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
The project will include the following tasks: refurbishment of existing OLTC; radiator & flange repair; comprehensive re-gasketing; and, oil processing & commissioning. Final testing and commissioning upon completion of the work will include TTR (Transformer Turns Ratio, Power Factor (Doble) testing, and Sweep Frequency Response Analysis (SFRA) to ensure proper operation of the refurbished OLTC and its mechanical configuration.
A request for bids was sent out and responses received from the vendors listed below in the table.
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
The City received four (4) bids ranging from $234,165 to $456,116. The lowest bid received was deemed unresponsive and disqualified for not meeting licensing requirements. The apparent and lowest responsive bid was received from High Point Power Systems with a quote of $286,660.
FISCAL/RESOURCE IMPACT
Funding for this project is available in the FY 2027 Electric Fund Capital Improvement Program (CIP) under project EL-89004. The estimated cost for parts, specialized field labor (oil processing crews), and engineering oversight is significantly lower than the cost of a full transformer replacement and the associated structural modifications.
POLICY IMPLICATIONS
The recommendation of this contract is consistent with the Council approved Utilities 2018 Strategic Plan (Staff Report 9022), especially the strategic objectives to: “Establish a proactive infrastructure replacement program, based on planned replacement before failure to support reliability and resiliency.”
STAKEHOLDER ENGAGEMENT
This project was advertised to prospective contractors through the City’s procurement platform. The contract does not impact customers that would require community outreach.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301(b) as a repair or maintenance of existing facilities and section 15302(c), as replacement or reconstruction of existing facilities involving no or negligible expansion of capacity.
CONTRACT LINK: Contract C27197195 with High Point Power Systems APPROVED BY:
Alan Kurotori, Director of Utilities
Staff: Mohammad Fattah, Manager of Electric & Fiber Engineering