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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: 05/02/2017 ITEM NO: 5 DATE: APRIL 21, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: PPW JOB NO. 16-813-9921 – ANNUAL CURB, GUTTER, AND SIDEWALK MAINTENANCE PROJECT 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 ANNUAL CURB, GUTTER, AND SIDEWALK MAINTENANCE PROJECT IN AN AMOUNT NOT TO EXCEED $562,335 INCLUDING A 10% CONTINGENCY. B. APPROVE THE TRANSFER OF $114,419 FROM ALMOND GROVE RESERVE TO FULLY FUND THE ANNUAL CURB GUTTER AND SIDEWALK MAINTENANCE PROJECT. RECOMMENDATION: Staff recommends that the Town Council: 1. Approve the award for the low bid from FBD Vanguard Construction, Incorporated and authorize the Town Manager to execute a construction agreement for the annual curb, gutter and sidewalk maintenance Project in an amount not to exceed $562,335, including a 10% contingency. 2. Approve the transfer of $114,419 from the Almond Grove Reserve to fully fund the annual curb gutter and sidewalk maintenance project. BACKGROUND: The adopted FY 2016/17-2020/21 Capital Improvement Program (CIP) Budget designates funding for curb, gutter, sidewalk, and curb ramp replacement and PAGE 2 OF 4 SUBJECT: PPW JOB NO. 16-813-9921 – ANNUAL CURB, GUTTER, AND SIDEWALK MAINTENANCE PROJECT APRIL 21, 2017 S:\COUNCIL REPORTS\2017\05-02-17\Annual Curb, Gutter\Staff Report FINAL.docx 4/27/2017 9:13 AM MM BACKGROUND (cont’d): construction. The project is consistent with the Town’s goals to improve public safety and to improve the quality of Town streets. At the March 21, 2017 Town Council meeting, Council approved the plans and specifications for the project, authorized the project bidding and authorized the Town Mana ger to enter into a contract with the low bidder in an amount not to exceed $467,000, including contingencies and additive alternates. The Council also authorized staff to execute change orders within the allocated 10% contingency. The approved project scope mainly addressed the installation of curb ramps as required by the Americans with Disabilities Act (ADA), many of which are related to the Town’s Annual Street Repair and Rehabilitation Project. Title II of the ADA obligates a jurisdiction to provide curb ramps wherever streets are resurfaced from one intersection to another. In addition to curb ramps, the project also includes the installation of a missing section of sidewalk by Fisher Middle School that is adjacent to one of the project curb ramps. Sections of broken and lifted sidewalk on Blossom Hill Road between Los Gatos Boulevard and Cherry Blossom Lane and Belgatos Road to the Town’s eastern limits will also be removed and replaced as part of the project. DISCUSSION: Bids for the Town’s Annual Curb, Gutter and Sidewalk Maintenance Project were opened on April 14, 2017 at the Town Clerk’s Office. The low base bid was received from Vanguard Construction, the contractor that recently performed the concrete reconstruction work on Broadway and Bachman and was recently awarded the Almond Grove Phase II project at the April 18, 2017 Town Council meeting. The following are the base bid results along with the engineer’s construction estimate: FBD Vanguard Construction, Inc.: $511,214 J.J.R. Construction, Inc.: $594,057 Engineer’s Construction Estimate: $369,325 The California Public Contracts Code mandates award of Town capital projects to the lowest responsible bidder. Bids were reviewed by staff for this project and FBD Vanguard Construction, Inc. was determined to be the lowest responsible bidder. PAGE 3 OF 4 SUBJECT: PPW JOB NO. 16-813-9921 – ANNUAL CURB, GUTTER, AND SIDEWALK MAINTENANCE PROJECT APRIL 21, 2017 S:\COUNCIL REPORTS\2017\05-02-17\Annual Curb, Gutter\Staff Report FINAL.docx 4/27/2017 9:13 AM MM DISCUSSION (cont’d): Seven concrete contractors were contacted by Town Engineering staff and encouraged to bid on the project. Several of the contractors noted they would not be bidding the project due to already full work schedules. Two bids were received with the low bid approximately 40% over the engineer’s estimate. The high bids are attributed to the large number of projects bidding and a limited number of contractors available. As the majority of this work is required to meet ADA requirements for the Town’s upcoming street maintenance work, staff is recommending award of the project to FBD Vanguard in an amount of $511,214 plus a 10% contingency for a total construction agreement amount of $562,335. The total cost for the project, including design and construction services, exceeds the allocated budget for the project. As part of the actions associated with this recommendation, staff recommends allocating $114,419 from savings from the Almond Grove project to fully fund this project. In fully funding the Almond Grove project, the Town drew down on GFAR reserves that would typically be utilized to address these situations. Vanguard’s bid for the additive alternate bid item listed in the project plans and specifications was $23,375. The additive alternate bid item covered building new ramps at Anne Way and Union Avenue. Staff is not recommending award of the additive alternate bid item as these ramps are not required by ADA for the Town’s upcoming street maintenance project and the project currently has insufficient funds available. CONCLUSION: Staff recommends that the Town Council: 1. Approve the award for the low bid from FBD Vanguard Construction, Incorporated and authorize the Town Manager to execute a construction agreement for the annual curb, gutter and sidewalk maintenance Project in an amount not to exceed $562,335, including a 10% contingency. 2. Approve the transfer of $114,419 from the Almond Grove Reserve to fully fund the annual curb gutter and sidewalk maintenance project. ALTERNATIVES: The Council could elect to reject all bids and rebid the project. This is not recommended because the ramp work needs to occur before the Town’s Annual Street Maintenance project to prevent cutting and damaging the new pavement surface. Additionally, because many contractors have full schedules for the upcoming summer construction season, the Town may not receive lower bids. PAGE 4 OF 4 SUBJECT: PPW JOB NO. 16-813-9921 – ANNUAL CURB, GUTTER, AND SIDEWALK MAINTENANCE PROJECT APRIL 21, 2017 S:\COUNCIL REPORTS\2017\05-02-17\Annual Curb, Gutter\Staff Report FINAL.docx 4/27/2017 9:13 AM MM COORDINATION: This project has been coordinated with the Finance Department. FISCAL IMPACT: There are insufficient funds available for this project through the Town’s adopted FY 2016/17 - 2020/21 Capital Improvement Program Budget as demonstrated in the table below. As part of the actions associated with this recommendation, staff recommends allocating $114,419 from savings realized in the Almond Grove project. ENVIRONMENTAL ASSESSMENT: This is a project as defined under CEQA and is Categorically Exempt [Section 15301(c) Existing streets, sidewalks, trails and similar facilities]. A Notice of Exemption has been filed. Available Budget Expended/Encumbered Available Funding To Date Balance Curb, Gutter, and Sidewalk Maintenance 813-9921 501,709$ 322$ 501,387$ Allocation from the Almond Grove Reserve 114,419$ 114,419$ TOTALS 616,128$ 322$ 615,806$ TOTAL PROJECT COST: Project Costs Consultation Services 4,360$ Construction Cost 562,335$ Staff Costs (Design,Construction) and Const. Testing 11%49,111$ TOTAL BASE BID 615,806$ Curb, Gutter, and Sidewalk Maintenance PROJECT 813-9921