REPORT TO THE CITY COUNCIL January 16, 2020 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: BROCK D. BUCHE, PE, PLS, Assistant Director - UP&E Department of Public Utilities - Utilities Planning & Engineering BY: ROBERT A. DIAZ, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to construction of 163 linear feet of water main replacement in North Thorne Avenue south of West Napa Avenue (Council District 3): 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Class 2 Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines for Thorne Avenue Water Main Replacement. 2. Award a construction contract to West Valley Construction, Inc., in the amount of $410,984 3. Authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guideline; award a construction contract to West Valley Construction, Inc., in the amount of $410,984, for construction of 163 linear feet of water main replacement in North Thorne Avenue south of West Napa Avenue (Project); and authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The section of water main to be replaced is at risk of failure due to the lack of a pipe casing, which is required to protect both the buried water main and overlying railroad track at this type of crossing. The Department of Public Utilities, Water Division, seeks to award a construction contract to West Valley Construction, Inc., in the amount of $410,984 as the lowest responsive and responsible bidder for the Project. BACKGROUND The Department of Public Utilities, Water Division has identified approximately 163 linear feet of existing 12-inch water main located in North Throne Avenue, south of West Napa Avenue as being at risk of continued failure. The existing water main that runs under the Union Pacific Railroad (UPRR) right-of-way is unprotected and experiencing repeated failures. This section of water main requires immediate replacement. The proposed replacement water main will be installed within a steel casing, thus protecting the City from a possible UPRR's railway line collapse should a future water main failure ever occur. Relocation of an of 8-inch water main serving 302 North Thorne Avenue will also be relocated from UPRR's right-of-way as part of the Project. A Notice Inviting Bids was published on October 18, 2019, and posted on the City's Planet Bids website. The Project plans and specifications were distributed to ten prospective bidders, and posted at seventeen Building Exchanges. Six sealed bid proposals were received and publicly opened on November 12, 2019. The bid proposals ranged from $410,984 to $583,956. The bids will expire 64 days after bid opening, which will be on January 15, 2020. West Valley has agreed to extend the bid terms until February 15, 2020. West Valley Construction, Inc., was the lowest responsive and responsible bidder, with a bid amount of $410,984. The staff determination was posted on the City's Planet Bids website on November 12, 2019. The bid amount is 31% above the anticipated Project budget of $310,000. A review of bid items show the following items had higher than anticipated costs: ductile iron pipe water mains, jack and bore steel casing crossings, traffic control and miscellaneous facilities and operations. The finding of the review is that the bid amounts are generally in line with other recently bid and awarded projects. Staff recommends that the City Council award a construction contract to West Valley Construction, Inc., in the amount of $410,984 as the lowest responsive and responsible bidder. 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 the 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. West Valley Construction, Inc. is a local business pursuant to the Fresno Municipal Code Section 4-108(d). FISCAL IMPACT There is no impact to the General Fund. This Project is located in Council District 3. Funding for this Project is included in the Fiscal Year 2020 capital improvement budget within the Water Division's Enterprise Fund 40101. Attachments: Attachment 1 - Bid Evaluation Attachment 2 - Sample Contract Attachment 3 - Categorical Exemption Attachment 4 - Vicinity Map