REPORT TO THE CITY COUNCIL June 16, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Division Manager Department of Public Utilities - Water Division BY: DEJAN PAVIC, PE, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to construction of the Orange Center School District Pipeline Project (Bid File Number 3421) (Fresno County; City of Fresno Sphere of Influence) 1. ***RESOLUTION - 50th amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 appropriating $1,190,400.00 for the award of the construction contract for the Orange Center School District Pipeline Project (Requires 5 affirmative votes) 2. Award a construction contract in the amount of $1,190,302.29 to Dawson-Mauldin Construction, Inc. for the Orange Center School District Pipeline Project ..Body RECOMMENDATIONS Staff recommends Council adopt the 50th Amendment to the Annual Appropriation Resolution ("AAR") No. 2015-104 to appropriate $1,190,400.00, award a construction contract in the amount of $1,190,302.29 to Dawson-Mauldin Construction, Inc. for the Orange Center School District ("OSCD") Pipeline Project ("Project"), and authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno. EXECUTIVE SUMMARY On December 17, 2015, Council approved acceptance of a $2,932,600.00 State Revolving Fund ("SRF") Low Interest Loan through the State Water Resources Control Board ("SWRCB") for construction of the Project. The Project will connect OCSD to the City of Fresno's water distribution system, thereby providing reliable potable water to a disadvantaged community within the City's Sphere of Influence which is experiencing water quality and quantity issues. Dawson-Mauldin Construction, Inc. was found to be the lowest responsive and responsible bidder for construction of the Project, bidding $1,190,302.29. This contract award will be funded through a SRF low interest loan (at zero percent (0%) interest with principal forgiveness) from the SWRCB, and construction will be fully funded through this loan. An amendment to the AAR No. 2015-104 is required to provide the funding in FY 2016 for the bid award. BACKGROUND On Monday, April 11, 2016, City advertised Project plans and specifications in The Business Journal. On Wednesday, April 27, 2016, a non-mandatory project pre-bid meeting was held at the City's Municipal Service Center Department of Public Utilities/Water Division Program Management and Engineering Office. Three firms attended. Six sealed bid proposals were received and publicly opened on May 10, 2016. Dawson-Mauldin Construction, Inc. submitted a bid price in the amount of $1,190,302.29 and is considered to be the lowest responsive and responsible bidder. The Staff Determination of Award was posted on the City's website on May 27, 2016. The price is 11% below the Engineer's Estimate of $1,337,000.00. The remaining five bids ranged in price from $1,234,854.00 to $1,477,476.00. ENVIRONMENTAL FINDINGS A Mitigated Negative Declaration (MND) EA No. 14-013 was adopted by the Council on July 30, 2015, for this Project. An analysis has been performed pursuant to CEQA Guidelines �15162 to determine whether subsequent environmental review is required for the Project. Based on this analysis the following findings are made to support the determination that no subsequent environmental review is required: 1. No substantial changes are proposed in the Project which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects. 2. No substantial changes occur with respect to the circumstances under which the Project is undertaken which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects. 3. There is no new information which was not known or could not have been known at the time of the previous MND that the Project will have significant effects not discussed in the MND. Furthermore, since an MND was previously adopted for this Project, the considerations set forth in CEQA Guidelines �15162(a)(3)(C) and (D), related to the adequacy and feasibility of previously adopted mitigation measures, are not applicable. Based upon these findings, it has been determined that no further environmental documentation is required for this Project. LOCAL PREFERENCE Local preference was not implemented because the project is federally funded. FISCAL IMPACT There is no impact to the General Fund or Water Enterprise Fund debt service obligations. No costs will be borne by the City's water utility rate payers for this project. As the school is a severely disadvantaged community, the SWRCB is providing funding at zero percent (0%) interest with principal forgiveness. This funding mechanism essentially provides project construction funding in the form of a grant. The construction contract was originally scheduled to be awarded in FY 2017, so an AAR amendment is required to appropriate the funding for this project in FY 2016 within the Orange Center School District Loan Fund (40147). Attachments: Bid Evaluation Information with Fiscal Impact Statement 50th Amendment to the Annual Appropriation Resolution Contract (sample)