REPORT TO THE CITY COUNCIL
October 24, 2019
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
THROUGH: Randall W. Morrison, PE, Assistant Director
Public Works Department, Engineering Division
BY: SCOTT P. SEHM, PE, Design Services Manager
Public Works Department
SUBJECT
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Actions pertaining to Maroa Heights Phase II, Installation of 8” and 12” Water Mains and Services (Rebid) project - Bid File 3682 (Council District 2 and Fresno County)
1. Adopt a finding of Categorical Exemption per staff’s determination, pursuant to Class 2 Section 15302(c) (Replacement or Restoration) of the California Environmental Quality Act Guidelines
2. ***RESOLUTION - 10th Amendment to the Annual Appropriation Resolution No. 2019-133 to appropriate $4,391,000 for the Maroa Heights Phase II, Installation of 8” and 12” Water Mains and Services (Rebid) Project (Requires 5 affirmative votes) (Subject to Mayor’s veto)
3. Award a Construction Contract in the amount of $3,559,128.00 to Teichert Construction, of Fresno, California, as the lowest responsive and responsible bidder
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RECOMMENDATIONS
Staff recommends that City Council adopt a finding of Categorical Exemption per staff’s determination, pursuant to Class 2 Section 15302(c) (Replacement or Restoration) of the California Environmental Quality Act (CEQA) Guidelines, adopt the attached 10th Amendment to the Annual Appropriation Resolution (AAR) No. 2019-133 for project funding and award a construction contract to Teichert Construction, of Fresno, California in the amount of $3,559,128.00 as the lowest responsive and responsible bidder for the Maroa Heights Phase II, Installation of 8” and 12” Water Mains and Services (Rebid) project 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 in the vicinity of North Maroa Avenue and West Shaw Avenue. Several water mains are located in easements at the rear or side of the properties and with the proposed project these aging water mains will be abandoned and replaced with new water mains constructed within 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. This portion of work will be covered by Water Enterprise Funds from available retained earnings.
In addition to the City’s water improvements, this project includes the installation of a 15” storm drain for the Fresno Metropolitan Flood Control District (FMFCD) per the District’s request. They will reimburse the City an estimated $188,000 for this work. The storm drain work was added to eliminate any future disturbance and inconvenience to residences.
As appropriations for this rebid was not carried over from Fiscal Year 2019, the adoption of the attached AAR amendment resolution is required.
BACKGROUND
This project is located within the neighborhood of a former County water district in the vicinity of North Maroa Avenue and West Shaw Avenue. Several of the existing water mains in this former County water district area 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 within the street right-of-way to improve access for City maintenance staff to more quickly respond to future repair needs.
FMFCD was notified in advance of the City’s proposed project and they indicated they had a project need that was located within the boundaries of our project, it was suggested that we combine construction projects to economize the cost of the work and reduce potential impacts to the residents in the area. FMFCD prepared the plans, specifications and estimate which they submitted for inclusion in our water main replacement bid package.
The Maroa Heights Phase II water job was included in the City’s adopted budget for Fiscal Year 2019. The project was designed by Public Works staff after the Water Enterprise Funds were budgeted. The engineering design and permitting phase took approximately eleven months to complete.
A Notice Inviting Bids was published in the Business Journal and posted on the City’s website on July 29, 2019 and sent to sixteen (16) building exchanges. Specifications were distributed to eight (8) prospective bidders. Four (4) sealed bids were received and opened in a public bid opening held at City Hall on August 27, 2019. Bid proposals ranged from $3,559,128.00 to $4,014,720.00. Teichert Construction, of Fresno, California, with their bid of $3,559,128.00, was determined to be the lowest responsive and responsible bidder for the project. The apparent low bid price is 2.4% above the Engineer’s Estimate. Bids will expire within 64 days after the bid opening, on October 30, 2019.
The City Attorney has reviewed and approved to form.
Staff is recommending award of a construction contract to Teichert Construction, of Fresno, California, in the amount of $3,559,128.00 to install 8” and 12” water mains and storm drainage facilities 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. The installation of the storm drain facilities will produce a negligible increase in capacity. 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
This project, which is located in both Council District 2 and Fresno County, will not have an impact to the General Fund. The total project cost of $4,391,000 is covered by Water Enterprise Fund retained earnings ($4,203,000) and a reimbursement from FMFCD ($188,000) for the storm drain work as established by an interagency agreement. During the preparation of the Fiscal Year 2020 Budget, it was anticipated that this project would be completed in Fiscal Year 2019; therefore, no appropriations were requested. Adoption of the attached AAR amendment resolution will fully fund the completion of this project.
Attachments:
Bid Evaluation and Fiscal Impact Statement
10th Amendment to Annual Appropriation Resolution No. 2019-133
Vicinity Map
Sample Contract