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
The Utilities Department utilizes precast concrete underground boxes and equipment pads as part of the electric distribution system to provide reliable service to customers throughout the City. These facilities house primary and secondary conductors, splices, switching equipment, and transformers necessary for capital improvement projects, underground conversion work, system upgrades, and new customer connections.
Manufacturers supplying underground boxes to the City must comply with City of Palo Alto Utilities (CPAU) technical specifications, structural loading requirements (heavy traffic-rated applications), seismic criteria, and applicable ANSI and ASTM standards. Because these assets are safety-critical, long-lived, and installed in public right-of-way, strict adherence to specifications and consistent product quality are essential.
The City of Palo Alto has previously maintained contracts with Oldcastle Infrastructure for the purchase of underground vaults and equipment pads, with Council authorization to spend up to $350,000 per year. Over the past several years, Utilities expenditures have consistently approached that annual limit due to increased capital project activity, underground conversion work, reconstruction of existing underground districts, and customer-driven service upgrades.
As system demands have grown, the existing authorization level has become increasingly constrained.
Based on historical expenditures and anticipated capital improvement program (CIP) activity— including Grid Modernization, underground conversions, reliability improvements, and customer-driven development—staff estimates that annual expenditures for underground boxes and pads may reach up to $800,000 in aggregate over the next five years.
ANALYSIS
Consistent with the City of Palo Alto’s Policies and Procedures 1–44/ASD, “Prequalification of Contractors,” the Utilities Department conducted a prequalification process for utility underground box manufacturers.
The prequalification evaluation included:
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
Funding is available within the FY 2026 Electric CIP budget across multiple CIP projects (Electric Customer Connections, Electric System Improvements, Grid Modernization, and Underground District Projects). Funding for subsequent fiscal years will be subject to Council approval through the annual budget process. If additional funding is required in future years, staff will return to Council for approval through the budget process or a budget amendment.
STAKEHOLDER ENGAGEMENT
Approval of this prequalification process and expenditure authorization is consistent with existing City procurement policies and supports the Council-approved Utilities Strategic Plan objectives, including: Ensuring a reliable and resilient electric utility system; Operating utility infrastructure safely and efficiently; and Supporting timely customer service connections and capital project delivery. This action does not modify existing City policy.
ENVIRONMENTAL REVIEW
The authorization to purchase underground utility boxes and pads does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(5), as it is an administrative procurement action. Environmental review will be conducted as required for individual capital improvement projects that utilize these materials.
APPROVED BY:
Alan Kurotori, Director of Utilities
Staff: Jim Pachikara, Principal Engineer Electric & Fiber Utilities