REPORT TO THE CITY COUNCIL October 20, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities BY: SARAH AGUILA, Senior Engineering Technician Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to Sewer Rehabilitation/Replacement in the Congo and H/Broadway Downtown Alleys (Bid File 3429) (Council District 3) 1. Adopt findings of Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines 2. ***RESOLUTION - 18th amendment to Annual Appropriation Resolution (AAR) No. 2016-118 appropriating $770,000 for Sewer Rehabilitation/Replacement in the Congo and H/Broadway Downtown Alleys (Requires 5 affirmative votes) 3. Award a $609,270 contract to Emmett's Excavation, Inc., of Fresno, California ..Body RECOMMENDATIONS Staff recommends that City Council Adopt findings of Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines (CEQA). Staff also recommends the Council adopt the 18th AAR No. 2016-118 appropriating $770,000 for Sewer Rehabilitation/Replacement in the Congo and H/Broadway Alleys, and award a $609,270 construction contract to Emmett's Excavation, Inc. of Fresno, California. EXECUTIVE SUMMARY After a detailed analysis of the downtown development plans and an inspection of the Downtown Sewer Collection System, the wastewater management group identified the project sewers for rehabilitation and replacement. The work to be performed will correct structural and capacity deficiencies. The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract in the amount of $609,270 for the Sewer Rehabilitation/Replacement in the Congo and H/Broadway Downtown Alleys. BACKGROUND The Collection System Maintenance work group performed an inspection of the Downtown sewer systems. The goal of these inspections was to evaluate the structural and capacity handling capability of all the downtown sewer pipes. The investigation was done using Closed Circuit Television (CCTV). Through this investigation, portions of these sewer pipes were found to have structural deficiencies such as cracks and voids, some are past the design useful life and other pipes are undersized per the current City Standard design requirements. The ages of the pipes in the project area range from 1890 to 1962. The typical design life of a sewer pipe is 50 to 75 years. The advanced age, and structural deficiencies discovered in these areas require that portions of the sewer pipes be rehabilitated and others removed and replaced. The project consists of the removal of the 6" sewer main in Congo Alley between Stanislaus Street and Tuolumne Street and replacing it with an 8" sewer main, rehabilitation of the 8" and 10" sewer mains in Congo Alley between Tuolumne Street and Fresno Street by means of CIPP liner installation, rehabilitation of the 8" sewer main in the H/Broadway Alley between Stanislaus Street and Tuolumne Street by means of CIPP liner installation, and rehabilitation of the 10" sewer main in the H/Broadway Alley between Broadway Street and Merced Alignment by means of CIPP liner installation. Sewer rehabilitation and replacement was proposed where capacity deficiencies, structural deficiencies and advanced age of pipe were identified. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on August 19, 2016, and posted on the City's website. The specifications were distributed to twenty-one prospective bidders, and faxed to ten Builder Exchanges. The bid will expire on November 16, 2016, 64 days after the September 13, 2016 bid opening. Four sealed bid proposals were received and publicly opened on September 13, 2016. The bid proposal prices range from $609,270.00 to $684,106.64. Emmett's Excavation, Inc. was the lowest responsive and responsible bidder with a submitted bid of $609,270.00. The staff determination was posted on the City's website. Staff recommends that the City Council award a construction contract in the amount of $609,270.00 to Emmett's Excavation, Inc. as the lowest responsive and responsible bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment and has determined that this project falls within Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the CEQA Guidelines because this project involves rehabilitation and replacement of existing sewer mains. Therefore, 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 because the lowest responsive and responsible bidder is a local business. FISCAL IMPACT Funds in the amount of $750,000 were budgeted in FY16 but because of the last minute project scope changes, the project did not bid. This construction contract has no impact on the General Fund and is located in Council District 3. Funds in the amount of $770,000 are available in the Sewer Enterprise Fund 40501; the AAR is necessary to allocate the funds for the project construction. Attachments: 18th AAR No. 2016-118 Bid Evaluation and Fiscal Impact Statement Sample Contract Vicinity Map