HomeMy WebLinkAboutStaff Report 2507-5009CITY OF PALO ALTO
CITY COUNCIL
Monday, October 06, 2025
Council Chambers & Hybrid
5:30 PM
Agenda Item
5.Approval of Construction Contract No. C25195264 with Precision Engineering, Inc. in the
Amount Not-to-Exceed $6,842,121 and Authorization for the City Manager or Their
Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen
Work that May Develop During the Project Up to a Not-to-Exceed Amount of $684,212
for the Hamilton Avenue Capacity Upgrades Project (SD-25000), and Approval of a Budget
Amendment in the Stormwater Management Fund; CEQA Status – Exempt under CEQA
Guidelines Section 15301(c)
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 6, 2025
Report #:2507-5009
TITLE
Approval of Construction Contract No. C25195264 with Precision Engineering, Inc. in the
Amount Not-to-Exceed $6,842,121 and Authorization for the City Manager or Their Designee to
Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May
Develop During the Project Up to a Not-to-Exceed Amount of $684,212 for the Hamilton
Avenue Capacity Upgrades Project (SD-25000), and Approval of a Budget Amendment in the
Stormwater Management Fund; CEQA Status – Exempt under CEQA Guidelines Section
15301(c)
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute
Construction Contract No. C25195264 with Precision Engineering, Inc. in the
amount not-to-exceed $6,842,121 for the Hamilton Avenue Capacity
Upgrades Project (SD-25000);
2. Authorize the City Manager or their designee to negotiate and execute one or
more change orders to the contract with Precision Engineering, Inc. for
related additional but unforeseen work that may develop during the project,
the total value of which shall not exceed $684,212; and
3. Amend the Fiscal Year 2026 Budget Appropriation for the Stormwater
Management Fund (requires a 2/3 vote) by:
a. Increasing the expense appropriation for the Hamilton Avenue
Capacity Upgrades project (SD-25000) by $625,000; and
b. Decreasing the Stormwater Management Fund balance by $625,000.
EXECUTIVE SUMMARY
Hamilton Avenue from Center Drive to Rhodes Drive is prone to flooding due to an undersized
storm drain system. The 2015 Storm Drain Master Plan identified upsizes to the storm system
at Hamilton Avenue as a high priority project, and this project is included among the 13 high
priority capital projects in the 2017 Stormwater Management ballot measure. The Hamilton
Avenue Capacity Upgrades project will install larger storm pipes and manholes to convey the
storm runoff from a 10-year storm event. Construction bids were solicited through OpenGov
and four bids were received. The construction contract is being awarded to the lowest
responsible bidder. A budget amendment in the Stormwater Management Fund is needed to
fully fund the contract.
BACKGROUND
current capacity of the Hamilton Avenue storm drain line is 15-20 cfs, while the new system will
have a capacity of 90 cfs. Following the New Year’s Eve 2022 San Francisquito Creek flooding
event, staff reprioritized the project to be built sooner, in recognition of its ability to partially
mitigate the impacts of any future Creek flooding that may occur before the Reach 2 flood
control project is completed.
The project includes installing 100 linear feet of 36-inch pipe on Center Drive starting at
Hamilton Avenue going towards Dana Avenue. This segment is part of the Center Drive Capacity
Upgrades project, another of the projects approved by voters that is currently scheduled for
Fiscal Year 2027. The segment was advanced to coordinate with the Office of Transportation’s
project to construct new concrete median islands and redesign the traffic circle at the Hamilton
Avenue, Southwood Drive and Center Drive intersection.
ANALYSIS
1 for the construction of the Hamilton Avenue Capacity Upgrades Project.
1 Precision Engineering, Inc. Hamilton Avenue Capacity Upgrades Project Contract No. C25195264
of curb and gutter, and sidewalk.
Solicitation Process
On July 25, 2025, an Invitation for Bids (IFB) for the Hamilton Avenue Capacity Upgrades Project
was posted on OpenGov. A non-mandatory pre-bid meeting was held on August 4, 2025, within
the 21-day bidding period. Nine bidders attended the pre-bid meeting to discuss the project.
The invitation for bids was structured to select the lowest bidder using the base bid. Bids were
received from four qualified contractors on August 15, 2025, as listed on the attached Bid
Summary (Attachment B).
Table 1: Summary of Invitation for Bids
Project Bid Name / Number Hamilton Avenue Capacity Upgrades Project
SD-25000, IFB No. 195264
Proposed Length of Project 10 Months (303 Calendar Days)
Pre-Bid Meeting Yes
Number of Company Attendees at Pre-Bid Meeting 9
Number of Bids Received 4
Base Bid Price Range $6,842,121 - $13,356,000
Public Link Solicitation https://procurement.opengov.com/portal/palo-alto-
ca/projects/186570
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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HamiltonAvenueCapacityUpgradesProject(SD-25000)
IFBPostDate:7/25/2025
IFB195264
IFBDueDate:8/15/2025
BASEBIDSUMMARY LOWESTBIDDER
QTY UNIT Engineer'sEstimate PrecisionEngineering,Inc.RangerPipelines Cratus,Inc.AzulWorks,Inc.AVGBID#DESCRIPTION UNITPRICE BIDTOTAL UNITPRICE BIDTOTAL Δ UNITPRICE BIDTOTAL Δ
650,000.00 160%
2,400.00 -76%
145,000.00 45%
UNITPRICE BIDTOTAL Δ UNITPRICE BIDTOTAL Δ UNITPRICE
1 MOBILIZATION 1 LS $250,000.00 $250,000.00 $500,000.00 $500,000.00 100% $650,000.00 $$30,000.00 $30,000.00 -88% $650,000.00 $650,000.00 160% $457,500.00
PUBLICNOTIFICATIONANDPOSTING $$$$$
LS $100,000.00 100,000.00 $150,000.00 150,000.00 50% $145,000.00 80,000.00 -20% $640,000.00
150,000.00 0% $540,000.00
640,000.00 540% $253,750.00
SHEETING,SHORINGANDBRACING 145,000.00 -3% $150,000.00
LS $10,000.00 10,000.00 $15,000.00 15,000.00 50%
50,000.00 0%
5,000.00 400%
127,800.00 -68%
5,550.00 -55%
16,000.00 -17%
962,400.00 -8%
395,600.00 -75%
$35,000.00 35,000.00 250%$35,000.00 35,000.00 250%
50,000.00 0%
60,000.00 5900%
340,800.00 -15%
20,350.00 64%
19,200.00 0%
$50,000.00 50,000.00 400%$33,750.00
UNFORSEENUTILITYALLOWANCE
32,000.00 3100%
621,960.00 56%
111,000.00 792%
105,600.00 450%
1,764,400.00 68%
2,373,600.00 52%
3,231,750.00 67%
65,880.00 0%
852 LF 399,375.00 264,120.00 -34%
336.25 150.00 670.00 550.00 3,000.00 1,092.50
10 INSTALL18-INCHHDPEPIPE 32 LF 600.00 500.00 680.00 600.00
11 INSTALL24-INCHHDPEPIPE 1,604 LF 655.00 $1,050,620.00 600.00 690.00 $1,106,760.00 5%
790.00 $1,562,620.00 0%
1,020.00 $2,126,700.00 10%
700.00 $1,122,800.00 7%
700.00 $1,384,600.00 -11%
1,400.00 $2,919,000.00 51%
12 INSTALL36-INCHHDPEPIPE 200.00 722.50
13 INSTALL48-INCHHDPEPIPE 1,200.00 $2,502,000.00 30%1,292.50
14 VIDEOINSPECTIONOFNEWSDPIPELINE 10.00
6,875.00
13,750.00
13,750.00
13,750.00
27,500.00
27,500.00
22,500.00
6,500.00
8,000.00
10,000.00
133.00
$65,880.00
96,250.00
41,250.00
233,750.00
13,750.00
2.00
20,000.00
15,000.00
15,000.00
7,500.00
$13,176.00 -80%
280,000.00 191%
45,000.00 9%
255,000.00 9%
7,500.00 -45%
4.00
6,000.00
$26,352.00 -60%
84,000.00 -13%
48,000.00 16%
340,000.00 45%
15,000.00 9%
5.00
10,000.00
12,000.00
15,000.00
15,000.00
$32,940.00 -50%
140,000.00 45%
36,000.00 -13%
255,000.00 9%
15,000.00 9%
480,000.00 336%
910,000.00 373%
20,000.00 -11%
10,000.00 54%
30,000.00 275%
60,000.00 500%
6,400.00 -62%
90,800.00 -62%
26,788.00 85%
18,550.00 41%
2,970.00 450%
20,000.00 -23%
10,000.00 100%
10,000.00 900%
7,000.00 -30%
6,000.00 100%
1,200.00 0%
12,000.00 168,000.00 75%
225,000.00 445%
1,292,000.00 453%
76,000.00 453%
12,000.00
16 INSTALLSTANDARDSDMH-CITYSTDDWGNO.312 3 EA 16,000.00
17 EA
1 EA
110,000.00 $100,000.00 400,000.00 264% $120,000.00 480,000.00 336% $120,000.00 304,000.00 176% $104,000.00
192,500.00 $50,000.00 532,000.00 176%$95,500.00
20,000.00 -11%
5,000.00 -23%
25,000.00 213%
60,000.00 500%
12,800.00 -25%
181,600.00 -25%
10,860.00 -25%
5,565.00 -58%
720.00 33%
$10,000.00 10,000.00 -56%
5,000.00 -23%
20,000.00 150%
48,000.00 380%
12,160.00 -29%
172,520.00 -29%
10,860.00 -25%
9,275.00 -29%
1,170.00 117%
10,000.00 -62%
8,000.00 60%
5,000.00 400%
7,000.00 -30%
2,400.00 -20%
19,200.00 1500%
960.00 60%
$20,000.00
23 INSTALL24-INCHFLAPGATE
24 INSTALL48-INCHCHECKMATEULTRAFLEXINLINECHECKVALVE
25 TYPEACURBANDGUTTER 128 LF
1,816 LF
724 SF
371 SF
18 SF
26 TYPEBCURBANDGUTTER 133.00 100.00 95.00 50.00 76.00 80.25
27 SIDEWALK 20.00 15.00 15.00 37.00 38.00 26.25
28 DRIVEWAY 35.35 15.00 25.00 50.00 72.00 40.50
29 DECORATIVEPAVEMENT 30.00 40.00 65.00 165.00 430.00 175.00
30 CURBRAMP 2 EA 13,000.00 26,000.00 5,000.00 10,000.00 -62%5,000.00 10,000.00 12,000.00 8,000.00
8,250.00
10,250.00
400.00
31 REFLECTIVERUBBERCURBS
32 STREETLIGHTRELOCATION EA
33 TRIMSTREETTREES 20 HRS
34 REMOVEANDREPLACESIGNPOSTWITHSIGNS 3 1,000.00 1,650.00 2,000.00 720.00 1,292.50
12 LF 280.00
36 FLEXIBLEDELINEATORS 50.00 100.00 250.00 3,000.00 400%
84,480.00 32%
140.00 142.50
37 3-INCHACOVER8-INCHPCCOVERLAY 256 TON 250.00 64,000.00 375.00 309.00 79,104.00 24%330.00 280.00 323.50
TOTALSSUMMARY LOWESTBIDDER
Engineer'sEstimate PrecisionEngineering,Inc.RangerPipelines Cratus,Inc.AzulWorks,Inc.
TotalBaseBid $$6,842,121.00 $$8,488,878.00 $
Total10%Contingency 674,589.72 684,212.10 843,115.10 1,335,600.00
14,691,600.007,420,486.91 7,526,333.10 9,274,266.10 9,337,765.80
OverEngineer'sEstimate:1%25%26%98%
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