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12 Staff Report - Los Gatos Almaden Road ResurfacingMEETING DATE: 6/5/06 VIN °F ITEM NO. F= COUNCIL AGENDA REPORT !ps G A.~pS DATE: MAY 31, 2006 TO: MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: DEBRA J. FIGONE, TOWN MANAGER/EXECUTIVE DIREC SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING A. ADOPT RESOLUTION DECLARING JOSEPH J. ALBANESE, INC. TO BE THE LOWEST RESPONSIBLE BIDDER ON THE PROJECT AND AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,559,550 B. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO THE CONSTRUCTION CONTRACT AS NECESSARY UP TO AN AMOUNT OF $100,000 C. AUTHORIZE BUDGET ADJUSTMENTS, INTERFUND TRANSFERS, AND INTRA-PROJECT TRANSFERS AS DETAILED IN THE FINANCIAL IMPACT SECTION OF THIS REPORT TO BE INCORPORATED INTO THE FY 2006/07-11 CAPITAL IMPROVEMENT PLAN TO BE PRESENTED FOR FINAL APPROVAL BY TOWN COUNCIL/MEMBERS OF REDEVELOPMENT AGENCY ON JUNE 19, 2006 RECOMMENDATION: 1. Adopt Resolution (Attachment 1) declaring Joseph J. Albanese, Inc. to be the lowest responsible bidder on the project and awarding a construction contract (Exhibit A) in the amount of $1,559,550. 2. Authorize staff to execute future Change Orders to the construction contract as necessary up to an amount of $100,000 3. Authorize budget adjustments, interfund transfers, and intra-project appropriations transfers PREPARED BY: PAMELA JACOBS JOHN CURTIS Assistant Town Manager Par nd Public Works Director N:\MASTERTOUNCIUTOWN COUNCIL REPORT.wpd Reviewed by: Assistant Town Manager Town Attorney Clerk Administrator `Finance Community Development Revised: 6/2/06 5:07 pm Reformatted: 5/30/02 PAGE 2 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING June 2, 2006 as detailed in the financial impact section of this report to be incorporated into the FY 2006/07- 11 Capital Improvement Plan to be presented for final approval by Town Council/Members of the Redevelopment Agency on June 19, 2006. BACKGROUND: The streetscape and resurfacing of Main Street is the final phase of the downtown street improvements which began four years ago. This project is proposed for funding through a variety of sources, including Redevelopment Agency (RDA), State Transportation Program (STP), Gas Tax Funds, General Fund Accumulated Reserves (GFAR) and Storm Drain funds. The following is an overview of the key elements of this project: Main Street Improvements: Sidewalks The scope of the work on Main Street includes removal and replacement of damaged and sub- standard sidewalks from Santa Cruz Avenue to College Avenue. The new sidewalks will be the Villa Hermosa style to match the rest of the sidewalks in the downtown area. There are some existing Villa Hermosa sidewalks along Main Street which will not be replaced, as they are functional and in good condition. The construction of sidewalks will be done in sections similar to the approach used on Santa Cruz Avenue. Each section will take five days to complete. It is likely two separate sections will be worked on concurrently to ensure timely completion of the project. The sidewalk replacement process will start on a Monday with the removal of old sidewalk; the new sidewalk will be open to the public on the following Friday. During this five-day period, staff will make accommodations for customers to access businesses safely through the construction site, including pedestrian zones and walkways as needed. This work is projected to begin the week of June 19`h and to take approximately 8 weeks to complete (excluding the week of July 3`d) Traffic Signal Installation, Underground Conduit and Other Improvements The existing outdated traffic signal at University Avenue and Main Street will be replaced with a new signal system. The replacement of the old traffic signal system will provide the Town with a modern and functional signal system. In addition, this new signal will be interconnected with the traffic signal at Main Street and Santa Cruz Avenue to provide much better traffic coordination in that section of Main Street. The foundation of the system is projected for installation in conjunction with the sidewalk construction in that area, and the signal mast and arm will be installed in August. Installation of the new system and removal of the old system will cause minimal disruptions to traffic. PAGE 3 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING June 2, 2006 Underground communication conduit will be installed between Loma Alta and the Main Street bridge at College Avenue as part of the regional Intelligent Transportation System project, managed by the City of San Jose. This project will enable synchronization of the traffic signals on Main St, Los Gatos Blvd., and Bascom Ave in San Jose, Campbell and Los Gatos. The Town has already installed conduit from the Main St. bridge to the Engineering Office on Miles Ave., which will enable Town engineers to monitor and manage traffic flow once the system is complete. The Los Gatos portion of this project was scheduled for next year; however, staff is recommending that the conduit be installed prior to paving Main St. to avoid cutting into the street after it has been paved. The federal and state funds for this project are not currently available; thus, the Town will need to cover the cost of trenching, the conduit, and pull boxes. During the installation of the communication conduit, an additional conduit will be added for the exclusive use by the Town in the future. For example, the conduit could be used to provide power for future lights in the street trees if funding is available. Repaving Main Street Main St. will be repaved from Santa Cruz Ave. to Loma Alta Ave. using an asphalt overlay with a filter fabric. The resurfacing will include grinding of asphalt pavement along curb lines and localized base repairs prior to the overlay. This project is targeted to occur in July and August. The paving work itself is anticipated to be completed in three days. On the actual paving days, there will be parking restrictions on the specific sections of the road paved on any of the three given days. While the majority of the project will be funded through the RDA, a portion, from College Ave. to Loma Alta Ave., will be funded in part by a grant from the State Transportation Program ( STP).. Public Outreach and Communication. Staff has been working with residents and merchants to determine and address concerns during the construction period related to parking, delivery, traffic, and access. Two public meetings have been held to date with interested stakeholders to discuss the construction plans and to get their input as this project moves forward. Similar to the reconstruction of Santa Cruz Avenue last year, the Town will utilize Block Captains to facilitate communications and paid Ambassadors to assist pedestrians during key areas of sidewalk construction, such as the intersection of Main St. and University Ave. Staff will make every effort to complete this project expeditiously, while keeping the lines of communication open in order to address the needs of the residents, merchants, and customers to the extent possible. Los Gatos-Almaden Road Improvements: Los Gatos-Almaden Road is a major collector street with a high daily vehicle volume due to its close proximity to residential, school, medical, and business areas. Resurfacing this street will preserve the base condition, and avoid higher costs for repair if maintenance was to be deferred. The PAGE 4 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING June 2, 2006 resurfacing will occur from Los Gatos Blvd. to Camino del Cerro this summer for approximately three weeks. Traffic control for single lane closures as the paving proceeds will be provided. The project will be funded in part through the State Transportation Program ( STP) grant program. DISCUSSION: Contract Award Sealed bids for the Main Street Resurfacing and Streetscape and Los Gatos Almaden Road Resurfacing project were received by the Clerk Administrator on May 24, 2006. Two bids were submitted and a summary of the bids received is attached (Attachment 2). Staff has reviewed all of the bids received, including references, and has determined that Joseph J. Albanese, Inc. is the lowest responsive bidder. The bid received from Duran and Venables, Inc. was disqualified because they did not use the correct bid forms. It is recommended that the Council/Agency adopt the attached Resolution declaring Joseph J. Albanese, Inc. to be the lowest responsible bidder on the project and award a constriction contract to this firm in the amount of $1,559,550 ($1,024,432 for the Main St. project and $535,118 for the Los Gatos-Almaden Rd. project). Further, it is recommended that the Council/Agency authorize staff to execute future Change Orders to the construction contract up to an amount of $100,000. Given the variables associated with this type of construction and the amount of the recommended contract, the change order amount is adequate to cover the cost of unforeseen circumstances that may arise during the course of construction, and/or for additional quantities of work that may exceed those included in the awarded contract. Any changes to the project scope of work outside the change order authorization will be brought to the Council for approval prior to construction. Project Scope, Cost and Funding Considerations The recommended contract and contingency amount of $1,659,550 is greater than the funds available in the RDA program and the STP grant awarded to the Town. The difference is due to four factors: the level of detail in the original project estimates at the time the RDA bonds were issued; a related fact that the Town is now at the end of the RDA bond expenditures; cost increases in construction materials over time; and the addition of project elements recommended for long-term cost- effectiveness and/or aesthetic consistency. RDA Estimates and Expenditures At the time the RDA bonds were issued in 2002, the Town developed estimates for the programmed projects based on the Downtown Streetscape concept plan approved by Council in 1996. Given that PAGE 5 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING June 2, 2006 the estimates were based on a concept plan, the level of detail needed for more precise estimates was not available. In addition, projects may have experienced unanticipated costs during implementation. This has resulted in the need for budget adjustments in some RDA projects along the way, although to a lesser extent than what may have been expected. The Main St. project represents the last of the RDA-funded projects (with the exception of the Wood Gateway design included in the 2006-11 Capital Improvement Program), and, thus, there is less flexibility built in for intra-RDA budget adjustments. However, the recently completed Parking Lot 45 project has funds remaining. Although there is less flexibility overall, staff has identified a portion of the Downtown Streetscape project that was funded through RDA which actually could be funded with storm drain finds. The storm drain improvements on N. Santa Cruz Ave. and adjacent streets are located in Storm Drain Basin 42, for which funds are available for these types of improvements. The Town's bond counsel has advised the Town that storm drain funds can be reallocated and used to reimburse the RDA under these circumstances. Cost Increases in Construction Materials Since the 2002 estimates, there has been a significant rise in the cost of construction materials, particularly in oil-based products such as asphalt. This increase has accelerated over the past year. These cost increases have affected the bid for the STP-funded projects, as well, resulting in a higher bid than estimated at the time of the grant application. In addition, the Main St. project was delayed for one year to allow a break in construction activity at the request of the Downtown merchant community. The following chart illustrates the increase in unit costs over time, and the total difference between the original estimate and the project bid. INCREASE IN UNIT PRICES FOR MAIN ST. PROJECT Project Element Santa Cruz Ave Santa Cruz Ave Main Street Cost Increase from Resurfacing Streetscape Streetscape Original Estimate April 2005 April 2003 May 2006 $ Asphalt/Ton $51 N/A $91 5209,000 $ Villa Hermosa Brick/Foot N/A $18 $33 $12,000 $ Curb & Gutter/Foot N/A $38 $73 $41,000 $Sidewalk/Foot N/A $12 $13 $10,000 Total $272,000 PAGE 6 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING June 2, 2006 Recommended New Project Elements Staff is recommending the inclusion of several items in the Main St. project which were not anticipated in the original estimates at the time of the bond issuance. These include painting the Main St. Bridge railing and replacing street light heads and painting poles to enhance the appearance of the Main St. streetscape and ensure functional lights, and the communication conduit discussed previously. The value of these elements is as follows: Painting Main St. bridge $20,000 Replacement of street light heads/pole painting $80,000 Communication conduit $80,000 Total $180,000 Funding Considerations Staff is recommending using several sources to fill the gap between project costs and available RDA and STP funds (it should be noted that Town funds are needed as a local match for STP regardless). With regard to the Main St. project, it is recommended to utilize the remaining funds from the Parking Lot #5 project and to reallocate funds from the Storm Drain Fund to address the gap. For the Los Gatos-Almaden Road Resurfacing project, it is recommended to appropriate funding from the General Fund Capital and Special Project Reserve. CONCLUSION: Staff recommends that the Council/Agency accept the staff recommendations noted above and adopt the attached resolution which will award the construction contract to Joseph J. Albanese, Inc., and authorize budget adjustments, interfund transfers and intra-project transfers as detailed in the Fiscal Impact section. These adjustments will be incorporated into the FY 2006-11 Capital Improvement Plan to be presented for final approval by Town Council/Members of Redevelopment Agency on June 19, 2006. ENVIRONMENTAL ASSESSMENT: This is a project as defined under CEQA but is Categorically Exempt (Section 15301(c). A Notice of Exemption will not be filed. FISCAL IMPACT: Funds for this contract and contingency are sufficient with approved budget adjustments and funding transfers as illustrated below. If approved, these adjustments and transfers will be PAGE 7 MAYOR AND TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING June 2, 2006 incorporated into the FY 2006-11 Capital Improvement Plan to be presented for final approval by Town Council/Members of Redevelopment Agency on June 19, 2006. MAIN STREET RESURFACING & STREET IMPROVEMENTS Available Project Remaining Planned Net Additional Remaining Budget Expenditures Available Project Funding Funding Project PROJECT FUNDING/EXPENDITURES Funding To Date Funding Costs Needed Sources Funding Current Funding RDA Funding (Project 0217) 1,636,850 936,850 700,000 STP Grant Funding (FY 2006/07) 115 710 - 115,710 Project Cost Components Albanese Contract 1.024.432 Albanese Contract Contingency 607000 Staff Labor 45,000 Other Material & Engineering Expenses 93,450 Additional Funding Storm Drain Basin #2 Reallocation 400.000 RDA Funding (From Parking Lot 5) 25,000 TOTALPROJECF F1 NDING/EXP 1,752,560 936;850` 815,710 1,222,882 (407,172) 425;000 17,828 LOS GATOS ALMADEN RESURFACING & STREET IMPROVEMENTS Available Project Remaining Planned Net Additional Remaining Budget Expenditures Available Project Funding Funding Project PROJECT FUNDINI GIEXPENDITURES Funding To Date Funding Costs Needed Sources Funding Current Funding STP Grant Funding 277,504 21,746 255,758 Gas Tax Funding Storm Drain Funding (FY 2006/07) Project Cost Components Albanese Contract Albanese Contract Contingency 50,000 50,000 40,000 40,000 535,118 40,000 Staff Labor 20,000 Other Material & Engineering Expenses 1,800 Additional Funding Capital Project Reserve Funding 255.000 TOTAL PROJFCIA Ft :NDINGIF-.XP 367,504 21,746 345,758 596,918 (251,160) 255,000 3,840 Attachments: Resolution awarding construction contract to Joseph J. Albanese, Inc. (with Exhibit A) Construction Contract 2. Bid Summary RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AWARDING A CONSTRUCTION CONTRACT TO JOSEPH J. ALBANESE, INC. FOR PROJECT 04-63 - MAIN STREET RESURFACING AND STREETSCAPE AND LOS GATOS ALMADEN ROAD RESURFACING WHEREAS, bids were sought in conformance with State and Town/Redevelopment Agency law for Project 04-63 - Main Street Resurfacing and Streetscape and Los Gatos Almaden Road Resurfacing; and WHEREAS, Joseph J. Albanese, Inc. submitted the lowest responsible bid which the Town Council/Agency deems to be responsive to the Town's solicitation dated in April 2006. WHEREAS, public improvements are of benefit to the project area or the immediate neighborhood of the project area; and WHEREAS, no other reasonable means of financing such public improvements are available to the community; and WHEREAS, the Redevelopment Agency's contribution to the cost of the public improvement will assist in elimination of one or more blighting conditions in the project area; and NOW, THEREFORE, BE IT RESOLVED, by the Town Council/Redevelopment Agency of the Town of Los Gatos, County of Santa Clara, State of California, that Joseph J. Albanese, Inc. is declared to be the lowest responsible bidder for Project 904-63 - Main Street Resurfacing and Streetscape and Los Gatos Almaden Road Resurfacing; and; BE IT FURTHER RESOLVED, that the Town Manager/Executive Director is hereby authorized and directed to execute a construction contract (Attached as Exhibit A) for said project on behalf of the Town/Agency in the amount of $1,559,550; and ATTACHMENT 1 BE IT FURTHER RESOLVED, that the staff is authorized to execute future change orders, as necessary, up to an amount of $100,000; and BE IT FURTHER RESOLVED that the Town Manager/Executive Director is hereby authorized to include the budget adjustments, interfund transfers and intra-project transfers as detailed in the Fiscal Impact section of the staff report into the FY 2006-11 Capital Improvement Plan to be presented for final approval by Town Council/Members of Redevelopment Agency on June 19, 2006. PASSED AND ADOPTED, at a regular meeting of the Town Council/Redevelopment Agency of the Town of Los Gatos, California, held on the 5" of June, 2006 by the following vote: COUNCIL/AGENCY MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS/ CHAIR OF THE REDEVELOPMENT AGENCY LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR/SECRETARY OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CONTRACT THIS AGREEMENT is between the Town of Los Gatos Redevelopment Agency (hereinafter referred to as "Owner") and Joseph J. Albanese, Inc. (hereinafter referred to as "Contractor"). Owner and Contractor, for the consideration hereinafter named, agree as follows: A. SCOPE OF WORK Contractor shall furnish all materials and perform all of the work for the construction of Project 04-63 - Main Street Resurfacing and Streetscape and Los Gatos Almaden Road Resurfacing in accordance with the Contract Documents. B. CONTRACT PRICE As full compensation for furnishing all materials and for doing all the work contemplated and embraced in this Contract, also for all loss or damage arising out of the nature of the work aforesaid, or from the actions of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by Owner, and for all risks of every description connected with the Work, also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the Work, and the whole thereof, in the manner and according to the Contract Documents, Owner shall pay (one million five hundred fifty nine thousand five hundred forty nine dollars and seventy-five cents) (51,559,549.75), which shall supersede any other amount specified in the Contract Documents. C. CONTRACT DOCUMENTS All rights and obligations of Owner and Contractor are fully set forth and described in the Contract Documents. All parts of the Contract Documents are intended to be correlated so that any work called for in one part and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. The Contract Documents are defined in Part I, Section 1-1.01(A) of these Specifications and are incorporated herein by reference the same as though set out in full. EXHIBIT A D. BEGINNING OF WORK Following the execution of this Contract and the approval of bonds and insurance policies and certificates, Owner shall issue a Notice to Proceed with the Work. Commencing work or the entrance of equipment or materials on the site of the Work by Contractor before receipt of the Notice to Proceed is at the sole risk and expense of Contractor, and the Contractor shall be fully liable for any damage or injury sustained by Owner or third persons resulting therefrom. E. TIME OF COMPLETION The Work called for herein shall be fully completed within sixty (60) working days of Contractor's receipt of the Notice to Proceed. F. CORRECTION OF WORK AFTER ACCEPTANCE AND FINAL PAYMENT BY TOWN/AGENCY Contractor shall remedy any defects due to faulty materials and/or workmanship and pay for any damages to other work and/or existing facilities resulting therefrom which shall appear within a period of 2 years from the date of recording of the Notice of Completion. G. LIQUIDATED DAMAGES The undersigned has reviewed and is thoroughly familiar with the appropriate sections of the Contract and Part I, Section 8-1.03 of these Specifications pertaining to liquidated damages. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of day of , 20 TOWN OF LOS GATOS, by: Debra J. Figone Town Manager/Executive Director RECOMMEND BY: John E. Curtis Director of Parks and Public Works APPROVED AS TO FORM: Orry P. Korb Town Attorney/General Counsel ATTEST: Marlyn Rasmussen Clerk Administrator/Secretary of the Redevelopment Agency Joseph J. Albanese, Inc. 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