200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: AUGUST 9, 2022
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: APPROVAL OF MASTER AGREEMENT FOR WATER
CONSTRUCTION, MAINTENANCE, REPAIR, AND IMMEDIATE
RESPONSE PROJECTS
ATTACHMENT (Y/N): YES ITEM # 12
RECOMMENDATION:
That City Council, by Motion:
1) Determine that the projects to be performed under the attached Master Agreement shall be categorically exempt under the California Environmental Quality Act (CEQA), Sections 15301, 15302, 15303, and/or 15304 of Title 14 of the California Code of Regulations;
2) Approve the Master Agreement for water construction, maintenance, repair, and immediate response projects (Master Agreement) for a five year term, with an optional 12 month extension to complete outstanding work order packages or requests, between the City of Anaheim (City) and contractors pre-qualified by the City, and approve a not-to-exceed award amount of $500,000 per work order package, with a limit per contractor of $3 million in total awards during each fiscal year of the Agreement term, plus change order authorization in an amount not-to-exceed $50,000 per occurrence, with total change orders per work order not-to-exceed $100,000;
3) Authorize and direct the Public Utilities General Manager or designee, on behalf of the City, to execute the Master Agreement with Arnaz Engineering Contractors, Inc.; Big Ben, Inc.; Ferreira Coastal Construction Co., Inc.; General Pump Company, Inc.; J. De Sigio Construction, Inc.; J.A. Salazar Construction and Supply Corporation, Inc.; J.R. Filanc Construction Company, Inc.; Mike Bubalo Construction Co., Inc.; Paulus Engineering, Inc.; Stephen Doreck Equipment Rentals, Inc.; T.E. Roberts, Inc.; W.A. Rasic Construction Company, Inc.; and such other contractors pre-qualified by the City in the future during the term of the Master Agreement;
4) Authorize the Public Utilities General Manager or designee, on behalf of the City, to take any and all actions as are necessary or advisable to implement and administer the Master Agreement; and
Approval of Master Agreement for Water Construction, Maintenance, Repair, and Immediate Response Projects June 22, 2022
5) Authorize de minimis changes that do not substantially change the terms and conditions of the Master Agreement, as determined by the City Attorney.
DISCUSSION:
At its meeting on June 22, 2022, the Public Utilities Board (PUB) recommended that City Council approve these actions.
Since 2004, Public Works and Anaheim Public Utilities (APU) have collaborated on the development of a Master Agreement process to accelerate public contracting awards for water utility infrastructure projects. By pre-qualifying contractors on three-year terms and establishing standard Master Agreements with general terms and conditions, contractors are able to efficiently provide competitive bids for specific scopes of work on small water construction or maintenance projects that serve to improve reliability to Anaheim customers. The bidding process is conducted in accordance with Section 1211 of the Charter of the City of Anaheim and utilizes the City’s online bidding system. The proposed Master Agreement will replace the current agreements that were approved by City Council on September 10, 2019, and will expire in September 2027.
APU utilizes outside contractors to supplement internal staff in order to (1) perform small water capital improvement projects in a timely fashion, and (2) establish access to contractors with specialized equipment for immediate response should an emergency event occur. The Master Agreement also optimizes staffing levels by accommodating fluctuations in workload through external contractors rather than relying solely on internal crews. Work to be performed under the Master Agreement may include as-needed construction of water mains, services, and valves, as well as repair, rehabilitation, or maintenance of groundwater wells, pump stations, and water treatment plant equipment.
A Request for Bids was advertised through the City’s online bidding platform on April 21, 2022.
The solicitation established minimum qualifications required by the City to perform construction of water facilities and pipelines. The City received 12 proposals, and City staff reviewed each proposal for qualifications and reasonableness of fees. Staff recommends that City Council award Master Agreements to the following 12 proposers:
1. Arnaz Engineering Contractors, Inc. 2. Big Ben, Inc.
Anaheim, CA Irvine, CA
License No. 755332 License No. 774444
3. Ferreira Coastal Construction Co., Inc. 4. General Pump Company, Inc.
Rancho Cucamonga, CA San Dimas, CA
License No. 985180 License No. 496765
5. J. De Sigio Construction, Inc. 6. J.A. Salazar Construction and Supply Baldwin Park, CA Corporation, Inc.
License No. 737593 La Habra, CA
License No. 743587
Approval of Master Agreement for Water Construction, Maintenance, Repair and Immediate Response Projects August 9, 2022
7. J.R. Filanc Construction Company, Inc. 8. Mike Bubalo Construction Co., Inc.
Escondido, CA Baldwin Park, CA
License No. 134877 License No. 771279
9. Paulus Engineering, Inc. 10. Stephen Doreck Equipment Rentals, Inc.
Anaheim, CA Pico Rivera, CA
License No. 724114 License No. 665471
11. T.E. Roberts, Inc. 12. W.A. Rasic Construction Company, Inc.
Irvine, CA Long Beach, CA
License No. 603008 License No. 368761
When APU staff determines that work cannot be accommodated by field crews, work order packages are prepared for bidding. The Master Agreement contractors are invited to compete, via an on-line bid process, to perform the work. The value of each work order package is limited to $500,000, which has been established as the threshold for small water construction or maintenance projects. One change has been made to the Master Agreement to increase the individual change order authority from $10,000 to $50,000 per occurrence, while still retaining the overall change order authority not-to-exceed $100,000. This is to reflect increasing costs for labor, supplies, and equipment on projects.
Ensuring Proper Controls
The Department has implemented a number of measures to ensure transparency in the way the Master Agreement work packages are advertised, awarded, and managed. These include:
A provision which limits the cumulative annual award amount to $3,000,000 per contractor to encourage competition among qualified contractors. All work packages are advertised through the City’s online system. This allows electronic notifications, bid downloads and submittals, online access to the bid documents, and closes bidding for all contractors at the same time. This automated means of bidding eliminates the need for city staff’s involvement in tallying bid submittals as bid results are immediately posted electronically. The Department provides a quarterly report to the Public Utilities Board (PUB) that includes details on all Master Agreement work package awards. The PUB has the opportunity to review and inquire about any of the Department’s Master Agreement awards. The information is accessible by the public on the City’s Board and Commissions webpage.
To ensure that the Master Agreement work packages are within the budgetary constraints, the Department has internal controls in place so project managers are required to obtain management authorization prior to issuing any work package for bidding.
A review of contractors’ insurance and bonding is conducted prior to each award to ensure that they are in compliance with the terms of the Master Agreement.
Approval of Master Agreement for Water Construction, Maintenance, Repair and Immediate Response Projects August 9, 2022
These Master Agreement contracts will remain in effect through September 30, 2027, and the authorization includes a provision to add other contractors that meet all requirements in order to increase competition from qualified firms. Expenditures are subject to the Council-approved budget for APU.
ENVIRONMENTAL DETERMINATION:
Since the projects to be carried out under the Master Agreement will typically consist of replacements, repairs, maintenance, or small additions and alterations, they will fall into one or more of the following CEQA Categorical Exemptions: Section 15301, Section 15302, Section 15303, and/or Section 15304 of Title 14 of the California Code of Regulations.
IMPACT ON BUDGET:
There is no budgetary impact as a result of pre-qualifying the contractors in the Master Agreement.
Projects ultimately awarded to a contractor through the Master Agreement will be supported by funds included in Public Utilities FY22/23 Water Utility budget, and funds for subsequent years are subject to City Council approval.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Exhibit A for Each Contractor
2. Master Construction Agreement