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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JUNE 9, 2026
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: AWARD OF CONSTRUCTION CONTRACT TO ASPLUNDH
CONSTRUCTION, LLC FOR THE UNDERGROUND DISTRICT NO.
71 OLIVE/VERMONT PROJECT
ATTACHMENT (Y/N): YES ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Award the construction contract (Contract) for Underground District No. 71 Olive/Vermont (Project) to the lowest responsible bidder, Asplundh Construction, LLC (Asplundh) of Buena Park, California, Contractor’s License No. 1028802, Classifications A and C-10, in the amount of $22,606,376.68;
2. Authorize and direct (a) the Director of Public Works, on behalf of the City of Anaheim (City), to execute the Contract and any other related documents 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;
3. Authorize and direct the Public Utilities General Manager, or designee, on behalf of the City, to (a) negotiate, finalize, and execute, in substantial form, the Facilities Relocation Agreement (Agreement) with Southern California Edison Company (“SCE”) with any changes to the Agreement that do not substantially change the terms and conditions of the Agreement, as determined by the City Attorney’s Office; (b) consistent with the Agreement, reimburse SCE for its construction and associated cost of materials as part of undergrounding its transmission telecommunication facilities, in an amount not to exceed $200,000, plus a 20% contingency; and (c) execute any related documents including, but not limited to, the Bill of Sale and ITCC Exemption Letter, and take any and all actions as are necessary or advisable to implement and administer the Agreement.
DISCUSSION:
The Project bids are summarized as follows:
1. Asplundh, Buena Park, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,606,376.68
2. Hot Line Construction Inc., Brentwood, CA . . . . . . . . . . . . . . . . . . . . $23,772,644.91 Award of Construction Contract for the Underground District No. 71 Olive/Vermont June 9, 2026
3. Henkels & McCoy West LLC, Pomona, CA. . . . . . . . . . . . . . . . . . . . $32,507,384.57
4. International Line Builders Inc., Corona, CA. . . . . . . . . . . . . . . . . . . . $32,829,092.61 Asplundh is recommended for the construction award as the lowest responsible bidder.
Asplundh’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.
This Project is part of the Five-Year Underground Conversion Plan that will convert existing overhead electric and telecommunication systems to underground along Vermont Avenue from Anaheim Boulevard to State College Boulevard, Olive Street from south of Vermont Avenue to South Street, and South Street from Anaheim Boulevard to Olive Street (Attachment 2). As part of the Project, new street lights will be installed throughout the affected roadways to improve safety and visibility.
The Project affects five agencies with telecommunication facilities on utility poles, including AT&T, Charter/Spectrum, Crown Castle, Verizon/MCI and Southern California Edison (SCE). Pursuant to Chapter 17.24 of the Anaheim Municipal Code, the telecommunication companies are required to remove their facilities within one year of completion of the civil infrastructure.
The Project will improve system reliability and enhance roadway aesthetics by placing electric and telecommunication lines underground along the affected roadways. There are two sets of existing transmission lines that cross Vermont Avenue that will remain overhead due to their associated cost and technical considerations. The first is APU’s 220,000-volt overhead transmission line that crosses Vermont Avenue due to the limited space within the Metrolink railroad right-of-way. The second includes 69,000-volt overhead transmission lines that cross East Street with APU and SCE transmission lines on utility poles since the California Public Utilities Commission (CPUC) has determined that SCE is not obligated to pay for undergrounding in Anaheim. However, SCE-owned telecommunications lines on East Street that cross Vermont Avenue are included in the Project scope because undergrounding these lower-hanging telecommunications lines can be accomplished at a significantly lower cost while reducing the visual impact of overhead lines. APU will pay the upfront capital costs, which are estimated at $200,000, and receive annual cost recovery from the General Fund. The SCE Agreement (Attachment 3) is required to facilitate this undergrounding effort.
The Project is tentatively scheduled to begin construction in the 3rd Quarter of 2026 with completion by the 3rd Quarter of 2028. Undergrounding activities will be coordinated with Olive, Jefferson, and Roosevelt Elementary school schedules, as well as residents and businesses within the Project boundaries, to minimize traffic impacts during construction.
Final street paving, traffic control and hours of construction will be coordinated with the Public Works Department to minimize disruption to the surrounding community.
The Project supports the Citywide Strategic Plan, Goal C – Invest in Infrastructure and Amenities, Strategy 4 – Improve, enhance, beautify, and maintain major street corridors.
Award of Construction Contract for the Underground District No. 71 Olive/Vermont Project June 9, 2026
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 are specifically exempt and excluded from the scope of the CWA.
ENVIRONMENTAL DETERMINATION:
The City Council determined, by Resolution No. 2023-097 on October 24, 2023, that pursuant to sections 15301(b), 15302(c)-(d), and 15303 of Title 14 of the California Code of Regulations, the Project was categorically exempt from CEQA. The Project consists of relocating existing overhead utility lines to underground and installing minor street apparatuses and LED street lighting, which do not have the potential to create a significant effect on the environment. The work areas will be restored to pre-Project conditions as part of the construction activities.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2025/26 Electric Capital Improvement Program budget from restricted Electric Utility Enterprise funds; the cost for SCE’s portion will be recovered on an annualized basis to minimize impacts to the General Fund.
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Exhibit A
2. Vicinity Map
3. SCE Facilities Relocation Agreement Template