Staff Reportrr 10W_N DF
DATE:
TO:
FROM:
SUBJECT:
MEETING DATE: 08/04/15
ITEM NO:
COUNCIL AGENDA REPORT
JULY 23, 2015
MAYOR AND TOWN COUNCIL
LES WHITE, INTERIM TOWN MANA —
PPW JOB NO. 13 -27 – FY 2014/15 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND PAVEMENT REHABILITATION - CRACK
SEAL 811 -0003 AND 811 -9903
STAFF RECOMMENDS THAT THE TOWN COUNCIL REJECT ALL BIDS
FOR PROJECT FY 2014/15 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND PAVEMENT REHABILITATION - CRACK
SEAL
RECOMMENDATION:
Staff recommends that the Town Council reject all bids for project FY 2014/15 Annual Street
Repair and Resurfacing Project and Pavement Rehabilitation – Crack Seal.
BACKGROUND:
At the June 16, 2015 Town Council meeting, the Town Council approved a Capital Improvement
Program budget for FY 2015/16. In conjunction with the capital budget discussion, Council
approved an alternative project scope and budget for the FY 2014/15 Annual Street Repair and
Resurfacing and Pavement Rehabilitation – Crack Seal Project as provided for in the project's
June 16, 2015 Town Council report. The alternative provided a reduced scope project with an
allocated budget amount of $900,000 including contingencies, a reduction of about half from the
project originally put forward by staff. This project would provide for maintenance of Town
Streets through various types of street repair and resurfacing measures.
DISCUSSION:
Following Council's authorization for staff to bid and award a reduced scope project with a
budget of $900,000, staff repackaged the plans and specifications to meet the new scope and
budget as approved by Council and advertised the project for bid. Bids for the revised plans and
specifications were opened on July 17, 2015. The Town received the following three bids:
PREPARED BY: MATT MORLEY �/ v c --
Director of Parks and Public Works
Reviewed by: LIZf Assistant Town Manager –bul7own Attorney
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 13 -27 — FY 2014/15 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND PAVEMENT REHABILITATION - CRACK
SEAL 811 -0003 AND 811 -9903
JULY 23, 2015
DISCUSSION (cont'd):
1. American Pavement Systems: Project Total Bid - $1,025,354
2. VSS International: Project Total Bid - $1,136,448
3. Intermountain Slurry Seal: Project Total Bid - $1,444,444
The Engineer's Estimate for this work is $700,000. The lowest bid received was from American
Pavement for $1,025,354. This is approximately 45% over the Engineer's Estimate and exceeds
the approved budget of $900,000. As the lowest bid exceeds the approved Council budget for
this project and the unit cost per square yard for the rubber cape seal in this bid is greater than
what would be expected for this type of street treatment, staff is recommending that the Town
Council reject all bids. The project specification and Town Purchasing Policy allow for the
Town to reject all bids at the Town's discretion.
Staff reviewed the bids in comparison with similar work bid earlier in the year and had
conversations with the contractors. Staff assumes that the main reason for the high bids was the
timing of the project. Contractors have filled their schedules for the year with paving projects
from other jurisdictions. This means contractors may be less interested in the work and therefore
provided higher bids. A contributing factor to the high pricing may also be the robust economy
and the result of large amounts of work in general. Staff will repackage the Annual Street Repair
and Resurfacing and Pavement Rehabilitation — Crack Seal Project and return to Council in late
fall or early winter with a request to rebid the project with the goal of procuring more favorable
bid results. Staff believes timing the bids to be the first in the season for next year will provide
more favorable pricing.
ALTERNATIVE:
Alternatively, the Town Council could direct staff to award the project to the low bidder,
American Pavement Systems, for $1,025,354 with a 15% contingency for a total project cost of
$1,179,157. Correspondingly, authorize $279,157 of unallocated street maintenance funds
towards the project to allow for a total project budget of $1,179,157.
Staff does not recommend this alternative because the unit costs for the rubber cape seal portion
of the project are greater than expected for this type of street treatment.
CONCLUSION:
Staff recommends that the Town Council reject all bids for project FY 2014/15 Annual Street
Repair and Resurfacing Project and Pavement Rehabilitation — Crack Seal.
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.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 13 -27 — FY 2014/15 ANNUAL STREET REPAIR AND
RESURFACING PROJECT AND PAVEMENT REHABILITATION - CRACK
SEAL 811 -0003 AND 811 -9903
JULY 23, 2015
FISCAL IMPACT:
The $900,000 allocated for this project will remain in the capital improvement project annual
street maintenance account as unallocated street maintenance funds.
Attachment
1. Bid Results
Town of Los Gatos Parks and Public Works Department
Project #13 -27 and 14- 811 -9903 Annual Street Repair and Resurfacing and
Pavement Rehabilitation -Crack Seal
Contractor
Base Bid
Additive Bid
Total Bid
Amount
Rank
American Pavement
Systems
$973,207.50
$52,146.50
$1,025,354.00
1
VSS International
$1,050,188.00
$86,260.00
$1,136,448.00
2
Intermountain Slurry Seal
$1,358,247.50
$86,196.50
$1,444,444.00
3
Engineer's Estimate
$644,930.00
$53,100.00
$698,030.00
ATTACHMENTI