REPORT TO THE CITY COUNCIL May 16, 2019 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: DEJAN PAVIC, PE, Public Utilities Manager 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 construction of 850 linear feet of Water Main Installation for the Mono Street and H Street Downtown Water Main Enhancements project (Council District 3): 1. Adopt findings of Section 15282 (Other Statutory Exemptions) of the California Environmental Quality Act Guidelines 2. Award a construction contract to Bill Nelson GEC, Inc., in the amount of $322,718 3. Authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15282 (Other Statutory Exemptions) of the California Environmental Quality Act (CEQA) Guidelines; award a construction contract to Bill Nelson GEC, Inc., in the amount of $322,718 for Water Main Installation for the Mono Street and H Street Downtown Water Main Enhancements project (Project); and authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, seeks to establish a water main installation contract. The scope of work for the Project includes construction of 450 feet of a new 16-inch diameter pipeline in H Street between Mono Street and Inyo Street, construction of 400 feet of new 12-inch diameter pipeline in Mono Street between Broadway Street/H Street alley and Fulton Street/Broadway Street alley, and construction of an intertie between the 24-inch diameter pipeline and 30-inch diameter pipeline within the intersection of Mono Street and H Street. Staff recommends that City Council award a construction contract to Bill Nelson GEC, Inc., as the lowest responsive and responsible bidder in the amount of $322,718. BACKGROUND The Department of Public Utilities, Water Division, has identified that a portion of the existing water system in H Street and Mono Street lack adequate water mains to provide sufficient capacity to meet the water demand for this area of downtown. Staff has determined that the proposed transmission grid water main gap closure will meet and exceed the expected water demands of the surrounding downtown area. The scope of work for the Project includes construction of 450 feet of a new 16-inch diameter pipeline in H Street between Mono Street and Inyo Street, construction of 400 feet of new 12-inch diameter pipeline in Mono Street between Broadway Street/H Street alley and Fulton Street/Broadway Street alley, and construction of an intertie between the 24-inch diameter pipeline and 30-inch diameter pipeline within the intersection of Mono Street and H Street. Plans and Specifications were prepared for this Project. A Notice Inviting Bids was published on February 26, 2019, and posted on the City's Planet Bids website. The Specifications were distributed to ten prospective bidders and posted at thirteen Building Exchanges. Five sealed bid proposals were received and publicly opened on March 26, 2019. The bid proposals ranged from $322,718 to $391,194. The bids will expire 45 days after bid opening, which will be on May 29, 2019. Bill Nelson GEC, Inc., was found to be the lowest responsive and responsible bidder, with the bid amount of $322,718. The staff determination was posted on the City's Planet Bids website on April 17, 2019. Staff recommends that City Council award a construction contract to Bill Nelson GEC, Inc., in the amount of $322,718 as the lowest responsive and responsible bidder. Their bid price is 6% below the Engineer's Estimate of $345,000. 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, 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 Funding for this Project is available within the Water Capacity Fee Fund 40202 in the Fiscal Year 2019 budget. Attachments: Attachment 1 - Bid Evaluation and Fiscal Impact Statement Attachment 2 - Sample Contract Attachment 3 - Vicinity Map