REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: KEVIN NORGAARD, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering PETER A. MARACCINI, PE, PHD, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Northeast Surface Water Treatment Facility Sodium Hypochlorite Tank Replacement (Bid File 12400125) (Council District 6): 1. Adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1 and 15302/Class 2 of the California Environmental Quality Act Guidelines; 2. Award a purchase contract in the amount of $445,335.00 to Liberty Chemical Equipment & Supply, Inc., for a sodium hypochlorite replacement tank for the City of Fresno's Northeast Surface Water Treatment Facility. ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption, pursuant to Sections 15301/Class 1 and 15302/Class 2 of the California Environmental Quality Act (CEQA) Guidelines for the City of Fresno (City) Northeast Surface Water Treatment Facility (NESWTF) Sodium Hypochlorite Tank Replacement (Project); award a purchase contract to Liberty Chemical Equipment & Supply, Inc., in the amount of $445,335.00; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City. EXECUTIVE SUMMARY After nearly two decades of operation, the sodium hypochlorite storage tanks at the NESWTF have degraded due to the corrosive nature of sodium hypochlorite, resulting in leaking and cracking in the underlying support structure. Upon discovery of the most recent leaks in the storage tanks, the tanks were taken out of service and temporary storage tanks were rented, installed, and put into operation at the NESWTF. The Project aims to permanently replace the leaking storage tanks with new, corrosion-resistant tanks. After a competitive bidding process, the Department of Public Utilities is seeking to award a purchase contract to Liberty Chemical Equipment & Supply, Inc., in the amount of $445,335.00. Funding for this Project is included in the Fiscal Year 2024 capital improvement budget within the Water Enterprise Fund. BACKGROUND The NESWTF, operational since July 2004, is facing challenges with its existing fiber reinforced plastic (FRP) sodium hypochlorite tanks. Over recent years, degradation issues in these tanks have led to increased repair needs and maintenance. The corrosive nature of sodium hypochlorite has caused leaks, resulting in damage to the supporting concrete pedestals and adjacent slab areas within the Chemical Storage Building. The current project focuses on procuring new FRP tanks with extended lead times. Notably, the repair of concrete pedestals and tank installation will be handled as separate tasks from this project. Additionally, the final design of the concrete pedestal is contingent on the tank suppliers specific requirements. After procurement of the new FRP tanks City staff will finalized the design and prepare a separate bid package for the pedestal replacement and new tank installation. A Notice Inviting Bids was published in the Business Journal and posted in the City's Planet Bids website on August 18, 2023. Project specifications were distributed to 17 prospective bidders. Three bids were received and unsealed in a public opening on September 26, 2023. The bid proposals ranged from $357,823.06 to $464,662.96. The apparent low bidder Harrington Process Solution was deemed "nonresponsive" for failing to submit required documents. The bid process then identified Liberty Chemical Equipment & Supply, Inc., as the lowest responsive and responsible bidder. Liberty Chemical Equipment & Supply, Inc., submitted a bid price in the amount of $445,335.00. The bids will expire on February 29, 2024. Staff recommends City Council award a purchase contract to Liberty Chemical Equipment & Supply, Inc., in the amount of $445,335.00, and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City. Their bid price is 8.6 percent above the Engineer's Estimate of $410,000.00. Funding for this project is included in the Water Division's Fiscal Year 2024 Capital Improvement Program budget within the Water Enterprise Fund 40101. The City Attorney's Office has reviewed the documents associated with this Project and approved as to form. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental assessment for this Project and determined that it falls within Sections 15301/Class 1 and 15302/Class 2 Categorical Exemptions set forth in the CEQA Guidelines because the new sodium hypochlorite tanks will be located on the same site as the existing corroded tanks and serve substantially the same purpose and capacity as the existing tanks to be removed, nor will there be an expansion of the existing use. Removing and replacing the existing corroded tanks with new ones will protect public health and safety because it will protect against the potential for exposure to sodium hypochlorite from cracked and leaking tanks. None of the exceptions to categorical exemptions set forth in CEQA Guidelines Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented according to Fresno Municipal Code Section 4-108, as the apparent lowest responsive and responsible bidder is a local business. FISCAL IMPACT There is no impact to the General Fund. Funding for this project is included in the Water Division's Fiscal Year 2024 Capital Improvement Program budget within the Water Enterprise Fund 40101. This Project is located within Council District 6. Attachments: Attachment 1 - Environmental Assessment Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Sample Contract Attachment 4 - Vicinity Map