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Agenda Report
October 13, 2026
hlonorable Mayor and City Council
Department of Water and Power
SUBJECT: REPORT ON EMERGENCY RENTAL OF SPECIALIZED EQUIPMENT FOR THE PATH TWO 35KV CABLE REPLACEMENT PROJECT
RECOMMENDATION:
This report is for information only as required by Pasadena Municipal Code ("PMC") Section 4.08.150 for any emergency purchase where the expenditure exceeds $250,000.
BACKGROUND:
Pasadena Water and Power ("PWP") Power Delivery Division is preparing to initiate thePath 2 underground cable replacement project. This work will require the removal anddisposal of existing underground cables and the installation of new replacement cables.
The Path 2 underground cables are a critical component of the City's electrical subtransmission system, facilitating power sen/ice delivery from the east to the westside of the city.
The project has been presented to the City Council on two prior occasions:
On July 14, 2025, the City Council awarded a contract to Anixter, Inc. for the procurement of the replacement cables. The cables have been ordered, and several segments have already been delivered or are currently en route.
On March 9, 2026, the City Council awarded a contract to Outsource Utility Contractor, LLC ("Outsource") for implementation of the project.
Although Outsource is contractually responsible for completing the cable removal and replacement, Power Delivery field personnel identified substantial operational risks if the contractor is unable to complete the work sequence as planned. Any interruption - whether due to equipment failure, labor or scheduling issues, unforeseen field conditions, or other circumstances - could delay project completion and extend the f
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MEETING OF. 10/13/2026 AGENDA ITEM NO. _1.__..__..
Report on Emergency Rental of Specialized Equipment for the Path 2 Project October 13, 2026
Once the existing cables are taken out of service and removed, the electric systemwould operate in a more vulnerable configuration until the replacement cables are installed, tested, and energized. An extended interruption could increase the likelihoodof electric system failures, potentially resulting in prolonged service disruptions or necessitating rolling outages.
To mitigate these risks, Power Delivery recommended securing specialized rentalequipment as a redundancy in operations measure. Having the equipment would allow PWP crews to intervene to complete the work if the contractor is unable to do so. Thiscontingency support does not alter or reduce the contractor's contractual responsibilities; rather, it provides PWP with an additional safeguard to maintain systemreliability and restore the system to a stable configuration if necessary.
REQUIRED EQUIPMENT
The following specialized equipment was identified as necessary to remove the existing cable, process it for disposal, and install the replacement cable:
Equipment Description Capacity Quantity Monthly
unit price
Monthlytotal
Hogg & Davis 6500 Puller 40,000 Ib
2 $9,850 | $19,700
Condux-Tesmec PM1450 Puller 22,500 Ib
1 $9,850 | $9,850
Freightliner Cable Scrapper/ChopperTruck
HeavyDuty
1 $32,500 | $32,500
Total Monthly Rental $62,050
EMERGENCY CIRCUMSTANCES
The required cable-pulling and cable-processing equipment is highly specialized and not readily available through commercial rental channels. Power Delivery staff contacted contractors and rental vendors and found that comparable equipment was in limited supply and subject to extended lead times.
Power Delivery staff evaluated available City contracting options and contacted the three vendors known to staff that could potentially provide the specialized equipment: Al Asher & Sons, Inc. ("Al Asher"), United Rentals, Inc. ("United Rentals"), and Custom Truck One Source LP ("Custom Truck"). Al Asherwas the only vendor identified with the complete equipment package available within the project's required timeframe. United Rentals did not have the equipment in stock and could only potentially provide it by obtaining the equipment from Al Asher and furnishing it to the City at an additional markup. Custom Truck was also evaluated as an alternative but was not able to provide the complete equipment package within the required timeframe. Based on this review of Report on Emergency Rental of Specialized Equipment for the Path 2 Project October 13, 2026
the lowest obtainable price for equipment capable of meeting the City's immediate operational need.
The emergency procurement was based on the combined risks of beginning the Path 2work without sufficient backup equipment, the potential impact on electric system reliability if the contractor could not complete the work on time, and the limitedavailability of suitable replacement equipment. Following the normal competitive procurement timeline could have resulted in the equipment being released to another customer and unavailable when needed.
Additionally, as outlined in the previous agenda reports, the existing cables are agingand have exhibited a high rate of failure, making them increasingly unreliable. In preparation for this project, PWP has completed upgrades to the supportingsubtransmission lines to ensure that the cables can be safely taken out of service and replaced. This work can only be performed during periods of low system load, which occur in the fall and winter seasons.
Delaying the project to follow a normal procurement process for renting the necessarybackup equipment would have caused PWP to miss this critical construction window,resulting in the work being deferred to next fall and creating a significant reliability risk for the system.
Based on these circumstances, PWP determined that immediate procurement was necessary to protect system reliability and reduce the risks of prolonged customeroutages.
PROCUREMENT AUTHORITY AND REPORTING
Pursuant to PMC Section 4.08.150, "Emergency purchases," the Director of Finance or an authorized representative, with the approval of the City Manager, may secure materials or services without competitive bidding, at the lowest obtainable price, whenan actual emergency requires an immediate purchase. When the expenditure exceeds$250,000, a full report of the circumstances of the emergency purchase must also be filed with the City Council.
Based on the circumstances described above, the City Manager approved the emergency procurement of the specialized underground cable-pulling and cableprocessing equipment from Al Asher for the Path 2 Cable Replacement Project. A purchase order in an amount not-to-exceed $744,600 was authorized for a rental termof up to 12 months.
The $744,600 amount represents the maximum potential cost based on the quoted monthly rental rate of $62,050 for 12 months. Actual expenditures will depend on the Report on Emergency Rental of Specialized Equipment for the Path 2 Project October 13, 2026
duration the equipment is required and is expected to be less than the authorized notto-exceed amount.
This report is being submitted to the City Council after the emergency procurement action, in accordance with the reporting requirement of PMC Section 4.08.150 foremergency purchases exceeding $250,000.
COUNCIL POLICY CONSIDERATION:
The proposed contract is consistent with the City Council's goals to maintain fiscal responsibility and stability, and PWP's strategic initiatives to enhance customersatisfaction and confidence, improve efficiency and business continuity, and maintainPWP's fiscal health and stability.
ENVIRONMENTAL ANALYSIS:
The action proposed herein is not subject to California Environmental Quality Act ("CEQA") in accordance with Section 21065 of CEQA and State CEQA GuidelinesSections 15060 (c)(2), 15060 (c)(3), and 15378. The proposed contract, which allows for the rental of equipment in emergency circumstances, is a continuing administrative and maintenance activity. Moreover, this action would not commit the City to undertaking or approving any actual or specific physical construction activities or any other actions that involve physical changes to the environment. Therefore, the proposed action is not a "project" subject to CEQA, as defined in Section 21065 of CEQA andSection 15378 of the State CEQA Guidelines. Since the action is not a project subject to CEQA, no environmental document is required.
Report on Emergency Rental of Specialized Equipment for the Path 2 Project October 13, 2026
FISCAL IMPACT:The total cost of the purchase order contract is $744,600. Funding for this purchase order will be addressed by the utilization of existing appropriations in the Subtransmission Path 2 Upgrade (03282) CIP budget. It is anticipated that all the costs will be expended in FY 2027. There is no impact to the General Fund.
Respectfully submitted,
DAVID M. REYES
General ManagerWater and Power Department
Prepare by:
VaroofaA Avedian
Assistant General ManagerWater and Power DepartmentApproved by:
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MATTHEW e./ HAWKESWORTH
Interim1 City Manager