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HomeMy WebLinkAboutStaff Report 2602-5982CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, June 15, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     9.Approval of Construction Contract Number C26197272 with O’Grady Paving, Inc. in the Amount of $3,802,573 for the Fiscal Year 2026 Street Resurfacing Project, Capital Improvement Program Projects PE-86070, PO-12001, PG-06001, PO-11001, and OS- 09001; and Authorization for the City Manager or Their Designee to Execute Change Orders in an Amount Not-to-Exceed $910,258 for Related, Additional but Unforeseen Work Which May Develop During the Project; 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: June 15, 2026 Report #:2602-5982 TITLE Approval of Construction Contract Number C26197272 with O’Grady Paving, Inc. in the Amount of $3,802,573 for the Fiscal Year 2026 Street Resurfacing Project, Capital Improvement Program Projects PE-86070, PO-12001, PG-06001, PO-11001, and OS-09001; and Authorization for the City Manager or Their Designee to Execute Change Orders in an Amount Not-to-Exceed $910,258 for Related, Additional but Unforeseen Work Which May Develop During the Project; 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 C26197272 with O’Grady Paving, Inc. in the amount of $3,802,573 for the Palo Alto Fiscal Year 2026 Street Resurfacing Project (Capital Improvement Program Projects PE-86070, PO-12001, PG-06001, PO-11001, and OS-09001); and 2. Authorize the City Manager or their designee to negotiate and execute change orders for related, additional, and unforeseen work that may develop during the project, the total value of which shall not exceed $910,258. BACKGROUND The Public Works Engineering Services Division manages construction contracts for concrete repair, preventive maintenance, resurfacing, and reconstruction of various City streets annually. In more recent years, additional Capital Improvement Program (CIP) projects are being built through annualized resurfacing contracts due to the complexity of construction and benefit of being included in a larger project. The City uses StreetSaver, The Metropolitan Transportation Commission’s (MTC) pavement management system which is used by almost all Bay Area jurisdictions. The Pavement Condition Index (PCI) is calculated by evaluating a sample pavement section on each block for different rating variables from mild to severe – including raveling, potholes, amount of trenches, and base failures. These factors are entered into the StreetSaver program and a PCI is calculated. All staff who evaluate street conditions and pavement distresses have multiple years of experience and have been trained by MTC. While staff uses the PCI scores to prioritize streets, staff also takes into consideration additional information including coordination with Utilities projects and Office of Transportation planned striping improvements, and whether the street has bike lanes or is a bicycle boulevard. Staff also tries to group multiple streets in a neighborhood whenever possible, so that construction is not occurring over multiple years if it can be avoided. Additionally, each block has its own estimated repair cost, which impacts how many streets can be in each project given the annual funding amounts. The streets included in this year’s resurfacing contract were selected previously with the Senate Bill 1 Resolution approved by Council in June 2025.1 ANALYSIS Staff recommends approval of Contract No. C26197272 as part of the program to maintain and improve the condition of Palo Alto’s streets.2 The $3,802,573 expenditure for this contract will be used to repave 6.92 lane-miles of arterial and residential streets with PCI scores averaging 48. This will help maintain and improve the City’s Pavement Condition Index (PCI) beyond its average of 83 and will address many streets whose PCI scores fall below the City’s minimum goal of 60. The scope of work includes the replacement of approximately 2,966 linear feet (0.56 miles) of curbs and gutters, 2,852 square feet of driveways, and 7,654 square feet of sidewalks. Additionally, 33 new curb ramps will be installed to conform to the Americans with Disabilities Act (ADA). The add alternate scope of work includes the repaving and restriping of 58,170 square feet of pavement along the Adobe Creek Trail Loop. The streets being resurfaced in this contract are shown in Attachment A. On June 1, 2026, the City Council directed staff to proceed with California Avenue Outdoor Activation Standards and associated encroachment permit requirements, approved the Pre- approved Parklet Plans with standardized parklet designs, approved an Ordinance amending the Sign Code (PAMC section 16.20.160; first reading), and directed staff to return to the City Council with an amendment to modify a conceptual design for a bike-free environment on the closed portion of the street.3 At the meeting, questions were raised about the potential of utilizing the estimated $300,000 for repaving the car-free portion of California Avenue for other improvements and whether the repaving project is required at this time. Staff shared that the street was last repaved in 2015. Typically, streets have preventive maintenance done 1 City Council, June 2, 2025, Agenda Item #11; SR #2503-4447 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83430&dbid=0&repo=PaloAlto&searchid=ad530f3e -e21c-4667-9161-bcd9e546c2df 2 O’Grady Paving, Inc. Construction Contract for FY 2026 Resurfacing Project C26197272 3 City Council, June 1, 2026, Agenda Item #16; SR #2602-6010 approximately every 10-15 years to extend the life of the pavement. Public Works estimated the costs for slurry sealing and for repaving the car-free portion of California Avenue. It was determined that the repaving option was more economical compared to slurry sealing. In order to effectively remove the existing street markings, grinding and paving the road would be necessary. This resurfacing work does not implement the bike/pedestrian conceptual drawing that was presented, it is only repaving of the street on which future outdoor activations will be built. Table 1: Summary of Invitation for Bids Project Bid Name/Number Proposed Length of Project Number of Bid Packages Downloaded by Contractors Number of Bid Packages Downloaded by Builder’s Exchanges Total Days to Respond to Bid Number of Bids Received Bid Price Range Public Link to Solicitation California Avenue and for related, additional, but unforeseen work which may develop during the project, implemented via City-approved Change Order. FISCAL/RESOURCE IMPACT Table 2: Funding Allocation Funding Source Contract Contingency Total Funding Street Maintenance PE-86070 $3,256,846 $655,685 $3,912,531 Curb & Gutter Repair PO-12001 $75,270 $7,527 $82,797 Athletic Court Resurfacing PG-06001 $68,150 $6,815 $74,965 Thermoplastic Striping PO-11001 $123,457 $12,346 $135,803 Off-Road Pathway Resurfacing and Repair OS-09001 $278,850 $27,885 $306,735 Unassigned Allowance $200,000 $200,000 Total $3,802,573 $910,258 $4,712,831 STAKEHOLDER ENGAGEMENT All streets have been coordinated with the City’s Utilities Department and the Office of Transportation to minimize the cutting of newly resurfaced streets. Additionally, recognizing the importance of bicycle safety as a factor in selecting streets for the annual repaving project, staff reviews the proposed five-year paving plan streets annually with the Pedestrian and Bicycle Advisory Committee (PABAC) Resurfacing Subcommittee, with an emphasis on the streets included in the first year of the plan. Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process, including flyers sent to adjacent residences and businesses, and notices posted online on the City’s website. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: ATTACHMENT A - PROJECT MAP FY2026 STREET RESURFACING PROJECT FROMSTREET Ben Lomond Drive Byron Street Cowper Street Hamilton Avenue Hamilton Court Lambert Avenue Lambert Avenue Lois Lane TO Scripps Avenue Scripps Avenue Ash Street Ash Street Park Boulevard Waverley Street Santa Rita Avenue Washington Avenue Laura Lane Embarcadero Road Julie Court Georgia Avenue End, South Embarcadero Road ATTACHMENT A - PROJECT MAP 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 08:40:05 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Personal\ehochst.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 09:02:23 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-18 13:59:17 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 08:55:18 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 09:20:54 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o PORTER DRIVE This map is a product of the 0'400' ehochst, 2026-04-02 08:32:47 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 09:00:49 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 08:48:32 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 08:33:53 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Personal\ehochst.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto 6 T h e C i t y o fP a l o A l t o This map is a product of the 0'400' ehochst, 2026-03-05 13:07:44 This document is a graphic representation only of best available sources. (\\cc-maps\Encompass\Admin\Meta\View.mdb)The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto FY2026 Street Resurfacing Project Bid Summary ENGINEER'S ESTIMATE UNIT COST TOTAL COST A TEICHERT & SONS UNIT COST TOTAL COST DeSILVA GATES CONSTRUCTION O'GRADY PAVING UNIT COST TOTAL COST RADIUS UNIT COST TOTAL COST INTERSTATE GRADING & PAVINGBID ITEM DESCRIPTION APPROX. QTY UNIT UNIT COST TOTAL COST UNIT COST TOTAL COST BID ITEMS FOR STREET RESURFACING 1 AC Overlay 1/2":8,955 7,809 459,052 13,000 3,000 77 TON $150.00 $ $ 1,343,250.00 $145.00 $1,298,475.00 $130.00 $1,164,150.00 $145.00 $ $ 1,298,475.00 $157.05 $ $ 1,406,382.75 $132.00 $1,182,060.00 2 PCC Base Repairs:30.00 28.00 $218,652.00 35.00 30.00 30.00 3 AC Milling:$ 4 Crack Sealing:2.00 1.00 $0.74 $ $ 9,620.00 10,500.00 84,700.00 37,700.00 14,000.00 16,000.00 31,000.00 171,680.00 10,440.00 4,560.00 56,140.00 140,160.00 93,290.00 5,125.00 183,696.00 64,854.00 9,540.00 6,000.00 186,000.00 15,600.00 5,850.00 4,280.00 2,450.00 5,265.00 26,210.00 15,400.00 200.00 1.00 0.78 1.75 5 Interlayer Membrane:8.00 6.00 $3.50 5.00 10.90 1,308.00 1,308.00 4.36 20.00 1,200.00 1,400.00 7.50 6 Reset Utility Box:900.00 1,200.00 4.00 1,080.00 $1,100.00 400.00 7 Reset Manhole:29 $ 8 Recycling of Inert Solid Materials:14,000 $ 9 18.00 400.00 160.00 130.00 130.00 150.00 170.00 210.00 35.00 26.00 28.00 200.00 7,000.00 6,000.00 90.00 25.00 4.00 1.00 $4.00 1.00 11.99 3,150.00 168.00 126.00 126.00 147.00 168.00 199.50 27.25 25.20 28.35 189.00 6,090.00 6,090.00 126.00 47.25 4.88 10.00 3,500.00 185.00 140.00 140.00 160.00 185.00 220.00 28.00 28.00 32.00 210.00 8,000.00 8,000.00 130.00 50.00 5.00 10 3,000.00 $3,100.00 3,100.00 Type B curb with 3' exposed gutter pan:1,073 $ $ 38 $$ $ 5,320.00 64,160.00 162,060.00 108,020.00 5,740.00 214,312.00 76,864.00 11,130.00 8,000.00 248,000.00 16,900.00 6,500.00 4,280.00 2,800.00 5,850.00 28,831.00 16,940.00 200.00 401 876 491 205 7,654 2,402 53 $ $ $ $ $ Concrete Driveway:$ Valley gutter 4' wide:$ Type A Curb Ramp:1 $ Type C Curb Ramp:31 $ Thermoplastic Paving Legends:130 130 856 350 585 2,621 770 40 $ $ Thermo Striping, 4" White:$ 6.00 7.00 $7.00 8.00 7.35 8.00 8.00 10.00 $9.00 10.00 9.82 10.00 12.00 $10.00 10.50 $ $ 72 8.00 576.00 10.00 $720.00 10.00 720.00 10.00 720.00 9.82 707.04 10.00 720.00 733 500 355 2,300 150 4,620 850 864 3,695 1,840 245 60 12.00 8,796.00 10,000.00 1,775.00 11,500.00 750.00 $7,330.00 10,000.00 1,420.00 10,350.00 600.00 7,330.00 10,000.00 1,420.00 9,200.00 600.00 8,063.00 11,000.00 1,420.00 11,500.00 600.00 10.50 7,696.50 10,500.00 1,359.65 10,626.00 574.50 8,063.00 11,000.00 1,420.00 11,500.00 600.00 $ $ 5.00 4.50 $4.00 5.00 4.62 5.00 5.00 4.00 $4.00 4.00 3.83 4.00 5.00 23,100.00 4.40 $20,328.00 4.00 18,480.00 5.00 23,100.00 4.62 21,344.40 5.00 23,100.00 8.00 8.80 $9.00 9.00 9.24 10.00 5.00 7.50 $7.00 8.00 7.67 6.00 9.00 $9.00 9.00 9.24 10.00 10.00 9.00 $9.00 10.00 9.45 4.00 $4.00 3.83 8.00 15.00 $900.00 15.00 900.00 15.00 900.00 15.38 922.80 16.00 960.00 300 120 245 2,040 160 18 8.00 2,400.00 $1,650.00 1,500.00 1,800.00 1,734.00 1,800.00 8.00 5.00 $5.00 6.00 5.41 5.80 5.00 1,225.00 6.00 $1,470.00 5.00 1,225.00 6.00 1,470.00 5.78 1,416.10 6.00 1,470.00 2.50 4.00 $4.00 4.00 3.83 4.00 8.00 4.00 $4.00 4.00 3.83 4.00 10.00 10.00 35.00 1,000.00 6,500.00 50,000.00 2,000.00 1,000.00 500.00 50,000.00 6.00 $108.00 6.00 108.00 7.00 126.00 6.30 113.40 6.50 117.00 131 1,310.00 6.00 $786.00 6.00 786.00 7.00 917.00 6.30 825.30 6.50 851.50 25.00 1,150.00 550.00 502,497.00 20,386.00 3,000.00 400.00 $550.00 25.00 1,150.00 500.00 373,627.00 8,000.00 10,000.00 380.00 550.00 30.00 1,300.00 600.00 190,000.00 21,000.00 5,000.00 400.00 660.00 26.25 1,207.50 577.50 259,747.00 21,800.00 5,450.00 545.00 577.50 28.00 1,250.00 600.00 219,950.00 20,000.00 1,800.00 550.00 616.00 Remove and Reinstall Bollard:6 6,000.00 91,000.00 50,000.00 2,000.00 1,000.00 10,500.00 50,000.00 3,636,987.20 $6,900.00 7,700.00 502,497.00 20,386.00 3,000.00 8,400.00 - 6,900.00 7,000.00 373,627.00 8,000.00 10,000.00 7,980.00 - 7,800.00 8,400.00 190,000.00 21,000.00 5,000.00 8,400.00 - 7,245.00 8,085.00 259,747.00 21,800.00 5,450.00 11,445.00 - 7,500.00 8,400.00 219,950.00 20,000.00 1,800.00 11,550.00 - 14 $ Traffic Control:1 $ Notices:1 $ Utility Tie Out Drawings:1 $ Tree Trimming:21 $ Misc. Transportation Improvements:1 $ Base Bid Total (Items 001 through 049)$3,626,688.00 3,646,996.00 3,455,572.60 3,872,653.69 3,765,616.50 -0.28%0.28%-5%6% Over 4% OverUnder ALT 1 BID ENGINEER'S ESTIMATE UNIT COST TOTAL COSTDESCRIPTIONAPPROX. QTY UNIT UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST 290,000.00 TOTAL COST UNIT COST 330,197.00 TOTAL COST BID ITEMS FOR ADOBE CREEK TRAIL 1 Add Alt 1. Bid Total 1 LS $290,115.00 $290,115.00 290,115.00 $399,091.00 $399,091.00 $350,000.00 $350,000.00 $347,000.00 $347,000.00 $$290,000.00 $$330,197.00 ALT 1 Bid Total (Item 001)$$399,091.00 $350,000.00 $347,000.00 $290,000.00 $330,197.00 38%21%20%-0.04%14% Over Over Over