REPORT TO THE CITY COUNCIL June 13, 2019 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: DEJAN PAVIC, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering BY: ANITA LUERA, Senior Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Furnish and Install Intelligent Transportation System Fiber Optic Facilities at the Northeast Surface Water Treatment Facility (Bid File 3643) (Council District 6): 1. Adopt a finding of Categorical Exemption pursuant to Class 1/Section 15301 (Existing Facilities) and Class 3/Section 15303 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act Guidelines 2. ***RESOLUTION - 41st Amendment to the Annual Appropriation Resolution No. 2018-157 to appropriate $227,500 to fully fund the award of a contract and staff support costs to furnish and install intelligent transportation system fiber optic facilities at the Northeast Surface Water Treatment Facility (Requires 5 affirmative votes) (Subject to Mayor's veto) 3. Award a construction contract to Kertel Communications, Inc., dba Sebastian, in the amount of $259,772 ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 1/Section 15301 (Existing Facilities) and Class 3/Section 15303 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines; adopt the 41st Amendment to the Annual Appropriation Resolution (AAR) No. 2018-157 to appropriate $227,500 to fully fund the award of a contract and staff support costs to furnish and install intelligent transportation system (ITS) fiber optic facilities at the Northeast Surface Water Treatment Facility (NESWTF) (Project); award a construction contract for the Project to Kertel Communications, Inc., dba Sebastian, in the amount of $259,772; and authorize the Director of Public Utilities, or designee, to execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Water Division, is seeking to award a construction contract for the Project in the amount of $259,772 to Kertel Communications, Inc., dba Sebastian, as the lowest responsive and responsible bidder. The adoption of the 41st Amendment to the AAR No. 2018-157 is required to provide full funding of this contract award and staff support costs. This Project is necessary to improve the outdated and unreliable networking systems at the NESWTF. BACKGROUND This Project will extend existing fiber optic facilities in the northeast area to serve the NESWTF. This, along with the installation of small new equipment at the NESWTF will allow for efficient operations and maintenance by DPU Water Division staff. This Project will provide significant improvement to the NESWTF's existing networking systems. Currently, the NESWTF operates on an outdated and unreliable T-1 telephone communications cable and DPU Water Division staff experience networking (email, critical regulatory reporting, etc.) downtime and slow speeds. This also affects the application of critical security patches to networking hardware; many updates take several days or fail. The ITS fiber optic facilities to be installed within the scope of work for this Project will also connect existing ITS fiber optic facilities in the northeast area, which can be used to synchronize traffic signals along City streets and are a major transporter of information to emergency responders. Plans and Specifications were prepared for this Project. A Notice Inviting Bids was published on March 29, 2019, and posted on the City's Planet Bids website. The Specifications were distributed to 11 prospective bidders and 13 Builder Exchanges. One sealed bid proposal was received and publicly opened on April 30, 2019. The bids will expire 64 days after bid opening, which will be on July 3, 2019. Kertel Communications, Inc., dba Sebastian was determined to be the lowest responsive and responsible bidder with the bid amount of $259,772. The Staff Determination of Award was posted on the City's Planet Bids website on May 14, 2019. Staff recommends that the City Council award a construction contract to Kertel Communications, Inc., dba Sebastian, in the amount of $259,772 as the lowest responsive and responsible bidder. The submitted bid amount of $259,772 is 4% above the Engineer's Estimate of $248,700. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this Project in accordance with the requirements of CEQA and has determined that it is exempt under Class 1, Section 15301 and Class 3, Section 15303 of the CEQA Guidelines. Class 1, Section 15301, exempts the repair, maintenance or minor alteration of existing structures or facilities with no further expansion of existing use, and this Project will provide minor alteration to existing facilities. This Project will require installation of new utility vaults in existing sidewalk. Class 3, Section 15303, exempts the construction and installation of limited numbers of new, small facilities, including utility extensions, and the proposed installation of the ITS fiber optic facilities will extend existing utilities. Furthermore, staff has determined that 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 as one bid was received. FISCAL IMPACT There is no impact to the General Fund. This Project is located within Council District 6. Funding for this contract and staff support costs is available from the appropriation of retained earnings within the Copper River Ranch Water Infrastructure Fund (40168) upon approval of the attached amendment to the AAR. Attachments: Attachment 1 - 41st Amendment to the AAR No. 2018-157 Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Sample Contract