1 STAFF REPORT
DATE: June 24, 2025
T
O: Justin Hess, City Manager
F
ROM: Mandip Kaur Samra, General Manager, Burbank Water and Power VIA: Riad Sleiman, Assistant General Manager, Electric Services David Hernandez, Manager Transmission & Distribution Engineering BY: Youssef Chedid, Principal Electrical Engineer
S
UBJECT: Adoption of a Resolution Approving the Procurement of a Spare 360 MVA, 230 kV to 69 kV Transformer from HD Hyundai Electric America Corporation at LADWP’s RS-E Substation
RE
COMMENDATION
Adopt 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 TRANSFORMER, 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) (Attachment 1).
BAC
KGROUND
Burbank Water and Power (BWP) has a critical need for a 360 megavolt-amperes (MVA), 230 kilovolts (kV) to 69 kV, spare transformer at the Los Angeles Department of Water and Power’s (LADWP) Receiving Station-E (RS-E) Substation, which delivers energy to the City of Burbank (City). Over the past five years, the lead time for the acquisition of this type of large power transformer has increased from about one year to four years, a time frame that would pose an elevated risk to BWP’s system reliability over an unacceptably long period of time.
WATER AND
POWER
2 To mitigate this risk, BWP proposes procuring a fully rated 360 MVA, 230 kV to 69 kV, spare transformer for the LADWP RS-E Substation. The spare transformer will ensure that BWP maintains its high level of system reliability.
DISCUSSION
Earlier this year, BWP staff initiated and completed the formal competitive bidding process for this spare RS-E transformer. On February 5, 2025, a request for bids was released on PlanetBids under Bid No. 2025-002. No bids were received.
Aft
er the formal bidding process, BWP contacted several transformer manufacturers to find out why they didn’t submit a bid. Feedback from the vendors indicated that they did not bid for several reasons, including the complexity of the transformer design given its size and footprint. As a result, BWP concluded that it could not reasonably expect bids if a second round of formal bidding ensued.
Giv
en the estimated four -year lead time to manufacture and deliver this spare transformer, BWP staff obtained a proposal from Hyundai , which happens to be the original manufacturer of the other two transformers at RS-E. In addition, BWP determined that the proposal meets BWP’s technical specifications and that acquiring an identical spare transformer from Hyundai offers several key benefits:
• An identical replacement ensures compatibility with existing substation infrastructure and eliminates the need for complex redesign or modifications. • Since the spare transformer is physically and electrically identical to the existing units, there is no need for foundation redesign, structural modifications, or electrical wiring rework. This ensures full compatibility with existing transformer voltage levels, current ratings, impedance, bushing configurations, and control and protection systems. As a result, installation is significantly simplified, reducing labor and engineering costs, in addition to saving precious time. • Ensures the new transformer can connect seamlessly to the existing electrical bus, protective relays, and Supervisory Control and Data Acquisition (SCADA) systems without requiring additional engineering or significant reconfiguration. • Compatibility with the existing transformers ensures the use of the spare parts already on hand, resulting in substantial savings.
• The existing transformers have proven their performance and have reliably operated within specifications for over 20 years.
Giv
en the importance of this equipment and the potential reliability impact , staff recommends proceeding with an exception to competitive bid and a direct procurement using the existing manufacturer, ensuring continuity, reliability, and cost-efficiency for the City’s electric system. The attached resolution will authorize the General Manager and 3 their designees to accept the proposal and finalize and execute the procurement as described in this staff report, the resolution, and the proposal.
ENVIRONMENTAL REVIEW
The purchase, storage and future use of a fully rated, 360 MVA, 230 kV to 69 kV, spare transformer would be categorically exempt under California Environmental Quality Act (CEQA) Guidelines § 15302 (Reconstruction and Replacement) , since the transformer would be used in connection with the replacement of existing facilities on the same site and have substantially the same purpose and capacity.
FISCAL IMPACT
The total cost of procuring the spare transformer for the LADWP RS -E Substation is $9,917,595.93, including $7,618,266 for the power transformer, $251,602 for supervision and installation, $1,247,810 for transportation, and $799,917.93 for taxes. Staff requests City Council’s (Council) authority to amend the FY 2025-26 Adopted 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, None, LADWP RS-E Sub. Construction Work in Progress).
CONCLUSION
Staff recommends that Council approve an exception to competitive bidding and delegate authority to the General Manager of BWP to purchase a spare 360 MVA, 230 kV to 69 kV transformer from Hyundai and execute all necessary agreements for procuring , transporting, storing, and utilizing the spare transformer at LADWP’s RS-E substation.
Additionally, staff recommends that the Council amend the FY 2025-26 Electric Fund Budget by $9,917,595.93 and appropriate funds for FY 202 5-26 to fund the purchase, engineering, field supervision, storage, and quality assurance factory inspections of the spare transformer. The spare transformer will ensure that BWP maintains its high level of system reliability.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Transformer Proposal