REPORT TO THE CITY COUNCIL June 23, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities BY: ORLANDO M. GONZALEZ, PE, Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to sewer rehabilitation in F Street and Santa Clara Avenue (Bid File 3455) (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, and 2. Award a construction contract in the amount of $237,425 to SAK Construction Inc. LLC of Rocklin California ..Body RECOMMENDATIONS Staff recommends that 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 (CEQA) Guidelines; approve the construction contract award in the amount of $237,425 to SAK Construction Inc. LLC of Rocklin California. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract to SAK Construction Inc. LLC, for the rehabilitation of a sewer lines in F Street and Santa Clara Avenue. The two sewer alignments currently have pipe dating back to the 1930's that are showing signifiant signs of structural deficiency. The sewer rehabilitation project is necessary on the both alignments of this project to remedy current structural deficiencies and increase the design life of the pipe. Staff is seeking to award a contract in the amount of $237,425 to SAK Construction Inc. LLC of Rocklin California. BACKGROUND As per the Collection System Master Plan (CSMP), the Collection System Maintenance work group performs inspections of the sewer systems within the City of Fresno. The goals of these inspections are to evaluate the structural integrity and capacity of all sewer pipes within the City of Fresno. The investigation was done using Closed Circuit Television (CCTV). During routine inspection of the sewers in 2010, areas were identified that required rehabilitation or replacement. This sewer line in particular was showing significant signs of structural deficiencies. Rehabilitation of the existing sewer line was found to be the best option after evaluation of all applicable remediation options. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on April 18, 2016, and posted on the City's website. The specifications were distributed to twelve prospective bidders, and faxed to eight Builder Exchanges. The Bid will expire within 64 days of bid opening which is July 20, 2016. Two sealed bid proposals were received and publicly opened on May 17, 2016. The bid proposal prices were $237,425 and $295,725.50. Staff has determined SAK Construction Inc. LLC of Rocklin California, is the lowest responsive and responsible bidder with a submitted bid of $237,425. Its bid price is 21% above the original Engineer's Estimate of $196,020. Staff determination was posted on the City Website on May 19, 2016. The City Attorney's Office has reviewed and approved the construction contract as to form. ENVIRONMENTAL FINDINGS Staff has performed a preliminary Environmental Assessment for rehabilitation in F Street and Santa Clara Avenue and has determined that it falls within Class 1 and 2 Categorical Exemption set forth in CEQA Guidelines, Section 15301(d) (Existing facilities) and Section 15302(c) (Replacement or reconstruction) because this contract involves restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. LOCAL PREFERENCE Local Preference did not apply. Neither of the bids received were local businesses. FISCAL IMPACT This project will have no impact to the General Fund and is located in Council District 3. This project is identified in the five-year capital improvement plan. Funds in the amount of $358,000 are budgeted in the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $251,425. Attachments: Bid Evaluation and Fiscal Impact Statement Vicinity Map Sample Contract