Staff Reportt " F MEETING DATE: 08/18/15
ITEM NO: G-j
COUNCIL AGENDA REPORT
!ps GAMS
DATE: AUGUST 6, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LES WHITE, INTERIM TOWN MANAGE
SUBJECT: PPW JOB NO. 816 -0412 - FRANK AVENUE STORM DRAIN
IMPROVEMENTS
STAFF RECOMMENDS THAT THE TOWN COUNCIL:
A. APPROVE PLANS AND SPECIFICATIONS FOR FRANK AVENUE
STROM DRAIN IMPROVEMENTS AND AUTHORIZE THE TOWN TO
ADVERTISE THE PROJECT FOR BID.
B. AUTHORIZE THE TOWN MANAGER TO AWARD AND EXECUTE A
CONSTRUCTION AGREEMENT IN AN AMOUNT NOT TO EXCEED
THE AVAILABLE CONSTRUCTION BUDGET AMOUNT OF $157,440,
INCLUDING CONTINGENCIES AND ANY CHANGE ORDERS.
C. AUTHORIZE A BUDGET ADJUSTMENT OF $26,240 FROM THE
STORM BASIN TWO FUND TO ALLOW FOR BID VARIATIONS.
FUNDING SOURCE FOR THE PROPOSED ADJUSTMENT IS THE
AVAILABLE FUND BALANCE FROM THE STORM BASIN TWO FUND
(462).
RECOMMENDATION:
Staff recommends that the Town Council:
1) Approve plans and specifications for Frank Avenue Storm Drain Improvements and
authorize the Town to advertise the project for bid.
2) Authorize the Town Manager to award and execute a construction agreement in an amount
not to exceed the available construction budget of $157,440, including contingencies and any
change orders.
3) Authorize a budget adjustment of $26,240 from the Storm Basin Two fund to allow for bid
variations. Funding source for the proposed adjustment is the available fund balance from
the Stonn Basin Two Fund (462).
BACKGROUND:
The Town's adopted FY 2015/16- 2019/20 Capital Improvement Program (CIP) Budget
designates funding for infrastructure construction projects. This is consistent with the Town's
goals to improve public safety and improve the quality of Town parks, streets, and facilities.
�-
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by:
Town Manager
Attorney
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 816 -0412 FRANK AVENUE STORM DRAIN IMPROVEMENTS
AUGUST 6, 2015
BACKGROUND (cont'd):
Frank Avenue Storm Drain Improvements is included in the approved FY 2015/16 - 2019/20
Capital Improvement Program.
The Town has three designated storm drain basin areas which are funded through private
development projects to improve the storm drain system as needed. These funds can only be
utilized to improve the designated area's storm drainage system. The general locations of these
basins are Basin One in the southern area of Town, Basin Two in the northeast area, and Basin
Three in the northwest area. The Frank Avenue Storm Drain Improvements Project will be
funded from Basin Two funds.
DISCUSSION:
The Frank Avenue Storm Drain Improvements project will install a storm drain system on Frank
Avenue from the center of Frank Avenue to Izorah Way. The project resulted from
neighborhood complaints about flooding at the center of Frank Avenue during heavy storms.
The flooding causes a hazardous situation for vehicles and residents.
The existing capital budget for this project is $150,000, with $18,800 encumbered for design.
The engineer's estimate for this project is $111,520. Staff anticipates that there may be higher
construction costs due to increased construction activity from the strong economy. To address
this, it is recommended that a 20% ($26,240) bid variation contingency above the engineer's
estimate be added to the Town Manager's authority to address any cost increases related to this
issue and to allow for construction of the project before the upcoming rainy season causes any
additional flooding in the area. Staff recommends funding this contingency with the available
Storm Basin Two Fund balance. Complete project funding is outlined in the fiscal section below
of this report.
Plans and specifications for this project are complete and will be available for review on the
Town website at www.LosGatosCA.v(LN//C,11) and at the Parks and Public Works Engineering
Department the Friday before the Town Council meeting.
CONCLUSION AND RECOMMENDATION•
1) Approve plans and specifications for Frank Avenue Storm Drain Improvements and
authorize the Town to advertise the project for bid.
2) Authorize the Town Manager to award and execute a construction agreement in an amount
not to exceed the available construction budget of $157,440, including contingencies and any
change orders.
3) Authorize a budget adjustment of $26,240 from the Storm Basin Two fund to allow for bid
variations. Funding source for the proposed adjustment is the available fund balance from
the Storm Basin Two Fund (462)
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 816 -0412 FRANK AVENUE STORM DRAIN IMPROVEMENTS
AUGUST 6, 2015
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.
COORDINATION:
This project has been coordinated with the Finance Department.
ALTERNATIVE:
Council could consider the following alternative
Alternative: Request staff to return to Council once bids are received for Council to award the
project to the lowest responsive bidder. Staff is not recommending this alternative as it will
delay the start of construction, potentially pushing the project into the rainy season causing
construction impacts and continued flooding in the area. Additionally, award of the bid to the
lowest responsive bidder is required by the California Public Contract Code and is non -
discretionary.
FISCAL IMPACT:
To address the increased construction activity in the area that may cause higher bids due to the
strong economy, staff is recommending the inclusion of a 20% ($26,240) bid variation
contingency. These additional funds will be secured through a budget adjustment from the
Storm Basin Two fund and as outlined in the fiscal table below.
Available IkpendeN Proposed Proposed
Budget hacumbered Budget dg Contract
462 - 811 -0412 -Storm Basin #2 $ 150,000 $ 18,800 $ - $ 111520 "; ,
Contingency (15 %)
onoi n:a v....:...,_e - - 19,680
TOTALS $ 150,000 $ 18,800
$ 26,240 $ 157,440 $
TOTA7. EXPE {A,*Dl'1' {11tE5;BYCA'1'�GORY: „
Contract plus 20% Bid Variations 3 737,760
Confingency(15 %) 1 f60
TOTALS
$ 157,440