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BACKGROUND In June 2007, the Council awarded a construction contract for the six-acre Alviso Adobe Community Park that will include a restored adobe structure, a reconstruction of the historic milking barn, and a fabrication and installation of a museum style historic interpretive program. Later that year, the Council approved a PUD application for development of the eight-lot Austin subdivision (Meadowlark Estates) that is located immediately south of the park site. As currently designed, this private development and the park will share an entrance roadway and other site improvements including some underground utilities. In addition, the City held discussions with the developer regarding it constructing Alviso Adobe improvements including a bus pull-out/deceleration lane along Foothill Boulevard, and the grading/paving of the Alviso Adobe parking lot. In anticipation of this coordinated construction activity, the Alviso Adobe budget includes $365,000 for the City's pro rata share of these improvements. Since the award of the contract for the Alviso Adobe Community Park, staff has been working with the developer's engineer to design the park entrance to tie into the new street proposed for the eight-lot Austin subdivision (Meadowlark Estates). Additionally, staff has been negotiating a reimbursement agreement with the owner, Austin Briggs Investment, to complete construction of the Alviso Adobe parking lot. Since the Final Map, which dedicates a portion of the roadway necessary for the parking lot entrance, may be delayed, the City will work with the developer to dedicate the necessary easements by separate instrument. DISCUSSION Reimbursement Agreement To facilitate construction of the entry drive, bus pull-out/deceleration lane along Foothill Road, and the grading and paving of the parking lot for the park site, the owner, Austin Briggs Investment, has agreed to contract for the required infrastructure improvements and provide construction management. The City will reimburse Austin Briggs Investment for this work as provided for in the attached Reimbursement Agreement. The owners have agreed not to charge a construction management fee for their services to manage the subcontractors. Austin Briggs Investment has solicited bids from three large grading contractors. Of the three bids requested, Austin Briggs Investment received two bids. The low bid was submitted by DeSilva Gates. The City's pro-rata share of the improvements is $305,109.91. To ensure that this work is competitively priced, staff requested and received a bid of $347,109 from the Alviso Adobe general contractor. Because of this price differential and the ability of De Silva Gates to complete this work, entering into an agreement with Austin Briggs for this work is the preferred alternative. In support of the construction activities, the City will use on-call services for survey and geotechnical support. The total anticipated cost for engineering support services is $17,782. The $365,000 budgeted for the parking lot will cover the cost of construction ($305,109.91) and the engineering services ($17,782) leaving a balance to be used for contingency of $42,108.09. Staff is proposing that the Director of Public Works be Page 2 of 3