REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Interim Director
Department of Public Utilities
BY: JESUS A. GONZALEZ, PE, Public Utilities Manager
Department of Public Utilities - Utilities Planning & Engineering
ANITA LUERA, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to the construction of a new production well at Pump Station 372 (Council District 3):
1. Adopt Environmental Assessment No. P19-04891, dated June 21, 2021, a Negative Declaration for the proposed project pursuant to the California Environmental Quality Act (CEQA);
2. Award a construction contract to Zim Industries, Inc., in the amount of $855,935 to drill a new production well at Pump Station 372 (Bid File 3861).
Body
RECOMMENDATIONS
Staff recommends City Council adopt Environmental Assessment No. P19-04891, dated June 21, 2021, a Negative Declaration for the proposed project; award a construction contract to Zim Industries, Inc. (Zim), in the amount of $855,935 to drill a new production well at Pump Station 372 (PS 372); 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 (DPU), Water Division, solicited contractor services to perform the drilling, construction, and development of a new water production well at PS 372 through the competitive bidding process. Zim was found to be the lowest responsive and responsible bidder with a bid in the amount of $855,935. The new production well will ensure appropriate levels of service are maintained for new development in the surrounding area.
BACKGROUND
The DPU, Water Division, maintains a network of more than 260 municipal water supply wells. The construction of new wells for this network is required to meet increased demands, replace wells that have reached the end of their useful life, or to assist in remediating water quality issues. The proposed well at PS 372, located at 3709 S. Northpointe Drive, will serve to supply increased demands resulting from recent development in the area.
The property for PS 372 was previously acquired as a condition of approval for the adjacent development. A monitoring well was previously constructed at the project site and water quality was approved. Further action in completing the pump station includes the drilling and construction of a new groundwater production well, and then subsequently construction of well site improvements, and future construction of wellhead treatment facilities should it become necessary.
To construct the new production well, the DPU Water Division solicited contractor services through a competitive bidding process. A Notice Inviting Bids was published in the Business Journal and posted on the City’s Planet Bids website on March 23, 2022. Project plans and specifications were distributed to eleven prospective bidders and eight Building Exchanges. Two bid proposals were received and unsealed in a public opening on April 12, 2022.
Zim, who submitted a bid price in the amount of $855,935, was determined to be the lowest responsive and responsible bidder. The Staff Determination of Award was posted on the City’s website on May 4, 2022. Zim’s bid is 5.6% below the Engineer’s Estimate of $907,000.
A standard construction contract has been used, without modification, in accordance with Administrative Order 4-4. Upon approval by the City Council, the construction contract will be executed by the Director of Public Utilities, or designee.
ENVIRONMENTAL FINDINGS
The City has conducted an initial study of the PS 372 project and proposes to adopt a Negative Declaration for that project. The environmental analysis contained in the Initial Study and Negative Declaration is tiered from the Master Environmental Impact Report (SCH # 2012111015) prepared for the Fresno General Plan (MEIR). The Initial Study and Negative Declaration were prepared and sent out for public comment on June 21, 2021, prior to the September 20, 2021 adoption of the Program Environmental Impact Report (SCH No. 2019050005) prepared for the Fresno General Plan (PEIR).
The project has been determined to be a subsequent project that is not fully within the scope of the MEIR. A copy of the MEIR may be reviewed in the City of Fresno, Planning and Development Department as indicated within the attached environmental assessment. Pursuant to Public Resources Code Section 21157.1 and the California Environmental Quality Act Guidelines Section 15177, the PS 372 project has been evaluated to determine whether it may cause any additional significant effects on the environment which were not previously examined in the MEIR. It has been concluded that there is no substantial evidence in the record that this project may have additional significant, direct, indirect, or cumulative effects on the environment and that were not identified and analyzed in the MEIR.
After conducting a review of the adequacy of the MEIR pursuant to Public Resources Code Section 21157.6(b)(1), the Planning and Development Department, as lead agency, finds that no substantial changes have occurred with respect to the circumstances under which the MEIR was certified and that no new information, which was not known and could not have been known at the time that the MEIR was certified as complete has become available.
This completed environmental impact checklist form and its associated narrative reflect applicable comments of responsible and trustee agencies and research and analysis conducted to examine the interrelationship between the proposed project and the physical environment. The information contained in the Project application and its related environmental assessment application, responses to requests for comment, checklist, initial study narrative, and any attachments thereto, combine to form a record indicating that an initial study has been completed in compliance with the State CEQA Guidelines and the CEQA.
All new development activity and many non-physical projects contribute directly or indirectly toward cumulative impacts on the physical environment. It has been determined that the incremental effect contributed by this Project toward cumulative impacts is not considered substantial or significant in itself, and/or that cumulative impacts accruing from this project may be mitigated to less than significant with application of feasible mitigation measures.
Based upon the evaluation guided by the environmental checklist form, it was determined that there are no foreseeable impacts from the Project that are additional to those identified in the MEIR, and/or impacts which require mitigation measures not included in the MEIR Mitigation Measure Checklist.
The completed environmental checklist form indicates whether an impact is potentially significant, less than significant with mitigation, or less than significant. For some categories of potential impacts, the checklist may indicate that a specific adverse environmental effect has been identified which is of sufficient magnitude to be of concern. Such an effect may be inherent in the nature and magnitude of the Project or may be related to the design and characteristics of the individual project. Effects so rated are not sufficient in themselves to require the preparation of an Environmental Impact Report and have been mitigated to the extent feasible. With the Project-specific mitigation imposed, there is no substantial evidence in the record that this Project may have additional significant, direct, indirect or cumulative effects on the environment that are significant and that were not identified and analyzed in the MEIR. Both the MEIR mitigation checklist measures and the project-specific mitigation checklist measures will be imposed on this Project.
The Initial Study has concluded that the Project will not result in any adverse effects which fall within the "Mandatory Findings of Significance" contained in Section 15065 of the CEQA Guidelines. The finding is, therefore, made that the Project will not have a significant adverse effect on the environment. A Phase I Environmental Site Assessment was also completed for the proposed project site and no environmental hazards were found at this location.
Therefore, the City proposes to adopt Negative Declaration EA No. P19-04891 for the PS 372 project.
LOCAL PREFERENCE
Local Preference did not apply, as the lowest bid received was from a local businesses pursuant to Fresno Municipal Code Section 4-109(b).
FISCAL IMPACT
The PS 372 project will not impact the General Fund. Funds for the construction of PS 372 are included in Water Division’s Fiscal Year 2022 Capital Improvement Program budget within the Water Enterprise Fund (40101).
Attachments:
Attachment 1 - Notice of Intent to Adopt a Negative Declaration EA No. P19-04891
Attachment 2 - Negative Declaration EA No. P19-04891
Attachment 3 - Bid Evaluation and Fiscal Impact Statement
Attachment 4 - Sample Contract