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
ROBERT A. DIAZ, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to the Requirements Contract to Furnish and Install Permanent Asphalt Concrete Pavement Repairs. (Bid File 12302384) (Citywide):
1. Adopt a finding of Categorical Exemption per staff determination pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15301(b) and (d), Class 1 (Existing Facilities) and 15302(c), Class 2 (Replacement and Reconstruction)
2. ***RESOLUTION - Adopting the 9th Amendment to the Annual Appropriation Resolution (AAR) No. 2023-185 appropriating $960,000 for the Requirements Contract to Furnish and Install Permanent Asphalt Concrete Pavement Repairs (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto).
3. Award a construction contract to Dawson-Mauldin LLC., in the amount of $1,537,300.
Body
RECOMMENDATIONS
Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15301(b) and (d)/Class 1 (Existing Facilities) and 15302(c)/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines; adopt the 9th Amendment to the Annual Appropriation Resolution (AAR) No. 2023-185 appropriating $960,000 for the Requirements Contract To Furnish and Install Permanent Asphalt Concrete Pavement Repair; award a construction contract to Dawson-Mauldin LLC., (Dawson), in the amount of $1,537,300, for the Requirements Contract To Furnish and Install Permanent Asphalt Concrete Pavement Repair project (Project); 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
The Department of Public Utilities - Water Division (Water Division), seeks to award a one-year requirements contract to furnish and install permanent asphalt concrete pavement repairs (Project) with provisions for up to three one-year extensions to Dawson-Mauldin LLC. (Dawson) following a competitive bidding process which identified it as the lowest responsive and responsible bidder in the amount of $1,537,300. The requirements contract is necessary for permanent paving repairs associated with the Water Division’s repairs and maintenance of the City’s water system. The bid is set to expire on October 13, 2023, and the existing requirements contract is set to expire November 1, 2023. Approval of the AAR will appropriate $960,000 that is needed to fully fund the requirements contract.
BACKGROUND
The Water Division removes existing street paving to gain access to the water system for repairs and maintenance. These pavement removals require a permanent pavement replacement. On July 25, 2019, City Council awarded a one-year requirements contract with provisions for up to three one-year extensions to Dawson. The three one-year extensions having been exercised and the existing requirements contract is to expire on November 1, 2023. On August 10, 2023, Council approved a cost increase to the on-going final year of the existing requirements contract in the amount of $960,000 due to labor rate and materials cost increases and a higher than anticipated number of water main and service repairs. The additional funds were needed to carry the existing requirements contract through to its expiration date.
The Water Division, seeking to award the subject new requirements contract (Project), on June 9, 2023 published a Notice Inviting Bids, and posted on the City’s Planet Bids website. The Project specifications, inclusive of Project Labor Agreement requirements, were distributed to 12 prospective bidders and posted at 9 Building Exchanges. Five sealed bid proposals were received and publicly opened on July 11, 2023. The bid proposals ranged from $999,952 to $2,670,500. Witbro Inc. doing business as Seal Rite Paving and Grading was the lowest bidder but ultimately deemed non-responsive, thus establishing Dawson as the lowest responsive and responsible bidder in the amount of $1,537,300. An AAR is necessary to fully fund the Project as fiscal year 2024 budgeted funds were partially used to fund the existing requirements contract following Council’s August 10, 2023 approval of cost increases.
The Staff Determination of Award was posted on the City’s Planet Bids website on August 10, 2023. Staff recommends City Council award a requirements contract to Dawson, in the amount of $1,537,300, as the lowest responsive and responsible bidder. Their bid price is 4.93 percent above the previously awarded requirements contract price. The bids will expire on October 13, 2023
ENVIRONMENTAL FINDINGS
Staff have performed an environmental assessment for this Project and have determined it is consistent with Categorical Exemption pursuant to Class 1, set forth in the California Environmental Quality Act (CEQA) Guidelines Sections 15301(b) and (d) (Existing Facilities), which exempts the repair and maintenance of existing facilities that involves negligible or no expansion of an existing use, and Class 2, set forth in CEQA Guidelines Sections 15302(c) (Replacement and Reconstruction), which exempts replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. 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 lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(d).
FISCAL IMPACT
There is no impact to the General Fund. Partial funding for the Project is available in the fiscal year 2024 budget within the Water Division’s Enterprise Fund 40101. The necessary $960,000 will be appropriated into the Water Enterprise Fund upon adoption of the 9th Amendment to the AAR No. 2023-185. Subsequent year extensions will be included in their respective fiscal year budgets. This Project is located Citywide.
Attachments:
Attachment 1 - CEQA Environmental Assessment
Attachment 2 - 9th Amendment To the Annual Appropriation Resolution No. 2023-185
Attachment 3 - Bid Evaluation and Fiscal Impact Statement
Attachment 4 - Sample Contract