REPORT TO THE CITY COUNCIL April 21, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to the Recycled Water Pump Station, Tertiary Treatment and Disinfection Facility, located at the Fresno-Clovis Regional Wastewater Reclamation Facility (Bid File 3448) (Council District 3 and Fresno County) 1. ***RESOLUTION - 37th Amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 appropriating $2,300,000 for the Recycled Water Pump Station (Requires 5 affirmative votes) 2. Award a construction contract in the amount of $1,833,967 to Clark Bros., Inc. of Fresno, California, for the construction of the Recycled Water Pump Station. 3. Approve an amendment to the professional services contract with Carollo Engineers, Inc., a Delaware corporation of Walnut Creek, California, in the amount of $165,384 to provide construction management services for the Recycled Water Pump Station. 4. Approve an amendment to the professional services contract with Moore Twining Associates, Inc. in the amount of $171,134.23 for materials testing and special inspection services for the Recycled Water Pump Station. ..Body RECOMMENDATIONS Staff recommends the City Council appropriate the project funding; approve the construction contract award to Clark Bros., Inc., for the Recycled Water Pump Station (Project), for the Tertiary Treatment and Disinfection Facility (TTDF), located at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF); approve a contract amendment with Carollo Engineers, Inc. for construction management services; and approve an amendment with Moore Twining Associates, Inc. for materials testing and special inspection services. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to adopt the 37th Amendment to the Annual Appropriation Resolution (AAR) No. 2015-104, award a $1,833,967 construction contract to Clark Bros., Inc. of Fresno, California, as the lowest responsive and responsible bidder. The primary purpose of this construction project is to construct a pump station with the capacity to deliver 5 million gallons per day (mgd) of recycled water from the TTDF to the Recycled Water Transmission Main, currently under construction. In addition, City Council approval is sought for amendments to the professional services contracts with Carollo Engineers and Moore Twining Associates for the additional work at the Project. BACKGROUND On August 26, 2010, the City Council approved a professional services contract for the design of the first phase of the Tertiary Treatment and Disinfection Facility (TTDF), in compliance with the City's Recycled Water Master Plan. Concurrent with this effort, the City Council approved a design contract for the first phase of the Recycled Water Distribution System (RWDS), Southwest Quadrant (SWQ) starting at the RWRF. Construction of the TTDF began in December 2014 while the SWQ started in October 2015. The Project is the link between the TTDF and SWQ, delivering recycled water from the TTDF to the RWDS. The design and construction of the Project were excluded from both projects because the recycled water user demand had not been fully quantified at these early stages. However, five "pump cans" were included in the TTDF phase 1 design for the future addition of five pumps. Therefore, the TTDF design included broad design assumptions for the future pump station buildout at full capacity. As commitments for recycled water users have increased and the design of downstream pump stations has developed, a flexible design for the Project would be designed for the current and future phases of the TTDF. The design provides pumping capacity for the current 5 mgd and future 10 and 15 mgd expansion phases. In October 2015, the consultant services agreement with Parsons was amended to include the design of the Project with the newly acquired design parameters. The design was completed at the end of January 2016 and the construction contract was advertised on February 1, 2016. Bid documents were distributed to 21 prospective bidders. On March 8, 2016, six bids were received. Clark Bros., Inc. was determined to be the lowest responsible and responsive bidder with a submitted bid of $1,833,967. At the start of the TTDF construction project, two related professional services contracts also started. The first was with Carollo Engineers, Inc. for construction management services and the second was with Moore Twining Associates, Inc. for materials testing and special inspection services. In order to cover the additional work related to the Project, both contracts must be amended for additional funds. The construction management service contract with Carollo Engineering will require an additional $165,384. The materials testing contract with Moore Twining Associates will require an additional $171,134.23. The amendment to Moore Twining Associates' contract also includes an adjustment for California Prevailing Wage. The federally funded loan program required Davis Bacon Wage Rates be incorporated in the bid documents. However, after start of work on the TTDF, it was determined that the higher California Prevailing Wage Rates take precedent over the Davis Bacon Rates. Therefore, a wage differential is included in this contract amendment in addition to the cost to provide services for the Project. ENVIRONMENTAL FINDINGS A Mitigated Negative Declaration (MND) was adopted by the Council on June 26, 2014 for this Project. An analysis has been performed pursuant to CEQA Guidelines �15162 to determine whether subsequent environmental review is required for the Project. Based on this analysis the following findings are made to support the determination that no subsequent environmental review is required: 1. No substantial changes are proposed in the Project which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects. 2. No substantial changes occur with respect to the circumstances under which the Project is undertaken which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects. 3. There is no new information which was not known or could not have been known at the time of the previous MND that the Project will have significant effects not discussed in the MND. Furthermore, since a MND was previously adopted for this Project, the considerations set forth in CEQA Guidelines �15162(a)(3)(C) and (D), related to the adequacy and feasibility of previously adopted mitigation measures, are not applicable. Based upon these findings, it has been determined that no further environmental documentation is required for this Project. LOCAL PREFERENCE The lowest responsive and responsible bidder is a local business. FISCAL IMPACT This project has no impact to the General Fund and is located in Council District 3. The project is identified in the five year capital improvement plan and included in the five year rate model. Funds in the amount of $2,000,000 for the construction of this project are budgeted in the 2015 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract and amendments will be $2,300,000. Funds do exist and are available in the Sewer Enterprise Fund 40501. An AAR is necessary to move the additional funding for this project from the Sewer Enterprise Operating Fund. Attachments: 37th AAR No. 2015-104 Bid Evaluation & Fiscal Impact Statement Amendment for Carollo Engineers contract for TTDF Amendment for Moore Twining contract for TTDF