Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Assistant 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: 08/01/2017
ITEM NO: 10
DATE: JULY 19, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: REJECT ALL BIDS FOR THE STONYBROOK/KENNEDY SIDEWALK PROJECT
NUMBER 15-813-0219
RECOMMENDATION:
Reject all bids for the Stonybrook/Kennedy Sidewalk Project Number 15-813-0219.
BACKGROUND:
At the June 6, 2017 Town Council meeting, the Town Council authorized bidding of the
Kennedy/Stonybrook Sidewalk Project and authorized the Town Manager to award the project
to the lowest responsive bidder in an amount not to exceed $451,000, including a 15%
contingency. The engineer’s estimate for the project was $392,174. The project is part of the
Town Council approved 2017/18 – 2021/22 Capital Improvement Program Budget and will
remove a failing wooden and asphalt sidewalk along Kennedy Road between Stonybrook Road
and Longmeadow Drive and replace the failing sidewalk with a new concrete sidewalk, concrete
foundation, curb and gutter, drainage improvements, and ADA ramp.
DISCUSSION:
Following Town Council’s authorization to bid the Kennedy/Stonybrook Sidewalk Replacement
project, Parks and Public Works staff publicly opened bids for the project on June 29, 2017 and
received one bid from Granite Rock Construction for $529,212. This bid exceeded the
engineer’s estimate by approximately $140,000.
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SUBJECT: REJECT ALL BIDS FOR THE STONYBROOK/KENNEDY SIDEWALK PROJECT
NUMBER 15-813-0219
JULY 19, 2017
S:\COUNCIL REPORTS\2017\08-01-17\StonybrookKennedy Sidewalk\Staff Report Final.docx 7/26/2017 1:30 PM MM
DISCUSSION (cont’d):
PPW staff reached out to a number of contactors prior to the bid to encourage them to bid on
the project. Most of these contractors declined to bid due to their existing heavy work load.
The high bid received is most likely the result of a high number of construction projects under
contract in the area and a limited number of available contractors to complete the work.
Based on these bid results, staff is recommending that the Council reject all bids and authorize
staff to rebid the project. Staff will reach out to the contracting community and will rebid the
project in the late fall or early winter of 2018, prior to contractors committing to the next
season’s work. Due to limitations on the construction of the project between the months of
October and April stipulated by the United States Fish and Wildlife Service, the earliest
construction start for the project is April of 2018.
CONCLUSION:
Reject all bids for the Stonybrook/Kennedy Sidewalk Project Number 15-813-0219.
ALTERNATIVES:
Alternatively, the Town Council could direct staff to award the project to the low bidder,
Granite Rock, for $529,212 with a 15% contingency for a total project cost of $608,593. This
would require a corresponding fiscal action to increase the project budget by $157,594.
Staff does not recommend this alternative because the high bid is associated with limited
contractor availability. Staff anticipates that contractor availability will increase as the summer
construction season winds down, resulting in more competitive bids in the future.
FISCAL IMPACT:
No fiscal impact is associated with staff’s recommendation. Additional funding of $157,594
would be needed if Council chose to move forward with the alternative to award a construction
contract to the low bidder, Granite Rock.
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. The action
of rejecting all bids is ministerial in nature.