200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: AUGUST 9, 2022
FROM: FINANCE DEPARTMENT
SUBJECT: ACCEPTANCE OF BID AND APPROVAL OF THE PURCHASE
AND SALE AGREEMENT FOR THREE SUBSTATION
TRANSFORMERS
ATTACHMENT (Y/N): YES ITEM # 09
RECOMMENDATION:
That the City Council, by Motion, accept the bid of ILJIN Electric USA, Inc., in the amount of $4,010,434 plus applicable tax, for the purchase of three substation transformers for the Anaheim Public Utilities Department and authorize the Purchasing Agent or designee to execute the Agreement for the Purchase and Sale of Transformers (Agreement), all related documents, and take any and all actions as are necessary to implement and administer the Agreement, in accordance with Bid #9586.
DISCUSSION:
Purchasing solicited bids from known suppliers and posted the bid on the City’s bid portal. Sealed bids were received by 2:00 p.m., June 23, 2022, from the following bidders, and were publicly opened immediately thereafter.
Bidders Bid Price
Iljin Electric USA, Inc. $4,010,434
Houston, TX
Isberg & Associates $5,297,379
Pleasanton, CA
Virginia Transformer Corp. $6,078,880
Pocatello, ID
HICO America Sales & Technology, Inc. $6,629,400
Brea, CA
Delta Star, Inc. $18,126,148
San Carlos, CA
Acceptance of Bid for Three Substation Transformers
August 9, 2022
Anaheim Public Utilities (APU) has an ongoing Capital Improvement Program to replace aging utility equipment, such as substation transformers, nearing the end of their useful life to improve reliability and operational flexibility. The proposed substation transformers are needed for present and future capacity and will replace existing substation transformers averaging 36 years old.
The bid was based on the purchase of three substation transformers for installation at two different locations. The bid cost includes delivery cost, assembly at the substation sites, and field-testing before being fully energized. Bidders were asked to provide a fixed price even though the long lead-time for production will require delivery beginning in 2024. The Sharp Substation will receive the first transformer on or after March 1, 2024, and the Southwest Substation will receive their two transformers no earlier than October 1, 2024, but no later than March 31, 2025.
IMPACT ON BUDGET:
Sufficient funds are budgeted in the Anaheim Public Utilities Fiscal Year 2022/23 Electric Capital Improvement Program budget from restricted Electric Utility Enterprise funds.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Dukku Lee
Purchasing Agent Public Utilities General Manager
Attachment:
1) Agreement for Purchase and Sale of Transformers