CITY COUNCIL AGENDA REPORT
201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: SEPTEMBER 26, 2023
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT FOR OVERHEAD ELECTRIC SYSTEM
INSPECTION SERVICES
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Determine that the Services (defined below) are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301, 15302, and 15304 of Title 14 of the California Code of Regulations; and 2) Approve a professional services agreement (Agreement) between the City of Anaheim (Anaheim) and Intec Services, Inc. (Consultant) to provide comprehensive inspection, testing, and data management of overhead electric utility infrastructure (Services), in an amount not to exceed $4,623,200 with a 15% contingency, for as-needed extra services, for a two-year term with an option to extend up to 12 months; and
3) Authorize and direct the Public Utilities General Manager or designees, on behalf of Anaheim, to execute and deliver the Agreement and any related documents and to take such actions as are necessary or advisable to implement, fund, and administer the Agreement.
DISCUSSION:
At its meeting on August 23, 2023, the Public Utilities Board recommended that the City Council approve these actions.
Anaheim Public Utilities (APU) relies on inspections of electrical infrastructure to ensure safety and reliability of service and for consistency with state guidelines as industry best practice on a 5-year cycle. Inspections are critical for assessing the physical condition of infrastructure and for allowing APU to prioritize capital projects.
Inspections also proactively identify equipment that may need immediate attention to avoid prolonged unplanned outages.
Agreement for Overhead Electric System Inspection Services September 26, 2023
The Agreement provides for system-wide inspection of APU’s overhead electric infrastructure, which includes utility poles, power lines, transformers, switches, capacitors, automation devices, and other utility equipment. The scope of work requires a qualified and experienced firm to perform assessments, test poles for structural integrity, thermally image electrical equipment and connections to identify hotspots that may need immediate attention, identify potential hazards in close proximity to electrical equipment, build and manage inspection information in a database formatted to be integrated into Anaheim’s Geographic Information System (GIS), and perform minor, non-electrical maintenance.
In May 2023, APU issued a request for proposals (RFP) through Anaheim’s online purchasing system. APU received three proposals and reviewed them in accordance with the qualifications-based selection criteria outlined in City Council Policy 4.1, including their ability to perform the work, methods and techniques employed, qualifications and availability of project team members, record of success on similar projects, quality control, and the competitiveness of proposed fees, subject to the City’s standard terms and conditions.
Two proposals met the minimum requirements, and one was deemed non-responsive. Of the proposals that met the minimum qualifications, the firms were ranked as follows:
Rank Firm’s Name
1 Intec Services, Inc.
Fort Collins, CO
2 Energy Experts International, Inc.
Redwood City, CA
The proposal submitted by Intec Services, Inc. (Consultant) was ranked highest value based on their extensive experience inspecting, testing, and repairing utility poles, which includes successfully completing inspections of Anaheim’s high-priority transmission poles in 2022. Consultant has also successfully performed similar inspections for other California utilities, including Southern California Edison, Pacific Gas & Electric, San Diego Gas & Electric, Pasadena Water & Power, and Bear Valley Electric. Additionally, the Consultant’s cost proposal was $8.3 million lower than the second ranked firm, with the requisite personnel to meet the specified timeframe.
A third proposal was deemed non-responsive because the firm failed to meet the terms outlined in the RFP, such as taking exception to the firm contract price requirement for the duration of the agreement, imposing the ability to increase rates and charges, and asserting multiple exceptions to the City’s standard terms and conditions, such as indemnity and liability, and to portions of the scope of work outlined in the RFP.
A comprehensive overhead system inspection program performed by a qualified firm is a vital part of maintaining safe and reliable service to Anaheim residents and businesses.
The scope of work is to be performed over a two-year period, with up to 12 additional months to complete Services as necessary.
Agreement for Overhead Electric System Inspection Services September 26, 2023
ENVIRONMENTAL REVIEW:
APU recommends that City Council determine that the Services are categorically exempt from CEQA pursuant to Sections 15301, 15302, and 15304 of Title 14 of the California Code of Regulations. The Services consist of inspections and minor repairs to existing electric system infrastructure. These activities are categorically exempt from CEQA and do not have the potential to create a significant impact on the environment.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s Fiscal Year 2023/24 restricted Electric Utility budget. Future funding will be subject to City Council’s approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Consultant Agreement for overhead electric system inspection services