REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: KEVIN NORGAARD, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering SARAH AGUILA, Project Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Sewer Rehabilitation Improvements in the area bound by Shields, Fruit, Dakota, and Palm Avenues (Bid File 12302877) (Council District 1): 1. Adopt a finding of Categorical Exemption pursuant to Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines. 2. Award a construction contract to Emmett's Excavation, Inc., in the amount of $5,077,159. ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for Sewer Rehabilitation Improvements in the area bound by Shields, Fruit, Dakota, and Palm Avenues (Project); award a construction contract for the Project to Emmett's Excavation, Inc., in the amount of $5,077,159; 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 Through a detailed analysis of the wastewater collection system, the Wastewater Collection Sewer Master Plan identified sewer mains and appurtenances in need of rehabilitation and replacement. The Project will rehabilitate approximately 22,312 linear feet of 6-inch, 8-inch, and 12-inch diameter sewer mains and access structures exhibiting structural deficiencies. This Project will extend the service life of the sewer mains and manholes, address structural and capacity deficiencies, and improve flow to decrease maintenance issues. The Department of Public Utilities (DPU), Wastewater Management Division (WMD), is seeking to award a construction contract to Emmett's Excavation, Inc., in the amount of $5,077,159 for the Project. The bid will expire on February 24, 2024. BACKGROUND WMD maintains approximately 25,580 access structures and 1,600 miles of sewer collections and conveyance pipes. To ensure the reliability of this extensive pipe network, portions of the system need to be annually rehabilitated. The sewer infrastructure for this Project was identified in the 2015 Wastewater Collection Sewer Master Plan for rehabilitation due to structural deficiencies of the pipe based upon Closed Circuit Television (CCTV) inspection performed by the WMD. The Project consists of the rehabilitation of approximately 22,312 linear feet of 6-inch, 8-inch, and 12-inch diameter sewer mains in the area bound by Shields, Fruit, Dakota, and Palm Avenues via the installation of Cured-In-Place-Pipe (CIPP). The CIPP method involves inserting a flexible liner inside the existing pipe, inflating the liner, and curing the liner by exposing it to heat or ultraviolet light inside the pipe. Immediately after curing each house lateral will be reinstated with a robotic cutting device. After cutting the opening for each lateral a small 10-inch-long section will then be inserted into the lateral and cured to ensure the structural and hydraulic integrity of the connection. The Project also involves manhole structural rehabilitation and replacement as needed. Public notifications are important when projects impact residents and for projects located in the public right-of-way. Residents will be notified by the contractor twice prior to the construction. First, one week prior to the beginning of construction the general contractor will distribute an informational door hanger to the entire project area. Second, two days prior to the lining of each sewer segment the CIPP subcontractor will distribute an additional notification with specific construction details. The Project construction is anticipated to last no more than two months from start of construction to final completion. If this Project is awarded, field construction is anticipated to begin within two months after award. A Notice Inviting Bids was published on October 20, 2023, and posted on the City's Planet Bids website. The plans and specifications were distributed to twenty-nine prospective bidders and posted at eight Building Exchanges. One sealed bid proposal was received and publicly opened on November 21, 2023. Emmett's Excavation, Inc., was determined to be the sole lowest responsive and responsible bidder, with the bid amount of $5,077,159. Their bid price is 0.7% above the Engineer's Estimate of $5,040,000. The staff determination was posted on the City's Planet Bids website on Friday, January 5, 2024. Staff recommends that the City Council award a construction contract to Emmett's Excavation, Inc., in the amount of $5,077,159, as the lowest responsive and responsible bidder. The Project Labor Agreement (PLA), adopted by Council in September 2021, applies to this Project because the engineer's estimate for this Project exceeded $1 million, pursuant to the terms of the PLA. ENVIRONMENTAL FINDINGS Staff has performed an environmental assessment for this Project in accordance with the CEQA guidelines and has determined that it falls within Categorical Exemption pursuant to Class 2, Section 15302(c) (Replacement or Reconstruction). This Project involves replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. 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(a). FISCAL IMPACT There is no impact to the General Fund. Funding for this Project is included within the Wastewater Management Division's Sewer Enterprise Fund. The Project is located in Council District 1. Attachments: Attachment 1 - Notice of Exemption Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Sample Contract Attachment 4 - Vicinity Map