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 PETER A. MARACCINI, PE, PhD, Supervising Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to a requirements contract to Rehabilitate Public Water Supply Wells in East Quadrant (Bid File 9643) (Districts 4, 6, and 7, and Unincorporated Fresno County): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines for the rehabilitations of public water supply wells in the east quadrant. 2. Award a requirements contract to Zim Industries, Inc., for a term of one year in an amount of $1,024,240 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 rehabilitations of public water supply wells in the east quadrant; award a requirements contract to Rehabilitate Public Water Supply Wells in East Quadrant (Project) to Zim Industries, Inc., in an amount of $1,024,240 per year for a one-year term, 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 to Zim Industries, Inc., in an amount of $1,024,240 per year for a one-year term, with provisions for up to two one-year extensions. Award of the contract would contribute towards the goal of placing the public water supply wells on regular cleaning and rehabilitation intervals thereby ensuring reliable operation of the City's drinking water system. The bid will expire on July 6, 2022. BACKGROUND The City has approximately 260 operable wells in the public water supply system. 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, the City would need to rehabilitate approximately twenty-six (26) public water supply wells every year. The winning bidder of this requirements contract is expected to rehabilitate 4 public water supply wells every year. Rehabilitation for the remaining 22 public water supply wells each year is included in other requirements contracts for specific regions of the City. The wells selected for rehabilitation and the order of rehabilitation will depend on the needs and status of the water system over the course of the contract. 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 April 4, 2022, and posted on the City's Planet Bids website. One sealed bid proposal was received and publicly opened on May 3, 2022. The bid proposal was $1,024,240. The bid will expire within 64 days of bid opening, on July 6, 2022. Zim Industries, Inc., was found to be the lowest responsive and responsible bidder with a bid amount of $1,024,240. Staff recommends that City Council award a requirements contract to Zim Industries, Inc., for a term of one year in the amount of $1,024,240 per year, with provisions for up to two one-year extensions. Per the terms of the agreement, the Contractor may submit pricing revisions for any extension of the contract. Any proposed pricing revisions will be subject to negotiation by the City. ENVIRONMENTAL FINDINGS Staff have performed a preliminary environmental assessment for this Project and, in accordance with the requirements of the CEQA Guideline, 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. These typical maintenance activities will include removing debris from the well, brushing the screened sections of the well, injecting and mixing chemicals to dissolve mineral buildup, utilizing high energy to remove obstructions from screened sections of the well, and disinfecting the well. These typical maintenance activities are recommended by the American Water Works Association to optimize the operable life of a public water supply well. These maintenance activities will not expand the use of these existing well facilities. 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 This Project is Citywide with no impact to the General Fund. This Project is identified in the Water Division's five-year Capital Improvements plan. Funds for this Project are budgeted in the Fiscal Year 2022 Water Enterprise Fund 40101, and future expenditures will be included in future fiscal year budgets. Attachments: Attachment 1 - Notice of Exemption Attachment 2 - Environmental Assessment Attachment 3 - Bid Evaluation and Fiscal Impact Statement Attachment 4 - Sample Contract