8 5
0 City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 8, 2026
Report #:2512-5653
TITLE
Approval of Professional Services Contract Number C27196575 with Presidio Systems, Inc. in the Amount Not-to-Exceed $938,452 for Closed-Circuit Television (CCTV) Sanitary Sewer Pipeline Inspection for a Period of Three Years; CEQA Status – Not a Project Under CEQA Guidelines Section 15378.
RECOMMENDATION
Staff recommend that the City Council approve and authorize the City Manager or their designee to execute Contract Number C27196575 (Attachment A) with Presidio Systems, Inc. for CCTV inspection services for a term of three (3) years and a total, not-to-exceed amount of $938,452, including $853,139 for basic service and $85,313 for additional services.
EXECUTIVE SUMMARY
To ensure the long-term resilience of City’s wastewater collection system, it is recommended that the City of Palo Alto (City) initiate a comprehensive CCTV inspection project. This project includes CCTV inspection of approximately 230,000 linear feet (44 miles) of sewer mains to be inspected over the period of 3 years. The sewer mains proposed for the CCTV inspection are non-plastic and no slip lined pipes, and cover a diameter range from 6 to 18 inches. CCTV sewer main inspection shall follow industry standards such as National Association of Sewer Service Companies (NASSCO) Pipe Assessment and Certification Program (PACP) standards.
The last CCTV inspection project was completed in 2006. This project will help the City maintain wastewater collection system compliance with environmental regulations. The CCTV inspection results inform proactive sewer main cleaning and repair activities and provide information about the sewer main’s structural condition to help prioritize the Capital Improvement Program (CIP) for the City’s wastewater collection system.
BACKGROUND
The City’s last CCTV inspection project was completed in 2006 and now requires a comprehensive update. A CCTV sewer inspection program uses specialized cameras to inspect
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0 and diagnose the condition of sewer main lines. This process provides high-resolution videos of pipes to locate blockages, root intrusions, leaks and pipe breaks. This process helps with system compliance and overall maintenance, preventing costly repairs through early and accurate detection of compromised pipeline integrity.
As part of the 2025 Sewer Master Plan (SMP), the SMP consultant developed a recommendation for the City to perform a future CCTV program to assess the current condition of pipes. The City reviewed the SMP’s proposed CCTV Program, and developed the first phase of this CCTV program, based on risk analysis:
Table 1: Sewer Main CCTV Prioritization, By Year
Year Total (miles) Sewer mains prioritization identified in the SMP 1 15 High-risk sewer mains
2 14 High-risk & medium-risk sewer mains
3 15 Medium-risk sewer mains
The CCTV data obtained from this project will be used as a foundation for the City’s wastewater collection system capital improvement program. Additionally, CCTV inspection data obtained from this project will be used in the future to focus planned maintenance programs.
ANALYSIS
Project Description
The proposed 3-Year CCTV program will evaluate 44 miles of sewer main and provide inspection results using industry standards such as National Association of Sewer Service Companies (NASSCO) Pipe Assessment and Certification Program (PACP) standards.
Solicitation Process
On March 19, 2026, the City posted a notice of request for proposal (RFP) for the 3-Year CCTV Sanitary Sewer Main Inspection Project on the City’s electronic procurement system, OpenGov.
The bidding period was 27 calendar days. Nine (9) vendors submitted proposals on April 14, 2026, as listed on the attached 3-year CCTV Bid Summary (Attachment B).
Table 2: Summary of Request for Proposal
Project Bid Name/Number 3-Year CCTV Sanitary Sewer Main Inspection project, CIP WC-26001, RFP 196575
Proposed Length of Project 3 years at 105 working days per year, between the dry weather months of April and November.
Number of Vendors Notified 3941
# of Proposal Packages Downloaded by Vendors 47
Total Days to Respond to Request for Proposals 27 Calendar Days Pre-Proposal Meeting Yes (Non-Mandatory) on March 24, 2026 at 10am Pre-Proposal Meeting Date no pre-qualification requirement 8 5
0 Table 2: Summary of Request for Proposal
Project Bid Name/Number 3-Year CCTV Sanitary Sewer Main Inspection project, CIP WC-26001, RFP 196575
Number of Proposals Received 9
Proposal Price Range $576,445 to $2,269,960
Public Link to Solicitation https://procurement.opengov.com/governments/6 50/projects/247562/manage
Presidio Systems, Inc. was selected as the top-ranked proposer based on their expertise, methodology, and relevant project experience. Proposal cost was independently evaluated by Purchasing administrator following the completion of the technical evaluation by Engineering staff.
Presidio Systems, Inc. submitted the 3rd lowest bid, demonstrated the highest technical proficiency, and was identified as the best value proposer. Presidio Systems, Inc. listed previous experiences working with local agencies on large-scale projects. Additionally, they proposed utilization of additional crews to address heavy debris areas and software solutions that support future maintenance planning. Staff have evaluated the submitted proposals and recommend that the proposal of $853,139 submitted by Presidio Systems, Inc. be accepted and be deemed the most advantageous to the City. The selected vendor’s proposal is approximately
5.2 percent below the staff engineer’s estimate of $900,000.
The two (2) lower priced bidders scored lower than the preferred vendor. Examples of areas these submittals feel below the recommended service provider include but are not limited to project references with projects that are currently in progress or scaled down with only 6,000 LF of CCTV inspected sewer mains, reference to projects out of the area, and lack of experience with high traffic on local arterials and severe regional bottlenecks.
Timeline
This CCTV project must be conducted during the City’s historical dry season (April through November) - an industry standard. Dry weather provides the ideal conditions for gathering accurate, actionable data, due to minimum Inflow and Infiltration (I&I) generated from stormwater or groundwater that enters sanitary system through damaged pipes, leaky joints, or improper connections. The low wastewater flow ensures maximum visibility of the pipe invert, reduces the risk of equipment loss, and provides a clear baseline of structural integrity and debris accumulation without the interference of storm-related inflow and infiltration.
FISCAL/RESOURCE IMPACT
Funding for the first year of the contract is included in the FY 2027 Wastewater Collection Capital Budget under WC-26001 (Closed Circuit Television Sewer Main Inspection), subject to City Council approval. Funding for subsequent years is contingent upon Council appropriation 8 5
0 and approval of funds through the annual budget process. The total project cost of $938,452 includes total basic services of $853,139 and $85,313 (10%) for optional additional services, if deemed necessary by the City, over three years.
Breakdown of Three-Year Contract Costs for CCTV Inspection (WC-26001) Table 3: Three-Year Contract Costs for CCTV Inspection
Fiscal Year (FY) CCTV Inspection (not to exceed)
2027 $292,037
2028 $273,449
2029 $287,653
Subtotal $853,139
Additional Services $85,313
Total $938,452
In accordance with the City’s Purchasing Manual, Section 8.8 Additional Services states that Additional Services are available to the City’s project manager to cover changes, additions, or expansion to the original scope of work which for this project may include performing up to an additional 4 miles of CCTV and unanticipated additional sewer main cleaning to facilitate CCTV.
STAKEHOLDER ENGAGEMENT
The key stakeholders for this project include the Utilities Department and Office of Transportation. Engagement strategies include Utilities Department Division meetings, planning, coordination meetings, and work reviews with other departments.
ENVIRONMENTAL REVIEW
Council action on this item does not require California Environmental Quality Act (CEQA) review because the proposed actions to assess conditions and prepare pipeline assessment reports does not meet the definition of a “project” under CEQA Guidelines section 15378, as it has no potential to result in a physical change to the environment. The pipe repair work, which the proposed action relates to, was previously evaluated under CEQA prior to approval and was found to be categorically exempt under CEQA Guidelines Section 15301 (repair, maintenance, or minor alteration of existing public facilities involving negligible or no expansion of existing or former use).
ATTACHMENTS
Attachment A: Presidio Systems, Contract No. C27196575
Attachment B: 3-year CCTV Bid Summary
APPROVED BY:
Alan Kurotori, Director of Utilities