REPORT TO THE CITY COUNCIL April 28, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Division Manager Department of Public Utilities - Water Division BY: ROBERT A. DIAZ, Senior Engineering Technician Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to permanent asphalt concrete pavement repairs - Bid File No. 9365 (City-wide) 1. Adopt a finding of Class 1, Class 2, Class 3, and Class 4 Categorical Exemption pursuant to sections 15301, 15302, 15303, and 15304, of the CEQA guidelines, for permanent asphalt concrete pavement repairs 2. Award a six-month requirements contract with provisions for five (5) six-month extensions to Dawson-Mauldin Construction, Inc. in the amount of $409,600 for permanent asphalt concrete pavement repairs and authorize the Public Works Director or designee to sign the contract on behalf of the City ..Body RECOMMENDATIONS Adopt a finding of Class 1, Class 2, Class 3, and Class 4 Categorical Exemption pursuant to sections 15301, 15302, 15303, and 15304 of the CEQA guidelines; and award a six-month requirements contract with provisions for five (5) six-month extensions to Dawson-Mauldin Construction, Inc. in the amount of $409,600 for Permanent Asphalt Concrete Pavement Repairs and authorize the Public Works Director or designee to sign the contract on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, seeks to establish a six-month requirements contract with provisions for five (5) six-month extensions for permanent asphalt concrete pavement repairs. The scope of work includes permanent paving repairs associated with the Water Division's operation and maintenance of the water system. Staff recommends that Council award a contract to Dawson-Mauldin Construction, Inc. the lowest responsive and responsible bidder in the amount of $409,600. Funding for this contract is included in the FY16 budget. This project spans multiple fiscal years. Purchases made in FY16 will be at contract prices and future purchases will be included in the FY17 budget. BACKGROUND The Department of Public Utilities, Water Division, routinely cuts and removes existing street paving to gain access to the water system for repairs, maintenance, and capital improvements. These pavement cuts require a permanent pavement repair. Due to the ongoing nature of this work, the Water Division established a requirements contract in 2013 to obtain firm pricing, secured through competitive bidding, for three years, that allowed the Water Division to order the repairs on an as needed basis. That requirements contract is set to expire on May 1, 2016 and the Water Division has competitively rebid the contract to establish new pricing for up to three years. On February 12, 2016, an advertisement was published inviting bids for a Requirements Contract For Permanent Asphalt Concrete Pavement Repairs. Ten building exchanges received a fax notice inviting bids. Nineteen specs were distributed to prospective bidders. On March 15, 2016, public bids opened. The City of Fresno's office of the Purchasing Manager received six bids. Dawson-Mauldin Construction, Inc. was determined to be the lowest responsive and responsible bidder in the amount of $409,600. The other five bids ranged from $425,630 to $3,149,912. The bids received will expire sixty four days after bid opening, which will be on May 18, 2016. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 1, Class 2, Class 3, and Class 4 Categorical Exemptions set forth in CEQA Guidelines, sections 15301, 15302, 15303, and 15304, as this contract is for repair of existing street pavement associated with the operation and maintenance of the water system. The project will not result in the expansion of capacity of existing uses. 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 because the low bidder qualifies as a local business pursuant to the Fresno Municipal Code Section 4-108(d). FISCAL IMPACT Award of this contract will not impact the General Fund. Funding for this contract, which will benefit all Council Districts, is included in the FY16 budget within the Water Enterprise fund (40101) and was included in the water rate model used to create the five-year utility rate plan that was adopted by the City Council on February 26, 2015. This project spans fiscal years. Purchases made in FY16 will be at contract prices and future purchases will be included in the FY17 budget. Attachments: Evaluation of Bid Proposals and Fiscal Impact Statement Categorical Exemption Requirements Contract