REPORT TO THE CITY COUNCIL April 30, 2015 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 at the Manchester Center from State Route 41 to Garland Avenue (Bid File No. 3368) (Council District 7) 1. Adopt a finding of Categorical Exemption of Class 1, 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, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines 2. ***RESOLUTION - 46th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 appropriating $538,700 for construction of the sewer rehabilitation at the Manchester Center from State Route 41 to Garland Avenue (Requires 5 affirmative votes) 3. Award a $501,633 contract to Michels Corporation of Salem, Oregon ..Body RECOMMENDATION Staff recommends the City Council adopt the CEQA findings, approve the Appropriation funding the project and award a construction contract to Michels Corporation for the sewer rehabilitation project located on the southwest corner of the Manchester Center. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award a construction contract in the amount of $501,633 for the sewer rehabilitation along Shields and Blackstone Avenues from Manhole 2056-21 in the Starbucks and Panda Express parking lot to Garland Avenue, a total of 2,901 lineal feet of 15-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 have been identified. BACKGROUND Late in 2014 a new commercial development was approved for the southwest corner of the Manchester Center Mall. This new development will be constructed near the existing sewer main. When the City requires inspection or maintenance in the future it will impact the business. To avoid potential issues, DPU conducted a closed circuit television inspection of the existing sewer pipe. The evaluation shows signs of hydrogen sulfide corrosion to the concrete to the point of exposing the reinforcing steel and identified two necessary point repairs. The proposed rehabilitation of sewer mains begins at Manhole 2056-21 in the Starbucks and Panda Express parking lot in Manchester Center and ends at Manhole 2055-24 in E. Garland Avenue just east of N. Blackstone Avenue. DPU recommends installing a corrosion resistant liner in the existing concrete pipe as the most cost effective solution and the rehabilitation of the manholes by coating the manholes with an epoxy coating. The corrosion resistant liner and the manhole coating 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 February 13, 2015, posted on the City's website and faxed to 51 building exchanges. The specifications were distributed to nine prospective bidders. Two sealed bid proposals were received and publicly opened on March 3, 2015. Bid proposal prices range from $501,633 to $577,920. Staff has determined that Michels Corporation of Salem, Oregon is the lowest responsive and responsible bidder with a submitted bid of $501,633. Their bid price is 16% below the Engineer's Estimate of $600,000. The staff determination was posted on the City website on April 30, 2015. Staff recommends that the City Council award a contract in the amount of $501,633 to Michels Corporation, of Salem, Oregon as the lowest and responsive bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 1 and 2 of Categorical Exemption set forth in the CEQA Guidelines, 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 Section 15302(c) (Replacement or reconstruction). Due to the nature of this construction contract involving repair and rehabilitation of existing public sewer utilities, this project will involve negligible or no expansion of capacity or use. 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 did not affect the award of this project because none of the bidders are local businesses according to the Fresno Municipal Code Section 4-108. Sewer pipe lining is highly specialized and there are currently no Fresno area based companies performing this type of work. FISCAL IMPACT This project was not budgeted for in FY2015. Funds are available in the Sewer Enterprise Fund No. 40501 and are being appropriated this year as a fast track project due to the structural integrity of the pipe as shown on the CCTV inspection, and before the construction of the new commercial development. Attachments: * 46th AAR No. 2014-95 * Bid Evaluation * Fiscal Impact Statement * Vicinity Map