REPORT TO THE CITY COUNCIL April 6, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Water Division CYNTHIA FISCHER, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to rehabilitating a 16-Inch Diameter Well to 460 Feet Deep at Pump Station 150, located at 1348 E. Teague Avenue, Fresno, California (Council District 6): 1. Adopt a finding of Class 1 Categorical Exemption set forth in the California Environmental Quality Act Guidelines, Section 15301(b). 2. Award a contract in the amount of $104,062.50 to Anderson Pump Company, Inc., (Bid File 3517). ..Body RECOMMENDATIONS Staff recommends that Council adopt finding of Class 1 Categorical Exemption set forth in the California Environmental Quality Act Guidelines (CEQA), Section 15301(b); award a construction contract in the amount of $104,062.50 to Anderson Pump Company, Inc. to rehabilitate a 16-inch diameter well at Pump Station 150 (PS 150); and authorized the Director of Public Utilities, or designee, to sign the contract on the City's behalf. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, solicited contractor services to rehabilitate a 16-inch diameter well. Anderson Pump Company, Inc., was found to be the lowest responsive and responsible bidder with a bid amount of $104,062.50. The rehabilitation of this well is expected to bring production back up to its originally rated 850 gallons per minute (gpm). Funding for this contract was included in the Fiscal Year 2017 budget. BACKGROUND The Department of Public Utilities, Water Division, maintains a network of 260 plus municipal water supply wells providing approximately 88% of the City's potable water. PS 150 is a 16-inch diameter well that was drilled in 1999 at a depth of 460 feet. It currently produces far below its original capacity of 850 gpm and a well video has shown that there is severe plugging in the perforations. By rehabilitating this well, it is expected that it can be restored close to full capacity of 850 gpm. A Notice Inviting Bids was published on January 25, 2017, per the City of Fresno Charter Section 1208. Thirty-one (31) Building Exchanges were faxed the Notice Inviting Bids, and specifications were distributed to prospective bidders. A public bid opening was on February 28, 2017. There were a total of ten (10) bidders and Anderson Pump Company, Inc., was considered the lowest responsive and responsible bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemption set forth in CEQA Guidelines, Section 15301(b), as this contract is for the rehabilitation of the existing well at PS 150 located at 1348 E. Teague Avenue and will not result in the expansion of capacity of the existing well. Furthermore, none of the exceptions to the Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented because the local business exceeds the allowable local preference percentage. FISCAL IMPACT The project, which is located in Council District 6, will not have any impact to the General Fund. Funds for this project are included in the Water Division's Fiscal Year 2017 Capital Improvement Program budget within the Water Enterprise Fund (40101). No additional funding is required for this project. Attachments: Bid Evaluation/Fiscal Impact Sample Contract