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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JUNE 13, 2023
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: AWARD OF DESIGN-BUILD AGREEMENT FOR THE
SUSTAINABILITY EDUCATION CENTER PROJECT
ATTACHMENT (Y/N): YES ITEM # 25
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Determine that the Sustainability Education Center (SEC) Project is categorically exempt under the California Environmental Quality Act (CEQA) pursuant to Sections 15332 and 15300.2 of Title 14 of the California Code of Regulations (Class 32 – In-fill Development Project);
2) Determine the proposal submitted by Oltmans Construction Co. (Oltmans) of Whittier, CA (Contractors License No. 86393, Classifications A and B) is the most advantageous to the City of Anaheim (City); and award to Oltmans a Design-Build Agreement (Agreement), in the form which is attached, to design and construct the Sustainability Education Center in the amount of $8,749,999 plus a 15% contingency for a total not-to-exceed amount of $10,062,499, and waive any irregularities in any of the proposal documents;
3) Authorize and direct the Director of Public Works, on behalf of the City, to execute the Design-Build Agreement and any other related documents and to take such actions as are necessary, required, or advisable to implement and administer the Design-Build Agreement; authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions; and authorize de minimis changes to the Design-Build Agreement that do not substantially change the terms and conditions of the Agreement, as determined by the City Attorney’s Office; and 4) Approve Lot Line Adjustment (LLA) No. LLA2021-00830 for the Project; authorize the Mayor to execute the LLA and corresponding Grant Deed on behalf of the City; and authorize and direct the City Clerk to record the LLA and Grant Deed in the Orange County Recorder’s Office.
That the City Council, by Resolution:
1) Dedicate certain City-owned property for the public street and utility purposes in conjunction with the development of the SEC (Dedication); and authorize and direct the City Clerk to record the Dedication in the Orange County Recorder’s Office.
Award of Design-Build Agreement for the Sustainability Education Center (SEC) Project June 13, 2023
BACKGROUND:
The Public Utilities Board recommended that the City Council approve the Project-related actions at its meeting on May 24, 2023.
The Sustainability Education Center is intended to serve as the Anaheim Public Utilities (APU) flagship educational demonstration facility that incorporates energy and water technologies, sustainability exhibits, and workforce development programs. Programming and design elements of the facility incorporate feedback received from residents, educators, non-profits, and high school students. The Public Works Department (PW) and APU recommend that the City enter into a Design-Build Agreement with Oltmans Construction Co. (Oltmans) to provide design- build services for the Project.
The goal of the SEC is to proactively prepare Anaheim for future changes in how the environment and policies will affect electricity and water systems. SEC will feature highly interactive, engaging, relevant, educational, and multi-purpose exhibits that highlight the importance of long-term sustainability to address decarbonizing energy and managing water resources. Educational exhibits will help residents, businesses, and students learn about electrical safety, renewable technologies, Electric Vehicle (EV) charging, battery storage, water efficiency, drought-tolerant gardens with drip irrigation, and how electricity and water are supplied to Anaheim customers. Programs will feature Science, Technology, Engineering and Mathematics (STEM) based student activities, job skills training in green jobs, and programs and workshops on how to become more sustainable and save money on utility bills. Exhibits will integrate LED displays that can be easily updated and allow for translation into multiple languages.
The Project will be located on a parcel of land owned by APU on Vermont Avenue and Rose Place; the total lot size is approximately 16,000 square feet and is located in an industrial park within walking distance of nearby schools. The former building has been demolished and the parcel is currently used for materials storage. The preliminary concept includes 6,000 square feet of building space for an exhibit hall, classroom/meeting space, and an administration area. The outdoor space will feature an open courtyard, water exhibits, bioswale, rain harvesting, electric school bus and vehicle charging stations, and a solar exhibit.
The Project will be funded through multiple sources, including public benefits funds collected from electric rates, as mandated by Assembly Bill 1890 to support public purpose programs, state emissions credits used for EV technology education and charging stations, and a federal appropriation of $3 million awarded through the office of Congressmember Lou Correa, 46th Congressional District.
The Project schedule includes design activities that will begin upon project award and notice to proceed, followed by long-lead procurement and permitting, with construction starting in 2024, and completion anticipated in Spring 2025.
DISCUSSION:
Procurement of Design-Build Entity:
The design-build procurement for the Project followed Anaheim Municipal Code (AMC), Chapter
10.06 - Design-Build Contracting for Public Works Projects through a 2-step process. Step 1 was a Request for Qualifications (RFQ) that was advertised through the City’s online bidding platform on December 20, 2022. The RFQ established minimum qualifications and criteria to evaluate and rank the design-build entities. The City received six Statements of Qualifications (SOQ) on January 31, 2023. Of these, three design-build entities were pre-qualified.
Award of Design-Build Agreement for the Sustainability Education Center (SEC) Project June 13, 2023
Step 2 was a Request for Proposals (RFP) that was sent to the three pre-qualified design-build entities on February 8, 2023. The RFP established an evaluation criteria to select the most advantageous proposal based on criteria in AMC, Chapter 10.06. The city received three proposals on April 24, 2023. The pre-qualified design-build entities were evaluated based on their: 1) Project Organization and Key Personnel, 2) Architectural Design, 3) Site, Civil, Landscape, and Circulation Design, 4) Mechanical, Electrical, and Plumbing Design, 5) Structural Design, 6) Alternates, Project Enhancements, and Added Value, 7) Efficient and Quality Delivery and Completion On (or ahead of) Schedule, 8) Mitigation of Subsurface Conditions and Negative Construction Impacts, and 9) Project Cost. A final interview was conducted, and the ranking is shown below.
Rank Design-Build Entity
1 Oltmans Construction Co. / SVA Architects, Inc.
2 Flint Design Build LLC DBA Flint / Ruhnau Clarke Architects 3 Blach Construction Company / WRNS Studio
Oltmans’ project approach represents the overall best value, exceeds APU’s minimum requirements and objectives with a facility designed to achieve Leadership in Energy and Environmental Design (LEED) Silver certification, and is recommended for award as the highest ranked firm. The Oltmans team demonstrated their design and construction capabilities, resource availability, financial stability, and their proposal and interview reflected their understanding of delivering a relevant and sustainable project. Oltmans and their design architect have performed similar projects for the City of San Diego and the William S. Hart Union High School District in Castaic.
Lot Line Adjustment No. (LLA)2021-00830 for Assessor Parcel Nos. 037-262-007 and 037-262- 020:
The proposed SEC improvements will be located on two parcels, 037-262-007 and 037-262-020.
The Building Code requires a Lot Line Adjustment for development and permitting purposes.
Both parcels are owned by the City and, as a condition of the issuance of a building permit for construction of the improvements on the parcels, city staff has agreed to adjust the lot lines. Staff recommends the approval of the Lot Line Adjustment and corresponding Grant Deed so that a permit may be issued by Anaheim’s Planning & Building Department. Lot Line Adjustment No.
LLA2021-00830, once recorded, will merge the two parcels into a single parcel (Attachment 2) and the Grant Deed (Attachment 3) is to be recorded pursuant to the Subdivision Map Act to reflect Lot Line Adjustment No. LLA2021-00830.
Dedication of City-owned property for Public Street and Utility Purposes:
The proposed SEC will be located on the corner of Vermont Avenue and Rose Place within the City of Anaheim. The Municipal Code requires a dedication of certain City-owned property for the public street and utility purposes to meet current right-of-way standards for Rose Place pursuant to Public Works Standard 160-A. Staff recommends the approval of the Dedication, Resolution (Attachment 4), so that permits may be issued by Anaheim’s Public Works and by Planning & Building Departments.
Award of Design-Build Agreement for the Sustainability Education Center (SEC) Project June 13, 2023
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is a covered “Project Work” as defined in the Amended and Restated CWA the City entered into with the Los Angeles / Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions. The CWA, as amended, is a pre-hire collective bargaining agreement that establishes labor relations procedures. Therefore, the awarded design-build entity and its subcontractors of all tiers must agree to be parties to and bound by the Amended and Restated CWA by executing a Letter of Assent.
ENVIRONMENTAL DETERMINATION:
Staff recommends that the City Council determine that the Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15332 and 15300.2 of Title 14 of the California Code of Regulations (Class 32 – In-fill Development Project). As detailed in the CEQA Class 32 Categorical Exemption Analysis, the Project is consistent with the applicable General Plan designation and zoning, occurs within City limits on a Project site of no more than five acres substantially surrounded by urban uses, and would not result in any significant effects relating to traffic, noise, air quality, or water quality. The Project does not have the potential to create a significant impact on the environment.
IMPACT ON BUDGET:
Sufficient funds for the costs associated with the Agreement are included in APU’s Fiscal Year 2022/23 restricted Electric Utility Fund budget.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Sample Design-Build Agreement and General Conditions
2. Lot Line Adjustment No. LLA2021-00830
3. Grant Deed associated with Lot Line Adjustment No. LLA2021-00830
4. Resolution for Land Dedication
5. City Request for Proposals (RFP)
6. Oltmans Construction Co. Proposal
7. Vicinity Map