HomeMy WebLinkAboutStaff Report 2603-6178CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, June 01, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
5.Approval of and Authorization to execute Purchase Orders with Jensen Precast and
Oldcastle Infrastructure for the Purchase of Electric Utility Underground Boxes Not to
Exceed $800,000 per year, for a Total Aggregate Not-to-Exceed Amount of $4,000,000 for
Five Years; CEQA Status – Not a Project.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 1, 2026
Report #:2603-6178
TITLE
Approval of and Authorization to execute Purchase Orders with Jensen Precast and Oldcastle
Infrastructure for the Purchase of Electric Utility Underground Boxes Not to Exceed $800,000
per year, for a Total Aggregate Not-to-Exceed Amount of $4,000,000 for Five Years; CEQA
Status – Not a Project.
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute purchase orders as requested by the Utilities Department with Jensen Precast and
Oldcastle Infrastructure for the purchase of electric utility underground boxes not-to-exceed
$800,000 per year for a total aggregate amount not-to-exceed $4,000,000 for five years.
EXECUTIVE SUMMARY
The Utilities Department is requesting Council approve and authorize the purchase orders for
precast concrete underground utility boxes and equipment pads with aggregate annual
expenditures of up to $800,000 per year, for a total aggregate not-to-exceed amount of
$4,000,000 over five years.
Underground boxes and equipment pads are essential components of the City’s electric
distribution system, supporting capital improvement projects, system upgrades,
undergrounding efforts, and new customer connections. Due to increasing infrastructure
demands and capital project activity like Grid Modernization, current annual spending limits
have become insufficient to meet operational needs.
Through a formal prequalification process, Jensen Precast and Oldcastle Infrastructure were
evaluated and determined to meet the City’s technical, quality, and delivery requirements.
Establishing multiple prequalified manufacturers will enhance supply reliability, maintain
competitive pricing, and improve responsiveness to project and service demands.
Under this authorization, the Utilities Department will procure materials on an as-needed basis
by soliciting competitive quotes from the prequalified vendors, ensuring best value while
maintaining flexibility.
BACKGROUND
ANALYSIS
Ability to meet CPAU technical and structural specifications
Compliance with applicable industry standards
Demonstrated manufacturing capacity and quality control processes
Delivery lead times and supply chain reliability
Product performance history and utility references
Ability to accommodate City-standard designs and custom configurations
Following evaluation, Jensen Precast and Oldcastle Infrastructure were determined to meet the
City’s requirements and were selected as prequalified manufacturers.
Both manufacturers maintain a significant operational presence within California, with regional
production facilities capable of fabricating and delivering heavy precast concrete products to
the Bay Area. Underground vaults and transformer pads can weigh several thousand to over
20,000 pounds, requiring specialized handling and transportation. Having manufacturing
facilities in relatively close proximity to Palo Alto reduces transportation time, lowers risk of
delivery delays, minimizes freight costs, and improves responsiveness for urgent or unplanned
system needs. Local production capability also helps mitigate supply chain disruptions and
supports timely delivery for capital projects and customer service installations.
The City’s standard underground boxes and pads that will be procured under this authorization
include, but are not limited to:
Standard primary splice vaults (e.g., 4’x8’, 5’x10’, and 6’x12’ configurations)
Secondary/service pull boxes (traffic-rated and non-traffic-rated)
Three-phase pad-mounted transformer pads (various kVA sizes)
Single-phase transformer pads
Switchgear and sectionalizing switch pads
Vaults and large equipment enclosures for downtown installations
As materials are required, staff will solicit competitive quotations from the prequalified
manufacturers. Purchase orders will be issued based on technical compliance, delivery
schedule, and lowest evaluated price.
Accordingly, staff requests authorization to spend up to $800,000 per year in aggregate with
the two prequalified manufacturers for a five-year period, for a total not-to-exceed amount of
$4,000,000. This structure maintains competitive pricing while providing operational flexibility
to meet infrastructure needs. The materials come in various sizes and styles to meet unique
design requirements and field conditions. With multiple prequalified manufacturers, the City
will have more available options and lowest pricing to select from.
Any additional manufacturer may request prequalification in the future and will be evaluated
using the same established criteria and under the same aggregate term of $800,000 per year or
$4,000,000 over the five-year period.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
APPROVED BY: