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Legislative Public Meetings

File #: 25-0224   
Type: Report to Council Status: Consent Calendar
Meeting Body: City Council
On agenda: 7/1/2025
Title: Authorize Eighth Amendment to an Existing Consultant Services Agreement with CDM Smith for Program Management and Related Services for the Sunnyvale Cleanwater Program
Attachments: 1. Draft Eighth Amendment to Consultant Services Agreement, 2. Project Summary Sheet - 830240

REPORT TO COUNCIL

SUBJECT

Title

Authorize Eighth Amendment to an Existing Consultant Services Agreement with CDM Smith for Program Management and Related Services for the Sunnyvale Cleanwater Program

 

Report

REPORT IN BRIEF

Staff requests approval for an Eighth Amendment to an existing contract with CDM Smith of Concord to provide Program Management services related to the Sunnyvale Cleanwater Program reconstruction of the Water Pollution Control Plant (WPCP). The Eighth Amendment would increase the contract not to exceed amount by $10,380,989 ($9,380,989 for base services and $1,000,000 for optional services), increasing the total not-to-exceed contract amount from $31,649,243 to $42,030,232 and will extend the term of the agreement through June 1, 2028. Approval is also requested to increase the contingency by $300,000 to $495,689 (approximately 5% of the added core services). Total expenses for the contract term, including contingencies, will not exceed $42,525,921.

 

Overall program management services under this contract include contract scoping; procurement; design management; quality assurance of design work products; coordination of new construction; records management; financial and schedule oversight; regulatory and environmental operational compliance; public outreach program implementation; coordination of simultaneous plant projects, new facilities commissioning; and automation and controls systems integration.

 

BACKGROUND

The existing WPCP was initially built in 1956. With additions over the subsequent 15 to 20 years, it has grown to a tertiary treatment facility with an average dry weather flow rate of 14 million gallons per day (MGD). It has a permitted average dry weather flow rate of 29.5 MGD. An asset condition assessment conducted in 2006 identified several critical WPCP structures as at-risk and in need of immediate rehabilitation. Based on this assessment, the City began implementing several rehabilitation projects. It also developed a long-term Strategic Infrastructure Plan (SIP) to serve as a road map for the physical improvements and process enhancements needed to maintain a high level of treatment and to meet current and expected regulatory requirements and stewardship objectives. In 2013, to help implement the SIP, the City secured the professional services of an engineering design team of consultants. The design team developed a comprehensive Master Plan, which included the “basis of design” development for the various process areas to be rebuilt and a programmatic environmental impact report. The City Council adopted the Master Plan in 2016.

 

Due to the magnitude and complexity of the Sunnyvale Cleanwater Program, a consultant team was selected to provide the management services necessary to oversee the program. As a result of the Request for Proposal process, Council awarded a three-year contract to CDM Smith on March 25, 2014 (RTC No. 14-0264) and has awarded successive amendments to maintain continuity of service for the efforts that are continuously underway (RTC Nos. 17-0271, 19-0719, and 20-0818). CDM Smith has demonstrated technical strength and capability to continue to assist the City in the rebuild of the WPCP. This Eighth Amendment will modify the agreement to increase funding and extend the term for an additional three years.

 

EXISTING POLICY

Pursuant to Chapter 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.

 

ENVIRONMENTAL REVIEW

The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) in that it has no potential for resulting in either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment.

 

DISCUSSION

Current projects active at the WPCP include the rehabilitation of various existing treatment facilities, the construction of a new secondary treatment (conventional activated sludge) system, and the construction of new biosolids thickening and dewatering facilities. Future projects at the WPCP with designs underway include a new administration and laboratory building (Cleanwater Center), a new cogeneration facility (utilizing biogas as renewable energy), a new primary effluent pipeline, and a new portion of the plant perimeter wall. All construction will occur while always maintaining plant operations with the existing infrastructure to ensure fully compliant discharge of treated wastewater.

 

Under the current contract and over the past decade, CDM Smith and its team of subconsultants have performed a wide range of services to augment City staff in managing the City’s $1.3 billion Cleanwater Program. The CDM Smith team supports the City in overseeing master planning, design, and construction contracts, which are necessary for upgrading critical infrastructure at the WPCP. The CDM Smith team provides the City with access to a deep bench of niche skill sets and the ability to perform technical work on short notice, eliminating the need to procure multiple technical consultant contracts. Additionally, CDM Smith provides key Program controls and operations, including developing capital improvement budgets and costs, customizing construction business processes, maintaining project and Program records, and managing the Program website. Furthermore, CDM Smith assists the staff in maintaining regulatory compliance by negotiating and preparing permit applications, actively coordinating with regulators, and monitoring compliance activities. Finally, the team assists with obtaining funding for the Program; specifically, CDM Smith has secured and administered $700 million in grants and low-interest loans, potentially avoiding over $300 million in interest payments from market rate debt. 

 

The City anticipates awarding multiple consulting contracts over the next several years, while also continuing to manage existing consultant contracts. CDM Smith will be required to coordinate its work with the City and other city consultants who will be working simultaneously on the following contracts: Cleanwater Center; Master Plan Update; Cogeneration Upgrade; Primary Effluent Pipeline; Perimeter Wall; and Digester Number 5, Food Waste Facility, and Waste Gas Burner Upgrade.

 

For CDM Smith to continue to provide comprehensive program management services, complete the design management of several projects, participate in the update of the WPCP Master Plan, and initiate several new projects, an amendment to the current contract is necessary. Council approval of the recommended contract amendment for CDM Smith will enable the Sunnyvale Cleanwater Program to proceed smoothly with the current consultant staff team, who are well-versed in the site's issues and understand the program.

 

FISCAL IMPACT

With this Eighth Amendment, CDM Smith’s current Billing Rate Schedule (July 2024) labor rates are showing an increase of 3% over the previous Billing Rate Schedule, which was effective July 1, 2023 as part of the Fifth Amendment. As of July 1, 2025, due to Consumer Price Index increases, their Billing Rate Schedule will show another 1.3% increase for labor rates thru July 1, 2026. Budgeted funding is available in Project 830240 - Sunnyvale Cleanwater Program, Program Management. A project budget sheet is included as Attachment 2 to this report. Funding is provided from the Wastewater Management Fund.

 

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 Eighth Amendment to Consultant Services Agreement with CDM Smith, in substantially the same form as Attachment 1 to the report, increasing the not-to-exceed amount by $10,380,989 for a new not-to-exceed amount of $42,030,232, and extending the term of the agreement for three years, through June 1, 2028;

-                     Authorize the City Manager to execute the Eighth Amendment when all necessary conditions have been met; and

-                     Approve an increase to the contract contingency in the amount of $300,000 for a contingency total of $495,689.

 

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: Marlon Quiambao, Assistant City Engineer

Reviewed by: Dennis Ng, Assistant Director, Public Works

Reviewed by: Ramana Chinnakotla, Director, Environmental Services
Reviewed by: Chip Taylor, Director, Public Works

Reviewed by: Sarah Johnson-Rios, Assistant City Manager

Approved by: Tim Kirby, City Manager

 

 

ATTACHMENTS

1. Draft Eighth Amendment to Consultant Services Agreement

2. Project Summary Sheet - 830240