REPORT TO THE CITY COUNCIL October 8, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Division Manager Department of Public Utilities - Water Division BY: LITO G. BUCU, Supervising Engineering Technician Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to test hole drilling and monitoring well construction at various locations: 1. Adopt a finding of Categorical Exemption pursuant to Article 19, Section 15306/Class 6 for Information Collection, of the California Environmental Quality Act (CEQA) Guidelines to authorize an agreement between the City of Fresno and Bradley and Sons, Inc. to drill test holes and construct monitoring wells. 2. Approve a Requirements Contract to Bradley and Sons, Inc., in the amount of $454,800 to drill test holes and construct monitoring wells at various locations. (Bid File 9328)(Citywide). ..Body RECOMMENDATIONS Staff recommends that Council award a requirements contract in the amount of $454,800 to Bradley and Sons, Inc., to drill test holes and construct monitoring wells at various locations, and authorize the Director of Public Utilities or their designee to sign all documents on behalf of the City of Fresno. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, solicited Contractor services to perform test hole drilling and monitoring well construction at various locations Citywide. Bradley and Sons, Inc., was found to be the lowest responsive and responsible bidder with a bid in the amount of $454,800. Test hole drilling is needed to evaluate the feasibility of drilling production wells at prospective locations prior to acquiring them as well sites. BACKGROUND The Water Division maintains a water infrastructure system consisting of more than 260 municipal water supply wells that provide 88% of the City's potable water. The construction of new wells for this water system is required to meet increased demands, replace wells that have reached the end of their useful life, or to assist in remediating water quality issues. Prior to acquiring new well sites, a test hole and a monitoring well need to be completed to evaluate the feasibility of drilling a production well at the prospective location. A Requirements Contract expedites the test hole drilling so they can be done within the short time frame that Purchase Agreements allow for closing escrow. In order to establish a Requirements Contract for the project, the Water Division solicited Contractor services through the bidding process. A notice inviting bids was published in the Business Journal and posted on the City of Fresno website on July 22, 2015. Project plans and specifications were distributed to thirteen prospective bidders. Two sealed bid proposals were received and unsealed in a public opening on August 18, 2015. Bradley and Sons, Inc., submitted a bid price in the amount of $454,800 and is the lowest responsive and responsible bidder. The Staff Determination of Award was posted on the City of Fresno website on September 8, 2015. The price submitted is 6.2% below the Engineer's Estimate of $485,000. ENVIRONMENTAL FINDINGS This agreement falls within the Class 6 Categorical Exemption for Information Collection set forth in CEQA Guidelines Section 15306, as it involves basic data collection and resource evaluation, and will not result in any significant negative effects related to traffic, noise, air quality, or water quality. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the project. LOCAL PREFERENCE Local Preference was applied and the agreement will be awarded to a local bidder. FISCAL IMPACT The project, which is Citywide, will not have any impact to the General Fund. Funds for drilling test holes and monitoring wells construction are included in Water Division's FY 2016 Capital Improvement Program budget within the Water Enterprise Fund. Drilling test holes and constructing monitoring wells are included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 26, 2015. No additional funding is required for this project. Attachments: Evaluation of Bid Proposals Fiscal Impact Statement