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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC WORKS DEPARTMENT
DATE: JANUARY 9, 2024
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: CONTRACT CHANGE ORDER NO. 1 FOR THE OVERHEAD
ELECTRIC RELIABILITY IMPROVEMENT PROJECT FY21/22
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the proposed Contract Change Order No. 1 (Change Order) for the Overhead Electric Reliability Improvement Project FY21/22 (Project), in the amount of $1,991,498.98, to Hampton Tedder Electric Company (Hampton Tedder); and
2) Authorize the Director of Public Works, on behalf of the City of Anaheim (City), to execute the Change Order and take such actions as are necessary or required to implement and administer the Change Order.
DISCUSSION:
On February 15, 2022, the City Council approved a contract award to Hampton Tedder in the amount of $10,993,319.86 to replace approximately 400 overhead transformers as part of Anaheim Public Utilities’ (APU) initiative to improve electric service reliability in residential neighborhoods throughout the City. In addition to overhead transformers, the Project aims to modernize the electrical infrastructure by replacing electrical wires, utility poles and supporting structures that are nearing the end of their useful life. APU prioritizes replacements of transformers and equipment that meet various criteria such as age, type, and accessibility as many of these facilities are located along rear property lines which takes additional time for field crews to restore power.
To date, APU has replaced approximately 40% of the transformers and poles as part of the Project’s scope. City Purchasing initially requested bids for the equipment and materials for the Project; however, due to nationwide supply chain constraints on materials and production capacity, particularly for transformers and utility poles, no responsive bids conforming to the City’s standard terms and conditions, fixed pricing, and delivery schedule were received, causing lead times to increase significantly from three months to up to two years. To avoid depleting APU’s limited material stock reserved for Contract Change Order for the Overhead Electric Reliability Improvement Project FY21/22 January 9, 2024
emergency outage response, the Project was placed on hold to allow for additional material procurements by APU and the contractor, Hampton Tedder.
The proposed Change Order includes electrical material procurements by Hampton Tedder for such items as transformers, wire, utility poles and appurtenances to complete the Project’s scope, contractor yard costs, remobilization, time and material costs to perform additional field tasks beyond the original scope of work, and labor rate and equipment cost increases approved through collective bargaining units.
APU and Public Works staff carefully reviewed the Change Order proposal, negotiated in the best interest of the City based on the current cost environment, and recommend approval of the proposed Change Order for $1,991,498.98 or 18% of the original contract amount. This recommendation conforms to City construction contracting guidelines and will support the completion of the Project. If the Change Order is approved, the Contractor will perform the required outreach and provide ample notifications to affected customers prior to resuming construction activities within private properties.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s 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
Attachment:
1. Contract Change Order No. 1