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The cost of a new transformer is approximately $1,000,000, and delivery time is approximately one <br />year. The minimum bid for the transformers located in Anaheim is $380,000 each. The goal is to <br />obtain the two new transformers at a cost that is similar to the cost of refurbishment, and replace <br />Transformer #1 and Transformer #2 at Hub Substation, which will help to alleviate capacity <br />concerns, provide a solution to accommodate Pacific Rail's operation, and help to provide system <br />reliability. <br />If the Electric Utility is successful in acquiring the transformers, we will be bringing to Council for <br />approval a bid award for the installation of the two transformers at the October 21 Council Meeting. <br />The estimated cost of installation is $80,000. <br />FINANCIAL IMPACT: <br />Funds for this purchase will be drawn from a restricted cash account 520-1000-007 and will have <br />no impact to operating cash. Additionally since this is a purchase of an asset which will be <br />capitalized there is no budgetary impact to the electric utility. The available cash in the restricted <br />cash account is $2,507,138. <br />Budget <br />Year -to -Date <br />Expenditures <br />Open Encumbrances <br />Available Funds <br />NA <br />NA <br />NA <br />$2,507,138 <br />ENVIROMENTAL IMPACT: <br />None. <br />CONFLICT OF INTEREST: <br />None. <br />RECOMMENDATION: <br />Staff requests approval to bid on two 15/20/25 MVA — 69/12 kV 3-phase Pauwels Power <br />transformers that the City of Anaheim is auctioning, and delegate authority to the City Manager to <br />submit the bid. Staff is available to discuss any desired delegated authority range in person. <br />IIREVIEW TEAM ONLY <br />City Attorney:«�-- <br />City Manager: <br />Finance Director: b • bi-At is WR <br />OTHER: <br />