REPORT TO THE CITY COUNCIL March 22, 2018 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Utilities Planning & Engineering BY: CYNTHIA FISCHER, Water System Supervisor Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to well rehabilitation at City of Fresno Pump Station 44A 1. Adopt a finding of Class 1 Categorical Exemption set forth in the California Environmental Quality Act Guidelines, Section 15301 2. Award a contract in the amount of $144,036 to Zim Industries, Inc., of Fresno, for well rehabilitation at City of Fresno Pump Station 44A (Bid File 3578) (Council District 2) ..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; award a construction contract in the amount of $144,036 to Zim Industries, Inc., of Fresno, for rehabilitation of a 14-inch diameter well at City of Fresno Pump Station 44A (PS 44A); and authorized the Director of Public Utilities, or designee, to sign the contract on the City's behalf. EXECUTIVE SUMMARY The production of the municipal water well located at Pump Station 44A has decreased from 1,800 gallons per minute (GPM) down to 1,200 GPM and prior well videos shows severe plugging in the well perforations. Rehabilitation of the well is necessary to clean the perforations and improve the well production up to 30%. The Department of Public Utilities, Water Division, solicited contractor services to rehabilitate the well. Zim Industries, Inc., of Fresno, was found to be the lowest responsive and responsible bidder with a bid amount of $144,036. Funding for this project was included in the Water Division's Fiscal Year 2018 Capital Improvement Program 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 44A is a 14-inch diameter municipal water well that was drilled in 1969 at a depth of 530 feet. It currently produces 1,200 GPM which is below its original capacity of 1,800 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 1,800 GPM. A Notice Inviting Bids was published on January 12, 2018. Ten Building Exchanges were faxed the Notice Inviting Bids, and 15 specifications were distributed to prospective bidders. A public bid opening was held on February 6, 2018. There were a total of two bidders, Zim Industries, Inc., was determined to be 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, as this contract is for the rehabilitation of the existing well at PS 44A located at 6224 N Cornelia 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 low bidder qualifies as a local business pursuant to the Fresno Municipal Code Section 4-108(d). 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: Categorical Exemption (attachment 1) Bid Evaluation and Fiscal Impact (attachment 2) Sample Contract (attachment 3)