REPORT TO THE CITY COUNCIL September 28, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Utilities Planning & Engineering CYNTHIA FISCHER, Project Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to rehabilitating a 16-Inch Diameter Well to 318 Feet Deep at Pump Station 284, located at 304 West Browning Avenue, Fresno, California (Council District 2): 1. Adopt a finding of Class 1 Categorical Exemption set forth in the California Environmental Quality Act Guidelines, Section 15301(b) 2. Award a contract in the amount of $147,240 to Zim Industries, Inc., (Bid File 3538) ..Body RECOMMENDATIONS Staff recommends that Council adopt finding of Class 1 Categorical Exemption set forth in the California Environmental Quality Act Guidelines (CEQA), Section 15301(b); award a construction contract in the amount of $147,240.00 to Zim Industries, Inc., to rehabilitate a 16-inch diameter well at Pump Station 284 (PS 284); and authorized 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 16-inch diameter well. Zim Industries, Inc., was found to be the lowest responsive and responsible bidder with a bid amount of $147,240. The rehabilitation of this well is expected to bring production back up to its originally rated 2,000 gallons per minute (gpm). Funding for this contract was included in the Fiscal Year 2018 budget. BACKGROUND The Department of Public Utilities, Water Division, maintains a network of 260 plus municipal water supply wells providing approximately 88% of the City's potable water. PS 284 is a 16-inch diameter well that was drilled in 1968 at a depth of 318 feet. It currently produces far below its original capacity of 2,000 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 2000 gpm. A Notice Inviting Bids was published on June 20, 2017, per the City of Fresno Charter Section 1208. Twenty-five (25) Building Exchanges were faxed the Notice Inviting Bids, and specifications were distributed to prospective bidders. A public bid opening was on July 28, 2017. There were a total of four (4) bidders and Zim Industries, Inc., 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 284 located at 304 West Browning Avenue, Fresno, California 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 company as defined in the Fresno Municipal Code Section 4-108(b). FISCAL IMPACT The project, which is located in Council District 2, will not have any impact to the General Fund. Funds for this project are included in the Water Division's Fiscal Year 2018 Capital Improvement Program budget within the Water Enterprise Fund (40101). No additional funding is required for this project. Attachments: Bid Evaluation and Fiscal Impact Sample Contract