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RESOLUTION NO. ____________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BURBANK AUTHORIZING THE GENERAL MANAGER OF
BURBANK WATER AND POWER, AS DESIGNEE OF THE
CITY MANAGER, TO APPROVE AN EXCEPTION TO
COMPETITIVE BIDDING AND EXECUTE AN
AGREEMENT WITH HD HYUNDAI ELECTRIC AMERICA
CORPORATION FOR THE PURCHASE OF A 360 MVA,
230 KV – 69 KV SPARE TRANSFORMER FOR THE
LADWP RS- E SUBSTATION, TO EXECUTE ALL
NECESSARY AND RELATED DOCUMENTS TO
COMPLETE THE PROCUREMENT, TRANSPORTATION,
AND STORAGE OF THE TRANSFO RMER, AND AMEND
THE FY 2025- 26 BUDGET TO APPROPRIATE FUNDS
FOR THE STATED PROCUREMENT AND TO FIND IT IS
CATEGORICALLY EXEMPT UNDER CALIFORNIA
ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION
15302(c).
THE COUNCIL OF THE CITY OF BURBANK FINDS:
A. Burbank Water and Power has identified a critical need for a 360 MVA, 230kV to 69kV spare transformer at the LADWP RS -E Substation, which delivers electricity to the City of Burbank.
B. Procuring a fully rated, 360 MVA , 230 kV to 69 kV spare transformer will significantly reduce operational risks and ensure system reliability in the event of a transformer failure. Due to long lead times estimated at four years , immediate procurement is necessary.
C. A formal competitive bidding process (Bid No. 2025- 002) was released by BWP on February 5, 2025. No bids were received.
D. Vendor feedback indicated limited interest due to the transformer's technical complexity. BWP determined that a second bidding round would likely yield no additional responsive bids.
E. HD Hyundai Electric America Corporation, the original manufacturer of the existing RS-E transformers, was contacted and provided a technically compliant proposal.
A direct purchase from Hyundai ensures full compatibility, no redesign requirements, and cost savings from reusing existing infrastructure and spare parts.
F. Section 1205 of the Burbank City Charter and Municipal Code Section 2-2- 116 authorize the City Council to waive formal competitive bidding procedures and approve sole-source procurements in the City's best interest.
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G. The total cost of the transformer procurement, transportation, field supervision, and taxes is $9,917,595.93.
H. The purchase and storage of a fully-rated, 360 MVA, 230 kV to 69 kV, spare transformer would be used in connection with the replacement of existing facilities on the same site and have substantially the same purpose and capacity, and therefore would be categorically exempt under California Environmental Quality Act (CEQA) Guidelines Section 15302(c) (Reconstruction and Replacement).
THE COUNCIL OF THE CITY OF BURBANK RESOLVES:
1. The Project is categorically exempt pursuant to Section 15302(c) of the State CEQA Guidelines.
2. Pursuant to Section 1205 of the Burbank Charter and Municipal Code Section 2-2-116, the City Council hereby authorizes a direct purchase for a 360 MVA, 230kV–69kV transformer from HD Hyundai Electric America Corporation for the LADWP RS-E Substation, to maintain compatibility with the existing station infrastructure .
Accordingly, the City Council hereby waives the traditional competitive bidding process as outlined in Burbank Municipal Code Section 2-2-116 as it is determined that the direct procurement method is in the best interests of the City.
3. Council hereby amends the FY 2025 -26 budget by appropriating $9,917,595.93 from unappropriated balance account number 496.ND000.30004. 0000.000000.21600 (Electric Utility. Non-Departmental. Unappropriated Balance. None.
No Project. Net Assets) to construction in progress account number 496.PS31E.15022.0000.25141.10700 (Electric Utility. Electrical Engineering. Buildings - Work in Progress.
4. The contract documents is between the City and HD Hyundai Electric America Corporation for the procurement of a 360 MVA, 230kV-69kV spare transformer.
The General Manager of Burbank Water and Power is authorized to accept the proposal, and enter into the contract and any amendments, provided that the applicable funds are available and budgeted.
5. Council approves the delegation of authority to the General Manager, and additionally authorizes the Assistant General Manager, Electric Services, or their designee, to execute all other necessary and related documents with HD Hyundai Electric America Corporation to complete the procurement of the spare transformer.
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6. The City Clerk shall be the custodian of all documents and records that constitute the record of proceedings for the Project, and such documents and records shall be maintained in the office of the City Clerk at 275 East Olive Avenue, in Burbank , California.
PASSED and ADOPTED this ____ day of June, 2025.
__________________________
Nikki Perez
Mayor
Attest: Approved as to Form
Office of the City Attorney
____________________________ __________________________ Kimberley Clark, City Clerk Chris Chwang
Senior Assistant City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF BURBANK )
I, Kimberley Clark, City Clerk of the City of Burbank , do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Council of the City of Burbank at its regular meeting held on the ____ day of June, 2025, by the following vote:
AYES:
NOES:
ABSENT:
____________________________
Kimberley Clark, City Clerk