REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for the Playground Equipment Replacement 2024 Project at Columbia and Cannery Parks in the Amount of $807,982 to Guerra Construction Group, Finding of California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to CEQA Guidelines Section 15302(c), Approve a Budget Modification No. 22 in the Amount of $272,787 (PW25-07)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $807,982 to Guerra Construction Group of Santa Clara for Playground Equipment Replacement 2024 and for approval of a 10% construction contingency in the amount of $80,798. Staff is also recommending approval of Budget Modification No. 22 in the amount of $272,787 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
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c), which applies to replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced.
BACKGROUND AND DISCUSSION
The Playground Equipment Replacement Project provides for the replacement of playground equipment in City parks. Priorities are determined by an annual survey of all park playgrounds by certified City staff, and the playgrounds at Columbia Park/School and Cannery Park are currently scheduled for replacement. This project aims to enhance the quality and safety of the playgrounds, ensuring improved play opportunities for the community.
The project was advertised on DemandStar on February 14, 2025. Twenty-four (24) contractors requested bid documents. Sealed bids were opened on March 5, 2025, with four (4) responsive bids received. Guerra Construction, Inc. submitted the lowest responsive and responsible bid in the amount of $807,982 (Attachment 1, Bid Summary).
FISCAL IMPACT
Funding is available in Fund 2100 - Park Dedication Fund under Project 820270 - Playground Equipment Replacement. A project summary is included as Attachment 3 to this report.
Funding for this project will come from State Park and Recreation Per Capita grant funds ($272,787) and the Park Dedication Fund (Capital Project 820270), which was appropriated under RTC #19-0845. The State of California Department of Parks and Recreation has statewide grant funds available for local governments to rehabilitate, create, and improve local parks on a per capita basis. The grant program originates from Proposition 68. The State funds were originally designated for the Evelyn Trail project, but State staff told the City it could not use them for that project since it was in the public street right of way. State staff have confirmed the City can designate it for another parks project as long as it is outside of the public street right-of-way.
The lowest responsive and responsible bid ($807,982) and 10% contingency ($80,798) total $888,780, exceeding the available budget for construction by $272,787.
Budget Modification No. 22
FY 2024/25
Funding for this project will come from State Park and Recreation Per Capita grant funds and the Park Dedication Fund (Capital Project 820270).
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 $807,982 to Guerra Construction Group of Santa Clara;
- Make a finding of a categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c);
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Approve a 10% contingency in the amount of $80,798; and
- Approve Budget Modification No. 22 in the amount of $272,787.
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 General Construction Contract
3. Project Summary Sheet 820270