Council looks at ways it can trim parking structure costs

By Nathan R. Huff

After months of hard-to-swallow cost increases, the price tag of Los Gatos' proposed parking garages seems to be stabilizing. The total construction estimate for a three-level, at- and below-grade structure on town Lot 2, between Bachman and Royce avenues, approaches $10.5 million.

The council met at an April 17 study session with construction consultants Gordon H. Chong and Partners to look at the most recent estimates, and to discuss how to reduce those numbers. The most recent cost culprit is increased construction rates, particularly in engineering and electrical costs, according to Gordon H. Chong and Partners.

Chong also presented a list of cost-cutting strategies, including reducing some of the contingency fees. However the price tag facing the town is likely to be close to the final numbers.

"It's not going to come down significantly," councilman Randy Attaway said. "Something very important is that we as a council need to move along; we've let 14 or 15 months go by. We have to make a decision, even if it's difficult."

Among the decisions that must be made is whether the town will go one or two levels underground at town Lot 2. Reducing the garage to one underground level drops the cost by as much as $3.8 million, but comes at the loss of as many as 90 parking spaces. At the study session, councilwoman Linda Lubeck indicated she would prefer to see two modest lots built rather than putting all the resources into Lot 2.

Her counterparts disagreed, saying that, in the long run, staying with the three-level design and waiting on Lot 6 near the intersection of Main Street and N. Santa Cruz Avenue until revenue became available would offer the town more "bang for the buck."

"We can please a greater number of people by building two lots with one level down, but that's a more temporary solution," Attaway said, adding that since land was so hard to acquire, the town should maximize what it has. "If we do it in one spot, that increases the amount of parking we can put on Lot 6 when the time comes." Current Lot 6 estimates put the at-ground and one below-grade structure at more than $8 million.

The town can also save itself as much as $900,000 by removing the architectural features of Lot 2. However, council members repeatedly stated they do not want a concrete box, so the actual architectural savings will probably be significantly lower.

The idea of building an above-ground structure, which resurfaced recently, appears to have disappeared. Building above ground is substantially cheaper than building below grade.

The town has $3.5 million budgeted for the lot(s). The business district could contribute $1 million to $2 million through an assessment district. However, the Town of Los Gatos Chamber of Commerce has maintained that the business community would support creation of an assessment district only if the town commits to two parking structures. The rest of the funding is yet to be determined.

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