REPORT TO THE CITY COUNCIL June 22, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Utilities Planning & Engineering BY: SARAH AGUILA, Senior Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Sewer Rehabilitation in Abby Street and Hammond Avenue (Bid File 3485) (Council District 7) 1. Adopt findings of Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing Facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines 2. Award a contract in the amount of $702,673.50 to NU-Line Technologies of Encinitas, California 3. Authorize the Director of Public Utilities, or designee, to sign all documents on behalf of the City of Fresno. ..Body RECOMMENDATIONS Staff recommends that City Council adopt findings of Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act (CEQA) Guidelines and award a $702,673.50 contract to NU-Line Technologies of Encinitas, California. EXECUTIVE SUMMARY After a detailed analysis of the downtown wastewater collection system, the Sewer Master Plan identified the project sewers for rehabilitation and replacement. The work to be performed will correct structural and capacity deficiencies. The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract in the amount of $702,673.50 to NU-Line Technologies of Encinitas, California, for the Sewer Rehabilitation in Abby Street and Hammond Avenue. BACKGROUND In 2015, inspections of the Downtown Fresno's sewer systems were conducted for the Wastewater Collection System Master Plan. The goal of these inspections was to evaluate the structural and capacity handling capability of all the downtown sewer pipes. Through this investigation, portions of these sewer pipes were found to have structural deficiencies such as cracks and voids, some are past the design useful life, and other pipes are undersized per the current City Standard design requirements. The ages of the pipes in the project area range from 37 years to 78 years. The typical design life of a sewer pipe is 50 to 75 years. The advanced age and structural deficiencies discovered in these areas require that portions of the sewer pipes be rehabilitated. The project consists of the abandonment of the 6-inch diameter sewer main in Hammond Avenue between Blackstone Avenue and Abby Street by slurry fill, abandonment of 6-inch diameter sewer main in Abby Street between Hammond Avenue and Hammond Avenue/Olive Avenue Alley by slurry fill, rehabilitation of the 20-inch diameter sewer main in Hammond Avenue between Blackstone Avenue and Abby Street by means of CIPP/MSW liner installation, and rehabilitation of the 20-inch diameter sewer main in Abby Street between Hammond Avenue and Tyler Avenue/Lewis Avenue Alley by means of CIPP/MSW liner installation. Sewer rehabilitation was proposed where capacity deficiencies, structural deficiencies and advanced age of pipe were identified. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on April 14, 2017, and posted on the City's website. The specifications were distributed to 10 prospective bidders and faxed to 11 Builder Exchanges. The bid will expire on July 19, 2017, 64 days after the May 16, 2017 bid opening. Three sealed bid proposals were received and publicly opened on May 16, 2017. The bid proposal prices range from $702,673.50 to $996,347.00. NU-Line Technologies was the lowest responsive and responsible bidder with a submitted bid of $702,673.50. The staff determination was posted on the City's website. Staff recommends that the City Council award a construction contract in the amount of $702,673.50 to NU-Line Technologies as the lowest responsive and responsible bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment and has determined that this project falls within Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing Facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or Reconstruction) of the CEQA Guidelines because this project involves rehabilitation and replacement of existing sewer mains. Therefore, none of the exceptions to Categorical exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because none of the bidders were local businesses. FISCAL IMPACT Funds in the amount of $1,330,000 are included in FY17 budget within the Sewer System Enterprise Fund (40501). This construction contract has no impact on the General Fund and is located in Council District 7. Attachments: Bid Evaluation and Fiscal Impact Statement Contract Vicinity Map