Staff Report.Corporation Yard Building Replacement
PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant 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: 03/15/2022 ITEM NO: 9
DATE: March 3, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Corporation Yard Building Replacement Project (CIP No. 821-2302):
a. Reject all Bids for the Corporation Yard Building Replacement CIP Project
No. 821-2302 and Authorize the Town Manager to Rebid the Project; and
b. Authorize the Town Manager to Execute a Fourth Amendment to
Agreement with Cuschieri Horton Architects in an Amount of $9,390 for a
Total Agreement Amount Not to Exceed $227,840 for Plan Revisions; and
c. Authorize an Expenditure Budget Adjustment in the Amount of $600,000
to the Project from Available General Fund Appropriated Reserve and
General Fund Capital/Special Projects Reserve.
RECOMMENDATION:
Staff recommends that the Town Council take the following actions:
a. Reject all bids for the Corporation Yard Building Replacement CIP Project No. 821-2302 and
authorize the Town Manager to rebid the project; and
b. Authorize the Town Manager to Execute a Fourth Amendment to Agreement with Cuschieri
Horton Architects (Attachment 1) in an amount of $9,390 for a total agreement amount not
to exceed $227,840 for plan revisions; and
c. Authorize an expenditure budget adjustment in the amount of $600,000 to the Project from
available General Fund Appropriated Reserve (GFAR) and General Fund Capital Special
Projects Reserve.
BACKGROUND:
The Town’s adopted Fiscal Year (FY) 2021/22 Capital Improvement Program Budget designates
funding for Town projects, including Project 821-2302, Building Replacement at the Corporation
PAGE 2 OF 4 SUBJECT: Corporation Yard Building Replacement Project (CIP No. 821-2302) DATE: March 3, 2022
BACKGROUND (continued):
Yard. This is the second phase in a two phased project in which phase one resulted in the
conversion of warehouse space to office space and phase two involves replacing an old
portable building, that has been used as staff space and police evidence storage, with a steel
storage building.
On October 2, 2018, the Town Council authorized the Town Manager to execute an agreement
with Cuschieri Horton Architects for the Design of Corporation Yard Building Replacement and
Engineering Tenant Improvement project.
On August 18, 2020, the Town Council authorized the Town Manager to execute a construction
contract with DesignTek Consulting Group, LLC. for the construction of phase one of the project
which included tenant improvements of engineering staff offices and conversion of warehouse
space into staff office space. The phase one construction work has been completed. The
maintenance staff has relocated to the new offices and Police evidence has been moved to a
temporary trailer in preparation for phase two of the project.
On December 21, 2021, the Town Council authorized advertising the project for bid. The
project was subsequently advertised for bids and bids were opened on February 3, 2022.
DISCUSSION:
A mandatory pre-bid walk-through was held on January 18, 2022 for prospective bidders to visit
the project site before bidding. A total of 8 contractors and sub-contractors attended the pre-
bid walk-through. However, only one bid from Premier Builders, Inc. in the amount of
$1,146,104 was received for the project. The bid amount exceeded the $763,776 amount that
Town Council had authorized based on the engineer’s estimate.
To address the high bid amount, staff proposes to award the project as two separate contracts,
one for demolition and one for construction. This will enable more competitive bidding from
specialized contractors in each respective phase.
Cuschieri Horton Architects will provide additional services to simplify the bid package by
removing the completed Phase I of the overall project plan set which included the
improvements at the Engineering Building and to look for opportunities to remove scope from
the project. This will provide more clarity to the scope of work to prospective bidders.
PAGE 3 OF 4 SUBJECT: Corporation Yard Building Replacement Project (CIP No. 821-2302) DATE: March 3, 2022
CONCLUSION:
Approval of the recommendations would allow the project to move forward. Two separate
construction contracts would be awarded to the lowest responsible bidders, in alignment with
the Procurement Policy.
COORDINATION:
The design of this project has been coordinated with Community Development Department and
County Fire through the building permit process.
FISCAL IMPACT:
Based on the estimated cost of construction to complete this project, additional funds of
$600,000 are required. This is due to the increased costs for construction and materials since
the project’s conception in 2018. The budget adjustment allows for funding to be in place as
required to bid the project. Should favorable bids be received, excess funds would be returned
to General Fund Appropriated Reserve (GFAR).
The below table summarizes the anticipated project expenditures. There are sufficient funds
available in the GFAR and in the General Fund Capital/Special Projects Reserve for the
additional expenses.
Building Replacement at Corporation Yard
Project 821-2302
Budget Costs
GFAR $2,051,781
Approved with this Staff Report $600,000
Total Budget $2,651,781
Expenditures to Date (Including Encumbrances) $1,396,709
Amendment to Agreement with this Staff Report $9,390
Total Expenditures $1,406,099
Remaining Budget $1,245,682
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301 a and d). A
Notice of Exemption will not be filed.
PAGE 4 OF 4 SUBJECT: Corporation Yard Building Replacement Project (CIP No. 821-2302) DATE: March 3, 2022
Attachments:
1. Fourth Amendment including original Agreement and Amendments