REPORT TO THE CITY COUNCIL January 7, 2016 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 the 8-inch Sewer Main in Marks Avenue between Olive and Belmont Avenues (Bid File 3327) (Council District 3 and Fresno County) 1. Adopt a finding of Categorical Exemption of Class 4, pursuant to Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length) of the California Environmental Quality Act Guidelines 2. Award a construction contract in the amount of $377,555.75 to Haydon Construction, Inc. of Fresno, California ..Body RECOMMENDATIONS Staff recommends Council adopts a finding of Categorical Exemption of Class 4, pursuant to Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (The installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length) of the California Environmental Quality Act (CEQA) Guidelines and award the construction contract to Hayton Construction, Inc. in the amount of $377,555.75. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award a construction contract for the new parallel sewer main in Marks Avenue between W. Olive and Belmont Avenues, a total of 2,170 lineal feet of 8-inch sewer pipe. The proposed sewer main installation will provide City sewer services to residences that are currently on private septic system. BACKGROUND In 2014 Department of Public Utilities/Utility Engineering and Planning requested a new 8-inch parallel sewer main to be constructed. The new sewer mains will provide sewer services to residences that are currently on private septic systems. Connecting to a sanitary sewer will lessen any detrimental impacts to groundwater in the immediate area. This project is in the Sphere of Influence and in the City. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on October 16, 2015, posted on the City's website and faxed to ten building exchanges. The specifications were distributed to 111 prospective bidders. Nine sealed bid proposals were received and publicly opened on November 17, 2015. Bid proposal prices range from $377,555.75 to $613,814.00. Staff has determined that Hayton Construction, Inc. of Fresno, California is the lowest responsible and responsive bidder with a submitted bid of $377,555.75. Their bid price is 24% below the Engineer's Estimate of $494,000.00. The staff determination was posted on the City website on December 11, 2015. Staff recommends that Council award a contract in the amount of $377,555.75 to Haydon Construction, Inc. of Fresno, California as the lowest and responsive bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within Class 4 of Categorical Exemption set forth in the CEQA Guidelines, Section 15304(f) (Minor trenching and backfilling where the surface is restored) and Statutory Exemption pursuant to Section 15282(k) (installation of new pipeline or maintenance, repair, restoration, removal, or demolition of an existing pipeline as set forth in Section 21080.21 of the Public Resources Code, as long as the project does not exceed one mile in length). Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE The lowest responsive and responsible bidder is a local business. FISCAL IMPACT This project has no impact to the General Fund and is located in Council District 3 and Fresno County. Funds in the amount of $428,700.00 are available in the 2016 Sewer Enterprise Bond Fund No. 40525. The fiscal impact of this contract will be $392,955.75. Attachments: Bid Evaluation Fiscal Impact Statement Vicinity Map