Phase two of Los Gatos' downtown streetscape project includes the installation of storm drains on Bean Avenue, Grays Lane, Bachman Avenue (running through N. Santa Cruz Avenue to join an existing drain between Santa Cruz and University avenues), and an alleyway on Victory Lane between Nicholson and Bachman avenues.

The layout of the land and natural topography of the area result in storm water runoff flowing onto Santa Cruz Avenue from an area west of that street, causing flooding during heavy rainfalls, according to town staff.

Since the town council's approval of the preliminary plans on Jan. 21, the public works department has learned that a drain already exists under the parking lot between Santa Cruz and University avenues. The department is now looking at installing a new drain halfway down Grays Lane and connecting it to the existing drain rather than extending the system further down the street, said Parks and Public Works Director John Curtis. This would result in "substantial cost savings," he said.

The town has yet to receive cost estimates for this portion of the project, although Curtis speculates that it will be less than phase one, which reportedly cost an estimated $365,000. Phase one began last year and consisted of the construction of new sidewalks and raised planters on Santa Cruz Avenue between Grays Lane and Bachman Avenue. What remains of the first phase is the reconstruction of Grays Lane and bulb-outs.

Besides the installation of storm drains, phase two includes curb, gutter, sidewalk, planter and bulb-out reconstruction on Santa Cruz Avenue between Bachman and Highway 9 and between Bean Avenue and Main Street. Work on the storm drain system is slated to run from March through May, and other streetscape work should take place between May and July, Curtis said.

"We will be making an extreme effort to make sure all businesses are aware of what we're doing," Curtis said.

Domus owner Margaret Smith asked the town to consider a blackout period for construction work.

"We do have, as retailers, certain high seasons," she said, referring to Easter in April, graduation in June and the Fourth of July as big money-making holidays for businesses.

Councilwoman Diane McNutt suggested that the town issue temporary permits to employees whose businesses are located on a street where construction work is taking place to allow those employees to park in otherwise restricted areas.

According to town staff, since the San Jose Water Company has plans to replace underground utility lines in 2004, the town has decided to hold off resurfacing Santa Cruz Avenue until 2005.

All work must be complete by 2005, in accordance with the condition set forth for using bond money sold to fund the project. Because it is bond money, funding for the project won't be affected by the town's budget. However, the town has three years from the starting date of construction to complete the project, Curtis said, thus putting the town on a "fast track" to finish by 2005.