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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: OCTOBER 8, 2024
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: AWARD OF DESIGN-BUILD SERVICES AGREEMENT TO
BURNS & MCDONNELL ENGINEERING COMPANY, INC. FOR
SOUTHWEST SUBSTATION UPGRADE PROJECT
ATTACHMENT (Y/N): YES ITEM # 09
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Determine that the Southwest Substation Upgrade 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), 15303(d), 15303(e), and 15304 of Title 14 of the California Code of Regulations;
2. Determine that the proposal submitted by Burns & McDonnell Engineering Company, Inc. dba Burns & McDonnell (BMcD) (Contractor License No. 755238, Classification A), is the most advantageous to the City of Anaheim (City), and award to BMcD a Design-Build Agreement (Agreement), to design and construct the Southwest Substation Upgrade Project, in the amount of $27,707,073 plus a 10% contingency, and waive any irregularities in any of the proposal documents;
3. Increase Anaheim Public Utilities’ (APU) Fiscal Year 2024/25 Electric Capital Improvement Program budget by $27,707,073;
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, and authorize the Risk Manager to approve changes to the insurance, indemnification, and liability provisions of the Agreement as long as the changes are in the City’s best interest.
Award of Design-Build Services Agreement for Southwest Upgrade Project October 8, 2024
DISCUSSION:
The Public Utilities Board recommended that the City Council approve the Project-related actions at its meeting on September 25, 2024.
APU has an ongoing Capital Improvement Program to replace aging substation equipment, such as high voltage substation transformers and switchgear nearing the end of their useful life to improve reliability. Substations are a critical part of the local grid as they distribute electricity to area residents and businesses and house protection and automation equipment used to operate the system. The proposed Project has been in planning for the past several years and is necessary for grid modernization, capacity upgrades, operational flexibility during outages, and to replace existing substation equipment that is over 35 years old.
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 seven (7) Statements of Qualifications (SOQ) on January 18, 2024. Of these, the top 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 proposal, and the City received two proposals on April 16, 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, 4) Mitigation of Subsurface Conditions & Negative Construction Impacts, 5) Conceptual Design Layout, and 6) Project Cost.
A final interview was conducted, and the ranking is shown below.
Rank Design-Build Entity
1 Burns & McDonnell Engineering Company, Inc. dba Burns & McDonnell
2 Aubrey Silvey Enterprises, Inc.
BMcD’s overall ranking reflects their proposal is most advantageous to the City based on pricing and other selection criteria, including the thoroughness of their proposal, with sufficient details in their plans for design and engineering, procurement of equipment, and construction methodology.
BMcD has previously completed several substation projects throughout California, including projects completed for Southern California Edison and Pacific Gas & Electric, which utilize similar equipment used in the Southwest Substation Upgrade Project. BMcD’s high-voltage subcontractor Roberson Waite Electric, a firm based in Anaheim, has completed several substation projects for APU.
Award of Design-Build Services Agreement for Southwest Substation Upgrade Project October 8, 2024
Project design and procurement is expected to take 11 months. Construction is expected to start in the 4th Quarter of 2025, with final completion expected in the 4th Quarter of 2027. Construction will be primarily onsite, and traffic control and hours of construction will be coordinated with Public Works to minimize disruption to the surrounding community. Liquidated damages will be $1,000 per day for the first thirty days of delay, and $5,000 per day thereafter.
The Agreement 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 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), 15303(d), 15303(e), and 15304 of Title 14 of the California Code of Regulations. The project will include installing a new control building with a restroom, six 12,000 Volt duct banks, two 69,000 Volt duct banks, and upgrades to the transformers, capacitor banks, and switchgear on the existing electrical substation facility. These activities do not have the potential to create a significant impact on the environment.
IMPACT ON BUDGET:
APU’s Fiscal Year 2024/25 restricted Electric Capital Improvement Program budget will be increased by $27,707,073.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Sample Design-Build Services Agreement
2. Project Vicinity Map