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: JULY 15, 2025
FROM: FINANCE DEPARTMENT
SUBJECT: RESCIND CONTRACT AWARD TO NOUVEAU
ELEVATOR CALIFORNIA FOR BID #9852 AND AWARD
CONTRACT TO MITSUBISHI ELECTRIC US, INC. AS
THE NEXT LOWEST RESPONSIVE BIDDER AND
AUTHORIZE AWARD OF CONTRACT FOR BID #515-
208638-AH TO MITSUBISHI ELECTRIC US, INC.
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Rescind the contract award to Nouveau Elevator California for Bid #9852 Escalators 9 & 10 Step Replacement at the Anaheim Convention Center due to a vendor-submitted bid pricing error and vendor’s formal request to withdraw from consideration;
2. Authorize the award of Contract MA# 106-498348 to Mitsubishi Electric US, Inc., in the amount of $313,564.81, as the next lowest responsive bidder for Bid #9852 - Removal and Replacement of Escalator Steps on Escalators 9 & 10 at the Anaheim Convention Center and authorize the Finance Director/City Treasurer, or designee, to execute the contract, and take any other necessary action, effective on the date of execution and continuing until all materials, services, and warranty obligations are satisfactorily fulfilled; and
3. Authorize the award of Contract MA# 106-498517 to Mitsubishi Electric US, Inc., in the total amount of $662,794, as the lowest responsive bidder for Bid #515-208638-AH – Removal and Replacement of Escalator Steps on Escalators 3 & 4 and 11 & 12 at the Anaheim Convention Center and authorize the Finance Director/City Treasurer, or designee, to execute the contract, and take any other necessary actions, effective on the date of Rescind Bid #9852 Award to Nouveau Elevator California and Authorize Contract Awards to Mitsubishi Electric US, Inc. for Bids #9852 and #515-208638-AH
July 15, 2025
execution and continuing until all materials, services, and warranty obligations are satisfactorily fulfilled.
DISCUSSION:
The Central Purchasing Office posted Bid# 9852 on the City’s online bid portal.
Sealed bids were received by 2:00 p.m., December 4, 2024, from the following vendors and were publicly opened immediately thereafter.
Bidder Total Bid
Nouveau Elevator California $290,999.00
Walnut, CA
Mitsubishi Electric US, Inc. $313,564.81
Cypress, CA
Kone, Inc. $382,337.10
Costa Mesa, CA
Following the award to Nouveau Elevator California in January 2025, the vendor contacted City staff to report a bid pricing error and formally requested to withdraw from the award. Staff reviewed the request and recommends rescinding the contract award and issuing a new award to the next lowest responsive bidder, Mitsubishi Electric US, Inc. Mitsubishi has confirmed their willingness to accept the award at the same price they originally submitted in December 2024.
In addition, the City issued competitive Bid #515-208638-AH for the removal and replacement of escalator steps on four additional units: Escalators 3 & 4 and 11 & 12. Sealed bids were received by 2:00 p.m., February 28, 2025, from the following vendors:
Bidder Escalators 3&4 Escalators 11&12 Total Bid
Mitsubishi Electric US, Inc.
Cypress, CA
$443,795.00 $218,999.00 $662,794.00
Fujitec America, Inc.
Santa Fe Springs, CA $448,900.00 $248,897.00 $697,797.00 Pacific Coast Elevator
Cerritos, CA $490,000.00 $248,000.00 $738,000.00
The scope of work for both bids includes the removal and replacement of escalator steps using Original Equipment Manufacturer (OEM) steps with yellow Rescind Bid #9852 Award to Nouveau Elevator California and Authorize Contract Awards to Mitsubishi Electric US, Inc. for Bids #9852 and #515-208638-AH
July 15, 2025
demarcation strips, attic stock, and a one-year warranty covering both materials and workmanship. Bid #9852 covers Escalators 9 & 10 and includes the replacement of 200 steps. Bid #515-208638-AH includes two projects: Escalators 3 & 4, which require 286 step replacements, and Escalators 11 & 12, which require 200 step replacements.
Replacing escalator steps is a highly specialized and complex process that requires precise alignment, the use of OEM components, and experienced technicians to ensure safe and reliable operation. This work must be performed by qualified contractors with the technical expertise necessary to meet stringent safety standards and minimize downtime.
The Convention Center’s escalators are among the first features visitors encounter when attending high-profile events such as the National Association of Music Merchants (NAMM), Natural Products Expo West, and WonderCon.
Replacing the steps on these heavily used escalators will improve operational reliability, enhance safety, and elevate the overall appearance, reinforcing the world-class image for which the Anaheim Convention Center is known.
IMPACT ON BUDGET:
Sufficient funds are available in the Convention Center’s FY 2025/26 budget.
Respectfully submitted, Concurred by,
Deborah A. Moreno Thomas Morton, Executive Director
Finance Director/City Treasurer Convention, Sports, and Entertainment Attachment:
1. Contract MA# 106-498348
2. Contract MA# 106-498517