REPORT TO THE CITY COUNCIL September 24, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to sewer rehabilitation and replacement in Chinatown (Bid File 3409) (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 $1,936,204 to Emmett's Excavation, Inc., of Fresno, 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 $1,936,204 to Emmett's Excavation, Inc.; and authorize the Director of Public Utilities or designee to execute all documents for the sewer rehabilitation and replacement project in Chinatown. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract to Emmett's Excavation, Inc., for replacement and rehabilitation of sewers in Chinatown. The area currently has some sewer lines dating back to 1890. Sewer rehabilitation/replacement is proposed where necessary to remedy structural deficiencies. Staff is seeking to award a contract in the amount of $1,936,204 to Emmett's Excavation, Inc. BACKGROUND In conjunction with the Downtown Revitalization Planning, the Collection System Maintenance work group performed an inspection of the Downtown sewer systems. The goals of these inspections were to evaluate the structural integrity and capacity handling capability of all the downtown sewer pipes. The investigation was done using Closed Circuit Television (CCTV). During inspection of the downtown sewers in 2014, areas were identified that require rehabilitation or replacement. The typical design life of a sewer pipe is 50 to 75 years. The average age of the pipes found in Chinatown is 105 years old. The sewer pipes in China Alley and Fagan Alley were installed in the late 1800's, making them far past the design life. Additionally, sections were found to be undersized for flows currently being measured. These identified areas need to be rehabilitated or removed and replaced. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on July 15, 2015, and posted on the City's website. The specifications were distributed to twelve prospective bidders, and faxed to ten Builder Exchanges. The Bid will expire within 64 days of bid opening which is October 28, 2015. Four sealed bid proposals were received and publicly opened on August 25, 2015. The bid proposal prices range from $1,936,204 to $2,577,114. Staff has determined Emmett's Excavation, Inc. of Fresno, California is the lowest responsive and responsible bidder with a submitted bid of $1,936,204. Its bid price is 22.2% below the original Engineer's Estimate of $2,490,000. Staff determination was posted on the City Website on September 2, 2015. ENVIRONMENTAL FINDINGS Staff has performed a preliminary Environmental Assessment for rehabilitation and replacement in Chinatown 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. LOCAL PREFERENCE The lowest responsive and responsible bidder is a local business. 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 $2,100,000 are budgeted in the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $2,013,704. Attachments: Bid Evaluation Fiscal Impact Statement Vicinity Map