City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 16, 2025
Report #:2505-4651
TITLE
Approval of Construction Contract No. C25194279 with Estate Design and Construction, Inc. in the Amount Not-to-Exceed $283,770 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $28,377 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; 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. C25194279 with Estate Design and Construction, Inc. in the Amount of $283,770 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; and
2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Estate Design and Construction, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $28,377.
BACKGROUND
The University Underpass tunnel has been identified as needing refurbishment through field studies, surveys, and community feedback. The tunnel paint is peeling and tarnished, and the lighting is broken, malfunctioning, and inadequate. These create an unappealing aesthetic, dangerous conditions, and an overall undesirable path of travel for pedestrians. Tunnel paint was refurbished nearly a decade ago, but the lighting issues were not addressed at that time.
ANALYSIS
Project Description
Staff recommends approval of Contract No. C251942791 for the University Underpass refurbishment to meet the needs of all residents and visitors that use the tunnel. This project will carry out necessary maintenance and rehabilitation work to bring the lighting system in the tunnel up to modern standards. The $283,770 expenditure for this contract will be used to demolish the existing lighting system and install new conduit, wiring, and fixtures throughout the tunnels. It will also repaint the interior tunnels including the four ramps that lead up to the train platform. The scope of work includes the installation of 800 linear feet of new conduit and 54 new fixtures, and 18,000 square feet of painting area.
Bid Process
On April 17, 2025, a formal invitation for bids (IFB) for the University Underpass Refurbishment project was posted on the City’s eProcurement system. The City received one (1) bid from qualified contractors on May 8, 2025, as listed on the attached Bid Summary (Attachment A).
Summary of Bid Process
Table 1: Summary of invitation for Bids
Project Bid Name/Number University Underpass Refurbishment IFB #194279 Proposed Length of Project 60 Calendar Days
Number of Bid Packages Downloaded by
Contractors
16 Number of Bid Packages Downloaded by Builder’s
Exchanges
1 Total Days to Respond to Bid 21
Mandatory Pre-Bid Meeting No
Number of Bids Received 1
Base Bid Price Range $283,770
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/159351
The bid was $283,770, which is 5% below the engineer’s estimate of $300,000. Staff has reviewed the bid submitted and recommends acceptance of the base bid submitted by Estate Design and Construction, Inc. in the amount of $283,770, and that Estate Design and Construction, Inc. be declared the lowest responsible bidder. The construction contingency amount of $28,377, which equals approximately 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 reviewed information and similar projects performed by the lowest bidder, Estate Design 1 Estate Design and Construction, Inc., University Underpass Refurbishment Project, Contract #C25194279; https://www.paloalto.gov/files/assets/public/v/1/public-works/engineering-services/cip-contracts/c25194279- estate-design_cc_6.16.2025_staff-report_rev2.pdf
and Construction Inc. and found them to be the lowest responsive and responsible bidder. Staff also checked with the Contractor's State License Board and confirmed the contractor has an active license on file.
FISCAL/RESOURCE IMPACT
Funding for this contract is available in the Fiscal Year 2025 Adopted Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects.
Table 2: Funding Allocation
Funding Source Contract Contingency Total Funding
PF-14003 $100,000 $10,000 $110,000
PO-05054 $183,770 $18,377 $202,147
Total $283,770 $28,377 $312,147
STAKEHOLDER ENGAGEMENT
The tunnel work has been coordinated with the City’s Utilities Department and staff will work closely with CalTrain/Joint Powers Board to minimize impacts to commuters. Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301c of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary.
ATTACHMENTS
Attachment A: Bid Summary
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer