REPORT TO COUNCIL
SUBJECT
Title
Award of Contract in the Amount of $12,169,123 to Suarez & Munoz Construction, Inc. for the Community Center Grounds Renovation, Finding of California Environmental Quality Act (CEQA) Categorical Exemptions Classes 1, 2, and 30, and Approve Budget Modification No. 3 in the Amount of $1,654,107 (PW24-18)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $12,169,123 to Suarez & Munoz Construction, Inc of Hayward, CA for the Community Center Grounds Renovation and for approval of a 10% construction contingency in the amount of $1,216,912. Staff is also recommending approval of Budget Modification No. 3 in the amount of $1,654,107 to fund the project.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for awards of public works contracts exceeding $250,000.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by affirmative votes of at least four members to authorize the transfer of unused balances appropriated for one purpose or another, or to appropriate available revenue included in the budget.
ENVIRONMENTAL REVIEW
As discussed in the CEQA Memorandum (Attachment 4), the proposed project is exempt under the California Environmental Quality Act (CEQA) pursuant to the following CEQA exemptions: Class 1 (CEQA Guidelines Section 15301(d)), which applies to repairs, maintenance or minor alterations of existing facilities involving negligible or no expansion of existing use; Class 2 (CEQA Guidelines Section 15302), which applies to the replacement or reconstruction of existing structures involving negligible or no expansion of capacity; and Class 30 (CEQA Guidelines Section 15330) which applies to the removal of contaminated soils and water from the lower pond. None of the factors listed in CEQA Guidelines Section 15300.2 are present that would preclude reliance on these categorical exemptions.
BACKGROUND AND DISCUSSION
On October 26, 2021, Council awarded a contract to Verde Design, Inc., a landscape architecture firm, for design services for the Community Center Grounds Renovation and Enhancement Project (RTC No. 21-0969). An extensive community outreach process was performed to review the objectives of the project and receive input on desired design features for the new Community Center grounds. Using the input from the community and other stakeholders, a Preferred Conceptual Design was presented to Council and approved on January 10, 2023 (RTC No. 23-0088).
During the design phase of the project, staff evaluated installation of Wi-Fi at the Community Center grounds as requested by Council during the discussion of Study Issue ITD 18-01. On April 25, 2023, Council approved Wi-Fi installation for common area coverage to be included in the Community Center Grounds Renovation Project with the understanding that the cost to furnish and install the system was not accounted for in the original project budget. Council also directed staff to add associated operating funds for Wi-Fi to the operating budget (RTC No. 23-0069). Additionally, during approval of the conceptual design, Council asked staff to verify that various water uses were metered separately. Staff has confirmed that building, pond, and irrigation water use have historically been metered separately. The grounds renovation work will connect to the appropriate metering systems and staff will continue to track the various water uses post-construction to observe water savings related to reduction of the pond and landscaping. Other minor design changes requested by Council on January 10, 2023, have also been incorporated into the final design. The design and preparation of construction documents were completed, and all permitting was approved in April 2024.
The project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to the Bay Area Builder’s Exchange on May 3, 2024. Fifty-five (55) contractors requested bid documents and three responsive bids were opened on June 19, 2024. Suarez & Munoz Construction, Inc. was the lowest responsive and responsible bidder with a base bid in the amount of $12,169,123 (Attachment 1 - Bid Summary).
The low bid was over 13% higher than the engineer’s estimate for the project. The bay area is experiencing an increase in the cost of both materials and labor related to concrete and electrical work. Since there were three bids for the project, staff believes that this is a fair market price for the work.
FISCAL IMPACT
Budgeted funds in the amount of $12,280,804 are available in Project 830310 - Community Center Grounds Renovation and Enhancement. A project budget sheet is included as Attachment 3 to this report. Additional funding totaling $1,654,107 is required to fully fund installation of Wi-Fi equipment as well as the remaining design, construction, testing, contingency, and public art for this project. Budget Supplement No. 3 has been prepared to appropriate the required funding from the Park Dedication Fund.
BUDGET MODIFICATION NO. 3
FISCAL YEAR 2024/25
|
Park Dedication Fund |
Current |
Increase/(Decrease) |
Revised |
|
|
|
|
|
|
Funding Source |
|
|
|
|
Park Dedication Fund |
$69,342,377 |
($1,654,107) |
$67,688,270 |
|
|
|
|
|
|
Funding Use |
|
|
|
|
830310 - Community Center Grounds Renovation and Enhancement |
$12,280,804 |
$1,654,107 |
$13,934,911 |
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 form as Attachment 2 to the report in the amount of $12,169,123 to Suarez & Munoz Construction, Inc.;
- Approve a 10% construction contingency in the amount of $1,216,912;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Make a finding of a categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301(d), 15302, and 15330; and
- Approve Budget Modification No. 3 in the amount of $1,654,107.
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, Interim City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract
3. Project Summary sheet - 830310
4. CEQA Memorandum