200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JULY 23, 2024
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: CONSTRUCTION CONTRACT AWARD FOR KRAEMER POWER
PLANT DEMOLITION PROJECT
ATTACHMENT (Y/N): YES ITEM # 04
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1) Award the construction contract (Contract) for the Kraemer Power Plant Demolition (Project) to the lowest responsible bidder, AMPCO Contracting of Irvine, California, Contractor’s License No. 851752, Classification A, B, C-21, ASB, and HAZ, in the amount of $388,650 plus a 10% contingency;
2) Determine that the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3), 15301, 15304 of Title 14 of the California Code of Regulations; and
3) Authorize and direct 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 authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions.
DISCUSSION/BACKGROUND:
The Project consists of demolition of a natural gas turbine power plant, grading and installation of new electrical service and new lighting, and other appurtenant work as shown on the approved plans and specifications. Determination of the lowest responsive and responsible bidder for the selected project scope was made in accordance with Public Contract Code 20103.8(d).
The City received twelve (12) bids on June 13, 2024. The Project bids are summarized as follows:
1. AMPCO Contracting, Irvine CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$388,650.00
2. Resource Environmental, Inc., Cerritos, CA. . . . . . . . . . . . . . . . . . . . . . . . . $641,000.00
3. American Wrecking, Inc, El Monte, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . $858,500.00
4. Standard Demolition, Ventura, CA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$884,721.00 Construction Contract Award for Kraemer Power Plant Demolition Project July 23, 2024
5. Force Demolition, Inc., Corona, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$982,988.00
6. Victorious R.E.D, La Mirada, CA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,095,742.40
7. American Integrated Services, Inc., Wilmington, CA. . . . . . . . . . . . . . . . .$1,277,400.00
8. Silverado Contractors, Inc., Emeryville, CA . . . . . . . . . . . . . . . . . . . . . . . $1,354,700.00
9. Unlimited Environmental, Inc., Santa Fe Springs, CA . . . . . . . . . . . . . . . $1,618,000.00
10. Integrated Demolition and Remediation, Inc., Anaheim, CA . . . . . . . . . . $1,742,500.00
11. Interior Demolition, Inc., Newhall, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,892,878.00
12. SJD&B, Inc., Walnut, CA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,931,050.00 Construction is scheduled to begin in the 4th Quarter of 2024 and is scheduled to be completed in 2nd Quarter of 2025. Liquidated damages are set at $500 per day.
The Kraemer Power Plant (Kraemer) is situated on approximately one acre in the Canyon Business Center. It was constructed in the late 1980s and operated from 1990-2019. Kraemer was used to provide power during periods of high demand, which helped to keep rates affordable during the Energy Crisis in 2000. Due to the aging infrastructure, the lack of available parts for cost-effective maintenance, and long-term decarbonization goals, Anaheim Public Utilities (APU) determined that decommissioning the facility was the best course of action. In 2020, APU officially retired Kraemer and discontinued its participation in the California Independent System Operator (CAISO). As part of the retirement process, all electrical and natural gas lines serving the facility were either severed or capped. Following the completion of an extensive demolition plan prepared by an engineering consultant, Kraemer will be completely demolished. After the demolition, APU plans to use this secure site for miscellaneous storage to support daily electric and water operations.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This project is covered “Project Work” as defined in the CWA the City entered into with the Los Angeles / Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions.
ENVIRONMENTAL DETERMINATION:
APU recommends that the City Council determine that the Project is exempt from CEQA pursuant to Sections 15061(b)(3), 15301, and 15304 of Title 14 of the California Code of Regulations. The Project will consist of the demolition of an idle 46 MW gas turbine power plant in a heavily urban and developed area. Following demolition, the Project site will undergo minor grading and installation of new electrical service and new lighting; no new structures are proposed. All debris will be removed from the Project site upon completion. Based on the scope of work, there is no potential for significant effect on the environment.
Construction Contract Award for Kraemer Power Plant Demolition Project July 23, 2024
IMPACT ON BUDGET:
Sufficient funds are available in Public Utilities’ FY 2024/25 restricted Electric Utility Decommissioning Fund budget.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Exhibit A
2. Vicinity Map