REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Construction Management and Inspection Services Agreements for Public Works Projects with 4Leaf Inc., Consor North America, Inc., CSG Consultants, Swinerton Management & Consulting, LLC, and Zoon Engineering
Report
BACKGROUND
The Department of Public Works (DPW) provides construction management and inspection services for both capital improvement and development projects. These efforts encompass a wide range of work which includes things such as pavement rehabilitation; traffic signal and transportation infrastructure; parks; storm drain and sanitary sewer improvements; and buildings.
With the increased number of projects resulting from the Measure I Bond Program, the demand for additional support is significantly greater than in prior years. With an increased number of projects planned to be under construction simultaneously, DPW will not have sufficient staffing capacity to support all the projects, making consultant resources necessary.
The purpose and scope of the agreements is to provide on-call construction management and inspection services to assist with delivering various Public Works projects, including Measure I bond-funded projects.
DISCUSSION
Pursuant to City Code Section 2.105.330, a formal Request for Qualifications (RFQ) was conducted as the solicitation method for this procurement. The factors considered in the award were the experience of the firm, staff qualification, availability, project approach, and customer references. The RFQ was advertised in December 2025, and eight proposals were received from the following firms on January 15, 2026:
1. 4Leaf Inc.
2. Alpha CM Inc.
3. AZAD Engineering PC
4. Consor North America, Inc.
5. CSG Consultants
6. JKL Construction Services, Inc.
7. Swinerton Management & Consulting, LLC
8. Zoon Engineering
The proposals were independently evaluated by a three-member evaluation team with representation from DPW. The proposals were evaluated against the above criteria published in the RFQ. DPW staff recommends the award of on-call agreements to the following top five ranked firms:
1. 4Leaf Inc.
2. Consor North America, Inc.
3. CSG Consultants
4. Swinerton Management & Consulting, LLC
5. Zoon Engineering
Based on Capital Improvement Program projections and the anticipated volume of locally funded projects, grant funded projects, and the new Measure I Bond projects entering the construction phase, the need for on-call consultant services for the remainder of the current fiscal year and the next three fiscal years is estimated at a total of approximately $8,000,000.
Staff requests approval of five consultant agreements because of the volume of projects and to provide flexibility in the event that one or more firms are unable to deliver timely services due to their workload constraints. Staff also requests authorization for the City Manager to shift funding among the five agreements as needed, provided that the total aggregate amount of $8,000,000 is not exceeded. This flexibility is needed to align project support requirements with the consultant best suited to the scope and schedule of the work.
Staff recommends approval of five, three-year agreements, each with an initial not-to-exceed amount of $1,600,000, for a combined total not-to-exceed amount of $8,000,000. The agreement for such services is being presented in its current draft form, as the terms have not yet been finalized, including the consultant’s rates. Such rates will be included in the final form of the agreement. Terms in the draft agreement that differ from the “standard” services agreement include a Task Order process, enhanced independent contractor language, more specific billing standards, and an enhanced indemnity provision.
In addition, staff requests authority for the City Manager to exercise up to two, one-year extensions for each agreement and to increase the aggregate agreement amount up to a total maximum compensation of $10,000,000 to address unforeseen project needs. This flexibility is necessary as additional projects may be identified, existing projects may be further defined, and construction timelines will become more accurately projected over time.
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) 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.
FISCAL IMPACT
The total amount to be paid to all five consultants for construction management and inspection services over the three-year term of the agreements is estimated at $8,000,000, subject to future budget appropriations.
Funding of approximately $516,000 remains in FY 2025/26 and $212,000 was budgeted in the Public Works Capital Projects Management Services Fund for FY 2026/27 as part of the Adopted FY 2025/26 and FY 2026/27 Biennial Adopted Operating Budget. In addition, these costs will be charged directly to certain projects, such as the Measure I general obligation bond projects.
As the FY 2026/27 and FY 2027/28 Biennial Capital Improvement Program Budget is still under development, additional projects may be identified, existing projects may be further defined, and construction schedules will become more accurately projected over time. As a result, additional funding needs will be evaluated and incorporated into future budget requests as needed. Funding for these agreements beyond the currently adopted operating budget remains subject to the appropriation of funds.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute agreements with 4Leaf Inc., Consor North America, Inc., CSG Consultants, Swinerton Management & Consulting, LLC, and Zoon Engineering, each with an initial maximum compensation amount of $1,600,00, to perform on-call construction management and inspection services for a combined amount not-to-exceed $8,000,000 over the initial three-year terms of the agreements, in forms substantially similar to Attachment 1 and subject to the final approval as to form by the City Attorney;
2. Authorize the City Manager to exercise up to two, one-year extensions for each agreement and make minor modifications to the agreements, if necessary; and
3. Authorize the City Manager to adjust compensation amounts between the agreements and to amend agreement not-to-exceed amounts up to an aggregate amount of $10,000,000 subject to budget appropriations.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Draft Agreement for Construction Management and Inspection Services