REPORT TO THE CITY COUNCIL January 26, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division BY: SARAH AGUILA, Senior Engineering Technician Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions Pertaining to Access Structure Rehabilitation on Dakota Avenue, West Avenue, and Fruit Avenue (Bid File 3490) (Council Districts 1 and 3) 1. Adopt a finding of Categorical Exemption, pursuant to Sections 15301(d) (Existing facilities) and 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines 2. Award a construction contract in the amount of $133,675 to Quality Pipe Services of Denver, Colorado ..Body RECOMMENDATIONS Staff recommends that City Council adopt a finding of Categorical Exemption, pursuant to Sections 15301 (d) (Existing facilities) and 15302 (c) (Replacement or reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for Access Structure Rehabilitation on Dakota Avenue, West Avenue, and Fruit Avenue and award a construction contract to Quality Pipe Services, of Denver, Colorado. EXECUTIVE SUMMARY Rehabilitation of the City's access structures are essential to maintain a functioning infrastructure. The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract to rehabilitate eight access structures. BACKGROUND The Collection System Maintenance workgroup is responsible for maintaining the City's sewer infrastructure consisting of over 23,600 access structures. The purpose of these structures is to allow access during inspection and cleaning of the sanitary sewers. Rehabilitation of these access structures will assist in extending the life of the existing system and eliminate structural deficiencies and corrosion caused by hydrogen sulfide. The project consists of rehabilitating two access structures on Dakota Avenue, five access structures on West Avenue, and one access structure on Fruit Avenue. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on November 9, 2016 and posted on the City's website. The specifications were distributed to twenty prospective bidders, and faxed to ten Builder Exchanges. The bids will expire on February 2, 2017, sixty-four days after the December 6, 2016 bid opening. Two sealed bid proposals were received and publicly opened on December 6, 2016. The bid proposal prices were $133,675 and $185,849. Quality Pipe Services was the lowest responsive bidder with a submitted bid of $133,675. Staff determination was posted on the City's website. Staff recommends that the City Council award a construction contract in the amount of $133,675 to Quality Pipe Services as the lowest responsive and responsible bidder. Their bid price is 10.9% below the original Engineer's Estimate of $150,000. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment for Access Structure Rehabilitation on West Avenue and has determined that it falls within Class 1 and 2 Categorical Exemption set forth in CEQA Guidelines, Sections 15301(d) (Existing facilities) and 15302(c) (Replacement or reconstruction) because this contract involves restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment. 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 none of the bidders were local businesses. FISCAL IMPACT This project has no impact to the General Fund and is located in Council District 1. This project is identified in the five-year Capital Improvement Plan. Funds in the amount of $150,000 for the construction project are budgeted in the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract would be $139,175. Attachments: Bid Evaluation & Fiscal Impact Statement Vicinity Map Contract