REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering PATRICIA DIEP, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Sewer Rehabilitation in the area bound by Blackstone, Maroa, McKinley, and Clinton Avenues (Bid File 3836) (Council Districts 1 and 7): 1. Adopt a finding of Categorical Exemption pursuant to Class 1, Sections 15301(b)&(d) (Existing Facilities) and Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines 2. Award a construction contract, inclusive of the City's adopted project labor agreement requirements, to Emmett's Excavation, Inc., in the amount of $1,578,078 ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 1, Sections 15301(b)&(d) (Existing Facilities) and Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for the Sewer Rehabilitation in the area bound by Blackstone, Maroa, McKinley, and Clinton Avenues (Project); award a construction contract for the Project to Emmett's Excavation, Inc., in the amount of $1,578,078; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY Through a detailed analysis of the wastewater collection system, the Wastewater Collection Sewer Master Plan identified sewer pipes and appurtenances in need of rehabilitation and replacement. The scope of work for the Project will correct sewer system structural deficiencies in the vicinity bound by Blackstone, Maroa, McKinley and Clinton Avenues. After a competitive bidding process, the Department of Public Utilities, Wastewater Management Division, is seeking to award a construction contract, inclusive of the City's adopted project labor agreement requirements, for the Project in the amount of $1,578,078 to Emmett's Excavation, Inc. BACKGROUND The 2015 Wastewater Collection System Master Plan incorporated inspections of the City's sewer system. The goal of these inspections was to evaluate the structural and capacity handling capability of all sewer pipes within the City. Through this investigation, various sections of sewer pipes were found to have structural deficiencies such as cracks, offsets, exposed aggregate and corrosion damage and some are past the design useful life. The ages of the pipes in the Project area range from 43 to 100 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 certain sections of the sewer pipes be rehabilitated and others be removed and replaced. The Project consists of the rehabilitation of sewer mains by means of (1) installation of Cured-in-Place Pipe liner along 5,606 linear feet of 6-inch pipe and 2,584 linear feet of 8-inch pipe, (2) removal of 1,044 linear feet of 6-inch sewer main for replacement with 6-inch and 8-inch Polyvinyl Chloride (PVC), and (3) removal of 40 linear feet of 8-inch sewer main for replacement with 8-inch PVC. Additionally, the Project includes rehabilitation of deteriorated access structures and localized point repairs in areas of severe damage at various locations along these sewer mains. The Project having been estimated to exceed the $1,000,000 threshold included requirements for adhering to the City's adopted project labor agreement. Following preparation of Project plans and specifications, a Notice Inviting Bids was published on February 23, 2022, and posted on the City's Planet Bids website. The plans and specifications were distributed to twenty-nine prospective bidders and posted at nine Building Exchanges. Two sealed bid proposals were received and publicly opened on March 22, 2022. The bid proposals ranged from $1,578,078 to $1,900,714 with Emmett's Excavation, Inc. determined to be the lowest responsive and responsible bidder, with the bid amount of $1,578,078. The bid will expire within 64 days of bid opening, on May 25, 2022. Staff recommends that City Council award a construction contract to Emmett's Excavation, Inc, in the amount of $1,578,078, as the lowest responsive and responsible bidder. Their bid price is 15.67% below the Construction Allocation of $1,871,350. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental assessment for this Project and determined that it falls within Categorical Exemption pursuant to Class 1, Sections 15301(b)&(d) (Existing Facilities), and Class 2, Section 15302(c) (Replacement or Reconstruction), of the CEQA Guidelines because the Project involves restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this Project. LOCAL PREFERENCE The lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(a). It is located within a 25 miles radius of Fresno City Hall. FISCAL IMPACT There is no impact to the General Fund. Funding for this Project is included in the Wastewater Management Division's five-year Capital Improvement Program budget within the Sewer Enterprise Fund 40501. Funds in the amount of $2,243,100 for this Project are budgeted in the Fiscal Year 2022 Sewer Enterprise Fund 40501. Attachments: Attachment 1 - Bid Evaluation and Fiscal Impact Statement Attachment 2 - Sample Contract Attachment 3 - Vicinity Map Attachment 4 - Notice of Exemption Attachment 5 - Environmental Assessment