REPORT TO COUNCIL
SUBJECT
Title
Award of Contract in the Amount of $3,114,784.38 to Guerra Construction Group for the Corn Palace Park, Finding of California Environmental Quality Act (CEQA) Categorical Exemption Section 15168(c)(2), and Waiver of Minor Bid Irregularity (PW24-21)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $3,114,784 to Guerra Construction Group of Santa Clara, CA for the Corn Palace Park Development and for approval of a 15% construction contingency in the amount of $467,218.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code (SMC), City Council approval is required for awards of public works contracts exceeding $250,000 and pursuant to Section 2.09.120(c) may waive a minor bid irregularity if the discrepancy does not affect the bid amount or give the bidder an advantage over others.
Section 2.09.120 of the SMC provides that in the consideration of bids for any public works contracts, the awarding authority may waive, if it wishes to do so, minor defects or irregularities in the bids, provided that the discrepancy does not affect the amount or give the bidder an advantage over others.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15303, which exempts construction and location of limited numbers of new, small facilities or structures, and CEQA Guidelines Section 15304, which exempts minor public or private alterations in the condition of land, water, and/or vegetation which do not involve removal of healthy, mature, scenic trees. Furthermore, the traffic and noise impacts of the park were considered within the scope of the Final Environmental Impact Report for the City of Sunnyvale Corn Palace Residential Development Project dated March 1, 2019. As no new subsequent environmental impacts are anticipated and no new mitigations are required, the action is also exempt from CEQA pursuant to CEQA Guidelines Section 15168(c)(2) and Public Resources Code Section 20194(c).
BACKGROUND AND DISCUSSION
The Corn Palace Park project consists of the design and construction of a new two-acre public park at the Corn Palace II development site. The site is in the northeast corner of Toyon Avenue and Lily Avenue, extending east to Lawrence Expressway.
A design contract with a 10% contingency in the amount of $479,482 was awarded to Callander Associates on March 14, 2023 (RTC No. 23-0149). A community engagement exercise guided the preferred features and design of the new park. The most desired park elements included an open lawn, playgrounds, pollinator garden, shade structure and picnic area. These elements as well as a small plaza, benches, stormwater retention features and pathways were included in the Preferred Concept Plan which was approved by City Council on December 5, 2023 (RTC No. 23-0941). Installation of Wi-Fi in the park was evaluated, but not included in project (RTC No. 24-0541).
The construction project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to Bay Area Builder’s Exchanges on July 12, 2024. Forty-Five (45) contractors requested bid documents and sealed bids were opened on August 7, 2024, with three (3) responsive bids received. The lowest responsive and responsible bid was submitted by Guerra Construction Group in the amount of $3,114,784.38, as detailed in the bid summary, Attachment 1.
The lowest bid received contained a math error in one bid item, which resulted in a change to the extended total for that item only. The errors did not change the total base bid. This error was acknowledged by the bidder. In accordance with the City’s bid instructions, the unit price prevails.
FISCAL IMPACT
Sufficient budget for this contract is available in Project 834330 - Corn Palace Park Development. A project summary is included as Attachment 3. The project is funded by the Park Dedication Impact Fees.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $3,114,784.38 to Guerra Construction Group;
- Make a finding of California Environmental Quality Act (CEQA) categorical exemption pursuant to CEQA Guidelines Section 15303, CEQA Guidelines Section 15304, 15168(c)(2) and Public Resources Code Section 20194(c);
- Approve a 10% construction contingency in the amount of $467,218;
- Make a determination to waive the minor bid irregularity for Guerra Construction Group; and
- Authorize the City Manager to execute the agreement when all conditions are met.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract
3. Project Budget Summary Sheet