REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: CASSIE L. SCHOLZ, PE, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering SARAH AGUILA, Project Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the North Avenue Sewer Trunk Main Realignment from west of Golden State Boulevard to Maple Avenue (Bid File 12500312) (Council Districts 3 and 5): 1. Adopt a finding of Categorical Exemption pursuant to Section 15302(c)/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines. 2. Award a construction contract to Teichert Construction, of Fresno, California, in the amount not to exceed of $8,738,800. 3. Approve the Fourth Amendment to the Consultant Services Agreement with Carollo Engineers, Inc., a Delaware Corporation, to increase compensation in the amount of $52,697, for a total contract amount of $447,687, and extend the term of the agreement to March 31, 2027. ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15302(c)/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for the North Avenue Sewer Trunk Main Realignment from west of Golden State Boulevard to Maple Avenue (Project); award a construction contract to Teichert Construction, in the amount of $8,738,800.00; approve the Fourth Amendment to the consultant services agreement (Agreement) with Carollo Engineers, Inc., a Delaware Corporation, to increase compensation in the amount of $52,697 and extend the term of the Agreement to March 31, 2027; 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 On February 24, 2019, the North Avenue sewer trunk main experienced a localized structural collapse in the proximity of Union Pacific Railroad (UPRR) and Burlington Northern Santa Fe Railway (BNSF) facilities, approximately 0.2 miles west of Maple Avenue. Since this initial collapse, multiple temporary repairs have been executed to stabilize the sewer main until the permanent replacement could be constructed. This Project includes construction of a 66-inch diameter permanent realignment of the sewer main. The Department of Public Utilities (DPU), is seeking to award the construction contract for the Project to Teichert Construction, in the amount of $8,738,800, and amend the Agreement with Carollo Engineers, Inc., to increase compensation in the amount of $52,697, and extend the term of the agreement to March 31, 2027, for engineering support services through the end of the Project , BACKGROUND The existing 57-inch diameter sewer trunk main in North Avenue conveys an average of 11.5 million gallons of wastewater per day to the Fresno-Clovis Regional Wastewater Reclamation Facility. This sewer main experienced a localized structural collapse in the proximity of UPRR and BNSF facilities, approximately 0.2 miles west of Maple Avenue. The sinkhole associated with this collapse was discovered on February 24, 2019, by the Fresno Irrigation District during a routine inspection of a nearby irrigation canal. Upon further inspection by the DPU Wastewater Management Division, it was discovered that the sewer main suffered a structural failure due to the complete corrosion of the crown of the sewer trunk main from hydrogen sulfide gas. On June 13, 2019, a Resolution of Urgent Necessity was approved by the City Council, and Floyd Johnston Construction Co., Inc. was contracted to stabilize soils over the collapsed area and install a temporary concrete cover. On June 27, 2019, City Council approved an agreement with Carollo Engineers Inc., to provide engineering services for the permanent repair, which included a parallel line to the south of the existing sewer. The construction contract for this permanent realignment was awarded to Emmett's Excavation Inc., on November 4, 2021, following a competitive bid process. The contractor's first order of work was the location of existing utilities within the project area to identify potential conflicts with the proposed improvements. Significant conflicts were discovered, and the work was suspended until the utilities could be relocated by the Burlington Northern and Santa Fe Railroad and CenturyLink Communications, LLC. On January 27, 2023, prior to these utility relocations, the sewer experienced a second localized structural collapse adjacent to the original location. This collapse was further enlarged due to heavy rain on March 1, 2023. On March 30, 2023, the City Council approved a second Resolution of Urgent Necessity authorizing the City to enter into contracts necessary to repair the existing sewer main. Floyd Johnston Construction Co., Inc., was contracted by the City, and completed a temporary repair by slip lining the unstable section of sewer main with a 42-inch diameter pipe until the permanent realignment could be constructed. The installation of the 42-inch pipe diminished the flow capacity of the existing sewer trunk main, and does not suffice as a permanent repair. The Project includes construction of the 66-inch diameter pipe for the permanent realignment of the North Avenue sewer trunk. A Notice Inviting Bids was published on March 11, 2025, and posted on the City's Planet Bids website. The plans and specifications were distributed to fifty-seven prospective bidders and posted at fourteen Building Exchanges. Three sealed bid proposals were received and publicly opened on April 15, 2025. The bid proposals ranged from $8,738,800 to $12,248,840. Teichert Construction was determined to be the lowest responsive and responsible bidder, with a bid amount of $8,738,800. Staff recommends that the City Council award a construction contract to Teichert Construction, in the amount of $8,738,800, as the lowest responsive and responsible bidder. Their bid price is 5.2 percent above the Engineer's Estimate of $8,300,000. The Fourth Amendment to the Consultant Services Agreement with Carollo Engineers, Inc., to increase the compensation by $52,697, and extend the term to March 31, 2027, will allow for continued engineering support throughout construction. The City Attorney's Office has reviewed and approved the amendment as to form. ENVIRONMENTAL FINDINGS Staff has performed an environmental assessment of this Project and has determined it falls within the Categorical Exemption for existing facilities set forth in Section 15302(c)/Class 2 (Replacement or Reconstruction). The CEQA Guidelines exempt projects consisting of the replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. This approval will involve construction of a sewer pipeline to bypass the existing 57-inch pipeline. The replacement sewer trunk will be constructed in the same local site on an alignment offset and parallel to the existing trunk. This replacement will result in negligible expansion of capacity. This approval categorically exempts the project from CEQA Guidelines. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this Project. Therefore, the necessary environmental review required by the CEQA has been completed for the sewer trunk main replacement as contemplated by the award of this contract. LOCAL PREFERENCE The lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(a). Teichert Construction is located within a 25-mile radius of Fresno City Hall. FISCAL IMPACT There is no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2025 Capital Improvement Budget within the Wastewater Management Division's Sewer Enterprise Fund. The Project is located in Council Districts 3 and 5. Attachments: Notice of Exemption Environmental Assessment Bid Evaluation and Fiscal Impact Statement Sample Contract Consultant Amendment 4 Consultant Amendment 3 Consultant Amendment 2 Consultant Amendment 1 Consultant Agreement Vicinity Map