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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: AUGUST 12, 2025
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AGREEMENT WITH RICHARD HEATH & ASSOCIATES, INC.
FOR COMMERCIAL CUSTOMER ENERGY EFFICIENCY
CONSULTING SERVICES
ATTACHMENT (Y/N): YES ITEM # 13
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve an agreement with Richard Heath & Associates, Inc. (RHA) for commercial customer energy efficiency consulting services (Agreement), with an initial term of five years and up to two optional one-year extensions, at an annual not-to-exceed cost of $488,734, with an annual Consumer Price Index escalator capped at 3% commencing with the first extension (Term Year 6), 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 (City), 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 July 23, 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 efficiency conservation programs to support APU customers, including schools, non-profits, businesses, municipal buildings, and common areas of multi-family dwellings. Consistent with state policies, these programs improve the sustainable use of energy, as well as lower utility bills. APU utilizes consulting services to facilitate program offerings that include energy assessments, assistance with rebate processing, verification that measures have been implemented, and training services. The consultant is required to have technical experience in areas such as commercial lighting, refrigeration, heating/cooling, motors, energy management systems, and industrial processes.
Agreement with Richard Heath & Associates, Inc. for Commercial Customer Energy Efficiency Consulting Services August 12, 2025
In December 2024, APU issued a Request for Proposals (RFP) for comprehensive energy- assessment services and received six proposals, each evaluated under Council Policy 4.1 for technical scope, relevant experience, and demonstrated success with other agencies.
The top three firms were interviewed and ranked as follows:
Firm Rank
Alliance Project Inc. 1*
Richard Heath & Associates, Inc. 2
Energy Resource Integration, LLC 3
*non-responsive
Following the review of proposals, Alliance Project Inc. (Alliance Project) had the highest-ranked proposal, but was subsequently deemed non-responsive for failing to obtain and submit the required Certificate of Insurance (COI). Since Alliance Project failed to meet the City’s terms and conditions, staff proceeded to negotiate with the next proposer that satisfied the contractual requirements and has submitted the required COI.
RHA's proposal was the second-highest-ranked proposal and selected based on its comprehensive approach to meeting the scope of work, relevant experience, and cost effectiveness as the second-lowest-cost proposal. The firm performs similar services for municipal utilities including the cities of Riverside, Azusa, Banning, and Glendale, and is the current provider for Anaheim.
The proposed five-year Agreement includes an option for up to two optional one-year extensions, with an annual not-to-exceed amount of $488,734, plus a 20% contingency for as-needed extra services. Fees may be adjusted by the Consumer Price Index for service fees commencing with the first extension (Term Year 6), capped at 3%.
IMPACT ON BUDGET:
Sufficient funds are available in APU’s Fiscal Year 2025/26 restricted Electric Utility Fund budget. Future years are subject to City Council approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Agreement with Richard Heath & Associates, Inc.