REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Public Works Contract for the Bowers Park Parking Lot Rehabilitation Project to O’Grady Paving, Inc. and Approval of Related Budget Amendments
Report
BACKGROUND
The Bowers Park Parking Lot Rehabilitation Project (Project) includes the rehabilitation of the public parking lot at Bowers Park, located at 2582 Cabrillo Avenue (Attachment 1). The scope of work includes pavement rehabilitation, installation of green stormwater infrastructure, energy-efficient LED lighting, electric vehicle charging stations, a solar canopy, and improvements for vehicle circulation.
The Project is partially funded by a San Francisco Bay Water Quality Improvement Fund (SFBWQIF) grant through the United States Environmental Protection Agency. In 2021, the cities of Palo Alto and Santa Clara partnered on a multi-city grant to demonstrate the effectiveness of retrofitting parking lots with green stormwater infrastructure, with Palo Alto serving as the lead agency for the grant. On June 8, 2021, the City Council authorized the City Manager to execute the SFBWQIF Grant Agreement (Fund Agreement) with the City of Palo Alto for the Project. The Fund Agreement enables the City to receive grant reimbursements for the parking lot improvements through Palo Alto.
On May 7, 2024, the City Council approved an agreement with Bellecci and Associates, Inc. to provide engineering services to design the project and prepare it for public works bidding.
DISCUSSION
On March 31, 2026, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, BidNet Direct. The RFB was viewed by various vendors, including contractors, suppliers, plan rooms, and builder exchanges, among others. Additional vendors were able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to contractors and vendors who have viewed similar projects in the past.
On April 23, 2026, the bid opening for the Project was held via video conference. Nine bids were received ranging from $1,641,081 to $2,053,869. The Bid Summary is included as Attachment 2. The lowest bid, submitted by O’Grady Paving, Inc. (O’Grady) in the amount of $1,641,081, is 14 percent below the engineer’s estimate of $1,919,000. O’Grady’s bid was reviewed by Public Works staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be the lowest responsive and responsible bid. Staff recommends awarding the construction contract to O’Grady Paving, Inc.
Award of contract will enable construction of the Project to commence with substantial completion of the Project anticipated by early 2028. The date is subject to change based on any unforeseen conditions discovered during construction. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (c), “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
Although the Project is a recipient of federal funding, it does not require review under the National Environmental Policy Act (“NEPA”) since NEPA does not apply to San Francisco Bay Water Quality Improvement Fund (SFBWQIF) projects.
FISCAL IMPACT
The approximate cost of the construction contract is $1,641,081, plus a 15 percent contingency of $246,163 for any potential change orders, for a total not-to-exceed contract amount of $1,887,244.
On May 7, 2024, the City Council approved funding for the design phase of the Bowers Park Parking Lot Rehabilitation Project in the Storm Drain Capital Fund. It was anticipated that additional funding would be needed for the construction phase and would be presented to the Council for future consideration. To fund the construction phase, staff recommends appropriating an additional $1,720,000 to the project, including $550,900 of Greenhouse Gas Program funds from the Electric Operating Grant Trust Fund and $1,169,100 of Mitigation Fee Act (MFA) funds from the Parks and Recreation Capital Fund.
Greenhouse Gas Program funds will support the installation of the solar canopy and electric vehicle charging infrastructure, while the MFA funds will cover the remaining project costs associated with the parking lot rehabilitation. The use of MFA funds for this project is consistent with the purpose and intended use of the fee program. MFA funds are used to support public park and recreational facilities needed to accommodate growth attributable to new development. The City’s 2019 “Park and Recreation Facilities Development Impact Fee Update Study” projected continued population growth and corresponding increased demand for park land, recreational amenities, and supporting infrastructure. The proposed improvements support that purpose by expanding parking capacity and improving supporting infrastructure necessary to maintain recreational access, usability, and service levels for existing and future residents.
Budget Amendments
FY 2026/27
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Electric Operating Grant Trust Fund |
|
|
|
|
Transfers To |
|
|
|
|
Storm Drain Capital Fund |
$0 |
$550,900 |
$550,900 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Ending Fund Balance - Greenhouse Gas |
$18,193,096 |
($550,900) |
$17,642,196 |
|
|
|
|
|
|
Parks and Recreation Capital Fund |
|
|
|
|
Transfers To |
|
|
|
|
Storm Drain Capital Fund |
$0 |
$1,169,100 |
$1,169,100 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Ending Fund Balance - Mitigation Fee Act |
$25,954,751 |
($1,169,100) |
$24,785,651 |
|
|
|
|
|
|
Storm Drain Capital Fund |
|
|
|
|
Transfers From |
|
|
|
|
Electric Operating Grant Trust Fund |
$0 |
$550,900 |
$550,900 |
|
|
|
|
|
|
Transfers From |
|
|
|
|
Parks and Recreation Capital Fund |
$0 |
$1,169,100 |
$1,169,100 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Bowers Park Parking Lot Rehabilitation |
$224,124 |
$1,720,000 |
$1,944,124 |
|
|
|
|
|
COORDINATION
This report has been coordinated with the Finance Department, Silicon Valley Power, the Parks and Recreation 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. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of California Code of Regulations;
2. Award the Public Works Contract for the Bowers Park Parking Lot Rehabilitation Project to the lowest responsive and responsible bidder, O’Grady Paving, Inc., in the amount of $1,641,081 and authorize the City Manager to execute any and all documents associated with and necessary for the award, completion, and acceptance of this Project, in final forms approved by the City Attorney;
3. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $246,163, for a total not-to-exceed amount of $1,887,244; and
4. Approve the following FY 2026/27 budget amendments:
a. In the Electric Operating Grant Trust Fund, establish a transfer to the Storm Drain Capital Fund in the amount of $550,900 and reduce the Greenhouse Gas ending fund balance by $550,900 (five affirmative Council votes required for the use of unused balances);
b. In the Parks and Recreation Capital Fund, establish a transfer to the Storm Drain Capital Fund in the amount of $1,169,100 and reduce the Mitigation Fee Act ending fund balance by $1,169,100 (five affirmative Council votes required for the use of unused balances); and
c. In the Storm Drain Capital Fund, recognize transfers from the Electric Operating Grant Trust Fund in the amount of $550,900 and from the Parks and Recreation Capital Fund in the amount of $1,169,100, and increase the Bowers Park Parking Lot Rehabilitation project appropriation by $1,720,000 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Project Location Map
2. Bid Summary