REPORT TO THE CITY COUNCIL February 15, 2018 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Utilities Planning & Engineering BY: ROBERT A. DIAZ, Senior Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Water Main Replacement and Service Transfer in the Sierra Sky Park Neighborhood - Bid File No. 3573 (Council District 2 and County) 1. Adopt a finding of Class 2, Class 3 and Class 4, Categorical Exemptions, pursuant to sections 15302, 15303 and 15304, of the CEQA guidelines, for the Water Main Replacement and Service Transfer project in the Sierra Sky Park Neighborhood 2. Award a construction contract to Dawson-Mauldin Construction, Inc., in the amount of $2,137,962 for Water Main Replacement and Service Transfer in the Sierra Sky Park Neighborhood 3. Authorize the Director of Public Utilities or designee to sign the contract on behalf of the City ..Body RECOMMENDATIONS Adopt a finding of Class 2, Class 3 and Class 4, Categorical Exemptions, pursuant to sections 15302, 15303 and 15304, of the CEQA guidelines; and award a construction contract to Dawson-Mauldin Construction, Inc., in the amount of $2,137,962 for Water Main Replacement and Service Transfer in the Sierra Sky Park Neighborhood; and authorize the Director of Public Utilities or designee to sign the contract on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, seeks to establish a water main replacement and water service transfer contract. The scope of work includes replacing 2.4 miles of water distribution mains and water service transfers in existing streets within the Sierra Sky Park Neighborhood, bounded by North Blythe Avenue, West Herndon Avenue and North Gentry Avenue. Staff recommends that Council award a contract to Dawson-Mauldin Construction, Inc., the lowest responsive and responsible bidder in the amount of $2,137,962. Funding for this contract is included in the Fiscal Year 2018 budget. BACKGROUND This project is located within the Sierra Sky Park Neighborhood, which is a former County water district in the vicinity of North Blythe Avenue, North Gentry Avenue and West Herndon Avenue. Some of the existing water mains in the Sierra Sky Park Neighborhood are located in easements at the rear or side of private properties with limited access. Additionally, due to the age of the existing mains, numerous water main failures have occurred interrupting water service to customers. Under the proposed project, the new water mains and services will be placed in the street right-of-way improving access for City maintenance staff. On December 8, 2017, an advertisement was published inviting bids for Water Main Replacement and Service Transfers. Eleven building exchanges received a fax notice inviting bids and 35 specs were distributed to prospective bidders. On January 2, 2018, five bids were received and a public bid opening was held. Dawson-Mauldin Construction, Inc., was determined to be the lowest responsive and responsible bidder in the amount of $2,137,962. The other four bids ranged from $2,264,252 to $2,869,955. The bids received will expire 64 days after bid opening, which will be on March 7, 2018. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 2, Class 3 and Class 4, Categorical Exemptions set forth in CEQA Guidelines, sections 15302, 15303 and 15304, as this contract is for replacement of old water main infrastructure and transfer of existing water services. The project will not result in the expansion of capacity of existing uses. Furthermore, 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 the low bidder qualifies as a local business pursuant to the Fresno Municipal Code Section 4-108(d). FISCAL IMPACT Award of this contract will not impact the General Fund. Funding for this contract, which will benefit Council District 2 and the County, is included in the Fiscal Year 2018 budget within the Water Enterprise Fund (40101) and was included in the water rate model used to create the five-year utility rate plan that was adopted by the City Council on February 26, 2015. Attachments: Categorical Exemption (attachment 1) Evaluation of Bid Proposals & Fiscal Impact Statement (attachment 2) Requirements Contract (attachment 3)