2011011803 - Project 10-21 - 123 East Main Street Building Improvementst pWN p i e
111
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DATE:
TO:
FROM:
COUNCIL AGENDA REPORT
JANUARY 11, 2011
MAYOR AND TOWN COUNCIL
MEETING DATE: 01/18/11
ITEM NO: _,J
GREG LARSON, TOWN MANAGER
SUBJECT: PPW JOB NO. 10 -21 — 123 EAST MAIN STREET BUILDING
IMPROVEMENTS
A. AUTHORIZE THE TOWN MANAGER TO EXECUTE A
CONSTRUCTION CONTRACT WITH TI MANAGEMENT GROUP IN
AN AMOUNT NOT TO EXCEED $50,950.
B. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO
THE CONSTRUCTION CONTRACT AS NECESSARY IN AN AMOUNT
UP TO $5,000.
C. AUTHORIZE THE TOWN MANAGER TO EXECUTE A
REIMBURSEMENT AGREEMENT WITH LOS GATOS SARATOGA
RECREATION DEPARTMENT FOR BUILDING IMPROVEMENTS AT
123 EAST MAIN STREET.
D. AUTHORIZE REVENUE AND EXPENDITURE BUDGET ADJUSTMENT
ESTABLISHING THE 123 EAST MAIN STREET REHABILITATION
PROJECT IN THE AMOUNT OF $55,950 (INCLUDING
CONTINGENCY), TO BE FULLY REIMBURSED TO THE TOWN BY
THE LOS GATOS SARATOGA RECREATION DEPARTMENT.
RECOMMENDATIONS
1. Authorize the Town Manager to execute a construction contract with TI Management
Group in an amount not to exceed $50,950.
2. Authorize staff to executive future change orders to the construction contract as necessary
in an amount up to $5,000.
3. Authorize the Town Manager to execute a reimbursement agreement with Los Gatos
Saratoga Recreation Department for building improvements at 123 East Main Street.
4. Authorize revenue and expenditure budget adjustment establishing the 123 East Main
Street Rehabilitation Project in the amount of $55,950 (including contingency), to be
fully reimbursed tc t h e T own by the Los Gatos Saratoga Recreation Department.
PREPARED BY : TODD CAPURSO
Director of Parks and Public Works
Reviewed by: Assistant Town Manager Town Attorney
Clerk Administrator _ , ance Community Development
N:; PPW'iMANAGEMENT.COUNCIL,000NCIL REPORTS "2011 Repoas`January l8TPW10- 21 123EMamSt Bid .-Imprvinnts.doex
PAGE 2
JANUARY 11, 2011
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 10-21-123 MAIN STREET BUILDING IMPROVEMENTS
BACKGROUND
Los Gatos Saratoga Recreation Department (LGSR) leases the property located at 123 East Main
Street from the Town of Los Gatos, to utilize as their main office and operations building. As
part of their lease agreement, and with approval from the Town, LGSR can elect to perform
tenant improvements at their cost.
The Town recently became aware that LGSR was considering making substantial improvements
to the interior of the facility. The scope of the proposed project includes the removal and
construction of new interior walls, repairs to the ceiling, new windows and doors, installation of
new carpets, and painting. Due to the scope of work as well as staff experience with the public
contract bid and award process, it was determined that this project should be managed by the
Town of Los Gatos Department of Parks and Public Works. While the architectural design was
performed by an architectural designer hired by LGSR, Town staff used the design plans to
conduct the public bid process.
While the contract will be managed by the Town, the building improvements will be funded by
LGSR. To accomplish this, staff is proposing that the Town Council authorize the Town
Manager to execute a reimbursement agreement between the Town and LGSR (separate from
their lease agreement) to reimburse the Town for the cost of the building improvements.
DISCUSSION
For projects under a $100,000 construction cost, the Town's informal bid process allows staff to
prepare a scope of work, plans and specifications, solicit bids from a minimum of three
contractors, and award the contract to the lowest bidder.
Staff solicited bids from four construction companies for this project. On January 5', 2011, two
bids were received as follows:
• . TI Management Group $50,950.00
• SDC Inc. $96,332.85
• Zicovich Builders Inc. No bid submitted
• Schaper Construction Inc. No bid submitted
After tabulation and review of the bid results, staff has determined that TI Management Group is
a responsible entity and that its bid is most responsive to the Town's informal bid process.
CONCLUSION
Staff recommends that the Town Council authorize the Town Manager to execute a construction
contract with TI Management Group in an amount not to exceed $50,950.
PAGE 3
JANUARY 11, 2011
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 10-21-121 MAIN STREET BUILDING IMPROVEMENTS
CONCLUSION (cont'd)
Additionally, due to the variables associated with this particular type of construction, it is further
recommended that the Town Council authorize staff to execute future change orders to the
construction contract as necessary in an amount up to $5,000 for additional quantities of work
that may exceed those included in the original contract.
Staff also recommends that the Town Council authorize the Town Manager to execute a
reimbursement agreement with LGSR for the actual cost of the improvements up to $55,950, and
that corresponding revenue and expenditure budget adjustments be made in order to allow for the
transfer of funds between the Town and LGSR.
ENVIRONMENTAL ASSESSMENT
This is a project as defined under CEQA but is Categorically Exempt (Section 15301c). A
Notice of Exemption will not be filed.
FISCAL IMPACT
Sufficient funds are available upon approval of the budget authorization by Town Council for the
project budget of $55,950 (including $5,000 of contingency) which is fully funded through the
Reimbursement Agreement between the Town and the Los Gatos Saratoga Recreation
Department.
Attachments:
None
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