REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: PETER MARACCINI, PE, PhD, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to a requirements contract to Rehabilitate Reclamation Wells at the Fresno-Clovis Regional Wastewater Reclamation Facility (Bid File 9630) (Districts 3): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act Guidelines for the rehabilitation of reclamation wells at the Fresno-Clovis Regional Wastewater Reclamation Facility. 2. Award a requirements contract to Zim Industries, Inc., for a term of one year in the amount not to exceed $493,080 per year, with provisions for up to two one-year extensions. ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines for the rehabilitation of reclamation wells at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF); award a requirements contract to Rehabilitate Reclamation Wells at the RWRF (Project) to Zim Industries, Inc., for a term of one year in the amount not to exceed $493,080 per year, with provisions for up to two one-year extensions; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities (DPU) is seeking to award a requirements contract for the Project for a term of one year in the amount not to exceed $493,080 per year to Zim Industries, Inc., with provisions for up to two one-year extensions. Award of the contract would contribute towards the goal of placing the reclamation wells on regular cleaning and rehabilitation intervals thereby ensuring reliable operation of the reclamation well network. The bid will expire on February 16, 2022. BACKGROUND The Department of Public Utilities has 21 reclamation wells located at the RWRF. The reclamation wells pump percolated secondary effluent to discharge points to control groundwater mounding underneath the RWRF percolation pumps, as required by the State Water Resources Control Board. The reclamation well network will also provide backup source supply to the recycled water system in the near future, thereby ensuring system reliability. Industry standards set by the American Water Works Association recommend rehabilitating each well at 10-year intervals to optimize the life of the steel casings, to keep the water bearing formations in the aquifer clear of blockages, and to remove buildup of mineral deposits on the casing perforations. To achieve the recommended rehabilitation intervals, DPU would need to rehabilitate two (2) reclamation wells every year. The winning bidder of this requirements contract is expected to rehabilitate 2 reclamation wells per year. Specifications were prepared for this Project, which were reviewed and approved by the Construction Management Division, the Purchasing Unit, and the City Attorney's Office. A Notice Inviting Bids was published on November 10, 2021 and posted on the City's Planet Bids website. One (1) sealed bid proposal was received and publicly opened on December 14, 2021. The bid proposal was $493,080. The bid will expire within 64 days of bid opening, on February 16, 2022. Zim Industries, Inc., was found to be the lowest responsive and responsible bidder with a bid amount of $493,080. Staff recommends that City Council award a requirements contract to Zim Industries, Inc., for a term of one year in the amount not to exceed $493,080 per year, with provisions for up to two one-year extensions. ENVIRONMENTAL FINDINGS Staff have performed a preliminary environmental assessment for this Project in accordance with the requirements of the CEQA Guideline and have determined it is consistent with a Class 1 Categorical Exemption Section 15301 (Existing Facilities). This Project entails typical maintenance of an existing public facility involving no expansion of existing use. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this Project. The determination was reviewed and approved by the City Attorney's Office. LOCAL PREFERENCE The lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(d). FISCAL IMPACT There is no impact to the General Fund. This Project is Citywide. This Project is identified in the Wastewater Management Division's five-year Capital Improvements plan. Funds in the amount of $493,080 for this Project are budgeted in the Fiscal Year 2022 Wastewater Enterprise Fund 40501, and future expenditures will be included in future fiscal year budgets. Attachments: Attachment 1 - Notice of Exemption Attachment 2 - Environmental Assessment 9630 Attachment 3 - Bid Evaluation and Fiscal Impact Statement Attachment 4 - Sample Contract