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 Downtown Redevelopment Grant Water and Sewer Improvements Project (Bid File 12402356) (Council District 3): 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 Guidelines for the Downtown Redevelopment Grant Water and Sewer Improvements Project. 2. ***RESOLUTION - Adopting the 57th Amendment to the Annual Appropriation Resolution (AAR) No. 2023-185 appropriating $455,400 for the Downtown Redevelopment Grant Water and Sewer Improvements Project. (Requires 5 Affirmative Votes) (Subject to Mayor's Veto) 3. Award a construction contract in the amount of $18,784,925.50, for the Base Bid plus all three (3) Add Alternates, with Floyd Johnston Construction Co. Inc. of Clovis, California as the lowest responsive and responsible bidder for the Downtown Redevelopment Grant Water and Sewer Improvements 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, (2) adopt the 57th Amendment to the Annual Appropriation Resolution (AAR) No. 2023-185, appropriating $455,400 for the Downtown Redevelopment Grant Water and Sewer Improvements Project, (3) award a construction contract in the amount of $18,784,925.50 for the Base Bid plus all three (3) Add Alternates, to Floyd Johnston Construction Co. Inc. of Clovis, California, as the lowest responsive and responsible bidder for the Downtown Redevelopment Grant Water and Sewer Improvements 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 and sewer main replacement construction contract to Floyd Johnston Construction Co. Inc. following a competitive bidding process which identified them as the lowest responsive and responsible bidder in the amount of $18,784,925.50 for the Base Bid plus all three (3) Add Alternates. The Project will bring water and sewer facilities to current standards and there will be little to no increase in capacity or use. The scope of work includes the replacement of 14,315 linear feet of water mains and 5,576 linear feet of sanitary sewer mains, including trenching, excavation, water and sewer service transfers, pavement restoration, repair and reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Funding for this Project is provided by dollars received by the State of California for the Downtown Public Infrastructure Improvements Projects and is included in the Fiscal Year 2024 Capital Improvement Budget. Approval of the 57th Amendment to the AAR will appropriate $455,400 to fully fund the construction contract. BACKGROUND Department of Public Utilities staff identified 12-inch, 10-inch, 8-inch, 6-inch and 4-inch diameter water mains located in the area bound by Tuolumne Street, State Route 99, State Route 41, and M Street that may be prone to unexpected failures due to inferior steel water mains installed as early as 1934. The scope of work includes the replacement of 14,315 linear feet of water mains and 5,576 linear feet of sanitary sewer mains, including trenching, excavation, water and sewer service transfers, pavement restoration, repair and reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Additionally, the work includes the rehabilitation of the existing sewer and manhole facilities. 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 39 prospective bidders and posted at eight (8) Building Exchanges. One (1) sealed bid proposal was received and publicly opened on April 23, 2024, with a bid amount for the Base Bid plus all three (3) add alternates in the amount of $18,784,925.50. Floyd Johnston Construction Co. 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. The bids will expire on June 26, 2024. If the bids are rejected or expire, the Project must be rebid which will result in a delay to the project. This contract is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. Floyd Johnston Construction Co. 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 Guidelines, adopt the 57th Amendment to the Annual Appropriation Resolution No. 2023-185 appropriating $455,400 for the Downtown Redevelopment Grant Water and Sewer Improvements Project, and award a construction contract in the amount of $18,784,925.50 for the Base Bid plus all three (3) Add Alternates, to Floyd Johnston Construction Co. Inc., as the lowest responsive and responsible bidder for the Downtown Redevelopment Grant Water and Sewer Improvements Project and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City. The City Attorney's Office has reviewed and approved the 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 cast iron and steel water mains with ductile iron water mains and replacement or rehabilitation of polyvinylchloride sewer mains with same material. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the project. LOCAL PREFERENCE Floyd Johnston Construction Co. 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 3. Funding for this Project was provided by dollars received by the State of California for the Downtown Public Infrastructure Improvements Projects and is included in the Fiscal Year 2024 Capital Improvement Budget within the Water Enterprise Fund and Wastewater Enterprise Fund. Adoption of the attached 57th Amendment to the AAR No. 2023-185 will fully fund the construction contract. Attachments: CEQA Environmental Assessment 57th Amendment to the Annual Appropriation Resolution No. 2023-185 Bid Evaluation Fiscal Impact Statement Standardized Contract Vicinity Map Location Map