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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: NOVEMBER 28, 2023
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: CONSTRUCTION CONTRACT AWARD AND RELATED
AGREEMENTS FOR UNDERGROUND DISTRICT NO. 69
NUTWOOD/CERRITOS
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Award the construction contract (Contract) for Underground District No. 69 Nutwood/Cerritos (Project) to the lowest responsible bidder, Asplundh Construction, LLC (Asplundh) of Buena Park, California, Contractor’s License No. 1028802, Classifications A and C-10, in the amount of $17,505,120.59 plus a 10% contingency; and
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; and
3) Authorize and direct the Public Utilities General Manager or designees, on behalf of the City, to (a) negotiate, finalize, and execute the Facilities Relocation Agreement (Agreement) with Southern California Edison (SCE); (b) consistent with the Agreement, pay the estimated sum of $458,000 plus a 20% contingency to reimburse SCE for its construction and associated cost of materials as part of undergrounding its transmission telecommunication facilities; and (c) approve and execute any related documents including, but not limited to, the Bill of Sale and Income Tax Component of Contribution (ITCC) Exemption Letter, and take any and all actions as are necessary or advisable to implement and administer the Agreement.
DISCUSSION:
The Project bids are summarized as follows:
1. Asplundh Construction, LLC, Buena Park, CA . . . . . . . . . ... . . . . . . . $17,505,120.59
2. PAR Western Line Contractors LLC, Rancho Cucamonga, CA . . . . . $34,048,685.10
3. IEM Innovation Engineering Modular LLC, Los Banos, CA . . . . . . Non-Responsive Construction Contract Award and Related Agreements for Underground District No. 69 Nutwood/Cerritos November 28, 2023
Asplundh is recommended for the construction award, as it is the lowest responsible bidder.
Asplundh’s bid price reflects the current bidding environment and appears to be reasonable.
Liquidated damages for this Project are set at $1,000 per day.
IEM Innovation Engineering Modular LLC (IEM) submitted an incomplete bid, and it did not meet the minimum California Contractor licensing requirements during the bid period. Therefore, IEM’s bid was nonresponsive.
This Project is part of the Five-Year Underground Conversion Plan that will convert existing overhead electric and communication systems to underground along Nutwood Street from north of Ball Road to Katella Avenue and along Cerritos Avenue from Nutwood Street to Euclid Street (Attachment 2). The construction activities will be coordinated with affected properties and notification provided to residents, businesses, and schools within the project boundaries.
SCE currently has high-voltage electric lines that pass through Anaheim’s boundaries on Katella Avenue crossing Nutwood Street. This overhead segment is not included in the Project scope due to the significant cost and California Public Utilities Commission (CPUC) determination that SCE is not obligated to pay for undergrounding in Anaheim. However, SCE-owned telecommunication lines on Katella Avenue and Ball Road crossing Nutwood Street are included due to the much lower cost to clear the area of lower hanging telecommunication lines. APU will perform the work and obtain reimbursement through the General Fund. The SCE Agreement (Attachment 3) is required to facilitate this undergrounding.
The Project is tentatively scheduled to begin construction in Spring 2024 with completion by Fall 2025.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is not a covered “Project Work” as that term is 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 March 23, 2021, that pursuant to sections 15301(b), 15302(c)-(d), and 15303(d) of Title 14 of the California Code of Regulations, the Project was categorically exempt from CEQA. The Project consists of relocating existing overhead utility lines to underground and installing minor street apparatuses and LED street lighting, which do 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.
Construction Contract Award and Related Agreements for Underground District No. 69 Nutwood/Cerritos November 28, 2023
IMPACT ON BUDGET:
Sufficient funds are budgeted in Anaheim Public Utilities’ Fiscal Year 2023/24 Electric Capital Improvement Program budget from restricted Electric Utility Enterprise funds.
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 Template