REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering SAMUEL NADORES, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the construction of the Substation Expansion at the Fresno-Clovis Regional Wastewater Reclamation Facility (Bid File 3863) (Council District 3): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines 2. Award a construction contract, inclusive of the City's adopted project labor agreement requirements, to A-C Electric Company, in the amount of $2,179,000 ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption, pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines for the Substation Expansion at the Fresno-Clovis Regional Wastewater Reclamation Facility (Facility) (Project); award a construction contract to A-C Electric Company, in the amount of $2,179,000; 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 Facility's existing main electrical power substation is nearing capacity and needs to be expanded to meet future treatment demands, which will include higher levels of operational processes to meet new anticipated regulatory requirements. The Department of Public Utilities - Wastewater Management Division, seeks to award a construction contract, inclusive of the City's adopted project labor agreement requirements, to A-C Electric Company. In accordance with the City's competitive bidding process, A-C Electric Company was identified as the lowest responsive and responsible bidder in the amount of $2,179,000. Approval of the contract is necessary at this time as the bid expires on July 13, 2022. BACKGROUND In 2001 the Facility's numerous operations with high electrical demands required the dedication of a electric power substation to exclusively serve its needs. Since its construction, electrical demands have continued to increase. Peak power demand periods that include use of the Facility's Tertiary Treatment Disinfection Facility (TTDF), are currently met utilizing its primary (PG&E) 70 Kilovolt (KV) power source. This primary 70KV transmission voltage is converted to 12KV through the City owned high voltage transformer which is then distributed to the Facility. The primary power source is supplemented by a secondary (redundant/emergency) 12 KV PG&E power source. In the event of primary power source loss, the secondary source is insufficient in meeting current and anticipated future facility peak demands and forces modified/alternative facility operations to be implemented. A load study performed in late 2017 concluded that the existing Substation is now nearing available capacity and will not support the next major Facility expansion necessary to meet higher future treatment flows and more stringent regulatory requirements. To meet these upcoming operational and regulatory requirements, this Project adds another transformer and feeder from the substation area to the Facility's 12KV switchgear. This expansion will include the addition of high-side circuit switches and connection to the existing switchgear which will provide a backup to the existing substation transformer, which if it failed, would cause a facility shutdown. This effort will also enable current and future facility peak demands to be met. In October 2018, a consultant services contract was awarded for the design of the substation expansion. During the schematic design it was determined a pre-purchase of the transformer should be initiated. The transformer has since been fabricated and delivered to the site for installation. Following preparation of Project plans and specifications, a Notice Inviting Bids was published on April 6, 2022, and posted on the City's Planet Bids website. Specifications were distributed to thirty-four prospective bidders and posted at eleven Building Exchanges. The Project being estimated to exceed the $1,000,000 threshold, so it included requirements for implementation of City's adopted project labor agreement. Four sealed bid proposals were received and publicly opened on May 10, 2022. The bid proposals ranged from $2,179,000 to $2,679,372 with A-C Electric Company identified as the lowest responsive and responsible bidder, with a submitted bid amount of $2,179,000. Staff recommends the City Council award a construction contract to A-C Electric Company, in the amount of $2,179,000, as the lowest responsive and responsible bidder. Their bid price is 11.8% below the Engineer's Estimate of $2,470,000. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental assessment for this Project and determined that it falls within the Class 1 Categorical Exemptions set forth in the CEQA Guidelines, Sections 15301(b). Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this Project. 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. Funding for this Project is included in the Fiscal Year 2022 capital improvement budget within the Wastewater Management Division's Sewer Enterprise Fund 40501. The Project is located in the Council District 3. Attachments: Attachment 1 - CEQA Categorical Exemption Attachment 2 - Bid Evaluation & Fiscal Impact Statement Attachment 3 - Sample Contract Attachment 4 - Vicinity Map