REPORT TO COUNCIL
SUBJECT
Title
Approve the First Amendment to the On-Call Services Agreement With Spencon Construction, Inc. for Concrete Repair Services (F26-322)
Report
REPORT IN BRIEF
Approval is requested to amend the on-call services agreement with Spencon Construction, Inc. of San Ramon, increasing the not-to-exceed amount of $250,000 by $500,000 to a new not-to-exceed amount of $750,000 for on-call concrete repair services.
EXISTING POLICY
Pursuant to Sunnyvale Municipal Code Section 2.09.040, City Council approval is required for construction contracts exceeding $250,000.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c), which applies to the operation, repairs, maintenance, or minor alterations of existing streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities, involving negligible or no expansion of the existing or former use thereof.
BACKGROUND AND DISCUSSION
The City of Sunnyvale currently has a backlog of about 4,500 locations that need concrete repairs. These include sidewalks, driveway aprons, curbs, and gutters. Most locations were identified through reports from residents, staff observations, and field inspections. Many of these areas present potential tripping hazards that require full repairs to keep sidewalks safe for the public.
To reduce the backlog more quickly, staff have developed a pilot program that uses several repair methods and outside contractors in addition to City crews. Through a competitive process, the City established multiple on-call contracts with qualified contractors. Two contracts focus on replacing damaged sidewalks, curbs, and gutters. A third contract focuses on horizontal sidewalk cutting, which can remove tripping hazards without full replacement. Both methods are effective and allow the City to address different types of sidewalk damage. As of March 2026, the pilot program has fully replaced 100 locations and repaired 1,136 locations through horizontal sidewalk cutting.
On July 25, 2025, the City Manager approved an on-call services agreement with Spencon Construction, Inc. (F25-267) in an amount not to exceed $250,000, with a term through May 1, 2026. Since the agreement was executed, staff have issued work orders to repair priority locations throughout the City, including sidewalks, driveway aprons, curbs, and gutters. Work may also include limited tree or stump removal when needed to complete the repair.
The proposed contract amendment will allow staff to continue addressing high-priority locations and is expected to repair about 50 to 100 locations, depending on the size and severity of each repair. The amendment also extends the contract term and adjusts the unit rates by 3.90% to reflect increased labor and material costs since the agreement was first executed. Staff determined the updated rates remain reasonable and consistent with current market conditions. This amendment provides additional resources and construction capacity to accelerate repairs and make measurable progress toward reducing the City’s sidewalk maintenance backlog.
In addition to the on-call repair program, the City is designing a larger sidewalk replacement project that will address about 350 locations. This project has an estimated construction budget of $2.9 million and is expected to go out to bid in summer 2026.
FISCAL IMPACT
Budgeted funds for sidewalk repair are available under Project 829400 - Sidewalk, Curb and Gutter Replacement (Attachment 2 to the report.). Funding sources for this project include the General Fund and 2016 VTA Measure B funds.
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:
• Approve the first amendment to the agreement with Spencon Construction in substantially the same form as Attachment 1 to the report to increase the contract amount by $500,000 to a new not-to-exceed total of $750,000;
• Authorize the City Manager to execute the amendment when all necessary conditions have been met;
• Authorize the City Manager to amend the agreement for (3) three additional years subject to budget availability; and
• Authorize the City Manager to increase compensation subject to budget availability, need, and negotiated pricing.
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: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft First Amendment to the On-Call Services Agreement with Spencon Construction, Inc.
2. Project Budget Sheet 829400 - Sidewalk, Curb and Gutter Replacement