REPORT TO THE CITY COUNCIL August 18, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: MICHAEL CARBAJAL, Division Manager Department of Public Utilities - Water Division MARTIN WENDELS, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to rehabilitation of a 20-inch diameter well at Pump Station 62A, located at 4612 N. Woodrow Avenue: 1. Adopt a finding of Class 1 Categorical Exemption set forth in CEQA Guidelines, Section 15301(b). 2. Award a contract in the amount of $216,430 to Zim Industries Inc. (Bid File 3458) (Council District 4). ..Body RECOMMENDATIONS Staff Recommends that Council: 1. Adopt a finding of Class 1 Categorical Exemption set forth in CEQA Guidelines, Section 15301(b). 2. Award a contract to Zim Industries Inc., in the amount of $216,430 to rehabilitate a 20-inch diameter well at Pump Station 62A (PS 62A). 3. Authorize the Director of Public Utilities, or designee, to sign the contract on the City's behalf. EXECUTIVE SUMMARY The Department of Public Utilities - Water Division, solicited contractor services to rehabilitate a 20-inch diameter well. Zim Industries Inc. (Zim) was found to be the lowest responsive and responsible bidder with a bid amount of $216,430. The rehabilitation of this well is expected to bring production back up to its originally rated 3,600 gallons per minute (gpm). Funding for this contract was included in the Fiscal Year 2017 budget. BACKGROUND The Department of Public Utilities - Water Division, maintains a network of 260 plus municipal water supply wells providing approximately 88 percent of the City's potable water. PS 62A is a 20-inch well that was drilled in 1997 at a depth of 520 feet. It currently produces far below its original capacity of 3,600 gpm and a well video has shown that there is severe plugging in the perforations. By rehabilitating this well, it is expected that it can be restored close to full capacity of 3,600 gpm. A Notice Inviting Bids was published on April 22, 2016, per the City of Fresno Charter Section 1208. Seventeen (17) Building Exchanges were faxed the Notice Inviting Bids, and specifications were distributed to prospective bidders. A public bid opening was on May 17, 2016. There were a total of three bidders and Zim was considered the lowest responsive and responsible bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemption set forth in CEQA Guidelines, Section 15301(b), as this contract is for the rehabilitation of the existing well at PS 62A located at 4612 N. Woodrow Avenue and will not result in the expansion of capacity of the existing well. Furthermore, none of the exceptions to the Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because the lowest responsive and responsible bidder is a local business as defined by FMC Section 4-108(a). FISCAL IMPACT The project, which is located in Council District 4, will not have any impact to the General Fund. Funds for this project are included in the Water Division's Fiscal Year 2017 Capital Improvement Program budget within the Water Enterprise Fund (40101). The costs for the rehabilitation of the well at PS 62A were included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 26, 2015. No additional funding is required for this project. Attachment: Bid Evaluation