Staff Report.2023 Annual Street Repair and Resurf Award
PREPARED BY: James Watson
Interim Town Engineer
Reviewed by: Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/18/2023 ITEM NO: 11
DATE: April 3, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Annual Street Repair and Resurfacing Project (CIP No. 811-9901):
a. Award and Execute a Construction Agreement with Pavement Coating
Company in an Amount Not to Exceed $3,341,090; and
b. Authorize Staff to Execute Change Orders in an Amount Not to Exceed
Fifteen Percent of the Contract Award Amount
RECOMMENDATION:
Staff recommends that the Town Council authorize the following actions for the Annual Street
Repair and Resurfacing Project (CIP No. 811-9901) for Fiscal Year (FY) 2022/23:
a. Award and execute a construction agreement with Pavement Coatings Company
(Attachment 1) in an amount not to exceed $3,341,090; and
b. Authorize staff to execute change orders in an amount not to exceed fifteen percent of the
contract award amount.
BACKGROUND:
The adopted Five-Year 2023-2027 Capital Improvement Program (CIP) Budget designates
funding for the Town’s Annual Street Repair and Resurfacing Project (CIP No. 811-9901).
This is an annual project for street rehabilitation activities throughout the Town to enhance
safety for all travel modes and maintain the roadway infrastructure. It is important for the
Town to perform annual street maintenance projects to maintain the Town’s roadways and
prevent street pavement from deteriorating to more extensive and costly repair
conditions. For the FY 2022/23 Street Repair and Resurfacing Project, the focus is on
preventive maintenance through rubber cape seal, slurry seal, and crack seal treatments.
PAGE 2 OF 3 SUBJECT: Annual Street Repair and Resurfacing Project (CIP No. 811-9901) DATE: April 18, 2023
DISCUSSION:
The project scope was broken into three parts to provide flexibility when seeking award. The
project construction contract was advertised for bid on Friday, March 10, 2023. On March 29,
2023, bid packages from two submitting contractors, Pavement Coatings Co. and O’Grady
Paving, Inc. were opened (Attachment 2). The bids includes estimates for the add alternates as
detailed in Attachment 2. The lowest bidder, Pavement Coatings, submitted a total bid
inclusive of both additive alternatives within two percent of the engineer’s estimate for the
sum of 3,341,090. The engineer’s estimate for the work was $3,278,522.
Staff recommends applying a 15 percent contingency to this construction contract in leu of the
Town’s standard 10 percent to allow for additional unforeseen circumstances as a result of this
past rainy season.
CONTRACTOR Base Bid Add. Alt. 1 Add. Alt. 2 Total Bid
Amount
Pavement Coatings Co. $2,825,715 $285,723 $229,652 $3,341,090
O’Grady Paving, Inc. $2,939,382 $242,821 $209,795 $3,391,998
CONCLUSION:
Staff recommends awarding and executing an agreement with Pavement Coatings Co. for
$3,341,090 and authorize staff to execute change orders in an amount not to exceed fifteen
percent of the contract award amount.
COORDINATION:
This project has been coordinated with the Finance Department and Town Attorney’s Office.
FISCAL IMPACT:
There are sufficient funds in the FY 2022/23 – 2026/27 CIP budget for this year’s Street Repair
and Resurfacing Project (CIP No. 811-9901).
Staff costs are tracked for all projects. Tracking of staff costs allows for accountability in the
costs of projects, recovery of costs from grant funded projects, and identification of future
staffing needs. This project utilizes a combination of full-time budgeted staff and temporary
staff that support fluctuating workloads. The costs for temporary staff will be directly
associated with this project while full-time staff are accounted for in the department’s
operating budget.
PAGE 3 OF 3 SUBJECT: Annual Street Repair and Resurfacing Project (CIP No. 811-9901) DATE: April 18, 2023
FISCAL IMPACT (continued):
Available project balance funds would be applied or are carried forward to future Street Repair
and Resurfacing Projects.
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301(c)). A Notice
of Exemption has been filed.
Attachments:
1. Construction Agreement
2. Bid Summary
Budget Costs
GFAR 3,273,267$
Gas Tax 1,476,257$
Vehicle License Fee - 2010 Measure B Funding 180,000$
Total Budget 4,929,524$
FY2022/23 Street Repair and Resurfacing Construction Bid 3,341,090$
15% Contingency 501,164$
Cost Share - City of San Jose (Approved on 12/5/22)734,099$
Material Testing 25,000$
Temporary Staff Costs 30,000$
Total Expenditures 4,631,353$
Remaining Budget 298,172$
FY 2022/23 Street Repair and Resurfacing Project
CIP No. 811-9901