REPORT TO THE CITY COUNCIL December 11, 2014 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to the Sewer Mains in Loma Linda Avenue and Sequoia Drive (Council District 2) 1. Adopt a finding of Categorical Exemption of Class 4, pursuant to Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (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) of the California Environmental Quality Act Guidelines 2. Award a $375,840 contract to Bill Nelson G.E.C., Inc. of Fresno, California 3. Authorize the Director of Public Utilities or his designee to sign the contract on behalf of the City ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption of Class 4, pursuant to Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (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) of the California Environmental Quality Act Guidelines (CEQA), award a $375,840 construction contract to Bill Nelson GEC, Inc., of Fresno, California, and authorize the Director of Public Utilities or his designee to sign the contract on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award a construction contract in the amount of $375,840 to Bill Nelson G.E.C., Inc., for Sewer Mains in Loma Linda Avenue and Sequoia Drive. The proposed sewer main installation will provide City sewer services to residences that are currently on private septic systems that live within the Fresno City limits. BACKGROUND In 2009 the City Council adopted the Sewer System Management Plan (SSMP) prepared by the DPU, as required by the statewide General Wastewater Discharge Requirements for Sanitary Sewer Collection Systems. This plan requires evaluations and creates schedules for improvements. The SSMP utilizes the 2006 Wastewater Collection System Master Plan (Master Plan) to identify areas with no service within the City and surrounded by the sewer collection system. This Master Plan identified this project as infill project F04 and targeted construction for FY15. The new sewer mains will provide City sewer services to residences that are currently on private septic systems that live within the Fresno City limits. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on October 1, 2014, posted on the City's website and faxed to ten building exchanges. The specifications were distributed to 34 prospective bidders. Seven sealed bid proposals were received and publicly opened on October 21, 2014. The bid price for the project was $375,840. Staff has determined that Bill Nelson G.E.C., Inc., of Fresno, California is the lowest responsive and responsible bidder with a submitted bid of $375,840. Their bid price is 22% below the Engineer's Estimate of $482,000. The staff determination was posted on the City website on November 10, 2014. Staff recommends that the City Council award a contract in the amount of $375,840 to Bill Nelson G.E.C., Inc., of Fresno, California as the lowest and responsive bidder. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities or designee, who has been delegated this authority by the City Manager. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 4 of Categorical Exemption set forth in the CEQA Guidelines, Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (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). 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 did not affect the award of this project because the lowest responsive and responsible bidder is a local business according to the Fresno Municipal Code Section 4-108. FISCAL IMPACT This project has no impact to the General Fund and is located in Council District 2. This project is identified in the five-year Capital Improvement Plan. Funds in the amount of $502,000 for the construction project are budgeted in the 2015 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract would be $393,040. Attachments: * Bid Evaluation * Fiscal Impact Statement * Vicinity Map