REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering BETH FIELD, PE, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Water Main Replacement in Calwa Townsite, Phase I - area bounded by Orange, Church, Cedar, and Vine Avenues (Bid File 3825) (Council District 5 and Fresno County): 1. Adopt a finding of Categorical Exemption pursuant to Sections 15301(b)/Class 1 and 15302(c)/Class 2 of the California Environmental Quality Act 2. Award a construction contract, inclusive of the City's adopted project labor agreement requirements, to West Valley Construction Company, Inc., of Fresno, California, in the amount of $6,231,747 ..Body RECOMMENDATIONS Staff recommends that City Council 1. Adopt a finding of Categorical Exemption pursuant to Sections 15301(b)/Class1 and 15302(c)/Class 2 of the California Environmental Quality Act (CEQA) guidelines for the Water Main Replacement in Calwa Townsite, Phase I - area bounded by Orange, Church, Cedar, and Vine Avenues (Project); 2. Award a construction contract for the Project to West Valley Construction Company, Inc. (West Valley), of Fresno, California, in the amount of $6,231,747; and 3. Authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The water mains in the Project footprint have exceeded their useful life and as a result, experience frequent breaks which result in interruptions of service and unscheduled work by City forces. The Department of Public Utilities, Water Division, seeks to award a water main replacement and services transfer construction contract, inclusive of the City's adopted project labor agreement requirements, to West Valley. In accordance with the City's competitive bidding process, West Valley was identified as the lowest responsive and responsible bidder in the amount of $6,231,747. Approval of the contract is necessary at this time as the extension of bids expires on May 15, 2022. BACKGROUND The Department of Public Utilities, Water Division, has identified 11,882 linear feet of 8-inch diameter water main, 1,066 linear feet of 12-inch diameter water main, and 2,650 linear feet of 16-inch diameter water mains located in the Calwa Township that have reached the end of their useful service life and are experiencing frequent failures. Various sized water mains throughout the Calwa Townsite area have failed due to inferior pipe material and age. Replacement of the aged infrastructure will prevent further expensive failures from occurring, resulting in reliable water service while at the same time allowing City forces to focus efforts elsewhere throughout the City. The Project having the engineer's estimate that exceeds the $1,000,000 threshold, included requirements for adhering to the City's adopted project labor agreement. Following preparation of Project plans and specifications, a Notice Inviting Bids was published on December 3, 2021, and posted on the City's Planet Bids website. Additionally, the Project plans and specifications were distributed to 28 prospective bidders and posted on 12 Building Exchanges. The Project being estimated to exceed the $1,000,000 threshold issued an addendum incorporating the City's adopted project labor agreement. Three (3) sealed bid proposals were received and publicly opened on February 15, 2022. The bid proposals received ranged from $6,231,747 to $7,320,990 with West Valley determined to be the lowest responsive and responsible bidder, with the bid amount of $6,231,747. The bids will expire on May 15, 2022. Staff recommends that City Council award a construction contract to West Valley Construction, in the amount of $6,231,747, as the lowest responsive and responsible bidder. Their bid price is 2.5% above the Construction Allocation of $6,080,000. This Project is included in the Fiscal Year 2022 capital improvement budget within the Water Enterprise Fund 40101. The City Attorney's Office has reviewed and approved to form. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this Project and determined that it falls within Class 1 and Class 2 Categorical Exemptions set forth in the CEQA Guidelines, Sections 15301(b) (Replacement or Reconstruction) and 15302(c) (Existing Facilities), as this Project 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. Environmental Assessment No. P22-01024. LOCAL PREFERENCE 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. Funding for this Project is included in the Fiscal Year 2022 capital improvement budget within the Water Enterprise Fund 40101. This project is in Council District 5 and Fresno County. Attachments: Attachment 1 - Categorical Exemption Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Vicinity Map