REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department RANDALL W. MORRISON, PE, Director Capital Projects Department BY: JESUS AVITIA, Assistant Director Capital Projects Department, Transportation Project Management Division GARINE KENDOYAN, Engineer II Capital Projects Department, Transportation Project Management Division SUBJECT ..Title Actions pertaining to the Mariposa Plaza Renovations - Bid File No. 12302138 (Council District 3): 1. Adopt a finding of Categorical Exemption per staff's determination, pursuant to Section 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines 2. Award a construction contract in the amount of $2,691,094 to American Paving Co. of Fresno, California 3. Approve a service agreement in the amount of $178,633.44 with Pacific Gas and Electric Company ..Body RECOMMENDATIONS Staff recommends that the City Council (1) adopt a finding of Categorical Exemption pursuant to Section 15302 of the California Environmental Quality Act (CEQA) Guidelines, (2) award a construction contract to American Paving Co. of Fresno, California in the amount of $2,691,094 as the lowest responsive and responsible bidder and authorize the Public Works Director or designee to sign the construction contract on behalf of the City of Fresno; and (3) approve a service agreement with Pacific Gas and Electric Company (PG&E) in the amount of $178,633.44, and authorize the Public Works Director or designee to sign the agreement on behalf of the City of Fresno. EXECUTIVE SUMMARY As part of the approved Master Grant Agreement with the Strategic Growth Council (SGC) for development and implementation of greenhouse gas emissions reduction projects, also known as the Transformative Climate Communities (TCC) Grant Program, in the amount of $66,500,000, the City of Fresno Public Works Department is implementing the Mariposa Plaza Renovations Project. Renovations include tree planting, landscaping, lighting, installation of permeable paving, two stages, a shade structure and associated utilities. Awarding a construction contract for this project will refresh a significant downtown plaza and create a more welcoming, vibrant, and comfortable public space for all users to enjoy. The project is fully funded by the TCC Grant Program and a small portion of American Rescue Plan Act (ARPA) funding. BACKGROUND The TCC Grant Program was established by Assembly Bill (AB) 2722 and is administered by the SGC using Cap-and-Trade funds for the development and implementation of neighborhood-level transformative climate community plans that include multiple, coordinated greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities. The TCC Grant Program takes a place-based approach that commits applicants to the achievement of economic, environmental, and public health benefits in a specific community through the deployment of integrated climate strategies that combine greenhouse gas reduction activities to achieve multiple community benefits and drive innovation. The City has been awarded grant funds of $66,500,000 from the TCC Grant Program to fund the development and implementation of neighborhood-level coordinated greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities. The submittal for the grant funds, named the Transform Fresno Plan, includes coordination with several Partners to deliver a variety of California Climate Investment projects, including the redesign of Mariposa Plaza. On February 28, 2019, the City Council approved the Master Grant Agreement with SGC for development and implementation of greenhouse gas emissions reduction projects in the amount of $66,500,000. On May 16, 2019, the City Council approved a Sub-Recipient Agreement with the City's Department of Public Works for the Mariposa Plaza Project in the amount of $3,859,000 and approved Resolution No. 2019-105 amending the Annual Appropriation Resolution (AAR) No. 2018-157. The design started following the City Council approval of the consultant contract with WRT, Inc. of San Francisco, California, on March 5, 2020. Renovations include tree planting, landscaping, lighting, permeable paving, two stages, a shade structure and associated utilities. This project will require a new electrical service from PG&E to provide power for the proposed improvements, and allow capacity for future special events, including a seasonal ice rink. The proposed services contract with PG&E will fund the improvements necessary for PG&E to supply the necessary power. The Notice Inviting Bids was published in the Business Journal on March 19, 2023 and posted on the City's website. One sealed bid proposal was received and opened in the public bid opening on July 11, 2023, with a bid amount of $2,691,094. American Paving Co. of Fresno, California is deemed the lowest responsive and responsible bidder. The bids will expire 64 days after the bid opening, on September 13, 2023. If the bids are rejected or expire, the project will be rebid, resulting in a delay of construction completion beyond the required funding close out, due to prolonged lead time on the shade structure. This contract is covered by the TCC Project Labor Agreement (PLA), which applies to all TCC grant funded projects. The Contractor shall become signatory to the PLA by executing the Letter of Assent with the PLA. Staff is recommending approval of a service agreement with Pacific Gas and Electric Company (PG&E) in the amount of $178,633.44, and authorization of the Public Works Director or designee to sign and execute the agreement on behalf of the City of Fresno. Staff is also recommending the award of a construction contract to American Paving Co. of Fresno, California in the amount of $2,691,094 to construct the Mariposa Plaza Renovations Project, as the lowest responsive and responsible bidder, and authorization of the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno. The City Attorney's Office has reviewed and approved this item as to form. ENVIRONMENTAL FINDINGS Staff utilized an on call environmental consultant to perform a preliminary environmental assessment of this project. This project was determined to be Categorically Exempt under Section 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines because existing structures are being reconstructed on the same site as the structures replaced and will have substantially the same purpose and capacity as the structures replaced. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the project. Furthermore, the proposed project is not expected to have a significant or cumulative effect on the environment. The project is not located on a hazardous waste site, a historical resource, or adjacent to a scenic highway. A categorical exemption, as noted above, has been prepared for the project and the area is not environmentally sensitive. LOCAL PREFERENCE Local preference was not implemented because of the TCC Grant Funding. FISCAL IMPACT The Mariposa Plaza Renovation Project is located in Council District 3. The overall cost of the project is $4,018,500 and is grant funded by a TCC grant. A small contribution from the American Rescue Plan Act (ARPA) funding is allocated to fund the electrical service upgrade for the project. Of the overall budget of the project, $2,691,094 will be used for the construction contract award, and $178,633.44 will be used for the PG&E Service Agreement. Attachments: Environmental Assessment Bid Evaluation Fiscal Impact Statement Standardized Contract PG&E Service Agreement Vicinity Map