REPORT TO THE CITY COUNCIL FROM: RANDALL W. MORRISON, PE, Director Capital Projects Department BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: FRANCISCO V. MAGOS II, PE, Assistant Director Capital Projects Department, Utilities and On-Site Project Management Division ROBERT A. DIAZ, Project Manager Capital Projects Department, Utilities and On-Site Project Management Division SUBJECT ..Title Actions pertaining to the Calwa Townsite Phase II Water Main Replacement Project bound by Orange, Church, Cedar and Jensen Avenues, Bid File 12401802 (Council District 5 and County): 1. Adopt a finding of Categorical Exemption per staff determination pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines, for the Calwa Townsite Phase II Water Main Replacement Project, 2. Award a construction contract in the amount of $5,429,945, to West Valley Construction Company, Inc., of Fresno, California, as the lowest responsive and responsible bidder for the Phase II Water Main Replacement Project. ..Body RECOMMENDATIONS Staff recommends City Council (1) adopt a finding of Categorical Exemption per staff's determination, pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines, and (2) award a construction contract in the amount of $5,429,945 to West Valley Construction Company, Inc., of Fresno, California, as the lowest responsive and responsible bidder for the Calwa Townsite Phase II Water Main Replacement Project (Project), and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Capital Projects Department (CPD) seeks to award a water main replacement and services transfer construction contract to West Valley Construction Company, Inc. following a competitive bidding process which identified the company as the lowest responsive and responsible bidder in the amount of $5,429,945. The Project is necessary to replace 8-inch and 6-inch diameter water mains that do not meet current standards and have exceeded service life expectancy. The scope of work includes construction of 10,923 linear feet of 8-inch and 98 linear feet of 6-inch diameter water mains, fire hydrants, valves and services transfers. Funding for this Project is included in the Fiscal Year 2024 Capital Improvement Budget within the Department of Public Utilities - Water Enterprise Fund. BACKGROUND Department of Public Utilities (DPU) staff identified 8-inch and 6-inch diameter water mains located in the area bound by Orange, Church, Cedar, and Jensen Avenues that may be prone to unexpected failures due to inferior steel water mains installed as early as 1934. The scope of work includes replacement of 10,923 linear feet of 8-inch and 98 linear feet of 6-inch diameter water mains, fire hydrants, valves and service transfers. Project design was completed in-house by City staff. Funding for this Project is included in the Fiscal Year 2024 Capital Improvement Budget within the Water Enterprise Fund. A Notice Inviting Bids was advertised and published on the City's website, Planet Bids and the Business Journal on March 15, 2024. The Project plans and specifications were distributed to 28 prospective bidders and posted at 10 Building Exchanges. One sealed bid proposal was received and publicly opened on April 16, 2024 in the amount of $5,429,945. West Valley Construction Company, Inc. was determined to be the lowest responsive and responsible bidder. Only one bid was received due to prospective bidder's full engagement with other City and State projects and were therefore unable to prepare bids for this project. This contract is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. West Valley Construction Company, Inc. shall become signatory to the PLA by executing the Agreement To Be Bound. Staff recommends Council adopt a finding of Categorical Exemption per staff's determination, pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines and award a construction contract to West Valley Construction Company, Inc., of Fresno, California, in the amount of $5,429,945, as the lowest responsive and responsible bidder for the Calwa Townsite Phase II Water Main Replacement Project and authorize the Capital Projects Director or designee to sign on behalf of the City. The bids will expire 64 days after bid opening, on June 19, 2024. The City Attorney's Office has reviewed and approved contract documents as to form. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this Project and determined that it is categorically exempt from the requirements of CEQA pursuant to Sections 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. These exemptions apply because the project involves replacement of existing steel water mains with polyvinyl chloride pipe. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the project. LOCAL PREFERENCE West Valley Construction Company, Inc. is a local business, as defined by the Fresno Municipal Code. FISCAL IMPACT There is no impact to the General Fund. This Project is located in Council District 5 and a portion of Fresno County. Funding for this Project is included in the Fiscal Year 2024 Capital Improvement Budget within the Department of Public Utilities - Water Enterprise Fund. Attachments: CEQA Environmental Assessment Bid Evaluation Fiscal Impact Statement Standardized Contract Vicinity Map Location Map