REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Contract with MRF Designs LLC for Consultant Services, Increase the Not-to-Exceed Amount to $372,850, and Extend the Term Through December 31, 2027 (F26-389)
Report
REPORT IN BRIEF
Approval is requested to amend an existing contract with MRF Designs LLC for consultant services, increasing the not-to-exceed amount from $232,760 to $372,850 and extending the contract term through December 31, 2027.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The City Council certified an Environmental Impact Report (EIR) for the SMaRT Station in 1990 (SCH #89022812). For the “NextGen Project”, Addendum #3 to the existing EIR was prepared per the provisions of the State CEQA Guidelines to document the finding that none of the conditions or circumstances that would require preparation of a subsequent EIR, pursuant to Sections 15162 and 15164 of the State CEQA Guidelines. The Addendum was considered by the City Council when the $34.5 contract was awarded to Bulk Handling Systems (BHS) for new equipment and other site improvements for NextGen (RTC #25-0307).
BACKGROUND AND DISCUSSION
In July 2024, under the City Manager’s authority, a contract was issued to MRF Designs LLC to provide consultant services for the SMaRT Station NextGen project. The NextGen Project is a $51 million upgrade that will modernize the facility and make waste processing much more efficient. It will replace old, worn-out equipment and install a new, fully integrated system that can handle both municipal solid waste (MSW) and separated recyclables together. The project is designed to recover much more organic material. It will also improve recycling by increasing the amount of recyclables recovered from trash by about 20%. On May 20, 2025, the Council approved (RTC 25-0307) a contract for $34.5 million with Bulk Handling Systems (BHS) for new equipment and other site improvements for NextGen.
Under Phase I, the consultant assisted in the technical evaluation of the NextGen RFP proposals, reviewed process flow diagrams and mass balance sheets evaluated proposals for integration of the new system with existing equipment and reviewed and advised on the capital and operating costs for the NextGen project.
Under Phase II - Pre-Engineering, the consultant reviewed and value-engineered the selected vendor’s processing system prior to construction. Services included technical review of layouts, equipment specifications, electrical and control systems, structural interfaces, staffing and traffic circulation, schedules, and operational and maintenance costs. This work ensured that the system is fully coordinated, technically vetted, and ready for fabrication and construction. Both Phase I and Phase II of the existing service contract are now almost complete, and approximately 94% of the funds awarded have been expended.
BHS is scheduled to begin equipment installation in the next few weeks, and the City will require continued engineering support services to coordinate with BHS during installation, as well as system commissioning and performance testing before the system is placed into operation (approximately 11 months). The consultant has large-scale solid waste equipment installation project management experience required to complete the NextGen project.
As part of Phase III - Construction, an increase of $140,090, the consultant will provide equipment installation and engineering support services for the NextGen Project. These services include ongoing project management support during the equipment installation and as-needed on-site construction/ equipment installation oversight visits, including coordination with BHS and civil and electrical contractors, review of drawings and deliverables, change order and issue resolution support, punch list development, quality assurance and quality control, assistance with commissioning, performance testing, and startup. At the time the contract was initially executed with MRF Designs, the City did not have full clarity on the project management services needed for Phase III; now that staff has more complete information regarding the scope of Phase III, additional services are needed and it is most practicable to continue to use the same consultant to retain continuity.
This specialized expertise will help support proper installation, schedule adherence, technical oversight, and successful project closeout, including commissioning and startup. Accordingly, staff recommend amending the existing contract with MRF Designs LLC to increase the not-to-exceed amount from $232,760 to $372,850 and extend the term through December 31, 2027, in substantially the same form as Attachment 1 to the report.
FISCAL IMPACT
Budgeted funds for NextGen project support are available in Fund 6143 - SMaRT Station Equipment Replacement Fund under Project 828260 - SMaRT Post-2021 Rebuild. A project summary is included as Attachment 2 to this report.
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:
- Authorize the City Manager to amend an existing contract for consultant services, increasing the not-to-exceed amount from $232,760 to $372,850 and extending the contract term through December 31, 2027;
- Authorize the City Manager to execute the amendment when all necessary conditions have been met; and
- Authorize City Manager to amend and increase not-to-exceed budgeted amounts, provided pricing and service remain acceptable to the city.
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
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ 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: Mansour Nasser, Interim Director, Environmental Services
Reviewed by: Connie Verceles, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Amendment to Services Agreement
2. 828260 Project Summary Sheet