REPORT TO THE CITY COUNCIL March 16, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Water Division PAUL MARAGONI, Professional Engineer Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to construction of Calcium Hydroxide tanks and feed system at the Northeast Surface Water Treatment Plant (NESWTF) Bid File 3528 (Council District 6): 1. Adopt findings of Class 1/ Section 15301(b) and Class 3/ Section 15303 Categorical Exemptions pursuant to the California Environmental Quality Act Guidelines. 2. Award a construction contract in the amount of $225,782.28 to Smith Construction Company, Inc., of Fresno, California. ..Body RECOMMENDATIONS Staff recommends that Council adopt findings of a Categorical Exemption/Class 1 pursuant to Section 15301(b) (Existing facilities) and Categorical Exemption/Class 3, pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines; approve the construction contract award in the amount of $225,782.28 to Smith Construction Company, Inc., and authorize the Director of Public Utilities or designee to execute all documents for the installation of a calcium hydroxide (Ca(OH)2) chemical feed system at the Northeast Surface Water Treatment Facility (NESWTF). EXECUTIVE SUMMARY The Department of Public Utilities (DPU) is seeking to award a construction contract to Smith Construction Company, Inc., of Fresno, California, to install a Ca(OH)2 chemical feed system at the NESWTF. DPU staff has determined that calcium hydroxide has beneficial features and characteristics for alkalinity adjustment, pH adjustment, and calcium addition for finished water. Smith Construction Company, Inc., was determined to be the lowest responsive and responsible bidder BACKGROUND The City has conducted water treatment trials using calcium hydroxide for alkalinity adjustment, pH adjustment, and calcium addition at the NESWTF. The trials implemented by DPU during calendar year 2016 proved successful in achieving the desired outcomes, and DPU proposes to construct a permanent calcium hydroxide feed system at the NESWTF. The permanent calcium hydroxide feed system will require the purchase of two 4,050 gallon polyethylene storage tanks and mixers to store bulk calcium hydroxide solution, construction of a storage tank pad with a spill containment, a dual-metering pump skid, and related piping, electrical, controls, and appurtenances. The cost of the permanent Ca(OH)2 chemical feed system is estimated at $500,000. Due to the current scheduled maintenance shutdown of the NESWTF, funding has been appropriated during the current fiscal year to facilitate installation of the permanent Ca(OH)2 chemical feed system to replace existing kluged temporary system currently used. On Wednesday, January 27, 2017, completed project plans and specifications were made available and advertised on PlanetBids Bids Online as a new City construction project. On Thursday, February 2, 2017, a mandatory project pre-bid meeting was held in the Upstairs Conference Room at the Northeast Surface Water Treatment Facility. Ten Building Exchanges received a faxed "Notice of Inviting Bids" and twenty Plans and Specifications were distributed to prospective bidders. The sole sealed bid proposal received and publicly opened on February 16, 2017, was from Smith Construction Company, Inc., submitting a bid price in the amount of $225,782.28. The bid will expire within 64 days of bid opening, on April 21, 2017. The Staff Determination of Award will be posted on the City's website upon approval of the award. ENVIRONMENTAL FINDING Staff has performed a preliminary environmental assessment of this project and determined that it falls within the Class 1/ Section 15301(b) and Class 3/ Section 15303 Categorical Exemption set forth in California Environmental Quality Act (CEQA) Guidelines, as this contract is for the installation of a Ca(OH)2 chemical feed system at the existing NESWTF, which will not result in the expansion of capacity of the treatment facility. Furthermore, none of the exemptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project. LOCAL PREFERENCE Local Preference was not implemented because Smith Construction Company, Inc., of Fresno, California, was the sole bidder for the project. However, Smith Construction Company, Inc., is a local business. FISCAL IMPACT Approval of the bid award will not have any impact to the General Fund. Funds are available within the Water Division's Fiscal Year 2017 DBCP Recovery Fund. Attachments: Bid Evaluation & Fiscal Impact Sample Contract