REPORT TO THE CITY COUNCIL
September 10, 2015
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
Action pertaining to the Recycled Water Transmission Main, Southwest Quadrant, Project SW1A (Bid File 3410) (Council District 3 and Fresno County)
1. ***RESOLUTION - 8th amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 appropriating $7,100,200.00 for the Recycled Water Transmission Main, Southwest Quadrant, Project SW1A (Requires 5 affirmative votes)
2. Award a construction contract in the amount of $7,877,153.25 to Floyd Johnston Construction Company, Inc. of Clovis, California
3. Authorized the Director of Public Utilities or his designee to sign the construction contract on behalf of the City
Body
RECOMMENDATIONS
Staff recommends the City Council approve the construction contract award to Floyd Johnston Construction, appropriate the project funding and finally authorize the Director of Public Utilities or designee to sign the construction contract for the Recycled Water Transmission Main (RWTM), Southwest Quadrant, Project SW1A.
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU), Wastewater Management Division is seeking to adopt the 8th Amendment to the AAR No. 2015-104 and award a $7,877,153.25 construction contract to Floyd Johnston Construction Company, Inc. of Clovis, California, as the lowest responsive and responsible bidder. This project will commence at the Tertiary Treatment and Disinfection Facility which is located at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF). The primary purpose of this construction project is to establish the first three mile portion of the 54” and 48” recycled water distribution pipeline to bring tertiary treated water from the RWRF into town.
BACKGROUND
In 2009, the State of California adopted a recycled water policy establishing a mandate to increase the use of recycled water in California by 200,000 acre-feet per year by 2020 and by an additional 300,000 acre-feet per year by 2030. The Recycled Water Master Plan prepared by the Department of Public Utilities’ Wastewater Management Division identifies opportunities to assist with compliance of this law by reducing groundwater pumping and replacing groundwater with recycled water for non-potable purposes (i.e. outdoor irrigation, dust control, fountains, etc.). The Division’s long-term goal is to produce and deliver 25,000 acre-feet of recycled water to the City’s service area to reduce groundwater over drafting. On April 11, 2013, the City Council adopted the Recycled Water Master Plan and associated environmental documents.
On June 27, 2013, the City Council approved a design contract for the Recycled Water Distribution System (RWDS), Southwest Quadrant (SWQ) starting at the Fresno/Clovis Regional Wastewater Reclamation Facility (RWRF). The SWQ pipeline will be just over 21 miles in length. When completed the Southwest Quadrant RWDS will connect the Tertiary Treatment plant located at Jensen and Corneilia Avenues to the Downtown area through Roeding Park and north to Cornelia Avenue and Shields Avenue. This system will ultimately serve several cemetaries, City parks (including Roeding), schools, industrial uses, and other urban users.
The award of this project is the first of five phases of the Southwest RWDS is approximately 3 miles in length which will convey tertiary treated recycled water from the Fresno-Clovis RWRF at Cornelia and Jensen to Cornelia Avenues and Whitesbridge Avenue. The second phase is currently in the process of bidding and will add an additional 3.5 miles of pipe to the system.
Plans and specifications were prepared for the project. A Notice of Inviting Bids was published on July 1, 2015, posted on the City’s website and faxed to ten building exchanges. The specifications were distributed to 23 prospective bidders. Eleven sealed bid proposals were received and publicly opened on August 7, 2015. Bid proposal prices range from $7,877,153.25 to $10,800,000.00.
Staff has determined that Floyd Johnston Construction Company, Inc. of Clovis, California is the lowest responsible and responsive bidder with a submitted bid of $7,877,153.25. Their bid price is 23% below the Engineer’s Estimate of $10,239,000.00. The staff determination was posted on the City website on August 20, 2015.
ENVIRONMENTAL FINDINGS
City Council adopted a finding of Mitigated Negative Declaration, pursuant to Sections 15178(b)(1) and (2), of the California Environmental Quality Act Guidelines for the Recycled Water Distribution System, Southwest Quadrant on December 18, 2014 and a Notice of Determination was filed at the Fresno County Clerk on December 18, 2014.
LOCAL PREFERENCE
Local preference was not implemented, Floyd Johnston Construction Company, Inc. is the lowest responsive and responsible bidder and 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. This project is identified in the current financial plan and the five year CIP model. The funds do exist for this project in the sewer enterprise fund number 40501. While the AAR will fully fund this project, DPU is in the last stages of finalizing a State Revolving Fund low interest rate loan for this project. The loans currently being approved for recycled water projects are 30 year 1% terms. When this loan document is finalized staff will return to City Council for approval of the final financing agreement. If the loan is not secured the funding for this project will remain as is in the FY16 budget.
Attachments:
8th AAR No. 2015-104
Bid Evaluation
Fiscal Impact Statement
Vicinity Map