BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Agreement A5722A with Ghirardelli Associates, Inc., for Construction Management Services for the Sunnyvale East and West Channels Flood Protection Project, Project No. 26074002, for a Not-to-Exceed Fee of $9,115,874.00 (Sunnyvale, District 3).
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RECOMMENDATION: Recommendation
Approve Agreement A5722A with Ghirardelli Associates, Inc., for Construction Management Services for the Sunnyvale East and West Channels Flood Protection Project, for a not-to-exceed fee of $9,115,874.00.
Body
SUMMARY:
The Sunnyvale East and West Channels Flood Protection Project (Project) was included in the voter-approved 2012 Safe, Clean Water and Natural Flood Protection Program (Safe, Clean Water Program) and again in 2020 in the voter-approved renewed Safe, Clean Water Program as Project E2, under the flood protection priority. The Project was approved by the Board of Directors in 2014 and will improve the conveyance capacity of two existing storm drain channels to provide flood protection from a 100-year riverine flood event. Staff recommends that the Board approve the Agreement for Construction Management Services for the Project (Agreement).
Project Background
The voter-approved renewed Safe, Clean Water Program funds the planning, design, and construction of the flood improvement project, providing flood protection to residents and businesses in the City of Sunnyvale (City) and unincorporated Santa Clara County, along both the Sunnyvale East and Sunnyvale West Channels. The Project, when completed, is expected to provide 100-year flood protection to an estimated 1,618 parcels in the Sunnyvale East Channel Watershed and to approximately 47 acres of industrial and government lands in the Sunnyvale West Channel Watershed.
Staff has completed 95% design documents and is currently in the process of finalizing 100% design documents and is acquiring permits to construct the Project. Upon receipt of the required permits, staff will recommend that the Board adopt the plans and specifications and authorize advertisement for bids.
Consultant Scope of Services
The recommended Agreement with Ghirardelli Associates, Inc. includes the necessary services for the firm to manage the Project construction. A summary of the tasks and budget is presented in Table 1 below. The basic scope of services includes Project Management, Preconstruction Services, Construction Management, Quality Assurance and Quality Control (QA/QC), Safety Management, Construction Inspections, Partnering, Claims and Disputes Management, Environmental Compliance Services, Acceptance, and Closeout of the Project.
The Supplemental Services task includes, if necessary, performing additional pre-construction or during-construction surveys; performing special inspection of materials not listed; retesting fill placement beyond the limits identified; environmental monitoring and inspections; specialized arborist and archeological consultation, and re-inspection of unanticipated asphalt repair of Contractor-damaged facilities or structures. Prior to performing any Supplemental Services, the Consultant will be required to obtain written authorization from Valley Water’s Deputy Operating Officer pursuant to an approved Task Order.
Table 1 - Summary of Tasks and Budget for
Proposed Consultant Agreement with Ghirardelli Associates, Inc.
Consultant Selection Process
On December 23, 2025, a Request for Proposal (RFP) for Construction Management Services for Sunnyvale East and West Channels Flood Protection Project was published on Valley Water’s Procurement Portal, Planet Bids. The RFP was sent to firms that are registered in Planet Bids under the following category codes: 95826 - Construction Management Services; 90638 - General Construction - Architectural; 91800 - Consulting Services; 91831 - Construction Consulting; 91875 - Management Consulting; 96145 - Inspection And Certification Services; 98826 - Flood Control Services; 91315 Construction, Canal or Aqueduct; 92517 - Civil Engineering; 92555 - Inspecting, General/Engineering and 92556 - Inspecting, Structural/Engineering. An optional virtual pre-proposal meeting was held via Zoom on January 8, 2026, with 24 attendees.
Valley Water received proposals from one (1) consultant firm on February 5, 2026; Ghirardelli Associates, Inc. An Evaluation Committee (EC), consisting of subject matter experts (four internal), evaluated and ranked the written proposals and invited the one (1) firm to participate in a virtual interview. Based on the combined (proposal and interview) rating scores, the EC recommended that staff enter into contract negotiations with Ghirardelli Associates, Inc.
Negotiations with Ghirardelli Associates, Inc. have been successfully completed. Staff recommends Board approval of the Agreement with Ghirardelli Associates, Inc, for Construction Management Services for the Sunnyvale East and West Channels Flood Protection Project, for a not-to-exceed fee of $9,115,874.00 through the Agreement expiration of December 31, 2030.
ENVIRONMENTAL JUSTICE IMPACT:
There are no environmental impacts associated with the Sunnyvale East and West Channels Flood Protection Project. This action is unlikely to or will result in disproportionate impacts on any specific community(ies) relative to the general population from the implementation of this project.
FINANCIAL IMPACT:
The Sunnyvale East and West Channels Flood Protection Project (E2), Project No. 26074002 is included in the Capital Improvement Program (CIP) Fiscal Years (FY) 2027-2031 Five-Year Plan and in the FY 2026-27 Adopted Budget. The Agreement with Ghirardelli Associates, Inc. for Construction Management Services has a not-to-exceed (NTE) fee of $9,115,874.00, which does not change the overall Total Project Cost reflected in the CIP FY 2027-31 Five-Year Plan. The Agreement expires December 31, 2030. There are adequate funds in the Board-adopted FY 2026-27 Budget to encumber the initial planned expenditures for the consultant agreement this fiscal year. Funds to cover the remaining Consultant services will be included in the biennial budget process and recommended by staff during the annual fiscal year budget process or through budget adjustment(s), if needed.
On February 14, 2023, Valley Water and the U.S. Environmental Protection Agency (EPA) entered into a master loan agreement pursuant to EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) loan program to partially fund the planning, design, and construction of the Sunnyvale East and West Channels flood protection and Coyote Creek Flood Protection projects. The agreement provides for the execution of loans totaling $146.7 million, with approximately $41.8 million identified for Sunnyvale East and West Channels. An initial loan for $41.3 million was entered into on February 14, 2023, and a final loan of $105.4 million is anticipated to close by winter 2026
The Project is funded through the renewed Safe, Clean Water & Natural Flood Protection Program Fund (Fund 26).
CEQA:
Approval of the recommended Agreement would allow the consultant to provide construction management services during project construction. The environmental impacts of the construction activities were evaluated in the Final EIR which the Board certified on September 9, 2014.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Agreement
UNCLASSIFIED MANAGER: Manager
Bhavani Yerrapotu, 408-630-2735
Emmanuel Aryee, 408-630-3074