REPORT TO THE CITY COUNCIL May 14, 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 Water Main Replacements in the Vicinity of West Figarden, southeast of North Fruit Avenue and West Shaw Avenue (Bid File 3722) (Council District 1 and County): 1. Adopt a finding of Categorical Exemption pursuant Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act 2. Award a construction contract to West Valley Construction Company, Inc., in the amount of $6,648,149 ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guideline; award a construction contract to West Valley Construction Company, Inc., in the amount of $6,648,149, for Water Main Replacements in the Vicinity of West Figarden (Southeast of North Fruit Avenue and West Shaw 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 Department of Public Utilities, Water Division, seeks to establish a water main replacement and water service transfer contract. The water mains and associated appurtenances in the Project area have reached the end of their useful life. The scope of work includes replacing 3.73-miles of water distribution mains, water services, and fire hydrants in public street rights-of-way within the Project area. After a competitive bidding process, the Water Division is seeking to award a construction contract to West Valley Construction Company, Inc., the lowest responsive and responsible bidder in the amount of $6,648,149. BACKGROUND This project is located in the west Figarden area, which was largely a former Fresno County water district and generally described as the area southeast of North Fruit Avenue and West Shaw Avenue. As part of the Water Division's ongoing water main renewal and replacement effort, infrastructure in this vicinity has been identified for replacement due to its age. This Project will generally replace 3.73-miles of water distribution mains, water services, and fire hydrants. A Notice Inviting Bids was published on January 13, 2020, and posted on the City's Planet Bids website. The Project plans and specifications were distributed to forty-eight prospective bidders, and posted at ten Building Exchanges. Five sealed bid proposals were received and publicly opened on March 3, 2020. The bid proposals ranged from $6,648,149 to $9,272,641.13. The bids will expire 64 days after bid opening, which will be on June 6, 2020. West Valley Construction Company, Inc., was the lowest responsive and responsible bidder, with the bid amount of $6,648,149. Staff recommends that the City Council award a construction contract to West Valley Construction Company, Inc., in the amount of $6,648,149 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 because the lowest responsive and responsible bidder 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 1 and County. Funding for this Project is included in the Fiscal Year 2020 capital improvement budget within the Water Enterprise Fund 40101. Attachments: Attachment 1 - Bid Evaluation and Fiscal Impact Attachment 2 - Sample Contract Attachment 3 - Categorical Exemption Attachment 4 - Vicinity Map