HomeMy WebLinkAboutStaff Report 2603-6104CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, September 14, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
4.Approval of Contract Number C27197641 with A3 Pipeline in the Amount Not-to-Exceed
$2,466,255 for the Sewer Lateral Replacement Project (WC-99013) at various locations
across the City; Authorization for the City Manager or Designee to Negotiate and Execute
Related Change Orders Not-to-Exceed $246,626 for a Total Not-to-Exceed Amount of
$2,712,881 for a Three-Year Term. CEQA Status: Exempt under CEQA Guidelines 15302
(Replacement or Reconstruction of Existing Facilities).
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: September 14, 2026
Report #:2603-6104
TITLE
Approval of Contract Number C27197641 with A3 Pipeline in the Amount Not-to-Exceed
$2,466,255 for the Sewer Lateral Replacement Project (WC-99013) at various locations across
the City; Authorization for the City Manager or Designee to Negotiate and Execute Related
Change Orders Not-to-Exceed $246,626 for a Total Not-to-Exceed Amount of $2,712,881 for a
Three-Year Term. CEQA Status: Exempt under CEQA Guidelines 15302 (Replacement or
Reconstruction of Existing Facilities).
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute contract
C27197641 with A3 Pipeline1 in an amount Not-to-Exceed $2,466,255 for the Sewer
Lateral Replacement Project (WC-99013) at various locations across the City for a Three-
Year Term; and
2. Authorize the City Manager or their designee to negotiate and execute one or more
change orders to the contract with A3 Pipeline for related additional but unforeseen
work, in an amount not-to-exceed $246,626 or 10% of the contract amount. The total
authorized not-to-exceed amount is $2,712,881.
EXECUTIVE SUMMARY
The Sewer Lateral Replacement Project (WC-99013) is part of the City Council-approved Capital
Improvement Program (CIP) intended to improve the reliability of the City's wastewater
collection system, address known defects, reduce the risk of sanitary sewer overflows, and
reduce recurring maintenance activities.
1 Contract C27197641 with A3 Pipeline https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2026/august/c27197641-sewer-lateral-final.pdf
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The project focuses on replacing deteriorated public sewer laterals, which are the portions of
the sewer laterals that extend from the public sewer main to the property line, and are referred
to herein as the public sewer lateral.
BACKGROUND
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replacement in the first year of the program, with the remaining laterals planned for
replacement in subsequent years.
ANALYSIS
Table 1: Summary of Invitation for Bids
Project Bid Name/Number Sewer Lateral Replacement
Project (IFB-197641)
Proposed Length of Project 3-years
Number of Bid Packages downloaded by
Contractors 45
Total Days to Respond to Bid 44
Pre-Bid Meeting Yes (non-mandatory)
Number of Company Attendees at Pre-Bid
Meeting 7
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Number of Bids Received:5
Public Link to Solicitation
https://procurement.opengov.co
m/portal/palo-alto-
ca/projects/258907
Base Bid Engineers Estimate $2,870,000
Base Bid Price for 3 years
(Basis for Bid Award)
From a low of $2,466,255 to a
high of $3,809,125
Base plus Supplementary Bid for 3 years
(Basis for Bid Evaluation)
From a low of $3,110,815 to a
high of $5,070,625
Bids were received from five bidders, as listed in the attached Bid Summary (Attachment B) and
were reviewed for responsiveness and responsibility in accordance with City procurement
requirements. Staff determined that all bids were responsive and responsible. Staff
recommends awarding the contract to A3 Pipeline as the lowest responsive and responsible
bidder in the amount of $2,466,255. A contingency of $246,626 (10%) is included to allow for
timely resolution of unforeseen conditions, such as subsurface conflicts and/or site constraints,
to keep the project on schedule.
Staff confirmed that A3 Pipeline holds an active license with the Contractor’s State License
Board and is registered and in good standing with the Department of Industrial Relations (DIR).
Staff also contacted the listed references for A3 Pipeline and found that they performed
satisfactorily on past construction projects for other clients.
FISCAL/RESOURCE IMPACT
Funding for the first year of the contract is available in the FY 2027 Wastewater Collection Fund
capital budget under CIP Sewer Lateral Replacement Project (WC-99013). Funding for
subsequent years is subject to annual budget approvals by City Council and satisfactory
performance by the Contractor.
STAKEHOLDER ENGAGEMENT
The project has been coordinated with internal City departments, including Public Works,
Utilities Operations and Transportation, to align construction activities and minimize impacts to
the public. Work locations have been reviewed to identify potential constraints such as school
routes, arterial streets, and business areas.
Property owners and residents within the project area will be notified in advance of
construction activities. Notifications will be distributed prior to start of work and the Contractor
will be responsible for providing project notices and coordinating access as needed. Additional
communication may include updates through the City’s website and other communication
channels.
Construction activities will be scheduled to minimize disruptions to residents, businesses and
traffic. The Contractor will be required to comply with all applicable traffic control
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requirements, work hour restrictions and coordination with City staff throughout the duration
of the project.
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Attachment A
Meeting Date: September 14, 2026
Staff Report #2603-6104
Contract C27197641 with A3 Pipeline
In order to reduce paper consumption, Contract C27197641 with A3 Pipeline is available online
at: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2026/august/c27197641-sewer-lateral-final.pdf
Total
Base +
Supplementary Bids
Year 1-3
(Basis of Evaluation)
Base
Bid
Year 1
Base
Bid
Year 2
Base
Bid
Year 3
Total
Base
Bid
Year 1-3
(Basis for Award)
Supplementary
Bid
Year 1
Supplementary
Bid
Year 2
Supplementary
Bid
Year 3
Total
Supplementary
Bid
Year 1-3
$2,466,255.00
#2 Casey Construction, Inc.$3,576,375.00 $884,150.00 $908,557.00 $933,653.00 $2,726,360.00
$3,598,000.00
$3,590,675.00
$3,809,125.00
$2,402,063.13