrastructure work has been and will continue to be coordinated with street paving
activities. Project coordination within the City’s administration is enhanced by using the City’s
Geographical Information System Project Coordinator Program to determine potential project
conflicts. The City’s Gas Distribution Integrity Management Plan (DIMP) has identified PVC
pipelines as the current highest risk material in the gas distribution system. Staff’s GMR Project
23 communications will include project notifications mailed to all residents and businesses
along the project alignment at least 30 days prior to the commencement of work. Daleo, Inc.,
will distribute project notifications to each property, work will take place, a minimum of 15 day
City of Palo Alto Page 5
and again 24 hours’ notice prior to beginning work. A link to the City website for the GMR
Project 23 will be included in the mailed project notifications. The construction is expected to
commence in February 2021.
Environmental Review
The project is categorically exempt from California Environmental Quality Act (CEQA) pursuant
to CEQA Guidelines Section 15302(c), replacement or reconstruction of existing utility systems
or facilities.
Attachments:
• Attachment B: Bid Summary
• Attachment C: Project Maps
ATTACHMENT B
Gas Main Replacement Project 23 Bid Due Date 9/18/20
GS-13001
179815
Item
No.Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price
1 7,441 LF Install 2" Gas MDPE pipe by horizontal directional drilling 120.00$ 892,920.00$ 128.35$ 955,052.35$ 222.00$ 1,651,902.00$
2 709 LF Install 2" Gas MDPE pipe by open trench excavation 240.00$ 170,160.00$ 296.90$ 210,502.10$ 330.00$ 233,970.00$
3 4,154 LF Install 4" Gas MDPE pipe by horizontal directional drilling 160.00$ 664,640.00$ 170.65$ 708,880.10$ 235.00$ 976,190.00$
4 165 LF Install 4" Gas MDPE pipe by open trench excavation.350.00$ 57,750.00$ 467.30$ 77,104.50$ 435.00$ 71,775.00$
5 672 LF Install 6" Gas MDPE pipe by horizontal directional drilling 200.00$ 134,400.00$ 228.00$ 153,216.00$ 240.00$ 161,280.00$
6 50 LF Install 6" Gas MDPE pipe by open trench excavation.400.00$ 20,000.00$ 524.60$ 26,230.00$ 440.00$ 22,000.00$
7 4,181 LF Install 8" Gas MDPE pipe by horizontal directional drilling 260.00$ 1,087,060.00$ 211.20$ 883,027.20$ 310.00$ 1,296,110.00$
8 67 LF Install 8" Gas MDPE pipe by open trench excavation.450.00$ 30,150.00$ 401.35$ 26,890.45$ 495.00$ 33,165.00$
9 2,385 LF Install 8" Gas HDPE pipe by horizontal directional drilling 260.00$ 620,100.00$ 211.20$ 503,712.00$ 310.00$ 739,350.00$
10 60 LF Install 8" Gas HDPE pipe by open trench excavation.450.00$ 27,000.00$ 401.35$ 24,081.00$ 495.00$ 29,700.00$
11 10 EA Install Anode Box 750.00$ 7,500.00$ 150.00$ 1,500.00$ 250.00$ 2,500.00$
12 83 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR
without a bypass at the existing gas meter location by horizontal
directional drilling OR open trench excavattion
6,500.00$ 539,500.00$ 7,500.00$ 622,500.00$ 4,000.00$ 332,000.00$
13 43 EA
Install 1" PE Gas Service Stub and EFV for the City to reconnect
the existing 1" PE gas service to new main by horiziontal
directional drilling OR open trench excavation
4,500.00$ 193,500.00$ 2,500.00$ 107,500.00$ 2,500.00$ 107,500.00$
14 1 EA
Install 2" PE Gas Service Line Including 2" PE ball valve and 2"
Riser with a 1-1/4" bypass at existing gas meter location by
horizotnal directional drilling OR open trench excavation
7,500.00$ 7,500.00$ 9,500.00$ 9,500.00$ 4,500.00$ 4,500.00$
15 11 EA
Install 2" PE Gas Service Stub with 2" PE ball valve for the City to
reconnect the existing 2" PE gas service to new main by
horizontal directional drilling OR open trench excavation
6,000.00$ 66,000.00$ 3,500.00$ 38,500.00$ 3,000.00$ 33,000.00$
16 1 EA Install a 2" residential steel pipe bollards filled with concrete at
existing gas meter location per Standard Detail WGW-05A 1,000.00$ 1,000.00$ 500.00$ 500.00$ 200.00$ 200.00$
17 2 EA Install a 2" commercial steel pipe bollard filled with concrete at
existing gas meter location per Standard Detail WGW-05B 1,500.00$ 3,000.00$ 750.00$ 1,500.00$ 200.00$ 400.00$
18 38 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in
depth, up to 50 SF)10,000.00$ 380,000.00$ 6,500.00$ 247,000.00$ 3,500.00$ 133,000.00$
19 33 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (>5-ft in
depth, up to 50 SF)15,000.00$ 495,000.00$ 10,800.00$ 356,400.00$ 3,500.00$ 115,500.00$
20 11 EA
Replace existing gas meter box and lid with Armorcast Polymere
Concrete Utility Box (24" x 36" x 18") with extensions and two-
piece cover
4,500.00$ 49,500.00$ 3,200.00$ 35,200.00$ 1,000.00$ 11,000.00$
21 1 EA
Replace existing gas meter box and lid with Armorcast Polymere
Concrete Utility Box (30" x 60" x 36") with extensions and two-
piece cover
5,500.00$ 5,500.00$ 4,750.00$ 4,750.00$ 1,000.00$ 1,000.00$
22 40 LF Fence Removal and Replacement 250.00$ 10,000.00$ 75.00$ 3,000.00$ 50.00$ 2,000.00$
23 2 EA Casing Vent Pipe Installation 3,500.00$ 7,000.00$ 1,500.00$ 3,000.00$ 2,500.00$ 5,000.00$
24 1 EA Perform GPS survey 100,000.00$ 100,000.00$ 62,500.00$ 62,500.00$ 20,000.00$ 20,000.00$
Total 5,569,180.00$ 5,062,045.70$ 5,983,042.00$
Item
No.Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price
25 1 LS Material Storage and Laydown Yard 70,000.00$ 70,000.00$ 100,000.00$ 100,000.00$ 30,000.00$ 30,000.00$
26 5 EA
Install 1" PE service including 3/4" riser at NEW gas meter
location by horizontal directional drilling OR open trench
excavation
5,000.00$ 25,000.00$ 7,500.00$ 37,500.00$ 4,000.00$ 20,000.00$
27 95 LF Modification of 12-inch steel casing, removal of 6-inch BWP, and
insertion of 6-inch MDPE through 12-inch casing -$ -$ -$
28 3 EA Abandon existing anode box / valve 1,500.00$ 4,500.00$ 750.00$ 2,250.00$ 50.00$ 150.00$
29 10 EA Install sanitary sewer cleanout 3,000.00$ 30,000.00$ 3,500.00$ 35,000.00$ 100.00$ 1,000.00$
30 1 CY Recycle asphalt containing petro mat 15.00$ 15.00$ 75.00$ 75.00$ 80.00$ 80.00$
31 1,500 SF Install additional concrete pavement (Up to 10” thick)15.00$ 22,500.00$ 32.00$ 48,000.00$ 5.00$ 7,500.00$
32 3,000 SF Install additional asphalt concrete pavement 15.00$ 45,000.00$ 14.00$ 42,000.00$ 3.00$ 9,000.00$
33 500 LF Install additional curb 25.00$ 12,500.00$ 35.00$ 17,500.00$ 10.00$ 5,000.00$
34 500 LF Install additional gutter 25.00$ 12,500.00$ 35.00$ 17,500.00$ 10.00$ 5,000.00$
35 500 SF Install additional sidewalk 15.00$ 7,500.00$ 25.00$ 12,500.00$ 5.00$ 2,500.00$
36 20,000 Inch/SF Install additional pavement (Concrete thickness)0.60$ 12,000.00$ 3.00$ 60,000.00$ 0.20$ 4,000.00$
37 20,000 Inch/SF Install additional pavement (AC thickness)1.00$ 20,000.00$ 3.00$ 60,000.00$ 0.20$ 4,000.00$
38 20,000 Inch/SF Install additional pavement thickness (Base thickness)0.35$ 7,000.00$ 3.00$ 60,000.00$ 0.05$ 1,000.00$
39 10,000 Inch/LF Sawcut additional pavement (thickness)0.25$ 2,500.00$ 0.75$ 7,500.00$ 0.05$ 500.00$
40 500 LF Perform additional sawcutting 2.00$ 1,000.00$ 4.50$ 2,250.00$ 1.00$ 500.00$
41 1 EA Remove unused meter box 75.00$ 75.00$ 300.00$ 300.00$ 50.00$ 50.00$
42 10 Ton Disposal of excavated soils at Class 1 landfill 300.00$ 3,000.00$ 500.00$ 5,000.00$ 350.00$ 3,500.00$
43 10 Ton Disposal of excavated soils at Class 2 landfill 200.00$ 2,000.00$ 400.00$ 4,000.00$ 300.00$ 3,000.00$
44 20 EA Additional pothole due to USA mismark 1,200.00$ 24,000.00$ 750.00$ 15,000.00$ 250.00$ 5,000.00$
45 1 EA Investigation and removal/relocation of Sewer Lateral
Obstructions by Open-Trench Excavation in Paved Area 1,200.00$ 1,200.00$ 6,500.00$ 6,500.00$ 5,000.00$ 5,000.00$
46 1 EA Investigation and removal/relocation of Sewer Lateral
Obstructions by Open-Trench Excavation in Paved Area 1,200.00$ 1,200.00$ 5,700.00$ 5,700.00$ 5,000.00$ 5,000.00$
47 1,000 LF Install sheeting, shoring and bracing.25.00$ 25,000.00$ 2.00$ 2,000.00$ 1.00$ 1,000.00$
Total 328,490.00$ 540,575.00$ 112,780.00$
Ranger Pipelines
Ranger Pipelines
Project Title
CIP No.
Section A - GMR 23 - Base Bid
Engineer's Estimate Daleo Inc.
Section B - GMR 23 - Additive Alternate
Engineer's Estimate Daleo Inc.
PR No.
1 of 2
ATTACHMENT B
Item
No.Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price
48 1,556 LF Install 2" Gas MDPE pipe by horizontal directional drilling $ 120.00 186,720.00$ 128.35$ 199,712.60$ 230.00$ 357,880.00$
49 58 LF Install 2" Gas MDPE pipe by open trench excavation $ 240.00 13,920.00$ 296.90$ 17,220.20$ 330.00$ 19,140.00$
50 39 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR
without a bypass at the existing gas meter location by horizontal
directional drilling OR open trench excavattion
$ 6,500.00 253,500.00$ 7,500.00$ 292,500.00$ 4,000.00$ 156,000.00$
51 8 EA
Install 1" PE Gas Service Stub and EFV for the City to reconnect
the existing 1" PE gas service to new main by horiziontal
directional drilling OR open trench excavation
$ 4,500.00 36,000.00$ 2,500.00$ 20,000.00$ 2,500.00$ 20,000.00$
52 10 EA Install a 2" residential steel pipe bollards filled with concrete at
existing gas meter location per Standard Detail WGW-05A $ 275.00 2,750.00$ 500.00$ 5,000.00$ 200.00$ 2,000.00$
53 4 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in
depth, up to 50 SF) $ 6,250.00 25,000.00$ 6,500.00$ 26,000.00$ 3,500.00$ 14,000.00$
54 1 EA Perform GPS Survey $ 30,000.00 20,000.00$ 10,000.00$ 10,000.00$ 2,000.00$ 2,000.00$
Total 537,890.00$ 570,432.80$ 571,020.00$
Item
No.Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price
55 805 LF Install 2" Gas MDPE pipe by horizontal directional drilling 120.00$ 96,600.00$ 128.35$ 103,321.75$ 220.00$ 177,100.00$
56 32 LF Install 2" Gas MDPE pipe by open trench excavation 240.00$ 7,680.00$ 296.90$ 9,500.80$ 320.00$ 10,240.00$
57 14 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR
without a bypass at the existing gas meter location by horizontal
directional drilling OR open trench excavattion
6,500.00$ 91,000.00$ 7,500.00$ 105,000.00$ 4,000.00$ 56,000.00$
58 2 EA
Install 1" PE Gas Service Stub and EFV for the City to reconnect
the existing 1" PE gas service to new main by horiziontal
directional drilling OR open trench excavation
4,500.00$ 9,000.00$ 2,500.00$ 5,000.00$ 2,500.00$ 5,000.00$
59 3 EA Install a 2" residential steel pipe bollards filled with concrete at
existing gas meter location per Standard Detail WGW-05A 275.00$ 825.00$ 500.00$ 1,500.00$ 200.00$ 600.00$
60 2 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in
depth, up to 50 SF)6,250.00$ 12,500.00$ 6,500.00$ 13,000.00$ 3,500.00$ 7,000.00$
61 1 EA Perform GPS Survey 20,000.00$ 14,000.00$ 7,500.00$ 7,500.00$ 1,000.00$ 1,000.00$
Total 231,605.00$ 244,822.55$ 256,940.00$
Engineer's Estimate Daleo Inc.Ranger Pipelines
5,569,180.00$ 5,062,045.70$ 5,983,042.00$
328,490.00$ 540,575.00$ 112,780.00$
537,890.00$ 570,432.80$ 571,020.00$
231,605.00$ 244,822.55$ 256,940.00$
6,667,165.00$ 6,417,876.05$ 6,923,782.00$ GRAND TOTAL
Section D - GMR 23 - Industrial - Additive Alternate
Engineer's Estimate Daleo Inc.
B.2 - Add Alternate (Items 25 through 47)
C.1 - Add Alternative(Items 48 through 54)
D.1 - Add Alternative(Items 55 through 61)
B.1 - Base Bid (Items 1 through 24)
Section B: Gas Main Replacement
Ranger Pipelines
Section C - GMR 23 - Dennis, Celia, Burnham, and Agnes - Additive Alternate
Engineer's Estimate Daleo Inc.Ranger Pipelines
2 of 2
GAS MAIN
REPLACEMENT 23
Rev. 200825
LOCATIONS
ID NUMBER STREET
2020-1 PARK BLVD, GRANT AVE, AND ASH ST
2020-2 EL CAMINO REAL, AND ENCINA AVE
2020-3 PAGE MILL RD, AND ASH ST
2020-4 PORTAGE AVE, AND PORTAGE ALLEY
2020-5 CALIFORNIA AVE, HARVARD AVE, AND CORNELL ST
2020-6 PAGE MILL RD, AND FOOTHILL EXPWY
2020-7 AGNES WY, BURNHAM WY, DENNIS DR, AND CELIA DR
2020-8 INDUSTRIAL AVE
Attachment C
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PROJECT LOCATION MAP
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PARK BVLD, GRANT AVE, AND ASH ST
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P
W
Y
PA
G
E
M
I
L
L
R
D
C O YOTE HILL R D
F O OTH ILL EXPRESS WAY
M I R A ND A AVENUE
CA
T
H
C
A
R
T
W
A
Y
AL
L
A
R
D
I
C
E
W
A
Y
FOOTHILL EXPWY
PA
G
E
M
I
L
L
R
D
HI
L
L
V
I
E
W
A
V
E
PA
G
E
M
I
L
L
R
D
PROJECT LOCATION MAP
2020-6
GMR 23
PAGE MILL RD, AND FOOTHILL EXPWY
NOT TO SCALE
BLAIR CT
OR
E
G
O
N
E
X
P
W
Y
DE
N
N
I
S
D
R
CE
L
I
A
D
R
COLONIAL LN
BURNHAM WAY
GREER RD
MO
R
E
N
O
A
V
E
LOUIS RD
AGNES WAY
PROJECT LOCATION MAP
2020-7
GMR 23
AGNES WY, BURNHAM WY, DENNIS DR, AND CELIA DR
NOT TO SCALE
CHA
R
L
E
S
T
O
N
R
D
S
A
N
A
N
T
O
N
I
O
A
V
E
C
O
M
M
E
R
C
I
A
L
S
T
I
N
D
U
S
T
R
I
A
L
A
V
E
TRANS
P
O
R
T
R
D
T
R
A
N
S
P
O
R
T
R
D
PROJECT LOCATION MAP
2020-8
GMR 23
INDUSTRIAL AVE
NOT TO SCALE