Staff Report - Bicknell Road Final
PREPARED BY: LISA PETERSEN
TOWN ENGINEER
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, 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: 11/07/2017
ITEM NO: 13
DATE: OCTOBER 24, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: PPW JOB NO. 816-0410 – BICKNELL ROAD STORM DRAIN IMPROVEMENTS
A. REJECT ALL BIDS FOR THE BICKNELL ROAD STORM DRAIN
IMPROVEMENTS PROJECT.
B. APPROVE THE PLANS AND SPECIFICATIONS FOR THE BICKNELL ROAD
STORM DRAIN IMPROVEMENTS PROJECT AND AUTHORIZE THE TOWN
MANAGER TO RE-ADVERTISE THE PROJECT FOR BID.
C. AUTHORIZE THE TOWN MANAGER TO AWARD AND EXECUTE A
CONSTRUCTION AGREEMENT IN AN AMOUNT NOT TO EXCEED
$125,000 INCLUDING CONTINGENCIES.
D. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS IN AN
AMOUNT NOT TO EXCEED FIFTEEN PERCENT OF THE CONTRACT
AWARD AMOUNT.
RECOMMENDATION:
Staff recommends that the Town Council:
1. Reject all bids for the Bicknell Road Storm Drain Improvements project.
2. Approve the plans and specifications for the Bicknell Road Storm Drain Improvements
project and authorize the Town Manager to re-advertise the project for bid.
3. Authorize the Town Manager to award and execute a Construction Agreement in an
amount not to exceed $125,000, including contingencies.
4. Authorize staff to execute future change orders in an amount not to exceed fifteen perc ent
of the contract award amount.
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SUBJECT: PPW JOB NO. 816-0410 – BICKNELL ROAD STORM DRAIN IMPROVEMENTS
OCTOBER 24, 2017
S:\COUNCIL REPORTS\2017\11-07-17\Bicknell Storm Drain\Staff Report - Bicknell Road Final.docx 11/2/2017 3:48 PM LP
BACKGROUND:
At the June 6, 2017 Town Council meeting, the Town Council approved a Capital Improvement
Program (CIP) budget for FY 2017/18. Within the CIP is the scope and budget for the Bicknell
Road Storm Drain Improvements project to reroute a Town storm drain line from private
property into the Town’s right-of-way. The existing storm drain improvements at this location
were part of a 1967 subdivision on Bicknell Road that included a private residence at 697
Bicknell. This storm drain system accepts Town roadway storm water from Montclair Road and
empties the water into Smith Creek through the 697 Bicknell Road property. The current
property owner approached the Town two years ago and requested the Town provide proof
that an easement was given to the Town for the storm drain line on his property. After an
extensive search for the easement documentation, it was determined that the Town does not
have a storm drain easement across the property and the line would need to be rerouted back
onto Town property.
DISCUSSION:
The storm drain plans were designed by a civil engineering consultant from the Town’s on-call
civil design list that was developed through a Request for Qualifications process. Staff has a
bidding process for projects expected to exceed $50,000 in construction costs and a different
process for those not expected to exceed this threshold. Typically projects below this threshold
do not require Council approval of the plans and specifications, which is in line with the Town’s
purchasing policy. This allows for expediting and streamlining smaller construction projects.
Due to the high number of projects bidding in the Bay Area and limited number of contractors,
staff now anticipates the construction cost for the Bicknell storm drain will exceed $50,000.
Based on this revised cost estimate, staff is requesting Council approval of the plans and
specifications.
The project was initially advertised and bid through the Town’s bid vendor, Prints Charles
Reprographics. The engineer’s estimate for this work is approximately $63,000. Bids for the
plans and specifications were opened on September 22, 2017 at the Town Clerk’s Office. One
bid was received from Pacific Underground Construction for $162,815 (as shown on
Attachment 1). This is approximately 250% over the Engineer’s Estimate and exceeds the
project budget. As the bid exceeds the approved budget of approximately $159,000, staff is
recommending that the Town Council reject all bids.
Several contactors contacted the Town during the project bidding period and mentioned they
would not be able to bid the project because their resources were committed to other projects.
It is anticipated that some of these projects will be completed by the end of the year allowing
for more contractor availability. Staff is requesting the Council authorize rebidding of the
project with the goal of receiving a greater number of bids and more favorable bid results.
Additionally, the work can be completed next spring to allow for greater scheduling flexibility,
which may encourage more bids and favorable pricing from contractors.
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SUBJECT: PPW JOB NO. 816-0410 – BICKNELL ROAD STORM DRAIN IMPROVEMENTS
OCTOBER 24, 2017
S:\COUNCIL REPORTS\2017\11-07-17\Bicknell Storm Drain\Staff Report - Bicknell Road Final.docx 11/2/2017 3:48 PM LP
DISCUSSION (cont’d):
The current plans and specifications for the project are available on the Town’s website at
http://www.losgatosca.gov/108/Capital-Improvement-Program.
CONCLUSION:
Staff recommends that the Town Council reject all bids for the Bicknell Road Storm Drain
Improvements project and authorize Town staff to re-bid the project. If the Council approves
re-bidding of the project, the project would go out to bid on November 10, 2017 and bids
would be opened on December 1, 2017 at the Town Clerk’s Office. Staff anticipates that
construction would start in the spring of 2018.
ALTERNATIVES:
Alternatively, the Town Council could direct staff to award the project to the low bidder, Pa cific
Underground Construction, for $162,815 with a 15% contingency for a total project cost of
$187,238.
Staff does not recommend this alternative because this exceeds the project budget and more
favorable bids could be realized by rebidding the project.
FISCAL IMPACT:
Projected costs associated with this project are estimates. Final costs will be determined
through the actual project expenses. As is typical with one time Capital Improvement Projects,
unspent project balances will return to the Town’s Storm Basin Funds for future storm projects.
The table details the project budget and expenditures. Prior year expenditures include
consultant design and engineering. FY 2017/18 expenditures include final consultant design,
engineering, and construction.
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SUBJECT: PPW JOB NO. 816-0410 – BICKNELL ROAD STORM DRAIN IMPROVEMENTS
OCTOBER 24, 2017
S:\COUNCIL REPORTS\2017\11-07-17\Bicknell Storm Drain\Staff Report - Bicknell Road Final.docx 11/2/2017 3:48 PM LP
FISCAL IMPACT (cont’d)
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA and is Categorically Exempt [Section 15301(b) Existing
facilities of publicly-owned facilities]. A Notice of Exemption has been filed. The action of
rejecting all bids is ministerial in nature.
Attachment:
1. Certified Bid Tabulation.
Budget Costs
Total Project Budget 171,500$
Prior Year Costs 12,750$
Actual Current Budget 158,750$
FY 2017/18 Expenditures + Commitments 8,925$
Total Current Activity 8,925$
Anticipated Construction Contract w/15% Contingency 125,000$
Total Estimated Project Costs 125,000$
Anticipated Staff Costs (12% Staff costs & 3% material testing)18,750$
Total Other Costs 18,750$
Remaining Budget and Expenditures 158,750$ 152,675$
Estimated Balance 6,075$
Bicknell Avenue Storm Drain Improvements
Project 816-0410