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: SEPTEMBER 23, 2025
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: AWARD OF DESIGN-BUILD AGREEMENT FOR A FIELD
MAINTENANCE BUILDING TO BALFOUR BEATTY
CONSTRUCTION, LLC
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1) Determine that the construction of the Field Maintenance Building (FMB) and any related construction activities associated therewith (Project) are categorically exempt under the California Environmental Quality Act (CEQA) pursuant to section 15332 – Class 32 (In-Fill Development Projects) of Title 14 of the California Code of Regulations.
2) Determine that the proposal submitted by Balfour Beatty Construction, LLC (Balfour Beatty) (Contractors License No. 979126, Classification A and B) is the most advantageous to the City of Anaheim (City); and award to Balfour Beatty a Design-Build Agreement (Agreement), in the form that is attached, for the design and construction of the FMB at a not-to-exceed cost of $28,081,408, plus a 15% contingency; and waive any irregularities in any of the proposal documents. 3) Authorize and direct the Director of Public Works, on behalf of the City, to execute the Agreement and any other related documents and to take such actions as are necessary, required, or advisable to implement and administer the Agreement; and authorize changes to the Agreement that do not materially alter the terms and conditions of the Agreement, as determined by the City Attorney’s Office; and 4) Authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with the Public Contract Code section 22300.
DISCUSSION:
The Public Utilities Board recommended that the City Council approve these actions at its meeting of August 27, 2025.
Anaheim Public Utilities (APU) field staff occupy an existing building at its field and warehouse complex for preparing daily and emergency work activities, as well as Award of Design-Build Agreement for a Field Maintenance Building to Balfour Beatty Construction, LLC September 23, 2025
training, meetings, and field supervision. APU has approximately 140 field staff, and the existing building can no longer support the space, technological, and operational needs of these essential workers. A new Field Maintenance Building (FMB) is proposed to meet current and future operations of APU field staff.
The proposed Project is a joint effort by APU and the Public Works Department. The Public Works Department will serve as the contract administrator and be responsible for the overall Project administration. APU will coordinate design activities and Public Works shall be responsible for the coordination of construction activities.
Field Maintenance Building:
The existing field building is located at 909 East Vermont Avenue and is 50 years old. A study conducted in 2017 determined that upgrading the building systems to meet current codes and expanding the facility to meet current staffing needs would be cost-prohibitive and would disrupt ongoing operations. For that reason, APU is recommending the construction of a new building on the same property. The existing building will be retained to support the electric and water meter shops, equipment usage and storage, and additional warehouse space.
The FMB will house APU’s field staff and provide a working environment designed to maximize collaboration during working hours and for efficiency during emergency call outs.
During such events, field personnel use the facility to stage materials, vehicles, and specialized equipment to work on electric and water infrastructure. The design of the new FMB includes dedicated work group areas with docking stations for computers, a large assembly room for group meetings, offices for field supervisors, environmental and safety personnel. It will also serve as the department’s operations center during large-scale emergency events.
Procurement of Design-Build Entity
The design-build procurement for the Project followed the 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 January 13, 2025. 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 February 11, 2025, and all seven were deemed responsive.
Step 2 was a Request for Proposals (RFP) that was sent to the three most qualified design-build entities on February 25, 2025. The RFP established an evaluation criteria to select the most advantageous proposal based on criteria in AMC Chapter 10.06. The City received three proposals on May 2, 2025. The pre-qualified design-build entities were evaluated based on their:
1) Project Organization and Key Personnel, 2) Architectural Design, 3) Site, Civil, Landscape, and Circulation Design, 4) Mechanical, Electrical, and Plumbing Design, 5) Structural Design, 6) Alternates, Project Enhancements, and Added Value, 7) Efficient and Quality Delivery and Completion On (or ahead of) Schedule, 8) Mitigation of Subsurface Conditions and Negative Construction Impacts, and 9) Project cost. Their ranking is shown below:
Design-Build Entity Rank
Balfour Beatty/Miller Hull (Santa Ana, CA) 1
Swinerton/LPA (Santa Ana, CA) 2
PCL/Gensler (Irvine, CA) 3
Award of Design-Build Agreement for a Field Maintenance Building to Balfour Beatty Construction, LLC September 23, 2025
Balfour Beatty’s project approach represents the best overall value, makes effective use of space in their preliminary design and layout, and is recommended for award as the highest-ranked firm.
The Balfour Beatty team showcased strong qualifications in their design and construction capabilities, demonstrated the availability and expertise of their key personnel, provided a proven track record of comparable projects, along with a reasonable project cost. Their proposal and interview highlighted a clear understanding of delivering a project that meets APU’s requirements. They demonstrated relevant experience, presented key staff with expertise in design-build projects, and familiarity with the City’s permitting requirements. Balfour Beatty also exhibited a comprehensive understanding of the Project scope and outlined a well-structured approach for the overall implementation of the Project. Balfour Beatty and their design architect have successfully completed similar projects for the County of San Diego and City of Santa Monica.
On August 27, 2025, the Public Utilities Board recommended that the City Council award an agreement to Balfour Beatty for the design and construction of the Field Maintenance Building (FMB). The recommended not to exceed amount of $29,925,000 included an allowance for the procurement and installation of the furniture, fixtures, and equipment (FFE). However, staff has decided, that if needed, to return to City Council at a later date to seek approval of this item.
The project is scheduled to complete the design by the 4th Quarter of 2026 and construction by the 4th Quarter of 2027.
This project is in line with the City’s Strategic Plan, Goal C – Invest in Infrastructure and Amenities, Strategy 13 – Address deferred and ongoing maintenance needs.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is a covered “Project Work” as defined in the Second Amended and Restated CWA the City entered into with the Los Angeles / Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions. The CWA, as amended, is a pre- hire collective bargaining agreement that establishes labor relations procedures. Therefore, the awarded design-build entity and its subcontractors of all tiers must agree to be parties to and bound by the Amended and Restated CWA by executing a Letter of Assent.
ENVIRONMENTAL DETERMINATION:
Staff recommends that the City Council determine that the Project is categorically exempt from CEQA pursuant to section 15332 of Title 14 of the California Code of Regulations – Class 32 (In-Fill Development Projects). None of the exceptions to the use of categorical exemptions under CEQA Guidelines section 15300.2 apply.
Consistent with a Class 32 exemption, the proposed Project is located within City limits on a site of five (5) acres or less, is substantially surrounded by urban uses, is consistent with the applicable General Plan designation and zoning and would not result in significant impacts related to traffic, noise, air quality, or water quality.
Award of Design-Build Agreement for a Field Maintenance Building to Balfour Beatty Construction, LLC September 23, 2025
IMPACT ON BUDGET:
Sufficient funds are budgeted in the APU’s Fiscal Year 2025/26 Electric Capital Improvement Program budget from Restricted Electric Utility Funds.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Sample Design-Build Agreement and General Conditions
2. City Request for Proposals (RFP)
3. Balfour Beatty Proposal
4. Vicinity Map