REPORT TO THE CITY COUNCIL March 17, 2016 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department, Capital Management Division LAL GOONAWARDENA, PE, Design Services Manager Public Works Department, Capital Management Division BY: ERIC JOHNSON, Engineer II, Design Services Public Works Department, Capital Management Division SUBJECT ..Title Actions pertaining to the Fort Washington Neighborhood 8" Water Main Project in the vicinity of N. Millbrook Avenue and E. Plymouth Way - Bid File 3353 (County of Fresno) 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15302(c) Class 2 of the CEQA Guidelines, for the Fort Washington Neighborhood 8" Water Main Project in the vicinity of N. Millbrook Avenue and E. Plymouth Way 2. Award a Construction Contract to West Valley Construction Company of San Jose, California in the amount of $2,748,788 as the lowest responsive, responsible bidder for the Fort Washington Neighborhood 8" Water Main Project in the vicinity of N. Millbrook Avenue and E. Plymouth Way and authorize the Public Works Director or designee to sign a contract on behalf of the City ..Body RECOMMENDATIONS Staff recommends that the City Council adopt the finding of Categorical Exemption per staff determination, pursuant to Section 15302(c) of the CEQA Guidelines, and award a construction contract to West Valley Construction Company of San Jose, California in the amount of $2,748,788 as lowest responsive, responsible bidder for the Fort Washington Neighborhood 8" Water Main Installation Project in the vicinity of N. Millbrook Avenue and E. Plymouth Way. EXECUTIVE SUMMARY This project proposes to install 8" water mains, fire hydrants, water services, water service transfers, trench resurfacing and limited asphalt concrete overlay in a former County water district neighborhood in the vicinity of N. Millbrook Avenue and E. Plymouth Way. This neighborhood is known as the Fort Washington neighborhood. Existing water mains are located in easements at the rear of the properties. Under the proposed project, the aging water mains will be replaced with new water mains placed in the street right-of-way and water services relocated accordingly. The new water mains will provide consistent water pressure and eliminate water main failures. After the bid opening, a number of property owners have voiced strong opposition to having to pay for the cost of connecting to the sewer main once it was installed. In addition, there are members of the County Board of Supervisors who are reluctant to enforce the County's Master Sewer Connection Ordinance. Given the lack of clear support by the community, it would not be financially prudent to construct the sewer main portion of the project as originally envisioned. Therefore, a change order deleting the portion of the project will be issued prior to issuing the contractor a Notice to Proceed, subject to the review and approval by the City Attorney. BACKGROUND This project is located within a neighborhood bounded by N. Millbrook Avenue, E. Brandywine Lane, N. Cedar Avenue, and E. Plymouth Way. The City assumed responsibility of a former County water district, including the supporting water mains, more than fifty years ago. These mains are located in easements in the backyards of private properties with limited access. Due to the age of the existing water mains, numerous failures continue to occur, causing interruption of water service and damage to backyard improvements. Public Works staff prepared Plans and Specifications and a Notice Inviting Bids was posted on the City's website on August 22, 2014. Ten (10) building exchanges were sent Notices Inviting Bids, and the specifications were distributed to Thirty-Five (35) prospective bidders. Four (4) sealed bids were received and opened in a public bid opening on September 16, 2014. Bid proposals ranged from $2,748,788 to $3,625,623. West Valley Construction Company of San Jose, California submitted the lowest bid in the amount of $2,748,788 for the Net Bid, and was determined to be the lowest responsive and responsible bidder. The apparent low bid price was 13% below the Engineer's Estimate. This project will be completed 210 working days after the notice to proceed. After the bid opening, it was determined that the County of Fresno may be unwilling to enforce the Master Sewer Connection Ordinance. In addition, a number of property owners have expressed strong opposition of having to pay for the installation of a sewer line from their home to the sewer main. Given the lack of support expressed by a number of Fort Washington property owners, it would not be financially prudent to move forward with sewer main portion of the project. Therefore, staff will immediately negotiate a change order to delete the scope of the project pertaining the installation of sewer mains and house branches prior to a Notice to proceed, subject to the review and approval by the City Attorney. The execution of a construction contract will include language to enable the City to terminate the contract if a change order cannot be negotiated with the contractor. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this project and determined that the scope of this project falls within the Class 2, Categorical Exemption set forth in the CEQA Guidelines, Section 15302(c), as this contract is for the replacement of existing utility systems and/or facilities involving negligible or no expansion of capacity. The project will replace the existing on site utility system with new water mains, water services, and sewer mains with house branches, and will not result in the expansion of capacity of existing utility system, or change the purpose. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because the local bidder exceeds the allowable preference. FISCAL IMPACT Funding for the project is included in the Water Division's adopted FY15 Capital Improvement Project Budget. Attachments: Bid Evaluation for Bid File 3353 Fiscal Impact Statement Vicinity Map