13 Staff Report - Massol Intersection Improvements
PREPARED BY: Michelle Quinney
Interim Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director
of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 08/04/2020
ITEM NO: 13
DATE: July 17, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Following Actions for the Massol Intersection Improvements
Project (19-813-0236):
a. Authorize the Town Manager to Award and Execute a Construction
Agreement with Tennyson Electric in an Amount of $328,792, and
Authorize $65,758 as a Construction Contingency for a Total Amount Not
to Exceed $394,550;
b. Authorize Staff to Execute Future Contract Change Orders in an Amount
Not to Exceed Twenty Percent of the Agreement Amount;
c. Approve a Budget Transfer of $57,148 in FY 2020/21 from the School Bus
Pilot Program
RECOMMENDATION:
Authorize the following actions for the Massol Intersection Improvements Project (19-813-
0236):
a. Authorize the Town Manager to award and execute a construction agreement with
Tennyson Electric in an amount of $328,792, and authorize $65,758 as a 20% construction
contingency for a total amount not to exceed $394,550;
b. Authorize staff to execute future change orders in an amount not to exceed twenty percent
of the agreement amount;
c. Approve a budget transfer of $57,148 in FY 2020/21 from the School Bus Pilot Program
budget.
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SUBJECT: Authorize Actions for the Massol Intersection Improvements Project
DATE: July 17, 2020
BACKGROUND:
The adopted FY 2019/20-2023/24 Capital Improvement Program (CIP) Budget designates
funding for the Massol Intersection Improvements Project (19-813-0236). This project is
consistent with the Town’s goal to improve public safety, primarily by enhancing pedestrian
safety crossing State Route 9.
On June 2, 2020, the Town Council authorized the Town Manager to approve the plans and
specifications and advertise the project for bid. The Town Manager was also authorized to
award and execute a construction agreement in an amount not to exceed $349,760, including a
20% contingency.
A 20% construction contingency was recommended due to the fact that the project is within
the Caltrans right of way and will require the contractor to obtain a permit and abide by
Caltrans requirements throughout completion of the project. Additionally, should a changed
condition occur during the course of construction, remedies would require Caltrans approval
and would likely require additional funds to complete.
DISCUSSION:
The project was advertised, and three bids were submitted to the Town on July 1, 2020. Three
bids were received electronically and opened remotely through a secure system in order to
meet the needs for social distancing during the COVID 19 pandemic. The bid results are as
follows:
Tennyson Electric - $328,792
Bear Electrical - $340,237
Columbia Electric - $474,654
Tennyson Electric was the lowest responsive bidder and was approximately 12% higher than
the engineer’s estimate of $293,000, which can be attributed to the uncertainties in the
construction field given the current pandemic. Staff has reviewed Tennyson’s bid and has
determined the bid to be reasonable and responsive and is recommending award of the project
to Tennyson Electric, Inc. with a 20% construction contingency allocated to the project.
Additional budgeted funds will be needed in order to award the construction contract with the
recommended contingency. These additional budgeted funds are available from unspent funds
in the School Bus Pilot Program budget. Re-appropriating the funds will allow for project
adjustments to meet changing needs and avoid any delays once the project begins. Any funds
not utilized for this project specifically will remain available for re-appropriation by the Town
Council in the future.
PAGE 3 OF 4
SUBJECT: Authorize Actions for the Massol Intersection Improvements Project
DATE: July 17, 2020
CONCLUSION:
Authorize the following actions for the Massol Intersection Improvements Project (19-813-
0236):
a. Authorize the Town Manager to award and execute a construction agreement with
Tennyson Electric in an amount of $328,792, and authorize $65,758 as a 20%
construction contingency for a total amount not to exceed $394,550;
b. Authorize staff to execute future change orders in an amount not to exceed twenty
percent of the agreement amount;
c. Approve a budget transfer of $57,148 in FY 2020/21 from the School Bus Pilot Program
budget.
COORDINATION:
This project has been coordinated with the Finance Department and the California Department
of Transportation (Caltrans) as highlighted in the June 2, 2020 report.
FISCAL IMPACT:
The Parks and Public Works Department continues to plan for, and track costs associated with
capital improvement projects. Where projects can be delivered within the workload of staff
already budgeted in the Department’s operating budget, no costs will be associated with the
project. This project requires the use of some temporary staffing not included in the
Department budget in order to meet schedule and workload commitments. The costs of the
temporary employees will be charged to the project budget. This project also requires some
permanent staff that are already budgeted in the Department’s operating budget, and will not
be charged to the project.
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SUBJECT: Authorize Actions for the Massol Intersection Improvements Project
DATE: July 17, 2020
FISCAL IMPACT (continued):
Massol Intersection Improvements
Project 813-0236
Budget Costs
GFAR $ 450,000
Budget Requested with the Staff Report $ 57,148
Total Budget $ 507,148
Construction - Tennyson Electric $ 328,792
Contingency $ 65,758
Design $ 72,965
Temporary Staff Costs $ 27,633
Materials Testing $ 12,000
Total Expenditures $ 507,148
Staff Costs
Operating Budget (Full time with benefits) $ 8,744
Total $ 8,744
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301 (c)). A
Notice of Exemption has been filed.
Attachment:
1. Construction Agreement including Exhibit A