REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering SAMUEL NADORES, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Rebid Friant Kern Canal Pipeline Inlet Valve Replacement at the City of Fresno's Northeast Surface Water Treatment Facility (Bid File 3869) (Council District 6): 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines 2. Award a purchase contract in the amount of $172,842.09 to Cascade Consultants, LLC, for a 36-inch diameter plunger valve ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; award a purchase contract to Cascade Consultants, LLC, in the amount of $172,842.09, for a replacement valve on the Friant-Kern Canal Pipeline (FKCP) at the City of Fresno's Northeast Surface Water Treatment Facility (NESWTF) (Project); and authorize the Director of Public Utilities, or designee, to execute the contract on behalf of the City of Fresno. EXECUTIVE SUMMARY The existing 18-inch V-port inlet valve in the FKCP, which regulates source water entering the NESWTF, has been found to be deficient in its ability to provide the design flow capacity of 30 million gallons per day (MGD). To return the treatment facility back to its full operational capacity, replacement of the 18-inch V-port valve with a 36-inch plunger valve is necessary. The replacement will be performed when the NESWTF is off-line, during its annual low-demand maintenance period. After a competitive bidding process, the Department of Public Utilities - Water Division is seeking to award a purchase contract to Cascade Consultants, LLC, in the amount of $172,842.09. Delay in approving the purchase will result in the loss of funds allocated to the Project this fiscal year and ultimately will delay receipt and installation of the necessary valve. BACKGROUND The 5.5-mile long, 60-inch diameter, FKCP conveys surface water from the Friant-Kern Canal to the NESWTF. The pipeline eliminated nearly 54-miles of otherwise open channel canal conveyance and improves the protection and quality of the raw water delivered to the NESWTF. The completed FKCP serves as the primary and protected conveyance of source water to the NESWTF, enabling improved source water quality, increased reliability and greater operational flexibilities. Construction of the FKCP commenced in May 2016 and was completed in May 2018. Upon completion of the FKCP, potable water demands slowly increased, where by late summer, it was determined that the 18-inch V-port valve was unable to provide the current 30 MGD design capacity of NESWTF. Through subsequent analyses it was determined the valve needed to be replaced with a 36-inch plunger valve. Due to the long duration needed to manufacture the plunger valve, the Water Division is pursuing the advanced purchase of the replacement valve so it may be on hand for installation when the NESWTF can be taken offline during the low water demand winter period. On Wednesday, March 23, 2022, the City advertised the plunger valve specifications for a rebid on PlanetBids. Nine Building Exchanges received Notice Inviting Bids and 23 sets of specifications were distributed to prospective bidders. Two sealed bid proposals were received and publicly opened on May 17, 2022. The specifications provided that submitted bid proposals would expire 64-days after bid opening. Two bids in the amounts of $172,842.09 and $177,874.50 were submitted by Cascade Consultants, LLC, and VAG GmbH, respectively. The VAG GmbH was deemed "nonresponsive" for failing to meet the requirements set forth in the bid specifications. Cascade Consultants, LLC, is the lowest responsive and responsible bidder with the submitted bid price in the amount of $172,842.09. Staff recommends that the City Council award the purchase contract to Cascade Consultants, LLC, in the amount of $172,842.09 as the lowest responsive and responsible bidder. The bid price is 4% below the Engineer's Estimate of $180,000. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment and has determined that approval of this contract is Categorically Exempt pursuant to CEQA Guidelines Section 15301/Class 1, which exempts minor alterations of existing facilities when there is a negligible or no expansion of the existing or former use. This approval qualifies for a Class 1 exemption because the Project is a minor alteration of the existing NESWTF to replace the current 18-inch V-port valve with a 36-inch plunger valve thereby allowing the NESWTF to function at its original 30 MGD design capacity. 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 as the two bidders are located outside of the Fresno area. FISCAL IMPACT This Project is located within Council District 6. There is no impact to the General Fund. Funding for this Project is included in the Water Division's Fiscal Year 2022 and 2023 Capital Improvement Program budget within the Water Enterprise Fund 40101. Attachments: Attachment 1 - Bid Evaluation and Fiscal Impact Statement Attachment 2 - Sample Contract Attachment 3 - Vicinity Map