REPORT TO COUNCIL
SUBJECT
Title
Award of Contract in the Amount of $597,099.63 to FBD Vanguard Construction, Inc. for Murphy Avenue Pedestrian Mall Improvements and Approve Budget Modification No. 5 in the Amount of $48,107 (PW26-04)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $597,099.63 to FBD Vanguard Construction, Inc. of Livermore, CA for Murphy Avenue Pedestrian Mall Improvements and for approval of a 10% construction contingency in the amount of $59,710. Staff is also recommending approval of Budget Modification No. 5 in the amount of $48,107 to fund the project.
EXISTING POLICY
Pursuant to Chapter 2.09 of the Sunnyvale Municipal Code, City Council approval is required for construction 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
Historic Murphy Avenue is located within Block 2 of the Downtown Specific Plan (DSP). On August 11, 2020, City Council certified an Environmental Impact Report (DSP EIR) (State Clearinghouse No. 2018052020), adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations for the DSP amendments and six specific development projects (RTC No. 20-0726). The DSP EIR provided a program-level review of the 2020 DSP amendments, which intensified the allowable development on six project sites. The 2020 DSP amendments also included a comprehensive update of the DSP’s goals, policies, and design standards. On February 14, 2023, the City Council adopted an Addendum to the DSP EIR to allow for additional residential units and office square footage on Block 20 of the DSP (RTC No. 23-0330).
The proposed pedestrian mall project (Project) was reviewed using an environmental checklist. The analysis in the checklist concluded that the proposed pedestrian mall would not constitute a substantial change from the types of uses and activities analyzed in the previously certified program EIR. No new mitigation measures were proposed. Consequently, a Second Addendum to the 2020 DSP EIR was prepared and accepted by the City Council on May 16, 2023 (RTC No 23-0359).
The Second Addendum did not specify a particular design but generally disclosed that the pedestrian mall would include “designated areas for outdoor dining, emergency access, and accessible pedestrian routes.” (Second Addendum, page 5, “Project Description”.) Therefore, the changes to the design concepts discussed at the February 7, 2023, and May 16, 2023, Council meetings fall within the scope of the Second Addendum and do not require further environmental review.
BACKGROUND AND DISCUSSION
On November 19, 2024, Council approved the Murphy Avenue Pedestrian Mall Concept (RTC No. 24-1170). In addition to the original scope of the Project, staff was requested to review of existing street furniture and trees to ensure there was no interference with the outdoor dining areas, explore alternatives to the existing bollards and orange water-filled k-rail barriers currently used to prevent vehicles from driving on Historic Murphy Avenue, and review additional bicycle parking along Historic Murphy Avenue (RTC No. 23-0359).
During the design phase, the Project looked at the existing street furniture and trees to ensure there were no conflicts with the proposed pedestrian paths of travel and outdoor dining areas. The proposed pedestrian paths of travel would be clearly delineated by differing paver colors and located down the center of Murphy Avenue, leading to each ADA ramp. The Project proposes replacing the orange water-filled barriers currently in use and installing both fixed bollards and removable bollards that match the aesthetic of Historic Murphy Avenue, thereby continuing to allow street cleaning and emergency vehicle access. Additionally, the Project would increase the amount of bike parking by six spaces and cluster the bike racks at the ends of Historic Murphy and mid-block, adjacent to the breezeway.
Design and development of construction documents for bidding were completed in July 2025 by Mark Thomas & Company, Inc.
The Project was advertised on PlanetBids on August 15, 2025. Twenty (20) contractors requested bid documents. Sealed bids were opened on September 3, 2025, with four (4) responsive bids received. FBD Vanguard Construction, Inc. was the lowest responsive and responsible bidder with a base bid in the amount of $597,099.63 (Attachment 1 - Bid Summary).
The low bid was over 28% higher than the engineer’s estimate for the Project. The contract requirements to accommodate downtown business operations and the reopening of the Historic Murphy Avenue street-level during non-working hours likely led to higher-than-average bids. Since there were four bids for the Project, staff believes that this is a fair market price for the work.
The initial anticipated cost of the Project was $800,000. To date, the Project has incurred the following costs:
|
Preliminary ADA Studies |
$ 22,570 |
|
Design |
168,089 |
|
Miscellaneous Bidding Expenses |
638 |
|
Total |
$ 191,297 |
FISCAL IMPACT
There is available funding in the amount of $608,703 in Fund 3105 - Capital Projects - Community Benefits Fund under Project 836660 - Murphy Avenue Pedestrian Mall Improvements. Including the 10% contingency, $656,809.63 is needed to award the contract and complete the Project.
Budget Modification No. 5 has been prepared to transfer $28,302 from Project 825290 - Pavement Rehabilitation and $19,805 from Project 831580 - ADA Projects and Emergency Concrete Replacement, to Project 836660 - Murphy Avenue Pedestrian Mall Improvements.
Budget Modification No. 5
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Capital Projects - Community Benefits Fund |
|
|
|
|
Funding Use |
|
|
|
|
Project 836660 - Murphy Avenue Pedestrian Mall Improvements |
$608,703 |
$48,107 |
$656,810 |
|
|
|
|
|
|
|
|
|
|
|
General Fund |
|
|
|
|
Funding Source |
|
|
|
|
Project 825290 - Pavement Rehabilitation |
$4,362,765 |
($28,302) |
$4,334,463 |
|
Project 831580 - ADA Projects and Emergency Concrete Replacement |
$352,191 |
($19,805) |
$332,386 |
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.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $597,099.63 to FBD Vanguard Construction, Inc. of Livermore, CA and Approve Budget Modification No. 5 in the amount of $48,107 (PW26-04);
- Approve a 10% construction contingency in the amount of $59,710; and
- Authorize the City Manager to execute the contract when all necessary conditions have been 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 $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
___ Contract between public agencies
___ 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 of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Construction Contract
3. Project Budget - 836660 & 831580 Summary Sheet