Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/18/2017
ITEM NO: 11
DATE: APRIL 10, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
A. APPROVE THE AWARD FOR THE LOW BID FROM FBD VANGUARD
CONSTRUCTION, INCORPORATED AND AUTHORIZE THE TOWN
MANAGER TO EXECUTE A CONSTRUCTION AGREEMENT FOR THE
ALMOND GROVE PHASE II STREET RECONSTRUCTION PROJECT IN AN
AMOUNT NOT TO EXCEED $7,981,382 INCLUDING A 15%
CONTINGENCY.
B. APPROVE A THREE YEAR CONSULTANT MATERIALS TESTING
AGREEMENT WITH NINYO AND MOORE FOR THE ALMOND GROVE
PHASE II RECONSTRUCTION PROJECT FOR $273,837, INCLUDING A 10%
CONTINGENCY.
C. APPROVE A BUDGET ADJUSTMENT TO DECREASE THE AUTHORIZED
PROJECT BUDGET TO $14,344,117 CONTINGENT UPON COUNCIL
ACTION TO INCLUDE ADD ALTERNATES AND RETAIN THE EXCESS (UP
TO $3.3M) IN THE ALMOND GROVE RESERVE FOR ALLOCATION DURING
THE FY 2017/18 BUDGET PROCESS.
RECOMMENDATION:
Staff recommends that the Town Council:
1. Approve the award for the low bid from FBD Vanguard Construction, Incorporated
(Vanguard) and authorize the Town Manager to execute a Construction Agreement for the
Almond Grove Phase II Street Reconstruction Project in an amount not to exceed
$7,981,382 including a 15% contingency.
2. Approve a three year consultant materials testing agreement with Ninyo and Moore for the
Almond Grove Phase II Reconstruction Project for $273,837, including a 10% contingency.
3. Approve a budget adjustment to decrease the authorized project budget to $14,344,117
contingent upon Council action to include add alternates and retain the excess (up to
$3.3M) in the Almond Grove Reserve for allocation during the FY 2017/18 budget process .
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SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
APRIL 10, 2017
S:\COUNCIL REPORTS\2017\04-18-17\Almond Grove Phase II\Staff Report FINAL.docx 4/13/2017 1:07 PM MM
BACKGROUND:
The Almond Grove Street Reconstruction Project Phase II will reconstruct the streets and
rehabilitate curb, gutter, and sidewalks consistent with Council direction in the Almond Grove
Historic District. This project began with the rehabilitation of asphalt streets in the area in
2013 with a rubber cape seal. Following the reconstruction of two concrete streets
(Broadway and Bachman) last year, eight concrete streets remain in the Almond Grove area
that are in need of substantial reconstruction. These streets will be addressed with the
Almond Grove Phase II project.
On April 19, 2016, the Town Council authorized the Town Manager to negotiate and execute an
agreement with Wilsey Ham for the design of the remaining eight Almond Grove streets. The
design was to follow guidelines provided by Council during the October 20, 2015 Council
meeting.
Council approved the Basis of Design Report from Wilsey Ham on August 26, 2016, which
provided an overview of the Phase II design. During the meeting, the Council directed staff to
bid all eight Almond Grove streets at one time.
On December 20, 2016, staff provided Council with an update on the Almond Grove Phase II
project. This included a discussion on the public outreach to date, tree replacements, utility
upgrades, and project phasing.
At the February 9, 2017 Town Council meeting, Council approved the plans and specifications
and authorized the bidding for the Almond Grove Phase II Reconstruction Project. Council also
directed staff to remove three asphalt areas, which were to be converted to concrete, from the
Almond Grove Phase II project limits (i.e., the base bid) to provide for project cost savings.
DISCUSSION:
Bid Results for Almond Grove Reconstruction Project Phase II
Bids were received by the Town for the Almond Grove Phase II project on April 5, 2017. The
low base bid for the Almond Grove Phase II reconstruction project was submitted by Vanguard
for a total base bid amount of $6,940,332. The engineer’s base bid estimate totaled
$10,084,291. Six contractors picked up the plans and three contractors submitted bids for this
project with a bid range from $6,940,332 to $9,544,710. Bid results are provided in Attachment
1. Staff has reviewed all bids and determined the bid from Vanguard to be the lowest
responsive and responsible bid.
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SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
APRIL 10, 2017
S:\COUNCIL REPORTS\2017\04-18-17\Almond Grove Phase II\Staff Report FINAL.docx 4/13/2017 1:07 PM MM
DISCUSSION (cont’d):
The California Public Contracts Code mandates award of Town capital projects to the lowest
responsible bidder. The basis of award must be determined prior to award and the bid may
only be awarded to one bidder. This project included additive alternates to the bid. Additive
alternates allow for inclusion of additional bid items to ensure the base bid meets the bud get
and still allows for flexibility in awarding additional scope in situations where pricing is
favorable. The additive alternates are not included in the basis of award, however the Council
may award additive alternates at its discretion only to the contractor receiving award of the
base bid. This topic is discussed in more detail later in this report.
Construction bids are valid for sixty calendar days. If the Council approves the award, staff will
immediately work with the selected contractor to finalize the construction agreement, which
includes the contractor securing bonds and insurance . These items can take four to six weeks.
More importantly, prompt award of the project is necessary to plan and construct the first
component of the project this summer. Delays in award of the contract will result in the
project being delayed until next summer.
Project Delivery Schedule
Due to the utility upgrades required on some of the existing Almond Grove streets scheduled
for reconstruction, Vanguard is proposing reconstruction on streets that do not require utility
upgrades for this upcoming summer. These streets include Bayview, Glen Ridge, and Tait.
Vanguard noted that as Tait is a long street, they may focus the effort only on Tait this summer.
Vanguard is preparing a schedule for the construction of all of the remaining Almond Grove
concrete streets. Once staff has reviewed the proposed schedule to ensure minimal resident
impacts and to verify compliance with the project specifications, staff will provide this
information to the Council and Almond Grove residents.
Additive Alternate Bids for Asphalt Areas within the Almond Grove Project
During the February 9, 2017 Town Council meeting, staff provided Council with approximate
costs to convert three areas of asphalt paving to concrete within the Almond Grove Phase II
project limits. Per Council’s direction, staff removed these asphalt areas from the base bid for
cost considerations. Staff requested bidders on the Almond Grove Phase II Project to provide
additive alternate lump sum bids for the three asphalt areas for Council’s information and
potential consideration.
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SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
APRIL 10, 2017
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DISCUSSION (cont’d):
The Council may direct staff to include any or all of the additive alternates in the project from
the Vanguard bid. Should Council include these additive alternate street sections, the
additional amount highlighted below would need to be added to the award approval:
STREET SECTION BID PRICE 15%
CONTINGENCY
TOTAL
Bayview (Add Alt. #1) $380,000 $57,000 $437,000
Bean (Add Alt. #2) $160,000 $24,000 $184,000
Nicholson (Add Alt.
#3)
$410,000 $61,500 $471,500
Request for Proposals Project Material Testing
On February 28, 2017, a request for proposals (RFP) was released soliciting proposals for the
materials testing component of the Almond Grove Phase II project. Similar to the first phase of
the project, these services are needed to provide the accredited laboratories and certified
testing personnel necessary to test and verify that the methods and materials used on the
Almond Grove Phase II project are being placed and are performing pursuant to the project
specifications. Cost is based on the number of tests completed and labor hours provided, thus
the overall cost may go up or down slightly based on the number of tests and labor hours
provided during the three year construction period.
On March 10th, three proposals were received by the Town and were evaluated using
qualification based criteria. Each firm was required to submit a cost proposal in a separately
sealed envelope which was opened following the evaluation of the qualifications of the
firms. The final ranking and cost proposals for each firm is as listed below:
1. Ninyo and Moore: $248,943
2. Construction Testing Services: $274,650
3. ENGEO: $625,000
Based on the evaluation of qualifications and cost, the firm of Ninyo and Moore was
determined to be the overall best qualified to perform the required professional materials
testing services for the Almond Grove Phase II Project. Staff is recommending the award of a
consultant services agreement to Ninyo and Moore for the project material construction testing
in the amount of $248,943 plus a 10% contingency for a total contract amount not to exceed
$273,837.
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SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
APRIL 10, 2017
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DISCUSSION (cont’d):
Next Steps
Should the Council award a construction contract at its April 18, 2017 meeting, the following is
the anticipated construction schedule:
Construction Agreement Finalized End May 2017
Pre-Construction Meeting with Contractor End May 2017
Contractor Meetings with Residents Beginning of June 2017
Contractor Begins Construction Mid-June 2017
Construction Complete (First Streets) November 2017
Construction Complete (Remaining Streets) Nov. 2018 & Nov. 2019
CONCLUSION:
For the reasons provided in this report, staff is recommending that the Town Council:
1. Approve the award for the low bid from FBD Vanguard Construction, Incorporated
(Vanguard) and authorize the Town Manager to execute a Construction Agreement for the
Almond Grove Phase II Street Reconstruction Project in an amount not to exceed
$7,981,382 including a 15% contingency.
2. Approve a three year consultant materials testing agreement with Ninyo and Moore for the
Almond Grove Phase II Reconstruction Project for $273,837, including a 10% contingency.
3. Approve a budget adjustment to decrease the authorized project budget to $14,344,117
contingent upon Council action to include add alternates and retain the excess (up to
$3.3M) in the Almond Grove Reserve for allocation during the FY 2017/18 budget process .
COORDINATION:
This report has been coordinated with the Finance Department.
FISCAL IMPACT:
The fiscal table includes all incurred and projected staffing, construction, and consultant costs
for the entire Almond Grove project. Within the fiscal table, there are several items to note. In
the section titled “Phase II Other Costs,” staff has included a “Project Reserve” line in the
amount of 5% of the project costs. The intent is for these funds to remain with the project until
completion in 2019 to address unanticipated needs. Any expenditure of the funds beyond the
authority in this Council action would be subject to the Town purchasing policy. Should the
funds be unused at the time of project closeout, the funds would revert to the General Fund
Allocated Reserve (GFAR) fund balance to be reprogrammed by the Town Council at that time.
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SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
APRIL 10, 2017
S:\COUNCIL REPORTS\2017\04-18-17\Almond Grove Phase II\Staff Report FINAL.docx 4/13/2017 1:07 PM MM
FISCAL IMPACT (cont’d):
Even with a Project Reserve and due to the favorable construction bid received, the project has
excess budgeted funds. This amount is between $2,240,700 and $3,333,200, depending on
Council action with regard to the additive alternates. Funds for the project are currently
tracked in the General Fund Almond Grove Committed Reserve. The excess funds will remain in
the reserve for allocation with the FY 2017/18 budget process.
Fiscal information at the beginning of a project is forecast based on expected expenses. The
actual costs will vary somewhat from the projections. Staff will close out the Phase I project in
May or June of this year. Final accounting for the project will be fully complete following the
Phase II project close out. Staff will provide project updates for tracking of schedule and costs
associated with Phase II throughout the project construction.
Budget Costs
Total Project Budget 17,088,788$
Prior Year Expenditures 503,971$
Actual Current Budget 16,584,817$
2016/17 Expenditures + Commitments (Phase 1)2,792,927$
2016/17 Expenditures + Commitments (Phase 2)800,084$
Total Current Activity 16,584,817$ 3,593,011$
Phase II Project Costs
Anticipated Construction Contract 7,981,382$
Anticipated Project Testing 273,837$
Total Estimated Project Costs 8,255,219$
Phase II Other Costs
Anticipated Staff Costs (12% of project costs)990,626$
Project Reserve (5% of project cost)412,761$
Total Other Costs 1,403,387$
Total Budget and Expenditures 16,584,817$ 13,251,617$
Estimated Balance if no Additive Alternates 3,333,200$
Additive Alternates w/15% Contingency
Bayview (Add. Alt. #1)437,000$
Bean (Add. Alt. #2)184,000$
Nicholson (Add. Alt. #3)471,500$
Total Budget and Expenditures with Additive Alternates 16,584,817$ 14,344,117$
Estimated Balance with Additive Alternates 2,240,700$
Almond Grove Street Rehabilitation
Project 811-0003
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SUBJECT: PPW JOB NO. 13-31 – ALMOND GROVE STREET REHABILITATION PROJECT
PHASE II - 411-811-0003
APRIL 10, 2017
S:\COUNCIL REPORTS\2017\04-18-17\Almond Grove Phase II\Staff Report FINAL.docx 4/13/2017 1:07 PM MM
ENVIRONMENTAL ASSESSMENT:
This project is Categorically Exempt pursuant to Section 15301 (c) of the State CEQA Guidelines.
A Notice of Exemption has been filed.
Attachment:
1. Certified Bid Tabulation.