REPORT TO COUNCIL
SUBJECT
Title
Award of a Contract to Verde Design, Inc. in the Amount of $1,283,158 for Design and Construction Support Services for the Serra Park Renovation and Enhancement Project and Approve Budget Modification No. 20 in the Amount of $424,439 (F25-436)
Report
REPORT IN BRIEF
Approval is requested to award a contract in the amount of $1,283,158 to Verde Design, Inc. of Santa Clara for the Serra Park Renovation and Enhancement Project, approve a 10% contingency in the amount of $128,316, and approve Budget Modification No. 20 in the amount of $424,439 to provide additional funding.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service generally are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
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 motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose or another, to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
This award is for design and construction support services; therefore, 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) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
As part of the contract, the consultant will conduct environmental needs assessment, and prepare CEQA documentation, including any CEQA exemption documentation. It is possible that an Initial Study (IS) and- Mitigated Negative Declaration (MND) may be needed if there are findings of significant adverse environmental impacts and CEQA categorical exemptions are not appropriate. Preparation of an IS/MND may be included as an optional service.
BACKGROUND AND DISCUSSION
An RFP for design and construction support services was posted on PlanetBids on June 4, 2025, and distributed to multiple firms for the Serra Park Renovation and Enhancement Project. Thirty-six (36) prospective bidders requested bid documents. Eight (8) proposals were received on July 15, 2025. Consultants were evaluated by a panel of City staff, and Verde Design, Inc. was selected as the highest-ranked proposer. The work includes assessment of existing park conditions; public outreach, including community meetings and surveys; preparation of plans, specifications, and estimates for public bidding; and construction support services. The proposed contract and associated scope of work required multiple iterations and several months to resolve cost concerns.
A detailed scope of work is included in Attachment 1 to this report. Staff anticipates improvements to key park elements, including, but not limited to, the recreational building, outdoor lighting, water play features, tennis courts, and athletic fields. The final scope of improvements will be refined based on public input and available budget. Staff will be contracting with a public outreach facilitator to assist the consultant and City staff in engaging the public to gather feedback.
The proposed agreement is for an amount not to exceed $1,283,158 ($937,533 for base services and $345,625 for optional services), with a 10% contingency in the amount of $128,316.
FISCAL IMPACT
There is currently $987,035 budgeted for the renovation and enhancement of Serra Park in Fund 2100 - Park Dedication Fund under Project 830460 - Serra Park Renovation and Enhancement.
Budget Modification No. 20 has been prepared to appropriate an additional $424,439 from the Park Dedication Fund Reserve to this project for this contract. The Park Dedication Fund has sufficient reserves to accommodate the proposed increase.
Budget Modification No. 20
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Park Dedication Fund |
|
|
|
|
Expenditures |
|
|
|
|
Project 830460 - Serra Park Renovation and Enhancement |
$987,035 |
$424,439 |
$1,411,474 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Park Dedication Fund Reserve |
$48,841,184 |
($424,439) |
$48,416,745 |
|
|
|
|
|
A project budget financial summary for Project 830460 - Serra Park Renovation and Enhancement 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:
- Award a Consultant Services Agreement to Verde Design, Inc. of Santa Clara in substantially the same form as Attachment 1 to the report in an amount not to exceed $1,283,158;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Approve a 10% contingency in the amount of $128,316; and
- Approve Budget Modification No. 20 in the amount of $424,439.
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: Ramana Chinnakotla, Interim Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Consultant Services Agreement
2. Project Budget Summary