REPORT TO THE CITY COUNCIL December 18, 2014 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to the sewer rehabilitation in West and Weber Avenues (Council Districts 1 and 3) 1. Adopt a finding of Class 1 Categorical Exemption, pursuant to Section 15301(b) (Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services) and Class 2 Categorical Exemption, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines 2. ***RESOLUTION - 26th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 appropriating $904,000 for the sewer rehabilitation in West and Weber Avenues (Requires 5 affirmative votes) 3. Award a $880,159 construction contract to Repipe California LP of Riverside, California ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Class 1Categorical Exemption, pursuant to Section 15301(b) (Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services) and Class 2 Categorical Exemption, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act (CEQA) Guidelines. Staff also recommends the Council adopt the 26th AAR No. 2014-95 appropriating $904,000 for the Sewer Rehabilitation in West and Weber Avenues, and award a $880,159 construction contract to Repipe California LP of Riverside, California. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award a construction contract in the amount of $880,159 for sewer rehabilitation along West Avenue from McKinley to Weber Avenue and along Weber Avenue from West Avenue heading southeast approximately 300 feet to Manhole 2351-25, a total of 969 lineal feet of 42-inch sewer pipe. The sewer rehabilitation is proposed to be accomplished by installing a Cast in Place Pipe (CIPP) liner where capacity and structural deficiencies were identified. BACKGROUND In 1992, this sewer project was evaluated by Blair, Church & Flynn Consulting Engineers in a report entitled "Evaluation of Large Diameter Wastewater Collection System." In the 1992 report, this project sewer was reported to be in "Fair" condition. In 2011, the City of Fresno Department of Public Utilities (DPU), Wastewater Management Division through the Collection System Maintenance workgroup performed a closed-circuit television (CCTV) inspection for each reach of the project sewer. The CCTV inspections show exposed aggregate and corrosion products through all project sewer reaches as a result of hydrogen sulfide. After reviewing the 2011 CCTV inspection, DPU compared it with the 1992 report and determined that the project sewer has deteriorated significantly and is in bad shape. DPU recommends installing a corrosion resistant liner in the existing concrete pipe as the most cost effective solution. The corrosion resistant liner will restore the structural integrity and prevent further deterioration caused by hydrogen sulfide. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on October 1, 2014, posted on the City's website and faxed to ten building exchanges. The specifications were distributed to 48 prospective bidders. Three sealed bid proposals were received and publicly opened on October 28, 2014. Bid proposal prices range from $765,710 to $993,727. The lowest bidder was SAK Construction which was determined to be non-responsive. The cause for the non-responsiveness was found to be not filling in completely the unit price dollar amounts on the bid proposal page. The next lowest responsive bidder on the bidder's list is Repipe California LP of Riverside, California, with a submitted bid of $880,159. Their bid price is 61% above the Engineer's Estimate of $546,000. The reasons for the higher than anticipated bids are as follows: * There were some increases to the prevailing wage rates * The low bid was thrown out due to bidder non-responsiveness * According to construction journals rehabilitation contractors are extremely busy which tends to push bid prices toward the high end * The City DPW Traffic imposed additional unforeseen traffic control requirements * Increased bypass pumping costs resulting from the additional traffic control requirements The major contribution to the increased price was the additional traffic control and resulting bypass pumping costs. The requirement to restrict traffic closures in the intersection of McKinley and West Avenues forces the contractor to bypass the sewer further upstream. It was originally anticipated that the bypass would be able to start at the intersection of McKinley and West Avenues. However the intersection has since been deemed overly congested and unsafe to setup the bypass at the intersection. Due to this constraint, bypass systems are required to be placed upstream of this location, well beyond the limits of the work. The flows that are being bypassed are from a 30" and separate 24" sewer into a 42" sewer and therefore are difficult to estimate accurately. The staff determination was posted on the City website on November 24, 2014. Staff recommends that the City Council award a construction contract in the amount of $880,159 to Repipe California LP of Riverside, California as the lowest and responsive bidder. ENVIRONMENTAL FINDINGS LOCAL PREFERENCE Local preference did not affect the award of this project because none of the bidders are a local business according to the Fresno Municipal Code Section 4-108. FISCAL IMPACT This project has no impact to the General Fund and is located in Council Districts 1 and 3. This project is identified in the five-year Capital Improvement Plan. The funds for this project are available in the 2014 Sewer Enterprise bond fund No. 40525. Project award was anticipated in the fiscal year 2014. However, the project got rejected and was subsequently not awarded in FY2014 causing the request for the AAR to appropriate bond funds in FY2015. Attachments: * 26th AAR No. 2014-95 * Bid Evaluation * Fiscal Impact Statement * Letter Re Bid Prices * Vicinity Map