CITY COUNCIL AGENDA REPORT
200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: SEPTEMBER 26, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: DESIGN-BUILD MASTER AGREEMENT FOR WATER
PROJECTS
ATTACHMENT (Y/N): YES ITEM # 13 GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Determine that the projects to be performed under the Design-Build Master Agreement for Water projects 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 Design-Build Master Agreement for a five-year term with two extensions not-to-exceed 24 months, as necessary, to complete outstanding work order packages in progress, between the City of Anaheim (City) and prequalified Design-Build entities, and approve a not-to-exceed award amount of $3,000,000 per work order package, plus change order authorization in an amount not-to- exceed 10% of the work order package amount;
3) Authorize and direct the Public Utilities General Manager or designee, on behalf of the City, to execute Design-Build Master Agreements (Agreements) for Water projects with T.E. Roberts, Inc.; W.A. Rasic Construction Company, Inc.; and Stephen Doreck Equipment Rentals, Inc.; and such other prequalified Design- Build entities; and to take such actions as are necessary to implement and administer the Agreements; and
4) Authorize de minimis changes that do not substantially change the terms and conditions of the Agreements, as long as such changes are determined to be de minimis by the City Attorney’s Office.
DISCUSSION:
At its meeting on August 23, 2023, the Public Utilities Board recommended that the City Council approve these actions.
In November of 2020, the Anaheim Public Works Department and Anaheim Public Utilities (APU) began using Design-Build Master Agreements to repair and replace utility infrastructure on an accelerated basis to address reliability improvements. A major
Design-Build Master Agreement for Water Projects
September 26, 2023
advantage of the design-build process is that projects delivered using this method can typically reduce schedules by 6-12 months. This collaborative delivery method allows the City to engage pre-qualified Design-Build entities on a competitive basis to serve as a single integrated design and construction team.
Prequalification Process:
The City utilized a two-step process to prequalify Design-Build entities to perform as-needed design, construction, upgrades, alterations, repairs, and replacement of new and existing water systems and facilities. A Request for Qualifications (RFQ) was advertised through the City’s online bidding platform on May 18, 2023 and included a prequalification questionnaire consistent with the California Labor Commissioner’s published questionnaire. The RFQ established minimum qualifications and criteria to evaluate and rank firms based on past performance, relevant experience, and technical qualifications (i.e. Design-Build experience and history of successful delivery of public works infrastructure projects of comparable size, complexity, and scope).
The City received seven Statements of Qualifications (SOQ). An evaluation of the SOQs for each work order category was performed by an evaluation committee, and a short list of top-ranked Design-Build entities was developed. The short list is limited to three firms based on available funding, projects identified in the Capital Improvement Program, and the anticipated number of annual project awards. Should work activities require additional firms or if a prequalified firm drops out during the term of the Agreements, evaluations, and rankings will be performed to include additional Design-Build entities. The shortlist of highest ranked firms recommended for award include:
Firm License No.
T.E. Roberts, Inc., Irvine, CA 603008
W.A. Rasic Construction Company, Inc., Long Beach, CA 368761 Stephen Doreck Equipment Rentals, Inc., Pico Rivera, CA 665471 Request For Work Order Proposal Process:
Consistent with Anaheim Municipal Code (AMC) Chapter 10.06, the City will solicit proposals for work order packages from prequalified Design-Build entities. The City will select the Design- Builder whose proposal is determined to be the most advantageous to the City, taking into consideration the price and the evaluation factors set forth in the work order solicitation.
Work order packages awarded under these Agreements will include, but not be limited to, the design, upgrade, construction, alteration, repair, and commissioning of new and existing water systems and facilities throughout the City. The scope of work may include abandonment, repair, relocation, replacement, and installation of general pipeline infrastructure components for pipelines, valves, manholes, pressure-reducing stations, water meters, and vaults.
Process Controls:
The following controls will be in place to ensure transparency and compliance with requirements associated with advertisement, award, and management of work orders:
The value of individual work order packages may range from $1,000,000 to $3,000,000 (excluding change orders).
Design-Build Master Agreement for Water Projects
September 26, 2023
All work order packages are advertised through the City’s online bidding platform.
This allows electronic notifications, bid downloads and submittals, online access to the bid documents, and closes bidding for all Design-Build entities at the same time. APU provides a quarterly report to the Public Utilities Board (PUB) that includes details on all work order package awards. The PUB has the opportunity to review and inquire about any of the work order package awards. The information is accessible to the public on the City’s Board and Commissions webpage. To ensure that the work order packages are within Council-approved budgets, APU has internal controls in place so project managers are required to obtain management authorization prior to issuing any work order package for bidding. Contract administration is performed by the Public Works Department, which includes review and processing of payments.
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 Design-Build Master Agreement.
The term of the Agreements will commence on the effective date and terminate five years thereafter unless terminated earlier. The Public Utilities General Manager or designees are authorized to extend the term of the Agreements as necessary for the completion of outstanding work order packages in progress at the end of the term. In no event, however, shall the extensions exceed 24 months.
COMMUNITY WORKFORCE AGREEMENT:
Work order packages may include covered “Project Work” as defined in the Community Workforce Agreement (CWA). For applicable work order packages, the awarded Design-Build entity and its subcontractors of all tiers shall agree to execute and be bound by the terms of the CWA.
ENVIRONMENTAL DETERMINATION:
Since projects delivered under the Design-Build Master Agreement will typically consist of replacements, repairs, maintenance, or small additions or 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:
Work awarded to a Design-Build entity through the Design-Build Master Agreement is included in APU’s Fiscal Year 2023/24 restricted Water Utility Fund budget. Future years will be subject to City Council approval of budget appropriations.
Respectfully submitted, Concurred By,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Design-Build Master Agreement Template
2. Design-Build General Conditions Template
3. Exhibit A for each Design-Builder