REPORT TO THE CITY COUNCIL
March 2, 2017
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer
Department of Public Utilities - Wastewater Management Division
BY: ORLANDO M. GONZALEZ, PE, Professional Engineer
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Actions pertaining to sewer rehabilitation and replacement in Iowa and Eighth (Bid File 3506) (Council District 7)
1. Adopt findings of Categorical Exemption/Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption/Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines, and
2. Award a construction contract in the amount of $340,925 to Bill Nelson General Engineering Construction Inc., of Fresno, California
Body
RECOMMENDATIONS
Staff recommends that Council adopt a finding of Categorical Exemption/Class 1 pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption/Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act (CEQA) Guidelines; approve the construction contract award in the amount of $340,925 to Bill Nelson General Engineering Construction Inc., and authorize the Director of Public Utilities or designee to execute all documents for the sewer repair replacement project in Iowa and Eighth.
EXECUTIVE SUMMARY
The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract to Bill Nelson General Engineering Construction Inc., for replacement of sewer in the intersection of Iowa and Eighth. The area currently has a sewer line that is failing structurally. Sewer replacement is proposed where necessary to remedy structural deficiencies. Staff is seeking to award a construction contract in the amount of $340,925 to Bill Nelson General Engineering Construction Inc.
BACKGROUND
As per the Collection System Master Plan (CSMP), the Collection System Maintenance work group performs inspections of the sewer systems within the City of Fresno. The goals of these inspections are to evaluate the structural integrity and capacity of all sewer pipes within the City of Fresno. These investigations are performed using Closed Circuit Television (CCTV). During routine inspection of the sewers in May of 2016, areas within southeast Fresno were identified that required rehabilitation or replacement. This sewer line in particular was showing significant signs of structural deficiencies in some areas the pipe had completely failed with soil visible. A pipe failure such as this one has the potential of developing sink holes and even traffic accidents within the intersection. Replacement of the existing sewer line was found to be the best option after evaluation of all applicable remediation options.
Plans and specifications were prepared for the project. A Notice Inviting Bids was published on December 16, 2016, and posted on the City’s website. The specifications were distributed to ten prospective bidders, and faxed to eleven Builder Exchanges. The Bid will expire within 64 days of bid opening which is March 29, 2017. Six sealed bid proposals were received and publicly opened on January 24, 2017. The bid proposal prices ranged from $340,925.00 to $562,538.73.
Staff has determined Bill Nelson General Engineering Construction Inc. of Fresno, California, is the lowest responsive and responsible bidder with a submitted bid of $340,925. The bid price is 2.6% below the original Engineer’s Estimate of $350,000. Staff determination was posted on the City Website on January 25, 2017.
The City Attorney’s Office has reviewed and approved the construction contract as to form.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary Environmental Assessment for the sewer replacement in Iowa and Eighth and has determined that it falls within Class 1 and 2 Categorical Exemption set forth in CEQA Guidelines, Section 15301(d) (Existing facilities) and Section 15302(c) (Replacement or reconstruction) because this contract involves restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment.
LOCAL PREFERENCE
The lowest responsive and responsible bidder is a local business.
FISCAL IMPACT
This project will have no impact to the General Fund and is located in Council District 7. This project is identified in the five-year capital improvement plan. Funds in the amount of $500,000 are budgeted in the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $364,925.
Attachments:
Bid Evaluation
Fiscal Impact Statement
Vicinity Map