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.
Staff recommend two blanket Purchase orders for off-haul services to provide options and ensure the construction debris material is off-hauled properly and efficiently. The second blanket purchase order will act as a secondary service provider for the Departments and enable them to utilize a second vendor in the event the primary vendor is unable to fulfill the contract requirements.
The primary blanket purchase order will be issued to S&S Trucking since they are the lowest responsive and responsible bidder in the amount of $446,455 in the first year. The second blanket order will be issued to Zanker Road Resource Management LLC for being the second lowest responsive and responsible bidder in the amount of $197,549 for the first year. Staff recommends awarding only 25% of the bid proposal for the secondary provider Zanker Road Resource Management because they will serve as a contingency and as a backup off-haul service provider if the primary vendor S&S Trucking is unable to perform certain work. The remaining term (years 2 –5) will be awarded as stated in Table 3.
Staff does not anticipate spending the entire aggregate not-to-exceed amount of $3,634,430.
Given the importance of off-hauling construction materials and disposal of debris, staff is recommending awarding two on-call service contracts to minimize the risk of disruption. Any funds unspent in both contracts will be disencumbered and returned to the appropriate reserves at the end of each contract year.
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
Funding for off-haul is available in the FY 2026 Utility and Public Works Operating and Capital Improvement Budgets. Funding for subsequent years is contingent upon annual appropriation and approval of funds.
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
Stakeholder engagement consisted of the request for quotation and bidding process described above. There was a required pre-bid meeting held on June 17, 2025, where potential vendors had the opportunity to learn the scope of this project and ask any questions. Bidders were also invited to submit any questions to the OpenGov portal.
ENVIRONMENTAL REVIEW
Off-hauling of construction debris is exempted from further environmental review as off- hauling construction debris is related to the maintenance of existing utility systems, CEQA Guidelines section 15302(c).
APPROVED BY:
Alan Kurotori, Director of Utilities