REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering SARAH AGUILA, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to Lift Station 15 and 16 Improvements (Bid File 12301689) (Council Districts 2 and 4): 1. Adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301(b)(d) (Existing Facilities) of the California Environmental Quality Act Guidelines. 2. Award a construction contract to HPS Mechanical, Inc., in the amount of $698,106. ..Body RECOMMENDATION Staff recommends that Council of the City of Fresno (City) adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301(b)(d) (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines for Lift Stations 15 and 16 Improvements (Project); award a construction contract for the Project to HPS Mechanical, Inc., in the amount of $698,106; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City. EXECUTIVE SUMMARY The City lift stations are an integral part of the wastewater collection system to facilitate the flow of wastewater to the reclamation facilities. This Project will extend the service life of the lift stations, improve access and safety for the collections systems workers, and provide updated equipment to enhance lift station functionality. The Department of Public Utilities, Wastewater Management Division (WMD), is seeking to award a construction contract for the Project to HPS Mechanical, Inc., in the amount of $698,106. The bid will expire on July 19, 2023. BACKGROUND The collection system maintenance workgroup is responsible for maintaining the City's sewer infrastructure, which includes 17 lift stations. Wastewater typically flows by gravity to the reclamation facilities where it is treated before proper disposal. When the necessary elevations for gravity flow are not available, lift stations pump wastewater from areas of low elevation to sanitary sewers at higher elevations, from which the wastewater flows by gravity once again. The five-year Capital Improvement Plan by the WMD identified the lift stations in need of rehabilitation. This Project will extend the service life of the lift stations, improve access and safety for the collections systems workers, and provide updated equipment to enhance lift station functionality. A Notice Inviting Bids was published on April 19, 2023, and posted on the City's Planet Bids website. The plans and specifications were distributed to 29 prospective bidders and posted at 10 Building Exchanges. Two sealed bid proposals were received and publicly opened on May 16, 2023. HPS Mechanical, Inc., was determined to be the lowest responsive and responsible bidder, with the bid amount of $698,106. The bid will expire within 64 days of bid opening, on July 19, 2023. The staff determination was posted on the City's Planet Bids website on Wednesday, June 14, 2023. Staff recommends that the City Council award a construction contract to HPS Mechanical, Inc., in the amount of $698,106, as the lowest responsive and responsible bidder. Their bid price is 6.9% below the Engineer's Estimate of $750,000. ENVIRONMENTAL FINDINGS Staff has performed an environmental assessment for this Project in accordance with the CEQA guidelines and has determined it falls within Categorical Exemption pursuant to Class 1, Section 15301(b)(d) (Existing Facilities). This Project involves normal operation and maintenance of existing public sewer facilities. 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 addition of the 5% local preference to the local business did not place it as the lowest responsive and responsible bidder's bid pursuant to the Fresno Municipal Code Section 4-108(c). FISCAL IMPACT There is no impact to the General Fund. Funding for this Project is included within the Wastewater Management Division's Sewer Enterprise Fund. The Project is located in Council Districts 2 and 4. Attachments: Attachment 1 - Notice of Exemption Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Sample Contract Attachment 4 - Vicinity Map