REPORT TO COUNCIL
SUBJECT
Title
Award of Contract in the Amount of $764,394.20 to Graham Contractors, Inc. for the Annual Slurry Seal 2026 Project, Finding of California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to CEQA Guidelines Section 15301(c) (PW26-11)
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $764,394.20 to Graham Contractors, Inc. of San Jose for the Annual Slurry Seal 2026 project and for approval of a 10% construction contingency in the amount of $76,439.42.
EXISTING POLICY
Pursuant to Chapter 2.09.040(e) of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $250,000.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c), for the repair, maintenance, or minor alteration of existing facilities, including highways, streets and similar facilities, involving negligible or no expansion of existing or former use.
BACKGROUND AND DISCUSSION
The Annual Slurry Seal 2026 project consists of the installation of 3,761,369 square feet of slurry seal on various residential street segments and parking lots throughout the City (Attachment 3 to the report). This project will include City-owned parking lots at Columbia Middle School and Las Palmas Park, which together consist of 60,602 square feet of the total scope area.
The Project was advertised on PlanetBids on March 27, 2026. There were twenty-five (25) bidders notified of the solicitation. Sealed bids were opened on April 15, 2026, with five (5) responsive bids received. Graham Contractors, Inc. submitted the lowest responsive and responsible bid in the amount of $764,394.20 (Attachment 1 - Bid Summary).
FISCAL IMPACT
Funds are budgeted for slurry seal treatment for City streets and City parking lots under the following projects:
|
Project |
Amount |
|
820130 - Routine Resurfacing of City Owned Parking Lots |
$12,120.40 |
|
825290 - Pavement Rehabilitation |
$170,417.11 |
|
828030 - Annual Slurry Seal of City Streets |
$658,296.11 |
|
Total (construction contract and contingency) |
$840,833.62 |
Funding sources include the General Fund, the Measure B - Santa Clara VTA Fund, and Downtown Parking District assessments paid by downtown businesses.
The Project Summary is included as Attachment 4 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:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $764,394.20 to Graham Contractors, Inc. of San Jose, CA;
- Approve a 10% construction contingency in the amount of $76,439.42;
- Make a finding of a categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(c); 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: Ramana Chinnakotla, Interim Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. PW 26-11 Bid Summary
2. Draft General Construction Contract
3. Street Segments
4. Project Budget Sheets