City staff says street program hit by higher bids and labor costs; some projects deferred

Los Altos city staff told the Complete Streets Commission on Nov. 19 that higher-than-expected construction bids, soft costs and labor increases drove the total cost of the 2024–25 annual streets program to about $6.5 million, leaving little room to add projects this fiscal year.

Stephen, the staff presenter, said the project was originally budgeted at roughly $6 million — including about $2 million in carryover and $4 million in regular annual funding — but bid results, design costs and a 10% contingency increased the total to approximately $6.5 million. "The total amount of the project is now 6.5 million," he said, adding that the city requested an additional $500,000 for contingency when bid prices exceeded initial estimates.

The overrun means the city will hold most contract change orders and prioritize completion of critical elements such as Springer, a major road the staff described as the project's highest near-term priority. Stephen said crews have completed mill-and-overlay work in several locations and that downtown striping is underway, but weather and equipment availability could pause some activities.

Why it matters: The commission was told the overrun leaves limited flexibility to add streets that were planned but not built in 2024–25. Stephen listed three streets not completed this year — Labor, Stonehaven and Alicia — and indicated Stonehaven could cost in the mid-hundreds of thousands of dollars, making immediate inclusion unlikely.

What staff will do next: Stephen said the city has engaged BKF as the design consultant for the 2025–26 program and has begun field walks. He will provide a refined project schedule and, where needed, condition investigations (borings and ground-penetrating radar) before deciding between full reconstruction and less-intensive repairs. "I need a couple of bore samples to find out what is the cause of the road failure," he told the commission.

Commission reaction and context: Commissioners pressed staff for clearer status indicators on the draft project list (for example, adding a ‘designed/complete/pending’ column). Several commissioners noted the difficulty of scheduling around school hours and weather, and one requested staff confirm that work affecting private contractor restorations (for example, temporary obscured crosswalks) is enforced to be restored by the responsible parties.

Next steps: Staff will return with updated cost projections and a revised schedule ahead of the city’s budgeting cycle in March. The commission agreed to hold the city to the current $6.5 million allocation and not authorize add alternates until Springer’s final construction cost is clearer.