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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: MARCH 4, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: CONSTRUCTION CONTRACT AWARD WITH ASPLUNDH
CONSTRUCTION, LLC FOR UNDERGROUND DISTRICT NO. 70
WILDFIRE MITIGATION UNDERGROUNDING IN FIRE THREAT
ZONES
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Award the construction contract (Contract) for Underground District No. 70 Wildfire Mitigation Undergrounding in Fire Threat Zones (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 $18,389,710.09 plus a 10% contingency;
2. Increase Anaheim Public Utilities’ (APU) Fiscal Year 2024/25 Electric Capital Improvement Program budget by $7,200,000; and
3. 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, required, or advisable to implement and administer the Contract; and (b) the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with Public Contract Code section 22300.
DISCUSSION:
The Project bids are summarized as follows:
1. Asplundh Construction, LLC, Buena Park, CA . . . . . . . . . . . . . . . . . $18,389,710.09
2. Outsource Utility Contractor, LLC, Torrance, CA. . . . . . . . . . . . . . . . $18,735,142.82
3. Hot Line Construction, Inc., Brentwood, CA . . . . . . . . . . . . . . . . . . . $21,528,891.89
4. Herman Weissker, Inc., Riverside, CA . . . . . . . . . . . . . . . . . . . . . . . . $22,768,496.26
5. Henkels & McCoy West, LLC, Pomona, CA. . . . . . . . . . . . . . . . . . . $23,768,433.15
6. Doty Bros. Equipment Company, Norwalk, CA. . . . . . . . . . . . . . . . . $24,461,892.40 Construction Contract Award with Asplundh Construction, LLC for Underground District No. 70 Wildfire Mitigation Undergrounding in Fire Threat Zones
March 4, 2025
7. Arizona Pipeline Company, Corona, CA . . . . . . . . . . . . . . . . . . . . . . $26,950,510.70
8. West Coast Traffic Control, Oceanside, CA. . . . . . . . . . . . . . . . . . . Non-Responsive Asplundh is recommended for the construction award as 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.
West Coast Traffic Control (West Coast) submitted an incomplete bid, and it did not meet the minimum California Contractor licensing requirements during the bid period. Therefore, West Coast’s bid was non-responsive.
The Project supports APU’s 2024 Wildfire Mitigation Plan (WMP) to reduce risks associated with overhead electrical lines operated by APU and located in Fire Threat Zones. The WMP identified seven remaining segments of overhead lines, as shown and demarcated on the attached map (Attachment 2). This Project is part of the Five-Year Underground Conversion Plan that will convert existing overhead electric and communication systems to underground along these seven segments.
APU previously collaborated with Anaheim Fire & Rescue to apply for Federal Emergency Management Agency (FEMA) grant funding to help offset the Project’s cost. Approximately $7.5 million of grant funding was approved to complete the design and construction of the Project. The grant is administered by the California Governor’s Office of Emergency Services (Cal OES), and in January 2025, Cal OES recommended (subject to FEMA approval) increasing the award amount by an additional $7.2 million to address the increased construction costs and additional scope of work to avoid trenching through the Oak Canyon Nature Center. In the event grant funding is not authorized by FEMA, APU will utilize its capital improvement program funding for construction activities to avoid delaying the project. A budget amendment of $7.2 million is being requested to reflect the increased scope of work.
The Project is tentatively scheduled to begin construction in 2nd Quarter of 2025 with completion by 4th Quarter of 2026. The construction activities will be coordinated with affected properties and notification provided to residents, businesses, and schools within the project boundaries.
The Project supports multiple goals in the City Strategic Plan. These include Goal A – Maintain Fiscal Responsibility, Strategy 2 – Continue proactive pursuit of state and federal grant funds and Goal E – Support Public Safety, Strategy 5 - Assess the City’s emergency preparedness capabilities, resources, and tools, and implement changes as needed to ensure the City is properly positioned to respond to disasters.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is not a covered “Project Work” as that term is defined in the Second 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.
Construction Contract Award with Asplundh Construction, LLC for Underground District No. 70 Wildfire Mitigation Undergrounding in Fire Threat Zones
March 4, 2025
ENVIRONMENTAL DETERMINATION:
The City Council determined, by Resolution on October 26, 2021, that pursuant to sections 15301(b), 15302(c)-(d), and 15303 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.
IMPACT ON BUDGET:
City Council action will amend APU’s Fiscal Year 2024/25 restricted Electric Capital Improvement Program budget by $7,200,000.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Exhibit A
2. Vicinity Map