REPORT TO THE CITY COUNCIL March 5, 2020 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: RANDALL W. MORRISON, PE, Assistant Director Public Works Department, Engineering Division BY: JOHN HONEY, PE, Professional Engineer Public Works Department, Engineering Division SUBJECT ..Title Actions pertaining to the South Van Ness Industrial Area Roadway and Utilities Infrastructure Improvement Project (Project) - Bid File No. 3662 (Council Districts 3 and 5) 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Sections 15301/Class 1, 15302/Class 2, 15303/Class 3 and 15304/Class 4 of the California Environmental Quality Act guidelines 2. Award a construction contract in the amount of $3,290,000.00 to Doug Ross, Inc., dba Central Valley Asphalt of Fresno, California ..Body RECOMMENDATION Staff recommends award of a construction contract to Doug Ross, Inc., dba Central Valley Asphalt in the amount of $3,290,000 as the lowest responsive and responsible bidder, and authorize the Public Works Director or designee to sign the construction contract on behalf of the City of Fresno. EXECUTIVE SUMMARY The City of Fresno seeks to install roadway and infrastructure improvements in the South Van Ness Industrial Area on E. California Avenue, S. East Avenue, E. Hamilton Avenue, S. Pearl Street, and Los Angeles Street. The Scope of work includes installation of sidewalk, curb and gutter, ADA curb ramps, roadway repair or reconstruction, and street lights. Awarding a construction contract for this project will enhance the industrial area promoting economic development in the City of Fresno. The project is primarily funded by a Federal grant from the Economic Development Administration (EDA). BACKGROUND Grant funding for the Project was originally applied for, and awarded to, the former Fresno Redevelopment Agency (Agency) in 2011, prior to the Agency being disbanded by the State of California. Due to the dissolution process, the Agency was unable to accept the award. The EDA made these funds available again in FY 2016 as a Public Works and Economic Adjustment Assistance program. The City's Economic Development Department submitted a grant application for substantially the same Project for which the Agency originally received funding. EDA awarded the grant to the City of Fresno on September 16, 2016 with the Authorized Award End Date for the funds of September 16, 2021. Design was completed by Provost & Pritchard Consulting Group. The Notice Inviting Bids was advertised and published in the Business Journal on December 6, 2019, and posted on the City's website. Ten (10) building exchanges received the Notice Inviting Bids. The specifications were distributed to fifty-six (56) prospective bidders. Ten (10) sealed bid proposals were received and opened in a public bid opening on January 28, 2020, with the bids ranging from $3,290,000.00 to $3,679,584.60. Doug Ross, Inc,. dba Central Valley Asphalt is deemed the lowest responsive and responsible bidder. The apparent low bid price was 10% below the Engineer's Estimate. The bids will expire 64 days after the bid opening on April 2, 2020. If the bids are rejected, the project will be rebid resulting in a delay of approximately 60 days. Staff is recommending award of a construction contract to Doug Ross, Inc,. dba Central Valley Asphalt in the amount of $3,290,000.00 to construct the South Van Ness Industrial Area Roadway and Utilities Infrastructure Improvement Project and to authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno. City Attorney has reviewed and approved to form. ENVIRONMENTAL FINDINGS Staff has determined this Project is exempt from CEQA under Class 1 Categorical Exemption pursuant to CEQA Guidelines section 15301 (Existing Faculties), Class 2 Categorical Exemption pursuant to CEQA Guidelines section 15302 (Replacement or Reconstruction), Class 3 Categorical Exemption pursuant to CEQA Guidelines section 15303 (New Construction or Conversion of Small Structures) and Class 4 Categorical Exemption pursuant to CEQA Guidelines section 15304 (Minor Alterations to Land) because the Project involved negligible or no expansion of an existing use including replacement of existing curb and gutter and installing minor amounts of new curb & gutter, street reconstruction/minor widening as needed, pavement resurfacing (grind and overlay), storm drain infrastructure, traffic access and circulation, and safety enhancements. None of the exceptions to exemptions in 15300.2 apply to this Project. LOCAL PREFERENCE Local preference was not implemented for this project because this contract is federally funded. FISCAL IMPACT The project is located in City of Fresno Council District 3. The overall cost of the project is $4,334,100 and is 70% federally funded by Economic Development Administration (EDA). The 30% required local match is funded by prior year General Fund allocations and Local Measure "C" Street Maintenance program funds. Of the total project cost, $3,290,000 will be used for the construction contract award. All funds necessary for the contract award are included in the current fiscal year budget as previously adopted by City Council. Attachments: Bid Evaluation Fiscal Impact Statement Environmental Assessment No. P18-01360 Standardized Contract Vicinity Map