REPORT TO THE CITY COUNCIL September 27, 2018 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: DEJAN PAVIC, Supervising Professional Engineer Department of Public Utilities - Utilities Planning & Engineering BY: ROBERT A. DIAZ, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to 4,100 linear feet of water main installation in North Armstrong Avenue (Council District 4 and County): 1. Adopt findings of Section 15282 (Other Statutory Exemptions) of the California Environmental Quality Act Guidelines for a new water main Installation project in North Armstrong Avenue 2. ***RESOLUTION - 10th Amendment to the Annual Appropriation Resolution (AAR) No. 2018-157 to appropriate $984,600 to fund installation of a water main in North Armstrong Avenue (Requires 5 affirmative votes) (Subject to Mayor's Veto) 3. Award a construction contract to Floyd Johnston Construction Co., Inc., in the amount of $710,994 for water main Installation project in North Armstrong Avenue 4. Authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City ..Body RECOMMENDATIONS Adopt findings of Section 15282, Other Statutory Exemptions, of the California Environmental Quality Act Guidelines (CEQA); adopt the 10th Amendment to the Annual Appropriation Resolution (AAR) No. 2018-157 to appropriate $984,600 to fund installation of a water main in North Armstrong Avenue; award a construction contract to Floyd Johnston Construction Co., Inc., in the amount of $710,994 for water main installation in North Armstrong Avenue; 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 installation contract. The scope of work includes installation of 4,100 linear feet of water distribution main in two segments of North Armstrong Avenue. The first segment extends from East Floradora Avenue north 2,700 linear feet. The second segment extends from East Clinton Avenue 1,400 linear feet north to East Princeton Avenue. Staff recommends that City Council award a contract to Floyd Johnston Construction Co., Inc., the lowest responsive and responsible bidder, in the amount of $710,994. Funding for this contract is included in the Fiscal Year 2019 budget. BACKGROUND The Department of Public Utilities, Water Division, has identified that a portion of the existing water system along North Armstrong Avenue lacks water mains to provide sufficient capacity to meet the areas' water demand. Staff has determined the proposed transmission grid water main gap closure will meet and exceed the expected water demands of the surrounding area. The North Armstrong Avenue water main project includes 4,100 linear feet of 16-inch diameter pipe in North Armstrong Avenue. The first segment extends from East Floradora Avenue north 2,700 linear feet. The second segment extends from East Clinton Avenue 1,400 linear feet north to East Princeton Avenue. On June 29, 2018, an advertisement was published inviting bids for a "Furnish and Install Contract for Water Main." Thirteen building exchanges received a fax notice inviting bids and nine specs were distributed to prospective bidders. The Purchasing Division received seven bids and on July 31, 2018 the bids were opened. Floyd Johnston Construction Co., Inc., was determined to be the lowest responsive and responsible bidder in the amount of $710,994. The other six bids ranged from $722,510 to $1,260,260. The bids received will expire 64 days after bid opening, which will be on October 3, 2018. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it is exempt under Section 15282 (Other Statutory Exemptions) of the CEQA Guidelines. Section 15282 of the CEQA Guidelines includes a list of existing statutory exemptions found in the California Code. Subsection (k) of Section 15282 of the CEQA Guidelines references, the installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length. The combined length of the proposed project will not exceed one mile in length. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15282 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 and is located in Council District 4 and the County. Funding for this project is available from the appropriation of retained earnings within the Water Enterprise fund (40101) upon approval of the 10th Amendment to the AAR No. 2018-157. Attachments: Categorical Exemption (Attachment 1) 10th Amendment to the Annual Appropriation Resolution No. 2018-157 (Attachment 2) Bid Evaluation and Fiscal Impact Statement (Attachment 3) Sample Contract (Attachment 4) Vicinity Map (Attachment 5)