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 the Installation of a 16-inch diameter water main in Polk Avenue from Gettysburg Avenue to Acacia Avenue (Bid File 12301690) (Council District 1): 1. Adopt a finding of Categorical Exemption pursuant to Class 2, Section 15302(c) (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines. 2. Award a construction contract to West Valley Construction Company, Inc., in the amount of $963,992. ..Body RECOMMENDATION Staff recommends 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) Guidelines for the Installation of a 16-inch diameter water main in Polk Avenue from Gettysburg Avenue to Acacia Avenue (Project); award a construction contract for the Project to West Valley Construction Company, Inc., in the amount of $963,992; and 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 Department of Public Utilities - Water Division (DPU), seeks to award a water main replacement and services transfer construction contract to West Valley Construction Company, Inc., in the amount of $963,992. The Project is necessary to replace a 14-inch diameter water main that is experiencing unexpected deterioration. The scope of work includes installation of 1,400 linear feet of 16-inch diameter water main, as well as associated fire hydrants, valves, and services transfers. BACKGROUND DPU has identified 1,400 linear feet of existing 14-inch diameter water main, located in Polk Avenue between Gettysburg and Acacia Avenues, as being prone to experiencing unexpected failures. The scope of work includes the replacement of the existing 14-inch Polyvinyl Chloride (PVC) DR25 water main with a 16-inch ductile iron water main, fire hydrants, valves, and service transfers. Replacement of the water main will prevent further expensive failures from occurring and ensure reliable levels of service. 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 24 prospective bidders and posted at 9 Building Exchanges. Five sealed bid proposals were received and publicly opened on May 16, 2023. West Valley Construction Company, Inc., was determined to be the lowest responsive and responsible bidder, with the bid amount of $963,992. The bid will expire on August 19, 2023. The staff determination was posted on the City's Planet Bids website on Thursday, June 29, 2023. Staff recommends City Council award a construction contract to West Valley Construction Company, Inc., in the amount of $963,992, as the lowest responsive and responsible bidder. Their bid price is 20% above the Engineer's Estimate of $800,000. Price overage was due to higher than anticipated costs as reflected in all bid proposals received. ENVIRONMENTAL FINDINGS Staff has performed an environmental assessment for this Project in accordance with the CEQA requirement and has determined that it is consistent with Categorical Exemption pursuant to Class 2, Section 15302(c) (Replacement or Reconstruction). This Project entails the replacement of an existing water main involving negligible expansion of 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 implemented as the lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(a). FISCAL IMPACT There is no impact to the General Fund. Funding for this Project is included within the Water Division's Enterprise Fund. The Project is located in Council District 1. Attachments: Attachment 1 - Environmental Assessment Attachment 2 - Notice of Exemption Attachment 3 - Bid Evaluation and Fiscal Impact Statement Attachment 4 - Sample Contract Attachment 5 - Vicinity Map