HomeMy WebLinkAboutStaff Report 2601-5844CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, August 10, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
11.Approval of Contract No. C27196740 with Blackhawk Painting Inc. in the Amount of
$735,500 Over a Period of 18 Months for Electric Substations Equipment and
Mechanical Structures Painting Services; Authorization for the City Manager or Their
Designee to Execute Change Orders in an Amount Not-to-Exceed of $73,550, for a Total
Not-to-Exceed Contract Amount of $809,050; and Approval of a Budget Amendment in
the Electric Fund; CEQA Status: Categorically Exempt Under CEQA Guidelines Section
15301.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: August 10, 2026
Report #:2601-5844
TITLE
Approval of Contract No. C27196740 with Blackhawk Painting Inc. in the Amount of $735,500
Over a Period of 18 Months for Electric Substations Equipment and Mechanical Structures
Painting Services; Authorization for the City Manager or Their Designee to Execute Change
Orders in an Amount Not-to-Exceed of $73,550, for a Total Not-to-Exceed Contract Amount of
$809,050; and Approval of a Budget Amendment in the Electric Fund; CEQA Status:
Categorically Exempt Under CEQA Guidelines Section 15301.
RECOMMENDATION
Staff recommend that Council:
1. Approve and authorize the City Manager or their designee to execute contract No.
C27196740 with Blackhawk Painting Inc.1 (Blackhawk) for surface preparation and
painting of substation electric equipment and mechanical structures in an amount not
to exceed $735,500;
2. Authorize the City Manager or their designee to negotiate and execute one or more
change orders to the contract with Blackhawk for related but unforeseen work which
may develop during the contract term, the total value of which shall not exceed $73,550
or 10% of the contract amount, for a total contract not-to-exceed amount of $809,050;
and
3. Amend the Fiscal Year 2027 Budget Appropriation for the Electric Operating and Capital
budgets (requires a two-thirds approval by the Council) by:
a. Increasing the contract services operating budget in the Electric Fund by
$809,050; and
b. Decreasing capital improvement budget EL-89044 (Substation Facility
Improvements) in the Electric Fund by $809,050.
1 Contract No. C27196740 with Blackhawk Painting Inc. https://www.paloalto.gov/files/assets/public/v/1/agendas-
minutes-reports/agendas-minutes/city-council-agendas-minutes/2026/august/c27196740-electric-substation-
painting-contract.pdf
BACKGROUND
Structural Integrity Loss: weakening of mechanical supports and lattice towers due to
corrosion.
Increased Outage Risk: Advanced rust can compromise the seals and dielectric integrity
of energized equipment.
Reduced Equipment Life: rust and corrosion can lead to early replacement of major
equipment, causing increased operating costs and higher utility rates.
ANALYSIS
Pressure washing and mechanical cleaning of surfaces.
Containment of debris in accordance with BAAQMD (Bay Area Air Quality Management
District) requirements.
Painting of Transformers, Switchgear Enclosures, and Lattice Structures.
Work at various sites including the Colorado Power Station (COP) and several
neighborhood distribution substations
Bid Details
Electric Substation Equipment & Mechanical
Structures Painting Work (IFB-196740)
Proposed Length of Project 18 Months
Number of Bid Packages downloaded by
Contractors 39
Total Days to Respond to Bid 27
Pre-Bid Meeting Yes
Number of Company Attendees at Pre-Bid
Meeting 5
Number of Bids Received:8
Public Link to Solicitation https://procurement.opengov.com/portal/palo-
alto-ca/projects/253002
Bid Price Range $735,500 - $1,379,415
Staff have reviewed the bid provided by Blackhawk and found it be responsive to the bid
requirements and as providing the lowest cost to the City. Staff are recommending Council
approve awarding a contract to Blackhawk for the amount of $735,500 and authorize the City
Manager to approve change orders up to 10% of the originally submitted bid amount.
FISCAL/RESOURCE IMPACT
Funding for the maintenance work is available in the FY 2027 Electric Fund budget. Staff
recommends transferring $809,050 from Electric Fund CIP EL-89044, Substation Facility
Improvements to the Electric Fund Operations budget and increasing the Electric Operations
Contract Services budget by $809,050. This will reduce available funding for EL-89044 from
$1,591,000 to $781,950. EL-89044 originally had anticipated funding the repainting of this
equipment. However, the minor nature of work is more appropriately funded as a maintenance
project rather than a capital improvement project.
ENVIRONMENTAL REVIEW
This project is Categorically Exempt from the California Environmental Quality Act (CEQA) under
CEQA Guidelines Section 15301(b) (Existing Facilities), as it involves the maintenance of existing
utility facilities involving negligible or no expansion of use.
POLICY IMPLICATIONS
This recommendation is consistent with the City’s Utilities Strategic Plan to invest in
infrastructure maintenance to ensure high levels of system reliability and safety.
Link:
Contract No. C27196740 with Blackhawk Painting
APPROVED BY:
Alan Kurotori, Director of Utilities
Staff: Terry Crowley, Utilities Chief Operating Officer