REPORT TO THE CITY COUNCIL February 26, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to the new sewer main in Peach Avenue between North and Annadale Avenues (Bid File No. 3347) (Sphere of Influence in County of Fresno) 1. Adopt a finding of Categorical Exemption of Class 4, pursuant to Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (The installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length) of the California Environmental Quality Act Guidelines 2. Award a $83,299.00 contract to Haydon Construction, Inc. of Fresno, California ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption of Class 4, pursuant to Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (The installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length) of the California Environmental Quality Act Guidelines (CEQA), and award an $83,299.00 contract to Haydon Construction, Inc. of Fresno, California. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award a construction contract in the amount of $83,299.00 for the new sewer main in Peach Avenue between North Avenue and Annadale Avenue, a total of 360 lineal feet of 10-inch sewer pipe. The proposed sewer main installation will provide City sewer services to residences that are currently on private septic system. BACKGROUND In 2014 Department of Public Utilities/Utility Engineering and Planning requested a new sewer main to be constructed. This sewer is being installed because it is in the City sphere of influence. Also the property is being developed to a point where the use of a septic system is not capable of appropriately treating the wastewater which will be produced. The installation of this sewer provides service to properties not previously served by City sewer. Connecting to a sanitary sewer will lessen any detrimental impacts to groundwater in the immediate area. All the property owners have been informed and supported the City in constructing this sewer main on Peach Avenue. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on December 10, 2014, posted on the City's website and faxed to ten building exchanges. The specifications were distributed to 31 prospective bidders. Five sealed bid proposals were received and publicly opened on December 30, 2014. Bid proposal prices range from $83,299.00 to $200,508.75. Staff has determined that Haydon Construction, Inc. of Fresno, California is the lowest responsive and responsible bidder with a submitted bid of $83,299.00. Their bid price is 63% below the Construction Allocation of $225,000.00. The staff determination was posted on the City website on January 15, 2015. Staff recommends that the City Council award a contract in the amount of $83,299.00 to Haydon Construction, Inc., of Fresno, California as the lowest and responsive bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 4 of Categorical Exemption set forth in the CEQA Guidelines, Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (The installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length). Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference did not affect the award of this project because the lowest responsive and responsible bidder is a local business according to the Fresno Municipal Code Section 4-108. FISCAL IMPACT This project has no impact to the General Fund and is located in Sphere of Influence in County of Fresno. This project is identified in the five-year Capital Improvement Plan. Funds in the amount of $225,000.00 for the construction project are budgeted in the 2015 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract would be $87,799.00. Attachments: * Bid Evaluation * Fiscal Impact Statement * Vicinity Map