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HomeMy WebLinkAboutStaff Report 2510-5315CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, February 23, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     4.Approval of a Purchase Order with ABB Inc. for a Not-to-Exceed Amount of $389,862 to Procure Equipment and Services to Retrofit Ten (10) Existing VHK, Circuit Breakers for the Maybell Electric Substation. CEQA Status: Exempt Under CEQA Guideline 15302(c), Reconstruction of Existing Utility Facilities. City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: February 23, 2026 Report #:2510-5315 TITLE Approval of a Purchase Order with ABB Inc. for a Not-to-Exceed Amount of $389,862 to Procure Equipment and Services to Retrofit Ten (10) Existing VHK, Circuit Breakers for the Maybell Electric Substation. CEQA Status: Exempt Under CEQA Guideline 15302(c), Reconstruction of Existing Utility Facilities. RECOMMENDATION Staff Recommends that Council approve and authorize the City Manager or their designee to execute a purchase order contract with ABB Inc. in the amount of $354,420 for the purchase and installation of ten (10) 12kV, 1200Amp magnetic-actuator type power circuit breakers for Maybell Substation with a 10% contingency of $35,442 for related but unforeseen work, for a total not-to-exceed amount of $389,862. BACKGROUND A circuit breaker is a device that interrupts high voltages and currents during switching or fault conditions to protect utility infrastructure. These devices require regular maintenance and routine testing to ensure proper operation. The high-voltage circuit breakers in Maybell Substation, originally installed in 1986, have exceeded their expected life of 30-35 years. Due to end of life, replacement parts are no longer readily available, and there have been instances where the breakers have failed to operate. Circuit breakers are an integral and critical part of an electric distribution system for maintaining safe and reliable electric service. Staff recommend that these selected breakers be replaced with modern circuit breakers equipped with magnetic actuators that can fit into the existing switchgear. Operational speed and response time of these replacement circuit breakers are faster due to their magnetic control of the mechanism. Magnetically-actuated circuit breakers with modern technology have fewer moving parts, longer in-service intervals between maintenance, and provide improved reliability over legacy spring- actuated breakers. ANALYSIS The City’s Utilities staff evaluate the distribution system on an ongoing basis, including inspection and testing of existing facilities. Through routine inspection and testing of Maybell Substation’s 12kV circuit breakers, two breakers failed during testing. The failure of these breakers was attributed to their age and wear of existing in-service parts. Staff has determined that the only viable and cost-effective option for replacing the circuit breakers in Maybell Substation is to use retrofitted breakers manufactured by ABB Inc., which is the successor company to the original manufacturer. For this reason, Staff is recommending approval for the purchase of ten (10) circuit breakers directly from ABB via a sole source exemption 2.30.360(d) approved by the City Manager or their designee under the City’s standard procurement process. City staff requested a quotation from ABB on October 13, 2025, for compatible replacement breakers, and ABB quoted a price of $354,420 for ten breakers and installation support. ABB’s quote includes installation, training and commissioning by ABB approved installers consistent with the manufacturer’s warranty. The quoted onsite installation services include verification of fit within the City’s existing switchgear, confirmation of mechanical and electrical connections, and testing of functional operations. Staff is recommending ABB provide the installation of the replacement breakers to ensure proper fit and operation of the replacement breakers. Additionally, if ABB technicians install the replacement breakers, ABB will extend the manufacturer’s warranty an additional four years. Funding for the $354,420 to purchase the circuit breakers is available in the FY 2026 Electric CIP Budget under Capital Improvement Project EL-17002 (Substation Breaker Replacement). Outside of approval during a regularly scheduled Council meeting, no stakeholder engagement was sought for the procurement of new 12kV circuit breakers for City’s substation. This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15302(c), replacement or reconstruction of existing facilities. : Alan Kurotori, Director of Utilities Staff: Terry Crowley, Utilities Chief Operating Officer Staff: Mohammad Fattah, Electric Engineering Manager