REPORT TO COUNCIL
SUBJECT
Title
Award Contract with all Additive Alternate Bid Items in the Amount of $3,892,772.50 to GradeTech Inc. for the Evelyn Avenue Multi-Use Trail Project; Make Finding of California Environmental Quality Act (CEQA) Class 1 Categorical Exemption Pursuant to CEQA Guidelines Section 15301(c); and Approve Budget Modification No. 3 in the Amount of $546,385.75 (PW26-19)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $3,892,772.50 to GradeTech Inc. of Livermore, CA, for the Evelyn Avenue Multi-Use Trail Project and for approval of a 10% construction contingency in the amount of $389,277.25. Staff is also recommending approval of Budget Modification No. 3 in the amount of $546,385.75 to fully 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.
The City Council has adopted five strategic goals to guide policy and resource allocation from July 2025 to July 2027. This project has been identified as SU-31 as one of the priority projects under the “Sustainable City” goal, to advance climate action, active transportation and the Vision Zero Plan.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c) (Class 1 categorial exemption), which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public facilities such as bicycle lanes and pedestrian trails involving negligible or no expansion of existing or former use. As discussed below, the project will replace the existing bike lane on the north side of Evelyn Avenue with a Class 1 shared use path. The project includes signal modifications and lane configuration adjustments; rectangular rapid flashing beacons at Sunset Avenue and Pastoria Avenue; new paving, signage and striping. The on-street parallel parking spaces will remain. The eastbound bike lane (from South Bernardo Avenue to Pastoria Avenue) will be moved and combined with new shared-use path. There will also be intersection modifications at Evelyn Avenue and Mary Avenue.
BACKGROUND AND DISCUSSION
The Evelyn Avenue Multi-Use Trail Project has been developed in alignment with the City’s long-term transportation and active mobility goals, as outlined in the adopted Active Transportation Plan. The project aims to construct a two-way multi-use trail along the north side of Evelyn Avenue, connecting the City’s western limit at Bernardo Avenue to Mathilda Place, which is steps away from the Sunnyvale Caltrain Station. The existing eastbound and westbound bicycle lanes on Evelyn Avenue will be converted into a combined bicycle and pedestrian multi-used trail on the northside of Evelyn Avenue. All improvements will occur within the existing developed roadway envelope of Evelyn Avenue. This critical east-west connector is recognized as a key regional bicycle corridor in the Santa Clara Countywide Bicycle Plan. The project also supports the City’s Complete Streets Policy and Climate Action Plan by promoting safe, sustainable, and accessible transportation options for all users. The project will connect to a future City of Mountain View project that will install a two-way multi-use separated trail to connect the two downtowns for active transportation modes.
The project was advertised on PlanetBids on May 8, 2026. Forty-one (41) contractors requested bid documents. Sealed bids were opened on June 3, 2026, with six (6) responsive bids received. GradeTech Inc. was the lowest responsive and responsible bidder with a base bid in the amount of $3,862,897.40 (Attachment 1 - Bid Summary).
During the design phase, staff took steps to keep the project as close to the approved budget as possible by creating four alternative (4) bid items. These alternative 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 project. The four (4) alternative bid items consist of 1) adding a bulb-out (curb extension) at the southeast corner of Evelyn Avenue and Bernardo Ave, 2) adding a bulb-out at the southwest corner of Evelyn Avenue and Sunset Avenue, 3) adding a bulb-out at the southwest corner of Evelyn Avenue and Pastoria Avenue, and 4) adding microsurfacing treatment in lieu of slurry seal along Evelyn Avenue. The total cost of GradeTech’s four alternative bid items was $29,875.10, for a total bid amount of $3,892,772.50.
The bid amount exceeds the construction budget of $3.74M due primarily to recent increases in construction material and labor costs, utility adjustment requirements, and green stormwater infrastructure improvements incorporated into the project. Staff reviewed the bid and determined that the pricing received is reasonable and reflective of current market conditions.
FISCAL IMPACT
Project 835980 - Evelyn Avenue Multi-Use Trail, is funded by the State Special Grant Program ($3,800,000), Transportation Impact Fees (TIF) ($68,147) and Transportation Development Act Article 3 ($811,845.00). Approximately $944,328 of the project funds were utilized for design services. The lowest responsive bid, including all bid alternates, ($3,892,772.50) and 10% contingency ($389,277.25), exceeds the available budget by $546,385.75.
Budget Modification No. 3 has been prepared to make the following changes to project 835980 - Evelyn Avenue Multi-Use Trail:
- $272,787 from Park Dedication Fund reserves: In FY 2024/25, Budget Modification No. 22 (RTC No. 25-0500) was approved for State of California Department of Parks and Recreation 2018 Parks Bond Act Per Capita grant funding, totaling $272,787, to transfer from Project 835980 - Evelyn Avenue Multi-Use Trail to Project 820270 - Playground Equipment Replacement. This budget modification was made after staff determined the Per Capita grant funds were not eligible for use on the Evelyn Avenue Multi-Use Trail project because it is located within the public street right-of-way. This budget modification will restore $272,787 in Park Dedication Funds into Project 835980 - Evelyn Avenue Multi-Use Trail to replace the grant funds that were transferred out.
- $55,358 from Project 831680 - Adjust Sewer Utilities In Support of Paving Projects reserves: This project will adjust the storm and sewer covers within the project limits to ensure that covers are flush with the final pavement elevation after paving is completed.
- $77,138 from Project 831550 - Adjust Water Utilities In Support of Paving Projects reserves: This project will adjust the water utility covers within the project limits to ensure that covers are flush with the final pavement elevation after paving is completed.
- $174,852 from Project 831511 - Green Stormwater Infrastructure Implementation - General Fund reserves: This project incorporates Green Stormwater Infrastructure elements intended to manage and treat stormwater runoff along a portion of Evelyn Avenue, supporting the City’s compliance with Provision C.3.J of the Municipal Regional Stormwater Permit issued by the San Francisco Bay Regional Water Quality Control Board.
This budget modification will also transfer $33,749.25 of TIF funds back to TIF reserves.
Budget Modification No. 3
FY 2026/27
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Capital Projects-General Fund Assets SubFund |
|
|
|
|
Expenditures |
|
|
|
|
Project 835980 - Evelyn Avenue Multi-Use Trail |
$3,800,000 |
$273,598.75 |
$4,073,598.75 |
|
|
|
|
|
|
Park Dedication Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 835980 - Evelyn Avenue Multi-Use Trail |
$0 |
$272,787 |
$272,787 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Capital Projects Reserve |
$6,077,834 |
($272,787) |
$5,805,047 |
|
|
|
|
|
|
General Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 831551 - Green Stormwater Infrastructure Implementation - General Fund |
$214,862 |
($174,852) |
$40,010 |
|
|
|
|
|
|
Wastewater Infrastructure Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 831680 - Adjust Sewer Utilities In Support of Paving Projects |
$165,155 |
($55,358) |
$109,797 |
|
|
|
|
|
|
Water Infrastructure Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 831550 - Adjust Water Utilities In Support of Paving Projects |
$278,036 |
($77,138) |
$200,898 |
|
|
|
|
|
|
Capital Projects-Transportation Impact Fees SubFund |
|
|
|
|
Expenditures |
|
|
|
|
Project 835980 - Evelyn Avenue Multi-Use Trail |
$68,197 |
($33,749.25) |
$34,447.75 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Capital Reserves |
$30,947,778 |
$33,749.25 |
$30,914,028.25 |
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 $3,892,772.50 to GradeTech Inc. of Livermore;
- Approve Budget Modification No. 3 in the amount of $546,385.75;
- Approve a 10% construction contingency in the amount of $389,277.25;
- Authorize the City Manager to execute the contract when all necessary conditions have been met; and
- Make Finding of California Environmental Quality Act (CEQA) Class 1 Categorical Exemption Pursuant to CEQA Guidelines Section 15301(c).
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: Ramana Chinnakotla, Interim 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 Budget Summary Sheets