REPORT TO THE CITY COUNCIL June 30, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities BY: PATRICIA DIEP, Supervising Engineering Technician Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to sewer rehabilitation in Church Avenue (Council District 3 and Fresno County) 1. Adopt findings of Categorical Exemption of Class 1, pursuant to Section 15301(b) (Existing facilities of both investor and publicly-owned utilities) and Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines, and 2. Award a construction contract in the amount of $1,730,760 to SAK Construction, LLC of O'Fallon Missouri ..Body RECOMMENDATIONS Staff recommends that Council adopt findings of Categorical Exemption of Class 1 pursuant to Section 15301(b) (Existing facilities of both investor and publicly-owned utilities) and Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act (CEQA) Guidelines and approve the construction contract award in the amount of $1,730,760 to SAK Construction, LLC of O'Fallon Missouri. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract to SAK Construction, LLC for the rehabilitation of a sewer in Church Avenue between Fruit Avenue and Martin Luther King Jr Boulevard. The existing sewer is standard concrete pipe and in need of rehabilitation. The sewer rehabilitation project is necessary to remedy current structural deficiencies and increase the design life of the pipe. Staff is seeking to award a contract in the amount of $1,730,760 to SAK Construction, LLC. BACKGROUND In the 2014 Wastewater Collection System Master Plan update, this sewer was identified to be rehabilitated using the Pipeline Assessment Certification Program (Program). The Program is an evaluation protocol used to rate Closed Circuit Television inspections performed by the Collection System Maintenance work group. This sewer line in particular was showing significant signs of structural deficiencies such as cracks, exposed aggregate, and deterioration due to hydrogen sulfide. Department of Public Utilities recommends installing a cured in place pipe (CIPP) liner in the existing standard concrete pipe as the most cost effective solution. The CIPP liner will restore the structural integrity of the pipe. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on May 2, 2016, and posted on the City's website. The specifications were distributed to twelve prospective bidders, and faxed to ten Builder Exchanges. The Bid will expire within 64 days of bid opening which is July 27, 2016. Three sealed bid proposal was received and publicly opened on May 24, 2016. The bid proposal price range from $1,730,460 to $2,212,000. Staff has determined SAK Construction, LLC of O'Fallon Missouri is the lowest responsive and responsible bidder with a submitted bid of $1,730,460. Its bid price is 1.6% below the original Engineer's Estimate of $1,759,000. Staff determination was posted on the City Website on June 3, 2016. ENVIRONMENTAL FINDINGS Staff has performed a preliminary Environmental Assessment for rehabilitation in Church Avenue and has determined that it falls within Class 1 and 2 Categorical Exemption set forth in CEQA Guidelines, Section 15301(b) (Existing facilities of both investor and publicly-owned utilities) and Section 15302(c) (Replacement or reconstruction). Due to the nature of this construction contract involving minor repair and rehabilitation of existing public sewer utilities, this project will involve negligible or no expansion of capacity or use. 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 did not affect the award of this project because none of the bidders are a local business according to the Fresno Municipal Code Section 4-108. FISCAL IMPACT This project will have no impact to the General Fund and is located in Council District 3 and Fresno County. This project is identified in the five-year capital improvement plan. Funds in the amount of $2,250,000 are budgeted in the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $1,795,760. Attachments: Bid Evaluation and Fiscal Impact Statement Vicinity Map Sample Contract