REPORT TO THE CITY COUNCIL June 21, 2018 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: RANDALL W. MORRISON, PE, Assistant Director Public Works Department, Engineering Division SCOTT P. SEHM, Design Services Manager Public Works Department, Design Services Section BRYAN DOI, Engineer II Public Works Department, Design Services Section SUBJECT ..Title Actions pertaining to Maroa Heights, Installation of 8" and 12" Water Mains and Services - Bid File 3594 (Council District 2 and Fresno County) 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Class 2 Section 15302(c) (Replacement or Restoration) of the California Environmental Quality Act Guidelines for Maroa Heights, Installation of 8" and 12" Water Mains and Services 2. Award a construction contract in the amount of $3,472,779.75 to West Valley Construction Company, Inc., of Fresno, California as the lowest responsive and responsible bidder for Maroa Heights, Installation of 8" and 12" Water Mains and Services ..Body RECOMMENDATION Staff recommends that the City Council adopt a finding of Categorical Exemption per staff determination, pursuant to Class 2 Section 15302(c) (Replacement or Restoration) of the California Environmental Quality Act (CEQA) Guidelines and award a construction contract to West Valley Construction Company, Inc., of Fresno, California in the amount of $3,472,779.75 as the lowest responsive and responsible bidder for Maroa Heights, Installation of 8" and 12" Water Mains and Services; and authorize the Public Works Director or designee to sign the contract on behalf of the City. EXECUTIVE SUMMARY This project will install 8" and 12" water mains, fire hydrants and water services in a former County water district neighborhood in the vicinity of North Maroa Avenue and West Barstow Avenue. Several water mains are located in easements at the rear or side of the properties. Under the proposed project, the aging water mains will be replaced with new water mains constructed in the street right-of-way and water services relocated accordingly. The new water mains will provide more consistent water pressure, reduce the frequency of service interruptions caused by failures and improve access for maintenance. BACKGROUND The Maroa Heights water job was included in the City adopted budget for FY 2018. The project was designed in-house by Public Works Department staff once the Water Enterprise Funds were budgeted. Engineering design took approximately 10 months to complete. This project is located within the neighborhood of a former County water district in the vicinity of North Maroa Avenue and West Barstow Avenue. Several of the existing water mains in this former County water district neighborhood are located in easements at the rear or side of private properties with limited access. Additionally, due to the age of the existing mains, numerous water main failures have occurred interrupting water service to customers. Under the proposed project, the new water mains and services will be constructed in the street right-of-way improving access for City maintenance staff. Public Works staff prepared Plans and Specifications and a Notice Inviting Bids was published on April 25, 2018, and posted on the City's website on April 25, 2018. Nine (9) building exchanges were sent Notices Inviting Bids and the specifications were distributed to thirty-four (34) prospective bidders. Three (3) sealed bids were received and opened in a public bid opening held at City Hall on May 15, 2018. Bid proposals ranged from $3,472,779.75 to $3,687,065.00. West Valley Construction Company, Inc., of Fresno, California, submitted the lowest bid in the amount of $3,472,779.75 and was determined to be the lowest responsive and responsible bidder. The apparent low bid price was 18.1% above the Engineer's Estimate. Bids will expire within 64 days after the bid opening, on July 18, 2018. If the bids are rejected or expire, the project will be rebid, resulting in a delay of approximately 60 days. Staff is recommending award of a construction contract to West Valley Construction Company, Inc., in the amount of $3,472,779.75 to install 8" and 12" water mains in the Maroa Heights neighborhood as the lowest responsive and responsible bidder and to authorize the Public Works Director or designee to sign and execute the contract on behalf of the City of Fresno. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this project and determined that the scope of this project falls within the Class 2 Categorical Exemption set forth in the CEQA Guidelines, Section 15302(c), as this contract is for the replacement of existing utility systems involving negligible or no expansion of capacity. The project will replace the existing utility system with new water mains and services and will not result in the expansion of capacity of the existing utility system or change the purpose. 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 The project, which is located in Council District 2 and Fresno County, will not have any impact to the General Fund. The total project cost of $4,252,379.75 is covered by Water Enterprise Funds which are appropriated through the Water Division's adopted FY 2018 Capital Improvement Project Budget. No additional appropriations are needed for this project. Attachments: Bid Evaluation Fiscal Impact Statement Vicinity Map Sample Contract