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Home My WebLink AboutStaff Report 2507-5012CITY OF PALO ALTO CITY COUNCIL Monday, December 01, 2025 Council Chambers & Hybrid 5:30 PM Agenda Item 8.Approval of Two Blanket Purchase Orders with S&S Trucking in the Amount of $2,543,677 and with Zanker Road Resource Management LLC in the Amount of $1,090,753 for On- Call Off Hauling Services for a Total Amount Not-to-Exceed of $3,634,430 for a Five Year Term. CEQA Status: Exempt. Pursuant to CEQA Guideline 15302(c) – Maintenance of Existing Utility Systems. City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: December 1, 2025 Report #:2507-5012 TITLE Approval of Two Blanket Purchase Orders with S&S Trucking in the Amount of $2,543,677 and with Zanker Road Resource Management LLC in the Amount of $1,090,753 for On-Call Off Hauling Services for a Total Amount Not-to-Exceed of $3,634,430 for a Five Year Term. CEQA Status: Exempt. Pursuant to CEQA Guideline 15302(c) – Maintenance of Existing Utility Systems. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute a blanket purchase order with S&S Trucking in the amount of $2,543,677 and blanket purchase order with Zanker Road Resource Management LLC in the amount of $1,090,753 for on-call construction debris off haul services for a total not-to-exceed amount of $3,634,430 over a five-year term. BACKGROUND The City’s Public Works and Utilities Departments (Departments) are responsible for the maintenance, repair, replacement, and construction of City streets, sidewalks, and underground utilities. These activities generate construction debris that must be picked up, hauled away, and disposed of at an appropriate location. Construction debris from the Utilities Department consists of mixed concrete, asphalt rubble, mixed dirt and concrete/asphalt rubble. In addition, the Public Works Department’s construction debris includes clean concrete rubble, clean asphalt, yard waste, and brush material. With the inclusion of off-hauling costs within the updated utility customer connection fees, a portion of these contract costs will be recovered with new or reconstructed gas, water, and wastewater services. ANALYSIS The Utilities and Public Works Department has issued joint solicitations seeking an off-haul vendor in 2016, 2019, and most recently in 2025. Table 1: Summary of Request for Proposal Proposal Description On-call off-haul services of construction material debris on an as needed basis Proposed Length of Project 5 years Number of Vendors Notified 3523 Number of Proposal Packages Downloaded 27 Total Days to Respond to Proposal 30 Pre-Proposal Meeting Yes Pre-Proposal Meeting Date June 17, 2025 Number of Proposals Received 5 Proposal Price Range $2,543,677 - $11,633,821 Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/174054 The 2025 solicitation was a Request for Quotation (RFQ) 194393 where the City received five bids ranging from $2,543,677 to $11,633,821 for the requested five years of service. The RFQ included the City’s option to award the contract to multiple vendors. An advantage of awarding the bid to multiple vendors was that it created more competitive pricing. After evaluation the Departments recommend awarding contracts to the two lowest bidders, S&S Trucking and Zanker Road Resource Management LLC. When comparing the results of this RFQ to the last solicitation done in 2019, there were only two bids received in 2019, both of which were over $5 million dollars for a five year term. The 2025 RFQ lowest bids were both below $5 million dollars and therefore well under Staff’s estimated costs. Table 2: RFQ 194393 Bid Results ABSL Construction Lagestic LLC P. Kavanagh Construction S & S Trucking Zanker Road Resource Management LLC Year 1 $2,160,575 $1,775,315 $939,735 $446,455 $790,197 Year 2 $2,240,288 $1,855,484 $979,246 $481,354 $829,374 Year 3 $2,320,000 $1,935,652 $1,009,158 $504,857 $870,555 Year 4 $2,399,713 $2,022,078 $1,040,018 $539,631 $913,757 Year 5 $2,479,425 $2,102,246 $1,072,687 $571,378 $959,129 AWARD BASIS: Low bid $11,633,821 $9,690,777 $5,040,847 $2,543,677 $4,363,013 Due to the high volume of construction material debris to be off-hauled throughout the year, it is imperative that the Departments have a reliable system in place to dispose of debris. Historically over the past five years, the City spent approximately $500,000 annually for off-haul services. This is reflected in alignment with the recommended award to S&S Trucking. Staff anticipates a higher volume of materials may arise in the coming years for infrastructure maintenance, customer improvement projects, and new housing developments. Table 3: Award Breakdown Year S&S Trucking Zanker Resource Management (25%) Total Amount 1 $446,455 $197,549 $644,004 2 $481,354 $207,344 $688,698 3 $504,858 $217,639 $722,497 4 $539,632 $228,439 $768,071 5 $571,378 $239,782 $811,160 1-5 (Total Sum)$2,543,677 $1,090,753 $3,634,430 FISCAL/RESOURCE IMPACT Table 4: Department Allocation for S&S Trucking Blanket Order Year Public Works Utilities Total 1 $80,000 $366,455 $446,455 2 $84,000 $397,354 $481,354 3 $88,200 $416,657 $504,857 4 $92,610 $447,021 $539,631 5 $97,241 $474,137 $571,378 1-5 (Total Sum)$442,051 $2,101,627 $2,543,677 Table 5: Department Allocation for Zanker Resource Management Blanket Order Year Public Works Utilities Total 1 15,000 182,549 197,549 2 15,750 191,594 207,344 3 16,538 201,101 217,639 4 17,364 211,075 228,439 5 18,232 221,550 239,782 1-5 (Total Sum) 82,884 1,007,869 1,090,753 STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW APPROVED BY: