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: MARCH 25, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: TENDER AGREEMENT WITH UNITED STATES FIRE
INSURANCE COMPANY FOR THE ANAHEIM WEST TOWER
PARKING GARAGE ELECTRIC VEHICLE CHARGER PROJECT
(AGR-13404)
ATTACHMENT (Y/N): YES ITEM # 13
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve a Tender Agreement with United States Fire Insurance Company (“USFIC”), corporate surety for Pro-Cal Lighting, Inc. dba Pro-Cal Electrical Lighting of Vista, California, to assume the obligations and complete the Anaheim West Tower Parking Garage EV Charging Project (Project) and authorize the Director of Public Works to execute all documents in furtherance thereof.
DISCUSSION:
In March 2022, City Council awarded a contract to Pro-Cal Lighting, Inc. of Vista, CA for the Project in the amount of $953,570. The Project is now 80% complete, and on November 18, 2024 the City received a notification of insolvency from the awarded contractor Pro-Cal Lighting, Inc. The contractor cannot fulfill the terms of the contract for the Project due to financial insolvency and imminent dissolution. As a result, the City must take necessary steps to transition the Project to another contractor to ensure its completion.
City and Surety are entering into a Tender Agreement which provides, among other things, that Surety will pay City Settlement Proceeds, tender to City’s on call contractor, Energy Management Solutions (EMS), to complete the project, and remain liable under the Bond for any obligations under the original Contract.
On December 16, 2024, the City met with USFIC to discuss the remaining scope. Both parties are confident the Project can be completed with remaining contract authority Project funds. Approved Public Work’s master agreement contractors have been contacted and requested to provide the City with bids to complete the balance of the project scope.
The Project is anticipated to be completed in the 2nd Quarter of 2025.
Tender Agreement with United States Fire Insurance Company for the Anaheim West Tower Parking Garage Electric Vehicle Charger Project (AGR-13404)
March 25, 2025
IMPACT ON BUDGET:
Sufficient funds are available in the Anaheim Public Utilities’ FY 2024/25 restricted Electric Utility Fund budget.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Public Works Director Public Utilities General Manager
Attachments:
1. Tender Agreement with United States Fire Insurance Company
2. Pro-Cal Lighting, Inc. letter regarding insolvency