REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering SAMUEL NADORES, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Replacement and Repair of Structural Components at the Fresno-Clovis Regional Wastewater Reclamation Facility - Phase 1 (Bid File 12301055) (Council District 3): 1. Adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1 and 15302/ Class 2 of the California Environmental Quality Act Guidelines 2. Award a construction contract to Ashron Construction and Restoration, Inc., of Galt, California, in the amount of $1,981,400 ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption, pursuant to Sections 15301/Class 1 and 15302/Class 2 of the California Environmental Quality Act (CEQA) Guidelines for the Replacement and Repairs of Structural Components at the Fresno-Clovis Regional Wastewater Reclamation Facility (Facility) (Project); award a construction contract to Ashron Construction and Restoration, Inc., (Ashron), in the amount of $1,981,400; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY Built in 1995, the Headworks Building at the Facility has experienced deterioration of various structural components. The Department of Public Utilities, Wastewater Management Division, seeks to award a construction contract, inclusive of the City's adopted project labor agreement requirements, to Ashron. In accordance with the City's competitive bidding process, Ashron was identified as the lowest responsive and responsible bidder in the amount of $1,981,400. The bids are set to expire on April 22, 2023. BACKGROUND The Headworks Building houses the preliminary treatment processes of the Facility. Significant structural deterioration has been noted at the concrete staircase structure at the south side of the building and at various locations around the perimeter walls of the building. Other concerns include cracks and concrete spalling at the Grit Pump and Mezzanine Rooms including leak stains observed along the walls of the Pump Room. If left unaddressed, there will be continued deterioration of the structural integrity of the Headworks Building that will negatively impact its operation and treatment capacities and ultimately may render it unsuitable for further use. In June 2021, a consultant services contract was awarded to a structural engineering firm to perform a forensic investigation of the Headworks Building structural components, which resulted in a report documenting the findings and recommendations for corrective measures as well as plan and specifications used in the advertisement of this Project. Following preparation of Project plans and specifications, a Notice Inviting Bids was published on November 18, 2022, and posted on the City's Planet Bids website. Specifications were distributed to 30 prospective bidders and posted at 10 Building Exchanges. As the Project was estimated to exceed the $1,000,000 threshold, Specifications included the requirements for implementation of City's adopted project labor agreement. Three sealed bid proposals were received and publicly opened on January 17, 2023, of which two were considered responsive and responsible bidders. The bid proposals ranged from $1,981,400 to $2,335,827 with Ashron identified as the lowest responsive and responsible bidder, with a submitted bid amount of $1,981,400. Staff recommends the City Council award a construction contract to Ashron, in the amount of $1,981,400, as the lowest responsive and responsible bidder. Their price is 4.5% above the Construction Allocation of $1,897,000. The bid will expire within sixty-four (64) days of bid opening, on April 22, 2023. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental assessment for this Project and determined that it falls within Sections 15301/Class 1 and 15302/Class 2 Categorical Exemptions set forth in the CEQA Guidelines. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 applies to this Project. LOCAL PREFERENCE Local preference was not implemented, as the two responsive and responsible bidders are located outside of Fresno area. FISCAL IMPACT There is no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2023 capital improvement budget within the Wastewater Management Division's Sewer Enterprise Fund 40501. The Project is located in Council District 3. Attachments: Attachment 1 - Notice of Exemption Attachment 2 - Bid Evaluation and Fiscal Impact Statement Attachment 3 - Sample Contract Attachment 4 - Vicinity Map