REPORT TO THE CITY COUNCIL June 21, 2018 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: RANDALL W. MORRISON, PE, Assistant Director Public Works Department, Engineering Division SCOTT P. SEHM, PE, Design Services Manager Public Works Department, Design Services Section JOVI R. TORIO, PE, Professional Engineer Public Works Department, Design Services Section SUBJECT ..Title Actions pertaining to the Water Mains Replacement in the Southeast Vicinity of West Barstow Avenue and North Fresno Street - Bid File 3609 (Council District 4) 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Class 2 Section 15302(c) (Replacement or Restoration) of the California Environmental Quality Act Guidelines for the Water Mains Replacement in the Southeast Vicinity of West Barstow Avenue and North Fresno Street 2. Award a construction contract in the amount of $2,389,162.00 to Dawson-Mauldin Construction, Inc., of Fountain Valley, California as the lowest responsive and responsible bidder for the Water Mains Replacement in the Southeast Vicinity of West Barstow Avenue and North Fresno Street ..Body RECOMMENDATION Staff recommends that the City Council adopt a finding of Categorical Exemption per staff determination, pursuant to Class 2 Section 15302(c) (Replacement or Restoration) of the California Environmental Quality Act (CEQA) Guidelines and award a construction contract to Dawson-Mauldin Construction, Inc., of Fountain Valley, California in the amount of $2,389,162.00 as the lowest responsive and responsible bidder for the Water Mains Replacement in the Southeast Vicinity of West Barstow Avenue and North Fresno Street, and authorize the Public Works Director or designee to sign the contract on behalf of the City. EXECUTIVE SUMMARY The scope of work includes replacement of 1.72 miles of water distribution mains, water service transfers, and fire hydrants in a former County water district neighborhood, bounded by North Fresno Street, North Angus Street, West Shaw Avenue and West Barstow Avenue. Several water mains are located in easements at the rear or side of the properties. Under the proposed project, the aging water mains will be replaced with new water mains located in the street right-of-way and water services will be relocated accordingly. The new water mains will provide more consistent water pressure, reduce the frequency of service interruptions caused by failures and improve access for maintenance. BACKGROUND The Water Main Replacement Project, in the southeast of West Barstow Avenue and North Fresno Street, was identified by Department of Public Utilities (DPU) as a required system upgrade and was included in the adopted FY18 budget. Design was scheduled for FY17 with construction award set for FY18. In July 2017, Public Works Department staff commenced design of the project with in-house staff. The initial design, engineering and permitting took approximately 11 months to complete. Construction of this project will be funded by Water Enterprise Funds. This project is located within the neighborhood of a former County water district in the southeast vicinity of West Barstow Avenue and North Fresno Street, bounded by North Fresno Street, North Angus Street, West Shaw Avenue and West Barstow Avenue. Several of the existing water mains in this former County water district neighborhood are located in easements at the rear or side of private properties with limited access. Additionally, due to the age of the existing mains, numerous water main failures have occurred interrupting water service to customers. Under the proposed project, the new water mains and services will be placed in the street right-of-way improving access for City maintenance staff. Public Works staff prepared Plans and Specifications and a Notice Inviting Bids was published and posted on the City's website on April 16, 2018. Ten (10) building exchanges were sent Notices Inviting Bids and the specifications were distributed to Thirty three (33) prospective bidders. Five (5) sealed bids were received and opened in a public bid opening held at City Hall on May 15, 2018. Bid proposals ranged from $2,389,162.00 to $4,237,554.00. Dawson-Mauldin Construction, Inc., of Fountain Valley, California, submitted the lowest bid in the amount of $2,389,162 and was determined to be the lowest responsive and responsible bidder. The apparent low bid price was 3.65% above the Engineer's Estimate. Bids will expire within 64 days after the bid opening, on July 18, 2018. If the bids are rejected or expire, the project will be rebid, resulting in a delay of approximately 60 days. Staff is recommending award of a construction contract to Dawson-Mauldin Construction, Inc., in the amount of $2,389,162.00 to replace water mains in the southeast vicinity of Barstow Avenue and Fresno Street as the lowest responsive and responsible bidder and to authorize the Public Works Director or designee to sign and execute the contract on behalf of the City of Fresno. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this project and determined that the scope of this project falls within the Class 2, Categorical Exemption set forth in the CEQA Guidelines, Section 15302(c), as this contract is for the replacement of existing utility systems involving negligible or no expansion of capacity. The project will replace the existing utility system with new water mains and services and will not result in the expansion of capacity of existing utility system, or change the purpose. 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 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 4, will not have any impact to the General Fund. The total project cost of $3,096,162.00 is covered by Water Enterprise Funds which are appropriated through the Water Division's adopted FY 2018 Capital Improvement Budget. No additional appropriations are needed for this project. Attachments: Bid Evaluation Fiscal Impact Statement Vicinity Map Sample Contract