HomeMy WebLinkAboutStaff Report 2511-5438CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, March 16, 2026
Council Chambers & Hybrid
4:30 PM
Agenda Item
7.Approval of Amendment No. 1 to Contract S23184208 with Flynn Resources Inc., in the
Amount of $170,000 for a revised Total Not-to-Exceed Amount of $425,000 and
Extending Term Two Years to Provide As-Needed Electric Engineering Consulting Services
Related to Electric Transmission Line Expansion, Interconnection, Engineering Analysis
and Regulatory Issues; CEQA Status: the Grid Modernization Project is Exempt Under
CEQA Guidelines Sections 15302, 15303 and 15183
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: March 16, 2026
Report #:2511-5438
TITLE
Approval of Amendment No. 1 to Contract S23184208 with Flynn Resources Inc., in the Amount
of $170,000 for a revised Total Not-to-Exceed Amount of $425,000 and Extending Term Two
Years to Provide As-Needed Electric Engineering Consulting Services Related to Electric
Transmission Line Expansion, Interconnection, Engineering Analysis and Regulatory Issues;
CEQA Status: the Grid Modernization Project is Exempt Under CEQA Guidelines Sections 15302,
15303 and 15183
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their
designee to execute Amendment No. 1 to Contract No. S23184208 (Attachment A) with Flynn
Resources Inc., for as-needed electric engineering consulting in an amount not-to-exceed
$170,000 and for two (2) additional years for regulatory support related to an additional 115 KV
transmission path extending between PG&E’s AMES/NASA substation and the City’s Colorado
electric power substation. The amendment results in a revised total contract not-to-exceed
amount of $425,000.
BACKGROUND
The City entered into an agreement with Flynn Resources Inc. on March 28, 2023, for a period
of three (3) years with a not-to-exceed amount of $255,000 or $85,000 annually for
professional consulting services related to transmission planning, design and construction. The
3-year contract term with Flynn Resources Inc. ends on March 31, 2026.
Flynn Resources Inc. possesses extensive experience in Electric Transmission, Interconnection,
Power Generation, Regulatory and Electric Market Design Issues. Flynn Resources has
demonstrated technical expertise and successfully completed electric utility transmission
planning and regulatory compliance projects with other major US electric utilities. These
projects include a recommendation for alternative additions and upgrades to the City’s current
transmission interconnection to the grid for increased capacity and reliability of the 115kV
system serving Palo Alto. Flynn has also provided recommendations for an alternative 115kV
interconnection outside the City’s common corridor.
ANALYSIS
Flynn Resources Inc. is a Transmission Planning Consultant highly experienced in electric grid
reliability, engineering design, and renewable resources integration. They will address technical
challenges, perform advanced transmission system studies and economic analyses, and
evaluate regulatory conditions and risks by applying CPUC, NERC, FERC, and regional
requirements.
FISCAL/RESOURCE IMPACT
Funding for contract amendment number 1 is available in the FY 2026 Electric CIP budget under
EL-24000 (Grid Modernization), EL-19001 (Colorado Power Station Equipment Upgrades),
Subsequent years are subject to City Council’s approval of the annual budget process and
appropriation of funds.
POLICY IMPLICATIONS
Priority 4: Financial Efficiency and Resource Optimization and the core
mission of providing safe, reliable, and compliant electric service to the City’s customers.
Leveraging this existing, proven contractor relationship with documented regulatory expertise
is the most effective use of resources to maintain critical infrastructure and mandatory
compliance.
[1]), especially the strategic objectives to: “Establish a proactive
infrastructure replacement program, based on planned replacement before failure to support
reliability and resiliency.”
STAKEHOLDER ENGAGEMENT
California Independent System Operator (CAISO): For project approval, grid integration,
and transmission planning process adherence.
Pacific Gas & Electric (PG&E): For interconnection agreements and coordination with their
existing infrastructure.
NASA/AMES Research Center and Department of Energy (DOE): For potential access to
their transmission and substation facilities, technical integration, and development of
cost-sharing alternatives.
ENVIRONMENTAL REVIEW
ATTACHMENTS
Attachment A: Flynn Resources Inc.; Contract C23184208 Amendment No. 1
APPROVED BY:
Alan Kurotori, Director of Utilities
Staff: Terry Crowley, Utilities Chief Operating Officer
Vers.: Aug. 5, 2019
Page 1 of 5
AMENDMENT NO. 1 TO CONTRACT NO. S23184208
BETWEEN THE CITY OF PALO ALTO AND
FLYNN RESOURCE CONSULTANTS INC.
This Amendment No. 1 (this “Amendment”) to Contract No. S23184208 (the “Contract” as
defined below) is entered into as of January 20, 2026 by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and FLYNN RESOURCE CONSULTANTS INC., a
California corporation, located at 5440 Edgeview Drive, Discovery Bay, CA 94505 (“CONSULTANT”).
CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of assisting the City with analysis, improvement, and expansion of electric
transmission interconnections existing and future in connection with the Project, as detailed
therein.
B. The Parties now wish to amend the Contract in order to increase the compensation
by One Hundred Seventy Thousand Dollars ($170,000), from Two Hundred Fifty-Five Thousand
Dollars ($255,000) to a new not-to-exceed total compensation of Four Hundred Twenty-Five
Thousand Dollars ($425,000), and to extend the term until June 30, 2028, as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. S23184208 between
CONSULTANT and CITY, dated March 28, 2023.
b.Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:
“SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2026 through June 30, 2028, unless
terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
Vers.: Aug. 5, 2019
Page 2 of 5
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be based on the compensation
structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable
expenses specified therein, and the maximum total compensation shall not exceed Four
Hundred Twenty-Five Thousand Dollars ($425,000). The hourly schedule of rates, if
applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work
performed or expenses incurred for which payment would result in a total exceeding
the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.”
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby
incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES
PREVIOUS.
SECTION 5. Legal Effect.Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Vers.: Aug. 5, 2019
Page 3 of 5
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________
City Manager
APPROVED AS TO FORM:
_____________________________
City Attorney or designee
FLYNN RESOURCE CONSULTANTS INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2 (Required for Corp. or LLC)
By:______________________________
Name:___________________________
Title:____________________________
Attachments:
Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS
Vers.: Aug. 5, 2019
Page 4 of 5
EXHIBIT C-1
SCHEDULE OF RATES
AMENDMENT 1, AMENDED, REPLACES PREVIOUS
CONSULTANT's schedule of rates is as follows:
Labor Category July 2022-
June 2023
July 2023-
June 2024
July 2024-
June 2025
Principal $360 $370 $380
Managing Consultant $340 $350 $360
Senior Consultant-Power
Engineer $330 $340 $350
Senior Consultant $300 $310 $320
Consultant $240 $245 $255
Associate Consultant $220 $225 $235
Analyst $165 $170 $175
Support Services $90 $95 $95
Model Category July 2022-
June 2023
July 2023-
June 2024
July 2024-
June 2025
Power flow modeling $340 $350 $360
Short circuit and stability
modeling $985 $1,015 $1,045
Market modeling $4,880 $5,025 $5,175
Labor Category July 2025-
June 2026
-July 2026-
June 2027
July 2027- June
2028
Principal $390 $400 $410
Managing Consultant $370 $380 $390
Senior Consultant-
Power Engineer $360 $370 $380
Senior Consultant $330 $340 $350
Consultant $260 $270 $280
Associate Consultant $240 $245 $250
Analyst $180 $185 $190
Support Services $100 $105 $110
Vers.: Aug. 5, 2019
Page 5 of 5
Model Category July 2025-
June 2026
July 2026-
June 2027
July 2027- June
2028
Power flow modeling $370 $380 $390
Short circuit and
stability modeling $1,075 $1,105 $1,140
Market modeling $5,330 $5,490 $5,655
Each year, for subsequent years, effective July 1, the applicable rates and charges shall
increase by 3%, rounded to the nearest $5, as indicated in the tables above.
Certificate Of Completion
Envelope Id: 1524C9B5-D7AC-48EC-ACD7-568322DC4AE5 Status: Completed
Subject: Complete with Docusign: S23184208 Amend 1 final.pdf
Source Envelope:
Document Pages: 5 Signatures: 2 Envelope Originator:
Certificate Pages: 2 Initials: 0 Ann Marie Romero
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
annmarie.romero@paloalto.gov
IP Address: 165.225.10.98
Record Tracking
Status: Original
1/14/2026 12:31:18 PM
Holder: Ann Marie Romero
annmarie.romero@paloalto.gov
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: Docusign
Signer Events Signature Timestamp
Doug Boccignone
dougbocc@flynnrci.com
President
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 2a02:26f7:c358:8067:0:6000:0:e
Sent: 1/14/2026 12:34:37 PM
Resent: 1/15/2026 8:43:02 AM
Resent: 1/22/2026 3:43:22 PM
Resent: 1/22/2026 3:45:01 PM
Resent: 1/26/2026 10:46:29 AM
Viewed: 1/26/2026 11:33:58 AM
Signed: 1/26/2026 11:38:58 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Barry Flynn
brflynn@flynnrci.com
Chief Executive Officer
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address:
2600:1700:663c:6c00:c60:c25d:7501:b94d
Sent: 1/26/2026 11:39:00 AM
Resent: 2/2/2026 11:08:14 AM
Resent: 2/2/2026 11:13:47 AM
Viewed: 2/3/2026 7:36:07 AM
Signed: 2/3/2026 7:37:15 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Gopal Jagannath
gopal.jagannath@paloalto.gov
Management Spec
Copa
Security Level: Email, Account Authentication
(None)
Sent: 2/3/2026 7:37:16 AM
Electronic Record and Signature Disclosure:
Carbon Copy Events Status Timestamp
Not Offered via Docusign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 1/14/2026 12:34:37 PM
Envelope Updated Security Checked 1/26/2026 10:46:27 AM
Envelope Updated Security Checked 1/26/2026 10:46:27 AM
Envelope Updated Security Checked 1/26/2026 10:46:28 AM
Envelope Updated Security Checked 1/26/2026 10:46:28 AM
Certified Delivered Security Checked 2/3/2026 7:36:07 AM
Signing Complete Security Checked 2/3/2026 7:37:15 AM
Completed Security Checked 2/3/2026 7:37:16 AM
Payment Events Status Timestamps