REPORT TO COUNCIL
SUBJECT
Title
Award Contract with All Additive Alternate Bid Items in the Amount of $13,607,856.60 to Suarez & Munoz Construction, Inc. for the Lakewood Park Renovation and Enhancement Project; Make Finding of California Environmental Quality Act (CEQA) Class 1 Categorical Exemption Pursuant to CEQA Guidelines Section 15301(a); Approve Acceptance of an All-Inclusive Playground Grant; and Approve Budget Modification No. 16 to Appropriate $1,500,000 from the County of Santa Clara (PW26-07)
Report
BACKGROUND
On September 13, 2022, a $1,661,183 design contract with a 10% contingency in the amount of $166,118 was awarded to Verde Design, Inc. (RTC No. 22-0586). With the initial work, staff and the design consultant initiated a community engagement process to identify preferred park features and inform the design. Elements identified by the public were included in the Preferred Concept Plan, which was presented to City Council on October 24, 2023 (RTC No. 23-0065). At the conclusion of the meeting, Council approved Alternative 1 with the following modifications:
A) Replace the use of artificial turf with natural grass;
B) Consider removing the fencing south of the halfway line of the multipurpose field;
C) Explore the installation of Bermuda grass and other drought resistance natural turf options; and
D) Include batting cages into the project design.
Staff returned to City Council on November 19, 2024, with a Revised Concept incorporating City Council’s modifications. City Council approved Alternative 1: Approve the revised concept for the Lakewood Park Renovation and Enhancement Project and installation of a natural turf Bluegrass/Rye blend or other blend with similar performance on a native soil field for the Lakewood Park athletic field (RTC No. 24-0936).
In addition, installation of Wi-Fi in the park was evaluated and approved by the City Council for the common areas of Lakewood Park (RTC No. 24-0541).
During the design phase, staff took steps to keep the project as close to the approved budget as possible by creating two Additive Alternate bid items. These Additive Alternate bid items provide the City with the opportunity to award a smaller construction contract for the minimum base bid work and the option to include additional items that provide increased benefit to the park. The two (2) Additive Alternate bid items consist of 1) constructing the batting cages added to the project; and 2) improving the large picnic area. Council may choose to award either, both, or none of the Additive Alternate bid items. The total of the two Additive Alternate bid items is $820,000.
The construction project was advertised for competitive bidding on PlanetBids on January 30, 2026. Sixty (60) prospective bidders requested bid documents. Sealed bids were opened on February 18, 2026, with two (2) bids received. Suarez & Munoz Construction, Inc. submitted the lowest responsive and responsible base bid of $12,787,856.60 (Attachment 1 - Bid Summary).
Project construction costs consist of:
|
Base Bid |
$12,787,856.60 |
|
Additive Alternative Bid Item Nos. 1 and 2 |
$820,000.00 |
|
10% Contingency |
$1,360,786.00 |
|
Total Project Cost |
$14,968,642.60 |
In 2020, the City was awarded an All-Inclusive Playground Grant from the County of Santa Clara, with a maximum reimbursement of $1,500,000 (Attachment 4). This grant funding supports the design and construction of an all-inclusive playground for people of all ages and abilities. A local match is required, which is satisfied by anticipated project expenditures. The grant timeline for completion requires that the playground be fully constructed and open to the public with all invoices approved and final reimbursement request submitted to the County by July 31, 2026.
EXISTING POLICY
Sunnyvale Charter Section 1305
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.
Chapter 2.09 of the Sunnyvale Municipal Code
Pursuant to Chapter 2.09 of the Sunnyvale Municipal Code, City Council approval is required for construction contracts exceeding $250,000.
Council Policy 7.1.5 Grants, Donations, Contributions and Sponsorships:
The City Manager may apply for grants of any dollar amount but shall notify the Council when grants are being pursued pursuant to Council Policy 7.1.1 (Fiscal - Long Range Goals and Financial Policies), B.4. (Grants and Intergovernmental Assistance). The City Manager may accept and appropriate grant funds up to $250,000 that do not require an unbudgeted local match or obligate the City to any unplanned ongoing expenses, through an administrative budget modification. Any grants of $250,000 or more, or that require an unbudgeted local match or obligate the City to unplanned ongoing expenses, shall require Council approval of a budget modification before funds can be expended by staff. The budget modification shall include the use to which the grant will be placed; the objectives or goals of the City that will be achieved through use of the grant; the local match required, if any, plus the source of the local match; any increased cost to be locally funded upon termination of the grant; and the ability of the City to administer the grant.
This grant does not meet the criteria to be administratively appropriated by the City Manager; therefore, acceptance by the City Council and a budget modification are required.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(a) (Class 1 Categorial Exemption), which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public facilities involving negligible or no expansion of existing or former use.
DISCUSSION
Lakewood Park was originally constructed in 1960 and encompasses approximately 11 acres. It is a community park within the Lakewood neighborhood featuring an outer space theme. Park features include a basketball court, tennis courts, handball/racquetball courts, reservable ballfields, horseshoe pits, mini-skate park, tot and youth playgrounds, sand volleyball court, splash pad, fire pit, gazebo, community building, restrooms, and picnic tables. The park is adjacent to the Lakewood Elementary School and field, the John W. Christian Greenbelt pathway, and the nearly completed Lakewood Branch Library. The renovation and enhancement of the park includes forthe addition of a dog park; replacement of recreation, maintenance, restroom and concession buildings; replacement of park and building lighting systems with energy efficient fixtures; renovation of playground equipment, splash pad and skate park; replacement of portions of landscaped and ornamental grass areas and the associated irrigation/pump system; and replacement of portions of drainage systems and concrete pathways.
The final design reflects community input and other factors. Responsive design features include a new concession stand and restroom building, separate large and small dog parks, all natural grass, all-inclusive playground and tot lot, water play area, mini skate park, energy efficient pathway lighting fixtures, new landscape irrigation and planting.
FISCAL IMPACT
Sufficient budget for the project is available in Fund 2100 - Park Dedication Fund under Project 834770 - Lakewood Park Renovation and Enhancement.
Budget Modification No. 16 has been prepared to appropriate the County of Santa Clara All-Inclusive Playground Grant funds in the amount of $1,500,000 in Fund 3101 - Infrastructure Fund - General Fund Assets under Project 834770 - Lakewood Park Renovation and Enhancement.
Budget Modification No. 16
FY 2025/26
|
Infrastructure Fund - General Fund Assets |
Current |
Increase/ Decrease |
Revised |
|
|
|
|
|
|
Revenues |
|
|
|
|
Santa Clara County - All-Inclusive Playground Grant (AIPG) |
$0 |
$1,500,000 |
$1,500,000 |
|
Expenditures |
|
|
|
|
Project 834770 - Lakewood Park Renovation and Enhancement |
$0 |
$1,500,000 |
$1,500,000 |
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 City Hall 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.
ALTERNATIVES
1. Authorize the City Manager to take the following actions:
- Award a contract with Additive Alternate Bid Item Nos. 1 and 2, in substantially the same form as Attachment 2 to the report, in the amount of $13,607,856.60 to Suarez & Munoz Construction, Inc., of Hayward for the Lakewood Park Renovation and Enhancement Project;
- Make a finding of a Class 1 categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(a);
- Approve a 10% contingency in the amount of $1,360,786;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Accept All-Inclusive Playground Grant funding from the County of Santa Clara in the amount of $1,500,000.00;
- Authorize the City Manager to execute all documents related to the All-Inclusive Playground Grant; and
- Approve Budget Modification No. 16 in the amount of $1,500,000.
2. Reject all bids for the project, and
3. Provide other direction to staff as Council deems appropriate.
STAFF RECOMMENDATION
Recommendation
Alternative 1:
- Award a contract with Additive Alternate Bid Item Nos. 1 and 2, in substantially the same form as Attachment 2 to the report, in the amount of $13,607,856.60 to Suarez & Munoz Construction, Inc., of Hayward for the Lakewood Park Renovation and Enhancement Project;
- Make a finding of a Class 1 categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(a);
- Approve a 10% contingency in the amount of $1,360,786;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Accept All-Inclusive Playground Grant funding from the County of Santa Clara in the amount of $1,500,000.00;
- Authorize the City Manager to execute all documents related to the All-Inclusive Playground Grant; and
- Approve Budget Modification No. 16 in the amount of $1,500,000.
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 $500 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
An “X” 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
___ Contract under $50,000 or non-fiscal
_X_ Contract between public agencies (grant agreement)
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director, Finance
Reviewed by: Dennis Ng, Interim Director of Public Works
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract
3. Project Summary sheet
4. All-Inclusive Playground Grant (AIPG)