HomeMy WebLinkAboutStaff Report 2604-6220CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 18, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
10.Approval of Construction Contract No. C26197180 with Casey Construction, Inc. in the
Not-to-Exceed Amount of $544,556 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 $54,456 for the Storm Drainage System Replacement and Rehabilitation Project (SD-
06101); 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: May 18, 2026
Report #:2604-6220
TITLE
Approval of Construction Contract No. C26197180 with Casey Construction, Inc. in the Not-to-Exceed
Amount of $544,556 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 $54,456 for the Storm Drainage System Replacement and Rehabilitation
Project (SD-06101); 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.
C26197180 with Casey Construction, Inc. in the amount of $544,556 for the Storm Drainage
System Replacement and Rehabilitation Project (SD-06101); and
2. Authorize the City Manager or their designee to negotiate and execute one or more change
orders to the above construction contract with Casey Construction, Inc. for related, additional
but unforeseen work which may develop during the project, the total value of which shall not
exceed $54,456.
BACKGROUND
The Storm Drainage System Replacement and Rehabilitation Project (SD-06101) proposes to increase
the existing 12-inch storm drain line to a 36-inch line on Alester Avenue from Hamilton Avenue to Dana
Avenue to convey rain water and provide additional storage capacity, and to repair a broken storm drain
lateral on Lambert Avenue and Birch Street. Increasing the pipe along Alester Avenue would help to
mitigate flooding along Duveneck Elementary School in an event similar to the December 31, 2022
storm and creek overflow.
This scope was solicited as an add-alternate bid item on the Hamilton Avenue Capacity Upgrades
Project.1 Precision Engineering, Inc.’s bid for the add-alternate work was 257% over the original
engineer’s estimate of $402,188 and this scope of work was not included in Contract No. C25195264.2
ANALYSIS
3 The scope of work includes the replacement of 283 linear feet of 12-inch concrete pipe with
36-inch high density polyethylene pipe (HDPE) on Alester Avenue, replacement of 117 linear feet of 12-
inch HDPE, replacement of 3 catch basins, and installation of 1 storm drain junction box. Concrete work
includes removal and replacement of 3 curb ramps, curb and gutter, and sidewalk. Pipe replacement in
the streets may require additional work such as pavement restoration and striping due to the location of
the work. Although the project has been designed to avoid utilities conflicts, the contract includes an
allowance for the cost of potential utility service relocations in locations where the existing utilities
services (water, gas, cable, electric, and sanitary sewer) may conflict with the installation of the new
storm drain pipes. Prior to bidding, staff updated the engineer’s estimate to reflect the most recent bid
prices received as part of the Hamilton Avenue Capacity Upgrades Project
Table 1: Summary of Invitation of Bids
Project Bid Name/Number Storm Drainage System Replacement and Rehabilitation
Project at Various Locations and IFB #197180
Proposed Length of Project 60 days
# of Bid Packages Downloaded by Contractors 49
Total Days to Respond to Bid 23 days
Number of Bids Received 8
Base Bid Price Range $544,556 to $1,712,025
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto-
ca/projects/244946
1 City Council, October 6, 2025; Agenda Item #5, Report #2507-5009,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83624&dbid=0&repo=PaloAlto&searchid=ac4bc027-cb44-4220-
9222-105b0b4e5fd5
2 Precision Engineering, Inc. Hamilton Avenue Capacity Upgrades Project Contract No. C25195264;
https://www.paloalto.gov/files/assets/public/v/1/public-works/staff-reports-all/2025/precision-engineering-hamilton-ave-
capacity-upgrades-c26195264.pdf
3 Casey Construction, Inc. Storm Drainage System Replacement and Rehabilitation Project Contract No. C26197180
Bids ranged from $544,556 to $1,712,025 and from 28% below to 127% above the engineer’s estimate
of $755,102. Staff reviewed the bids submitted and recommends acceptance of the bid submitted by
Casey Construction, Inc. in the amount of $544,556 and that Casey Construction, Inc. be declared the
lowest responsible bidder. The contingency amount of $54,456, which equals 10% of the contract value,
is requested for related, additional but unforeseen work which may develop during the project,
implemented via City-approved Change Order.
Staff confirmed with the Contractor's State License Board that the contractor has an active license on
file. Staff also contacted the listed references for Casey Construction, Inc. and found that they
performed satisfactorily on past construction projects for other clients.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
SD Rehab at Various Locat ions (SD-06101)
Scope of Work
ATTACHMENT B.Storm Drainage System Replacement and Rehabilitation Project At Various Locations (SD-06101)
LOWEST BIDDER
IFB 197180
BASE BID SUMMARY
QTY UNICTesay CsEnnogineer's Estimate truction, Inc.3 APeipelin Golden Bay Construction
UNIT PRICE BID TOTAL
45,000.00 $ 45,000.00 -55%
2,000.00 $ 2,000.00 100%
39,082.00 $ 39,082.00 -22%
nhyBo oJdlnaEgneinerginK,ecrne.xI EngineeringDESCRIPTION#
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UNIT PRICE BID TOTAL UNIT PRICE Δ UNIT PRICE BID TOTAL Δ Δ UNIT PRICE BID TOTAL Δ UNIT PRICE BID TOTAL Δ
MOBILIZATION AND DEMOBILIZATION 1 LS $100,000.00 $ 100,000.00 $25,000.00 $ 25,000.00 -75% $ 30,000.00 $30,000.00 -70%$$50,000.00 $50,000.00 -50%$81,000.00 $81,000.00 -19%
$1,000.00 $1,000.00 3,152.47 $1,500.00 $
LS $ 50,000.00 $ 50,000.00 $22,000.00 $25,000.00 $25,000.00 -50%
SHEETING, SHORING AND BRACING 5,000.00 $5,000.00 -90% $ 20,000.00 4,500.00 $4,500.00 -91%50,000.00 0%
244 TON $12.56 $3,064.64 2,928.00 -4%$115.00 2.44 -100% $13,420.00 338%
15,860.00 206%
25,875.00 418%
10,000.00 -50%
72,788.93 33%
254,958.68 14%
INERT SOLIDS RECYCLING WITH FABRIC 18.00 $4,392.00 -15% $5.00 $1,220.00 -76%$65.00 40.00
1 LS 5,000.00 $26,000.00 $ 26,000.00 420% $ 30,000.00 15,000.00 $ 15,000.00 200%25,875.00 18,675.00 18,675.00 274%
UNFORESEEN UTILITY ALLOWANCE LS $ 20,000.00 $ 20,000.00 5,000.00 $1.00 -100% $ 10,000.00
117 LF $468.75 $ 54,843.75 400.00 $ 46,800.00 -15% $315.00 $36,855.00 -33%
116,596.00 -48%
365.00 $ 42,705.00 -22%$622.13
10 INSTALL 36-INCH HDPE PIPE 1,055.00 $ 298,565.00 33%
1 LF 400.00 $400.00 1,500.00 $1,500.00 275% $9,424.00 $9,424.00 2256% $1,000.00 $1,000.00 150%6,381.30 $6,381.30 1495% $2,000.00 $2,000.00 400%
4,812.00 20%
44,000.00 60%
30,000.00 9%
7,800.00 -10%
4,080.00 -10%
2,675.00 25%
401 LF 4,010.00 $6,015.00 50%$$2,300.00 -43%$12.00
11,000.00
30,000.00
120.00
$
4 EA 6,875.00 $ 27,500.00 14,000.00 $ 56,000.00 104% $12,500.00 $ 50,000.00 82%
14 INSTALL NEW SDMH JUNCTION BOX EA $ 27,500.00 $ 27,500.00 $16,000.00 $16,000.00 -42%20,290.60 $20,290.60 -26%
65 LF $133.00 $8,645.00 80.00 $5,200.00 -40% $
98.00 192.00 $6,528.00 44%83.42 120.00
107 SF 3,210.00 50%$80.00 18.35 25.00
18 CURB RAMP 3 EA $ 13,000.00 $ 39,000.00 12,000.00 $ 36,000.00 -8%9,300.00 $ 27,900.00 -28%9,950.00 $ 29,850.00 -23%
3,500.00 $ 3,500.00 17%
3.00 $ 39,045.00 311%
265.00 $ 64,660.00 6%
250.00 $ 250.00 -95%
50,000.00 $ 50,000.00
6,497.96 $ 19,493.88 -50%5,500.00 $ 16,500.00 -58%
19 GAS SERVICE BACKFILL EA $3,000.00 $3,000.00 5,100.00 $5,100.00 70%
26,030.00 174%
72,712.00 19%
10,000.00 100%
1,449.37 $1,449.37 -52%
8,199.45 -14%
71,980.00 18%
1,150.00 -77%
5,000.00 $5,000.00 67%
7,158.25 -25%
62,830.00 3%
11,937.00 139%
13,015 SF 1.50 $ 19,522.50 105% $
200.00 $ 48,800.00 -20% $
2.00 $
$
$
$
0.63 $0.55
257.50
$
21 3-INCH AC OVER 8-INCH PCC OVERLAY
Base Bid Total:
250.00 $ 61,000.00
5,000.00 $ 5,000.00
298.00 295.00
1 EA 1,000.00 $1,000.00 -80% $ 10,000.00 1,150.00 $11,937.00
LS $ 50,000.00 $ 50,000.00 50,000.00 $ 50,000.00 0%$50,000.00 50,000.00
598,898.00
59,890.00
658,788.00
-21%
0%0%$50,000.00 $ 50,000.00 0%$50,000.00 $ 50,000.00 0%
$755,102.08 $544,555.50
-28%
$616,003.44
-18%
$739,854.14
-2%
$810,000.25
10% Contingency:
Total Base Bid:
Over Engineer's Estimate:7%
BASE BID SUMMARY CONTINUED
BI QTY UNIT Engineer's Estimate WestRock Engineering
UNIT PRICE BID TOTAL
40,000.00
1,000.00 $
elFint nroGeenrla Precison Engineering, Inc.
UNIT PRICE BID TOTAL
AVG
UNIT PRICE
50,250.00
2,526.62
24,250.00
29,250.00
60.50
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UNIT PRICE BID TOTAL Δ UNIT PRICE Δ Δ
MOBILIZATION AND DEMOBILIZATION 1 LS $100,000.00 $ 100,000.00 $$40,000.00 -60%$153,976.52 $ 153,976.52 54%$250,000.00 $ 250,000.00 150%$
$1,000.00 $1,000.00 $1,000.00 0%$
LS $ 50,000.00 $ 50,000.00 $30,000.00 $30,000.00 -40%99,596.24 $ 99,596.24 99%150,000.00 $ 150,000.00 200%
SHEETING, SHORING AND BRACING
244 TON $12.56 $3,064.64 $
INERT SOLIDS RECYCLING WITH FABRIC 50.00 72.50
1 LS 5,000.00 $5,000.00 $ 22,000.00 24,137.50
UNFORESEEN UTILITY ALLOWANCE LS $ 20,000.00 $ 20,000.00 $10,000.00 1,000.00 $1,000.00 -95%
117 LF $468.75 $ 54,843.75 650.00 $ 76,050.00 39%
1,200.00 $ 339,600.00 52%10 INSTALL 36-INCH HDPE PIPE 1,200.00 $ 339,600.00 52%817.66 $ 231,397.78 3%891.98
1 LF 400.00 $400.00 2,000.00 $2,000.00 400%12,573.51 $ 12,573.51 3043% $2,500.00 $2,500.00 525%4,951.33
401 LF 4,010.00 $15.00 $122.96 $ 49,306.96 1130%
26,751.68 $ 107,006.72 289%
26,630.06 $ 26,630.06 -3%
316.88 $ 20,597.20 138%
$
4 EA 6,875.00 $ 27,500.00 $5,000.00 $ 20,000.00 -27%30,000.00 $ 120,000.00 336%
180,000.00 $ 180,000.00 555%
8,110.30
25,322.65
80.62
14 INSTALL NEW SDMH JUNCTION BOX EA $ 27,500.00 $ 27,500.00 35,000.00 $35,000.00 27%
65 LF $133.00 $8,645.00 $150.00 $9,750.00 13%
75.00 261.95 $8,906.30 97%94.11
107 SF 20.00 105.84 $ 11,324.88 429%
7,019.99 $ 21,059.97 -46%
14,266.88 $ 14,266.88 376%
1.89 $ 24,598.35 159%
35.84
18 CURB RAMP 3 EA $ 13,000.00 $ 39,000.00 $3,000.00 $7,500.00 $ 22,500.00 -42%
10,000.00 $ 10,000.00 233%
3.00 $ 39,045.00 311%
6,074.49
19 GAS SERVICE BACKFILL EA $3,000.00 $3,000.00 $
13,015 SF 2.00 $
21 3-INCH AC OVER 8-INCH PCC OVERLAY
Base Bid Total:
250.00 $ 61,000.00
5,000.00 $ 5,000.00 $
$500.00 122,000.00 100% $316.82 $ 77,304.08 27%700.00 $ 170,800.00 180%
25,000.00 $ 25,000.00 400%
337.63
1 EA 5,000.00 $ 5,000.00 0%
50,000.00 $ 50,000.00 0%
$2,519.04 $2,519.04 -50%7,021.75
50,000.00LS $ 50,000.00 $ 50,000.00 $50,000.00 $ 50,000.00 0%50,000.00 $ 50,000.00 0%
$755,102.08 $850,155.00
13%
$ 1,150,807.33 $ 1,712,025.00
10% Contingency:$115,081.00 $ 171,203.00
Total Base Bid:$ 1,265,888.33 $ 1,883,228.00
Over Engineer's Estimate:52%127%
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