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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: JULY 15, 2025
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT WITH RICHARD HEATH & ASSOCIATES, INC.
FOR THE SMALL BUSINESS ENERGY AND WATER DIRECT
INSTALL PROGRAM
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve a professional services agreement with Richard Heath & Associates, Inc., (RHA) for the Small Business Energy and Water Direct Install program (Agreement), with an initial term of five years and up to three (3) optional one-year extensions, at an annual not-to-exceed cost of $1,500,000, with a Consumer Price Index escalator capped at 3% for service fees for each extension year, plus a 20% contingency for as-needed extra services; and
2. Authorize the Public Utilities General Manager, or designees, on behalf of the City of Anaheim (Anaheim), to execute the Agreement and any related documents, including any cost-neutral amendments of the Agreement and any documents contemplated by the Agreement, and to take such necessary or advisable actions to implement, fund, and administer the Agreement.
DISCUSSION:
At its meeting on June 25, 2025, the Public Utilities Board recommended that the City Council approve the Agreement with Richard Heath & Associates, Inc.
In alignment with state mandated sustainability policies, Anaheim Public Utilities (APU) provides energy and water efficiency improvements through a direct install program to help reduce utility usage and reduce ongoing utility bills. The program is available at no cost to customers and supports small businesses and multifamily common areas, since many of these customers may not have the financial means or technical resources to implement such energy and water efficiency upgrades on their own and would otherwise have to hire multiple contractors to perform these services.
APU utilizes professional services to facilitate the small business program offerings, which include on-site energy and water assessments and the direct installation of a variety of energy and water efficiency measures, including LED lighting, refrigerator coil cleaning, programmable thermostats, high-efficiency toilets, and faucet aerators. In addition, the program provides small businesses and multifamily properties with the Agreement with Richard Heath & Associates, Inc. for the Small Business Energy and Water Direct Install Program July 15, 2025
direct installation of dusk-to-dawn exterior lighting to enhance nighttime visibility along storefronts, facing alleys, or in communal areas.
In February 2025, APU issued a Request for Proposals (RFP) seeking a qualified provider to deliver turnkey services for the implementation of the Small Business Energy and Water Direct Install program. Two proposals were received and evaluated in accordance with City Council Policy 4.1 – Selection of Professional Consultants. The evaluation criteria included the proposer’s ability to fulfill the scope of work, relevant experience, licensing of qualified individuals, technical expertise, demonstrated success with similar programs, and the reasonableness of proposed program administration costs.
Two firms were interviewed and were ranked as follows:
Firm Rank
Richard Heath & Associates, Inc. 1
Planet Optima Construction JV 2
RHA's proposal was selected based on its comprehensive approach, which fully addressed the scope of work while offering the most cost-effective pricing. The firm has experience in providing energy and water efficiency programs for similar agencies, including City of Riverside, City of Azusa, City of Burbank, City of Banning, and City of Glendale. RHA is the incumbent provider and served as APU’s program administrator during the previous agreement term and has helped 1,245 customers with direct installation services over the past five years with positive feedback received.
The proposed five-year Agreement includes an option for up to three (3) one-year extensions, with an annual not-to-exceed amount of $1,500,000, plus a 20% contingency for as-needed extra services. Fees may be adjusted by the Consumer Price Index for service fees for each extension year, capped at 3%.
The Agreement supports the Citywide Strategic Plan, Goal F – Promote Economic Development and Tourism, Strategy 4 – Expand support of small and micro businesses.
IMPACT ON BUDGET:
Sufficient funds for this agreement area included in APU’s Fiscal Year 2025/26 restricted Electric and Water Utility Fund budgets. Future years are subject to City Council approval of appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Professional Services Agreement with Richard Heath & Associates, Inc.