Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/21/2017
ITEM NO: 8
DATE: MARCH 13, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: PPW JOB NUMBERS 16-811-9901 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
A. AUTHORIZE BUDGET ADJUSTMENT TRANSFER IN THE AMOUNT OF
$414,000 FROM THE ALBRIGHT DEVELOPMENT FEES GENERAL FUND
DEPOSIT ACCOUNT TO THE GFAR FUND – FY 2016/17 ANNUAL STREET
REPAIR AND RESURFACING PROJECT.
B. APPROVE THE PLANS AND SPECIFICATIONS FOR THE PAVEMENT
MAINTENANCE PROGRAM ASPHALT OVERLAY PROJECT AND THE
SLURRY SEAL PROJECT AND AUTHORIZE THE TOWN MANAGER TO
ADVERTISE THE PROJECTS FOR BID.
C. AUTHORIZE THE TOWN MANAGER TO AWARD BOTH PAVEMENT
MAINTENANCE PROJECTS AND EXECUTE CONSTRUCTION
AGREEMENTS UP TO THE TOTAL BUDGET AMOUNT OF $2,733,877,
INCLUDING ADDITIVE ALTERNATES AS THE BUDGET ALLOWS AND
INCLUDING A 10 PERCENT CONTINGENCY.
RECOMMENDATION:
Staff recommends that the Town Council:
1. Authorize budget adjustment transfer in the amount of $414,000 from the Albright
Development Fees General Fund Deposit Account to the GFAR fund – FY 2016/17 Annual
Street Repair and Resurfacing Project
2. Approve the plans and specifications for the Pavement Maintenance Program Asphalt
Overlay Project and the Slurry Seal Project and authorize the Town Manager to advertise
the projects for bid.
PAGE 2 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
RECOMMENDATION (cont’d):
3. Authorize the Town Manager to award both Pa vement Maintenance projects and execute
Construction Agreements up to the total budget amount of $2,733,877, including additive
alternates as the budget allows and including a 10 percent contingency.
BACKGROUND:
The Town’s adopted FY 2016/17-2020/21 Capital Improvement Program (CIP) Budget
designates funding for the Town’s Street Repair and Resurfacing Program. This is a recurring
annual project for street rehabilitation activities throughout the Town to enhance vehicular
safety and maintain the roadway infrastructure in Los Gatos. There are two projects within the
CIP [Street Repair and Resurfacing (16-811-9901) and Pavement Rehabilitation-Crack Seal (16-
811-9903)] which are separated primarily to facilitate the tracking of funding from State Gas
Taxes. The outcome from both projects is the maintenance of the Town’s roadway
infrastructure and the CIP projects together can be considered the Pavement Maintenance
Program.
It is important for the Town to complete the annual street rehabilitation project each year to
prevent Town streets from falling into more expensive repair categories. One year missed in
completing the Town’s annual street rehabilitation project can escalate the decline of the
Town’s overall Pavement Condition Index (PCI).
At the November 1, 2016 Town Council meeting, staff presented a Pavement Management
Program (PMP) update to the Council including the Town’s use of the Metropolitan
Transportation Commissions (MTC) StreetSaver software program. The update noted this
year’s pavement maintenance project would provide a heavier focus on preventative
maintenance through slurry seals and would continue following the industry standard of
maintaining streets that are in good condition to keep them from dropping into more expensive
repair categories.
As noted in the November update, the StreetSaver program alone is not sufficient for making
paving project recommendations, and is one element among several important factors. Other
factors essential to a paving program include:
Review of actual street needs with the Town’s Maintenance Division;
Reviewing the appropriate treatment type;
Determining the risk of a street falling into a more costly repair category;
Evaluating the level of traffic on a street;
PAGE 3 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
BACKGROUND (cont’d):
Identifying upcoming utility, development, or CIP projects on a street; and
Determining potential cost benefits by selecting streets in proximity to other streets on
the list.
The budget options report by QES Consulting provided to the Council during the Pavement
Management Program update noted that at current funding levels the Town’s overall PCI would
continue to drop about three points every five years from its current level of 66. The QES
report provided several budget option scenarios that noted the Town would need to invest
approximately $2 million per year to maintain the Town’s existing PCI and approximately $3
million per year to increase the Town’s PCI to a 70. Currently the Town’s adopted budget
allocates $1,235,000 per year from two maintenance programs towards maintenance of the
Town’s streets between fiscal years 2017/18 to 2020/21.
DISCUSSION:
Albright Development Fees Allocation
The Town has funding from the Development Fees component of the Albright project, which
has been separately tracked in the Town’s General Fund. This funding includes $486,461 from
the $1 per square foot fee that has no Council set limitations on use. An additional $350,000
was paid as part of the settlement agreement and the Council has restricted the use of these
funds for community benefit transportation improvements near the new campus on
Winchester Boulevard. These community benefit funds are no t proposed for use at this time.
An asphalt overlay improvement on Lark Avenue between Winchester Boulevard an Arroyo
Grande is estimated at approximately $414,000 and is included in the project if the Council
allocates $414,000 from the Albright Development Fees to the FY 16/17 Annual Street Repair
and Resurfacing Project and the Pavement Rehabilitation-Crack Seal Project budget to cover the
costs of this overlay work.
Street Maintenance Program
The Pavement Maintenance Program has been broken into two projects, arterial overlays and
slurry seals. The work associated with each of these projects is specialized and will most likely
be performed by separate contractors, regardless of how the project is bid. By separating the
work into two projects, the Town can ensure the most cost effective bids by minimizing the use
of project subcontractors, whose services are marked up by the main contractor.
PAGE 4 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
DISCUSSION (cont’d):
The arterial overlay project consists of major street maintenance, and involves removing a layer
of the current asphalt street and replacing it with a new thick layer of asphalt. This project will
address asphalt needs on Blossom Hill Road between Los Gatos Boulevard and Cherry Blossom
Lane and on the south side of Blossom Hill Road from Belgatos Road to Harwood Road (see
Attachment 1). As discussed above, if Albright Development Fees are allocated to the project,
an overlay would also be completed on Lark Avenue between Winchester Boulevard and Arroyo
Grande Way (see Attachment 2).
This year’s annual street maintenance project will also provide a heavier focus on preventive
maintenance through slurry seals. Slurry seals are the first line of defense against pavement
deterioration, providing a new wear surface in the form of a thin asphalt emulsion over the
existing roadway. The base bid project is a slurry seal on Los Gatos Boulevard from Lark Avenue
to Highway 9 and crack fill only on Blossom Hill Road from Westhill Drive to Belgatos Road.
These improvements align with the concept of keeping streets in good condition and not letting
them fall to a condition that is more costly to repair. The best management practices
developed from years of pavement analysis and pavement maintenance programs are based on
the principle that it costs less to maintain roads that are in good condition than those in bad
condition. In the past, cities often selected the roads with the worst conditions for treatment
first. This “fix the worst first” strategy was an expensive approach to pavement maintenance.
For example, the engineer’s estimate for this year’s proposed slurry seal project on Los Gatos
Boulevard was about $800,000. If the Town waits to complete work on Los Gatos Boulevard,
the street will require a rubber cape seal, additional pavement repairs, and ADA ramp upgrades
at an estimated cost of over $2,000,000. The placement of rubber cape seals (and overlays)
requires the upgrading of ADA ramps, increasing design and construction costs and putting
money into areas of the project that do not improve pavement condition.
The plans and specifications for this project are available for review on the project website at
http://www.losgatosca.gov/108/Capital-Improvement-Program
Using Additive Alternates to Create Flexibility in Bidding
Due to funding constraints, the base bid for the slurry seal project only includes Los Gatos
Boulevard. However, groups of residential streets have been included as additive alternates to
the bid (see Attachments 3 and 4). In the event the Town receives favorable bids for the
project, the Town could include these residential streets in the project. This will prevent these
residential streets that are currently in good condition from falling into more expensive repair
categories.
PAGE 5 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
DISCUSSION (cont’d):
Incorporating Bicycle, Pedestrian, and Green Infrastructure Improvements
The main focus of this year’s slurry seal project will be Los Gatos Boulevard (LGB) from Lark
Avenue to Highway 9. The slurry seal on Los Gatos Boulevard provides the Town with a unique
opportunity to include some recommended striping changes from the Town’s recently adopted
Bicycle Pedestrian Master Plan. Because replacing the striping is a necessary part of the
project, modifications and minor additional striping, as recommended in the Plan, are
reasonable costs for the project.
The proposed bicycle and pedestrian striping enhancements on Los Gatos Boulevard will
include:
The addition of sections of new striped buffered bike lanes between Highway 9 to
approximately 250 feet to the north of Blossom Hill Road.
New green bike lane sections at the intersection of LGB and Blossom Hill Road - both
south and north of Blossom Hill Road.
High visibility crosswalks at LGB and Blossom Hill Road.
High visibility crosswalks at LGB and Los Gatos-Almaden/Chirco.
New interim Class II bike lanes from Placer Oaks Road to Lark Avenue.
New green back bike lane symbols.
The restriping plan for the arterial overlay project on both Blossom Hill Road and Lark Avenue
provide for the inclusion of areas of new buffered bike lanes where the roadway width allows.
In addition to providing an immediate opportunity to incorporate these BPMP components, the
Town’s Municipal Regional Stormwater Permit (MRP) from the Regional Water Quality Control
Board specifically calls for “Green Infrastructure” improvements by the Town, such as bicycle
and pedestrian improvements, where opportunities are available within the Town’s capital
projects. These striping changes would meet this MRP requirement. The striping changes have
been provided to the Bicycle and Pedestrian Advisory Committee (BPAC) and the
Transportation and Parking Commission voted and unanimously supported these changes at
their March 9, 2017 meeting. BPAC members were invited to the March Transportation and
Parking Commission meeting for the discussion as the BPAC meets on even numbered months.
Pricing Pressures on Paving Projects
Based on conversations with local agencies and the contracting community, the demand for
road rehabilitation contactors is high. Although oil prices, which affect the price of asphalt, are
at a three month low, the high demand for contactors has caused erratic bid prices. Staff will
PAGE 6 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
DISCUSSION (cont’d):
continue to monitor the current bidding environment and the bid prices being received by local
agencies for road rehabilitation projects.
CONCLUSION:
Staff recommends that the Town Council:
1. Authorize budget adjustment transfer in the amount of $414,000 from the Albright
Development Fees General Fund Deposit Account to the GFAR fund – FY 2016/17 Annual
Street Repair and Resurfacing Project.
2. Approve the plans and specifications for the Annual Street Repair and Resurfacing Project
and the Pavement Rehabilitation-Crack Seal Project (Arterial Overlay) and the Annual Street
Repair and Resurfacing Project and the Pavement Rehabilitation-Crack Seal Project (Slurry
Seal) and authorize the Town Manager to advertise the projects for bid.
3. Authorize the Town Manager to award both pavement maintenance contracts and execute
Construction Agreements up to the total budget amount of $2,733,877, including additive
alternates as the budget allows and including a 10 percent contingency.
ALTERNATIVES:
The Council could decide not to allocate the Albright Development Fees to this project,
reducing the project budget to $2,319,877. If the Council selects this alternative, staff would
remove the Lark Avenue portion of the project from the bid. This alternative is not
recommended as Lark Avenue is in need of repairs and, although this funding is not
constrained, the work is in proximity to the Albright development and would be an appropriate
use for the funds.
COORDINATION:
This project has been coordinated with the Finance Department.
PAGE 7 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
FISCAL IMPACT:
There are sufficient funds available for these projects through the Town’s adopted FY 2015/16 –
2019/20 Capital Improvement Program Budget for the base bid project awards as
demonstrated in the fiscal table below.
Available FY 16/17
Budget Expended/Encumbered Available
Funding*To Date Balance
Street Repair & Resurfacing
811-9901 3,221,811$ 1,470,839$ 1,750,972$
Pavement Rehabilitation - Crack Seal
811-9903 647,529$ 78,624$ 568,905$
TOTALS 3,869,340$ 1,549,463$ 2,319,877$
Contribution from Albright Development Fees
$1 per square foot 414,000$ -$ 414,000$
TOTAL W/ALBRIGHT FUNDING 4,283,340$ 2,733,877$
ANTICIPATED PROJECT EXPENDITURES:
Project Costs
Consultation Services 12,620$
Construction Overlay 1,115,000$
Construction Slurry 884,400$
Staff Costs (Design & Construction)291,280$
TOTAL ANTICIPATED BASE BID 2,303,300$
Construction Overlay for Lark Avenue
(with the Appropriation of Development Fees)414,000$
TOTAL ANTICIPATED BASE BID W/ LARK
AVE.2,717,300$
Construction Slurry Additive Alternate
(Subject to Favorable Bid Results)*Depends on bids
TOTAL BASE BID W/ ADD ALTS.2,733,877$
*Total for all Add Alts estimated at $499,400
Street Repair & Resurfacing/ Pavement Rehabilitation - Crack Seal
PROJECT 811-9901/ PROJECT 811-9903
*The available funding for this project does not align with the "2016/2017 Budget (with Carryfwd)" columns on the project pages C - 7 & C -
11, as the figures in the Capital Improvement Program are based on estimated carryforwards at the time of the publication of the budget. The
table above reflects actual funding available.
PAGE 8 OF 8
SUBJECT: PPW JOB NUMBERS 16-811-9901 FY 2016/17 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND 16-811-9903 PAVEMENT REHABILITATION-
CRACK SEAL PROJECT
MARCH 13, 2017
S:\COUNCIL REPORTS\2017\03-21-17\Annual Street Repair and Resurfacing\Staff Report - FY 2016-17 Annual Street Repair.docx 3/17/2017 1:26 PM LP
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA and is Categorically Exempt [Section 15301(c) Existing
streets, sidewalks, trails and similar facilities]. A Notice of Exemption has been filed.
Attachments:
1. Key Map Base Bid Streets
2. Key Map Additive Alternate Overlay Streets
3. Key Map Additive Alternate Slurry Seal Streets
4. Slurry Seal Street List
5. Arterial Street Overlay Street List