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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JUNE 18, 2024
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: AWARD OF DESIGN-BUILD AGREEMENT FOR THE
UNDERGROUND RELIABILITY IMPROVEMENT PROJECT
TO ACCELERATE DIRECT BURIED CABLE REPLACEMENTS
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Determine that the Underground Reliability Improvement Project (Project) and any related construction activities associated therewith are exempt under the California Environmental Quality Act (CEQA) pursuant to Sections 15301(b), 15302(c) and (d), and 15303(d) of Title 14 of the California Code of Regulations; 2) Determine the proposal submitted by Henkels & McCoy West, LLC (HMW) of Pomona, CA (Contractors License No. 1100318, Classifications A, C-61/D31 and C10) is the most advantageous to the City of Anaheim (City); and award to HMW a Design-Build Agreement (Agreement), in the form which is attached, to design and construct the Project in the amount of $36,114,627 plus a 10% contingency; 3) Increase Anaheim Public Utilities’ (APU) Fiscal Year 2023/24 Electric Capital Improvement Program budget by $36,114,627;
4) Authorize and direct the Director of Public Works, on behalf of the City, to execute the Design-Build Agreement and any other related documents and to take such actions as are necessary, required, or advisable to implement and administer the Design-Build Agreement; authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with Public Contract Code section 22300; and
5) Authorize de minimis changes to the Design-Build Agreement that do not substantially change the terms and conditions of the Agreement, as determined by the City Attorney’s Office.
BACKGROUND:
The Public Utilities Board recommended that the City Council approve the Project- related actions at its meeting on May 22, 2024.
Award of Design-Build Agreement for the Underground Reliability Improvement Project to Accelerate Direct Buried Cable June 18, 2024
APU has an active program to improve electric service reliability in residential neighborhoods throughout the City by replacing aging electrical cables that were directly installed in the ground in the 1970s and 1980s by developers, which was the industry’s practice at that time. As the cable nears the end of its useful life, new cables placed in conduits are installed, which will allow future replacements to be performed more effectively and efficiently. APU seeks to accelerate replacement of direct buried cables and associated equipment at locations where there have been multiple unplanned outages and temporary repairs made.
The Project scope of work includes the replacement of over 100,000 feet of direct buried electrical cables, associated underground structures and transformers. The Project consists of 30 sites in various neighborhood streets throughout the City, as detailed in Attachment 4. Street repairs will take place following direct buried cable installation and will be coordinated with the Public Works Department.
The Project schedule includes design activities that will begin upon project award and notice to proceed, followed by long-lead material procurement and permitting, with construction for some of the locations starting in 3rd Quarter of 2024, and completion for the entire project anticipated in 4th Quarter of 2027.
DISCUSSION:
Procurement of Design-Build Entity:
The design-build procurement for the Project followed Anaheim Municipal Code (AMC), Chapter 10.06 - Design-Build Contracting for Public Works Projects through a 2-step process.
Step 1 was a Request for Qualifications (RFQ) that was advertised through the City’s online bidding platform on November 30, 2023. The RFQ established minimum qualifications and criteria to evaluate and rank the design-build entities. The City received six (6) Statements of Qualifications (SOQ) on January 18, 2024. Of these, three design-build entities were pre- qualified.
Step 2 was a Request for Proposals (RFP) that was sent to the three pre-qualified design-build entities on February 2, 2024. The RFP established evaluation criteria to select the most advantageous proposal based on criteria in AMC, Chapter 10.06. During the RFP process, one of the three design-build entities declined to submit a bid and the City received two proposals on April 3, 2024. The pre-qualified design-build entities were evaluated based on their: 1) Project Organization and Key Personnel, 2) Methods to Accomplish the Work, 3) Efficient and Quality Delivery & Completion on (or ahead of) Schedule, 5) Mitigation of Subsurface Conditions & Negative Construction Impacts, 6) Conceptual Design Layout, and 7) Project Cost. A final interview was conducted, and the ranking is shown below.
Rank Design-Build Entity
1 Henkels & McCoy West, LLC / Cornerstone Utility Engineering 2 Asplundh Construction, LLC / Asplundh Engineering, LLC Non-Responsive Hampton Tedder Electric Co / Hampton Tedder Electric Award of Design-Build Agreement for the Underground Reliability Improvement Project to Accelerate Direct Buried Cable June 18, 2024
HMW’s project approach represents the overall best value, meets schedule requirements to accelerate direct buried cable replacements and improve electric service reliability, and is recommended for award as the highest ranked firm. The HMW team demonstrated their design and construction capabilities, resource availability, financial stability, and their proposal and interview reflected their understanding of delivering a successful project. Their pricing proposal’s unit cost is approximately $1.9 million per mile, which is consistent with the current cost of direct buried cable replacements from similar projects. HMW is currently one of APU’s pre-qualified electrical contractors and has also performed high-voltage work for Southern California Edison and San Diego Gas & Electric. HMW’s design team, Cornerstone Utility Engineering, has completed similar design projects for the City of Banning Electric Utility and Southern California Edison.
The Underground Reliability Improvement Project supports the 2023-24 Strategic Plan, Goal C – Invest in Infrastructure and Amenities, Strategy 13 – Address deferred and ongoing maintenance needs.
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:
Staff recommends that City Council determine that the Project is categorically exempt from CEQA pursuant to Sections 15301(b), 15302(c) and (d), and 15303(d) of Title 14 of the California Code of Regulations. The Project consists of replacing existing electrical infrastructure and installation of minor street apparatuses, which do not have the potential to create a significant effect on the environment. The work areas will be restored to pre-project conditions after construction is complete.
IMPACT ON BUDGET:
City Council action will increase APU’s Fiscal Year 2023/24 restricted Electric Capital Improvement Program budget by $36,114,627.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Award of Design-Build Agreement for the Underground Reliability Improvement Project to Accelerate Direct Buried Cable June 18, 2024
Attachments:
1. Sample Design-Build Agreement and General Conditions
2. City Request for Proposals (RFP)
3. Henkels & McCoy West, LLC Proposal
4. Project Vicinity Map