REPORT TO THE CITY COUNCIL June 26, 2014 FROM: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: KEVIN L. NORGAARD, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to the Sewer Rehabilitation in Fresno Street from Lewis to Webster Avenues (Bid File 3308) (Council District 7) 1. Adopt a finding of 1 and 2 Categorical Exemptions, pursuant to Section 15301(b) (Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services) and Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines 2. Award a $414,373.50 construction contract to Repipe California LP of Riverside, California ..Body RECOMMENDATIONS Staff recommends the City Council: 1. Adopt a finding of Class 1 and 2 Categorical Exemptions, pursuant to Section 15301(b) (Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services) and Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for the Sewer Rehabilitation in Fresno Street from Lewis to Webster Avenues. 2. Award a $414,373.50 construction contract to Repipe California LP of Riverside, California, for the Sewer Rehabilitation in Fresno Street from Lewis to Webster Avenues. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award a construction contract for Sewer Rehabilitation in Fresno Street from Lewis to Webster Avenues. The rehabilitation is proposed to be accomplished by installing a Cast in Place Pipe (CIPP) liner where capacity and structural deficiencies were identified. Staff recommends City Council adopt a finding of Class 1 and 2 Categorical Exemptions, pursuant to Sections 15301(b) and 15302(c) of the CEQA Guidelines and award a contract in the amount of $414,373.50 to Repipe California LP, of Riverside, California. BACKGROUND In 2010 the City's Sewer Collection System Maintenance workgroup began performing an investigation of the City of Fresno's sewer system. The investigation was done using closed circuit television (CCTV). Through this investigation, it was identified that approximately 1,777 feet of 6", 820 feet of 10" and 1,028 feet of 12" diameter pipe along Fresno Street between Lewis and Webster Avenues is in poor condition with structure deficiencies such as cracks, deterioration due to hydrogen sulfide and broken sections of pipe. DPU recommends installing a CIPP liner in the existing standard concrete pipe as the most cost effective solution. The CIPP liner will restore the structural integrity of the pipe. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on April 28, 2014, posted on the City's website and faxed to 10 building exchanges. The specifications were distributed to 34 prospective bidders. One sealed bid proposal was received and publicly opened on May 20, 2014. The bid price for the project was $414,373.50. Repipe California LP of Riverside, California was the only bidder with a submitted bid of $414,373.50. Their bid price is 18% below the Engineer's Estimate of $506,970.00. The staff determination was posted on the City Website on June 3, 2014. Staff recommends that the City Council award a contract in the amount of $414,373.50 to Repipe California LP, of Riverside California as the lowest and responsive bidder. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities or designee, who has been delegated this authority by the City Manager. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 1 and 2 Categorical Exemptions set forth in the CEQA Guidelines, Section 15301(b) (existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services) and Section 15302(c) (replacement or reconstruction) due to the nature of this contract involving repair and rehabilitation of existing public sewer utilities, in this case by constructing a CIPP corrosion resistant liner within the existing concrete pipe, which will involve negligible or no expansion of capacity or use. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE The local preference according to the Fresno Municipal Code Section 4-108 did not affect the award of this project because no local business submitted a bid for this project. FISCAL IMPACT This project has no impact to the General Fund and is located in Council District 7. This project is identified in the five-year capital improvement plan. Funds in the amount of $520,000.00 for the construction project are budgeted in the 2014 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract would be $433,033.50. Attachments: * Fiscal Impact * Bid Evaluation * Vicinity Map