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
PUBLIC WORKS & PUBLIC UTILITIES
DEPARTMENTS
DATE: JUNE 13, 2023
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: AWARD OF CONSTRUCTION CONTRACT AND AUTHORIZE
RELATED DOCUMENTS FOR UNDERGROUND DISTRICT NO.
66 BEACH BOULEVARD
ATTACHMENT (Y/N): YES ITEM # 12
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Award the construction contract (Contract) to the lowest responsible bidder, Hot Line Construction Inc., of Brentwood, California, Contractor’s License No. 710855 Classifications A and C-10, in the amount of $25,615,978.27 plus a 10% contingency for the construction of Underground District No. 66 Beach Boulevard (Project);
2. Authorize and direct (a) the Director of Public Works, on behalf of the City of Anaheim (City), to execute the Contract and any other related documents, and to take such actions as are necessary to implement and administer the Contract; and (b) the Finance Director to execute the Escrow Agreement pertaining to contract retentions.
3. Authorize and direct the Public Utilities General Manager or designee, on behalf of the City, to (a) execute the Facilities Relocation Agreement (Agreement) with Southern California Edison (SCE); (b) pay the estimated sum of up to $2,000,000 plus a 20% contingency to reimburse SCE for its electrical construction and associated cost of materials as part of undergrounding its facilities; and (c) approve any related documents and take any and all actions as are necessary to implement and administer the Agreement.
4. Amend Anaheim Public Utilities’ (APU) Fiscal Year 2022/23 Electric Capital Improvement Program budget by $25,615,978.
DISCUSSION:
The Project bids are summarized as follows:
1. Hot Line Construction, Inc., Brentwood, CA..................................$25,615,978.27
2. Asplundh Construction LLC, Buena Park, CA .............................$25,949,585.95 Award of Construction Contract and Authorize Related Documents for Underground District No. 66 Beach Boulevard June 13, 2023
3. Henkels & McCoy, Inc., Pomona, CA. ...........................................$31,873,009.11
4. JM Communications, Inc., Van Nuys, CA......................................$39,563,404.87
5. Hampton Tedder Electric Company, Montclair, CA ......................$41,420,349.26
6. PAR Western Line Contractors, Rancho Cucamonga, CA.............$46,851,514.51 Hot Line Construction, Inc. (Hot Line) is recommended for the construction award as the lowest responsible bidder. Hot Line’s bid price reflects the current bidding environment and appears to be reasonable. Liquidated damages for this Project are set for $1,000 per day.
This Project is part of the Five-Year Underground Conversion Plan that will convert existing overhead power and communication systems to underground on Beach Boulevard from south of Ball Road to north of Lincoln Avenue. Undergrounding of the overhead utilities and installation of new street lights are integral parts of the Beach Boulevard Specific Plan which outlines the improvements to the Beach Boulevard corridor that also include roadway, property, and signage improvements.
SCE has overhead power lines that pass through Anaheim’s boundaries on Beach Boulevard. In order to underground SCE’s lines, the City is responsible for the associated costs since the California Public Utilities Commission (CPUC) determined that SCE is not obligated to fund undergrounding of their facilities in Anaheim. SCE lines to be undergrounded as part of the project include their distribution (12,000 Volt) system along Beach Boulevard; however, their subtransmission (69,000 Volt) system at the intersection crossing of Beach Boulevard and Ball Road is not included in the project scope due to the significant cost and infrastructure needed to underground the higher voltage lines.
Additionally, Anaheim Public Utilities (APU) ratepayer funds are unable to pay for undergrounding of another utility’s electric lines. Therefore, the initial capital outlay will be funded by APU and reimbursed over time by the City’s General Fund. The estimated total cost to underground SCE’s distribution system on Beach Boulevard includes civil construction costs along with electrical installation and in total, is upwards of $6M. Actual expenditures for SCE undergrounding will be audited to ensure proper accounting.
The Project is tentatively scheduled to begin construction in Fall 2023 with completion by Summer 2025.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is not a covered “Project Work” as defined in the Amended and Restated Community Workforce Agreement (CWA). Electric utility work on high voltage utility equipment and other special utility construction work are specifically exempt and excluded from the scope of the CWA.
ENVIRONMENTAL DETERMINATION:
The City Council determined, by Resolution on December 5, 2017, that pursuant to Sections 15301(b) 15302(c)(d) and 15303(d) of Title 14 of the California Code of Regulations, the Project was Award of Construction Contract and Authorize Related Documents for Underground District No. 66 Beach Boulevard June 13, 2023
categorically exempt from the California Environmental Quality Act. The Project consists of relocating existing overhead utility lines to underground, installing minor street apparatuses and LED street lighting, which does not have the potential to create a significant effect on the environment.
The work areas will be restored to pre-Project conditions as part of the construction activities.
IMPACT ON BUDGET:
City Council action will increase APU’s Fiscal Year 2022/23 restricted Electric Capital Improvement Program budget by $25,615,978.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Exhibit A
2. Vicinity Map
3. Facilities Relocation Agreement with SCE