2011020703 - PPW Job No. 10-21- 123 Main Street building Improvements reject bidsp ow x a
roe' as
COUNCIL AGENDA REPORT
DATE:
TO:
FROM:
SUBJECT:
JANUARY 31, 2011
MAYOR AND TOWN COUNCIL
MEETING DATE: 02107/11
ITEM NO. 3
GREG LARSON, TOWN MANAGER
PPW JOB NO. 10 -21 —123 MAIN STREET BUILDING IMPROVEMENTS
REJECT BIDS FOR THE 123 MAIN STREET BUILDING IMPROVEMENTS,
APPROVE PLANS AND SPECIFICATIONS, AND AUTHORIZE STAFF TO
REBID THE PROJECT
RECOMMENDATION
Reject bids for 123 Main Street Building Improvements, approve plans and specifications, and
authorize staff to rebid the project.
BACKGROUND
Los Gatos Saratoga Recreation Department (LGSR) leases the property located at 123 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. LGSR had proposed to perform the following improvements
to the above referenced building: removal and construction of new interior walls, repairs to the
ceiling, new windows and doors, installation of new carpets, and painting. The project was bid
by Town staff according to the Town informal bid policy.
On January 18 2011, the Town Council awarded the construction contract to TI Management
Group which was the low bidder for the project.
PREPARED BY : TODD CAPURSO
Director of Parks and Public Works
Reviewed by- Assistant Town M er Town Attorney
Clerk Administrator ✓F" nee Community Development
N:\ PPW\ MANAGEMENnCOUNCIL \COUNCILREPORTS\2011 Repo ts\Febntary 7\PPWJobNo10-
21.123MainStreet.rej ectbids.readvertise.doex
PAGE 2
JANUARY 31, 2011
MAYOR AND TOWN COUNCIL
SUBJECT: PPW JOB NO. 10 -21 -123 MAIN STREET BUILDING IMP ROVEMENTS
DISCUSSION
After the contract's award and during the subsequent contract execution process, TI Management
Group informed Town staff that they are not able to secure the required bonds for the project.
Despite joint efforts by this firm and staff, an acceptable resolution could not be reached. TI
Management Group then requested their bid be withdrawn from consideration.
In preparation to rebid the project, Town and LGSR staff have further reviewed the project bid
documents and made modifications to provide clarity and simplicity to the scope of work. It is
anticipated that the new bid results will be less than $50,000. Therefore, the contract will be
awarded by Town Manager according to his authority granted by the Town Council.
Plans and Specifications for this project are complete and will be available for review in the
Town Clerk's Department on the Friday before the Council meeting.
CONCLUSION
Staff recommends that Council reject the bids for 123 Main Street Building Improvements and
authorize staff to re- advertise the project for bids.
ENVIRONMENTAL ASSESSMENT
This project is Categorically Exempt pursuant to Section 15308 of the State CEQA guidelines.
FISCAL IMPACT
While it is anticipated that the new bid results will be less than $50,000, approximately $55,950
is available for this project based on prior budge approval by the Town Council.