HomeMy WebLinkAboutStaff Report 2605-6359CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, August 10, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
10.Approval of Contract C27197195 with High Point Power Systems in the Amount of
$286,660 for the Repair and Refurbishment of a Load Tap Changer Located at Adobe
Creek Substation; and Authorization for the City Manager or Their Designee to Execute
Change Orders in an Amount Not-to-Exceed $28,666, for a Total Contract Not-to-Exceed
Amount of $315,326. CEQA Status –Categorically Exempt Under CEQA Guidelines
Sections 15301 and 51302.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: August 10, 2026
Report #:2605-6359
TITLE
Approval of Contract C27197195 with High Point Power Systems in the Amount of $286,660 for
the Repair and Refurbishment of a Load Tap Changer Located at Adobe Creek Substation; and
Authorization for the City Manager or Their Designee to Execute Change Orders in an Amount
Not-to-Exceed $28,666, for a Total Contract Not-to-Exceed Amount of $315,326. CEQA Status –
Categorically Exempt Under CEQA Guidelines Sections 15301 and 51302.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute contract
C271971951 with High Point Power Systems in the amount of $286,660 for the repair
and refurbishment of a load tap changer at Adobe Creek Substation; and
2.Authorize the City Manager or their designee to negotiate and execute change orders
for related, additional, and unforeseen work which may develop during the contract
term, the total value of which shall not exceed $28,666 or 10% of total contract; for a
total not-to-exceed contract amount of $315,326.
BACKGROUND
Adobe Creek Substation is vital to the City of Palo Alto Utilities’ (CPAU) electric distribution
network. The subject transformer is currently off-line and unable to serve customers. This
creates a reliability risk for customers served by the substation and those served by adjacent
substations (Colorado & Maybell).
ANALYSIS
A 15MVA transformer has a long-lead item of 36-48 months for a new replacement. By
performing these targeted repairs, CPAU defers a multi-million-dollar capital outlay of a new
1 Contract C27197195 with High Point Power Systems https://www.paloalto.gov/files/assets/public/v/2/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2026/august/c27197195-adobe-creek-
transformer-final.pdf
unit while addressing the failure modes. The repair specifically addresses “moisture ingress”,
which shortens the life of the paper insulation contained inside the transformers. By re-
gasketing the bushings and seals, we maintain the dielectric strength of the insulating oil,
preserve the life of paper insulation and lower the risk of internal flashovers that could lead to
extended power outages.
Project Scope of Work
Bid Details
Adobe Creek Transformer-21; 15 MVA OLTC
Refurbishment & Radiator Flange Repair/Re-gasket
(IFB-197195)
Proposed Length of Project 120 Days
Number of Bid Packages downloaded by
Contractors 27
Total Days to Respond to Bid 15
Pre-Bid Meeting No
Number of Company Attendees at Pre-Bid
Meeting N/A
Number of Bids Received:4
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto-
ca/projects/248855
Bid Price Range $234,165 to $456,116
FISCAL/RESOURCE IMPACT
POLICY IMPLICATIONS
infrastructure replacement program, based on planned replacement before failure to support
reliability and resiliency.”
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
CONTRACT LINK: Contract C27197195 with High Point Power Systems
APPROVED BY: