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: APRIL 7, 2026
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: CONSTRUCTION CONTRACT AWARD TO OUTSOURCE UTILITY
CONTRACTOR, LLC FOR THE PARK SUBSTATION LINE
EXTENSION PROJECT TO THE GYPSUM CANYON MEMORIAL
PARK DEVELOPMENT
ATTACHMENT (Y/N): YES ITEM # 04
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1) Award a construction contract (Contract) for the Park Substation Line Extension Project to the Gypsum Canyon Memorial Park Development (Project) to the lowest responsible bidder, Outsource Utility Contractor, LLC (Outsource), of Artesia, California, Contractor’s License No. 968395, Classifications A, C-10, C-31, C-61/D- 31, in the amount of $4,877,934.60, plus a 10% contingency; 2) Determine that the Project is statutorily and categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080.62 and CEQA Guidelines (Cal. Code Regs., title 14, ch. 3) sections 15301(b), 15302(c) and (d), and 15303 and further determine that none of the exceptions to the categorical exemptions set forth in CEQA Guidelines section 15300.2 apply; and 3) Authorize and direct (a) the Director of Public Works, or designees, on behalf of the City of Anaheim (Anaheim), to execute the Contract and any other related documents, including any cost-neutral amendments of the Contract and any documents contemplated by the Contract, 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. Outsource Utility Contractor, LLC, Artesia, CA ......................$4,877,934.60
2. E.E. Electric, Inc., Jurupa Valley, CA.......................................$5,450,601.54 Construction Contract Award to Outsource Utility Contractor, LLC for the Park Substation Line Extension Project April 7, 2026
3. Asplundh Construction, LLC, Buena Park, CA........................$5,883,308.10
4. Henkels & McCoy West, LLC, Pomona, CA...........................$6,113,995.00
5. Herman Weissker Power Inc., Chino, CA.................................$7,050,223.29
6. Herman Weissker, Inc., Riverside, CA .....................................$7,625,989.54 Outsource is recommended for the Contract award as the lowest responsible bidder. Outsource’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.
As part of the Gypsum Canyon Memorial Park site development, the Orange County Cemetery District (Customer) requested that Anaheim Public Utilities (APU) provide new underground electrical infrastructure along Santa Ana Canyon Road from Woodcreek Road to Gypsum Canyon Road (Attachment 2), to support the electric service needs of the planned development.
New street lights will be installed as part of the Project to improve roadway visibility. Final street restoration and traffic requirements will be coordinated with the Department of Public Works and take into consideration that a water main extension has also been requested by the Customer.
Electric line extensions requested by large developments are provided in accordance with APU’s Electric Rates, Rules, and Regulations, which require customers to reimburse their proportional costs, including design, permitting, construction, inspection, pavement restoration, and materials.
Project cost reimbursement will be adjusted upon completion of construction to reflect Anaheim's final costs, and the timeframe for repayment will take into consideration that the Project’s onsite development schedule is still tentative.
The Project is scheduled to begin construction in the 3rd Quarter of 2026, with completion by the 3rd Quarter of 2027.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is not a covered “Project Work” as that term is defined in the Amended and Restated Community Workforce Agreement (CWA). Electric utility work on high voltage utility equipment and other special utility construction work is specifically exempt and excluded from the scope of the CWA.
ENVIRONMENTAL DETERMINATION:
APU recommends that City Council determine that the Project is statutorily and categorically exempt from CEQA pursuant to Public Resources Code section 21080.62 and CEQA Guidelines sections 15301(b), 15302(c) and (d), and 15303, and further determine that none of the exceptions to the categorical exemptions set forth in CEQA Guidelines section 15300.2 apply. The Project will consist of installing new underground electrical facilities consistent with those described in the Gypsum Canyon Cemetery Project Development Project No. 2020-00204 Addendum to the 2005 Certified Environmental Impact Report No. 331. Minor street apparatuses and LED street Construction Contract Award to Outsource Utility Contractor, LLC for the Park Substation Line Extension Project April 7, 2026
lighting will also be involved. The Project does not have the potential to create a significant effect on the environment.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2025/26 Electric Capital Improvement Program budget from restricted Electric Utility Funds, and applicable Project-related costs will be reimbursed by the Customer.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Exhibit A
2. Vicinity Map