REPORT TO THE CITY COUNCIL
FROM: Randall W. Morrison, PE, Director
Capital Projects Department
BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: francisco V. magos II, PE, Assistant Director
Capital Projects Department, Utilities and On-Site Project Management Division
ROBERT A. DIAZ, Project Manager
Capital Projects Department, Utilities and On-Site Project Management Division
SUBJECT
Title
Actions pertaining to the Van Ness Avenue Transmission Grid Main Project between Divisadero Street and Stanislaus Street (Bid File 12401958) (Council District 3):
1. Adopt an addendum to the previously adopted Mitigated Negative Declaration pursuant to the California Environmental Quality Act Guidelines;
2. ***RESOLUTION - Adopting the 11th Amendment to the Annual Appropriation Resolution No. 2024-122 appropriating $2,725,600 for the Van Ness Avenue Transmission Grid Main Project (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto);
3. Award a construction contract in the amount of $2,223,895 to West Valley Construction Company, Inc., of Fresno, California, as the lowest responsive and responsible bidder.
Body
RECOMMENDATIONS
Staff recommends City Council (1) adopt an addendum to the previously adopted Mitigated Negative Declaration pursuant to the California Environmental Quality Act (CEQA) Guidelines, (2) adopt the 11th Amendment to the Annual Appropriation Resolution (AAR) No. 2024-122 appropriating $2,725,600 for the Van Ness Avenue Transmission Grid Main Project, and (3) award a construction contract in the amount of $2,223,895 to West Valley Construction Company, Inc., of Fresno, California, as the lowest responsive and responsible bidder for the Van Ness Avenue Transmission Grid Main Project between Divisadero Street and Stanislaus Street (Project), and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The City seeks to award a water main replacement and construction contract to West Valley Construction Company, Inc., following a competitive bidding process which identified them as the lowest responsive and responsible bidder in the amount of $2,223,895. The Project will bring deteriorating water facilities to current standards and address demands in accordance with the Fresno General Plan. The scope of work includes construction of 2,060 linear feet of 16-inch, and 724 linear feet of 12-inch diameter water mains, fire hydrants, and valves; including trenching, excavation, water service transfers, pavement restoration, repair, and reconstruction of existing improvements affected by the Project. Funding for this Project is included within the Water Capacity Fee Fund. Approval of the AAR Amendment will appropriate $2,725,600 that is needed to fully fund the construction contract award, provide for internal construction and project management, and allocate the construction contingency.
BACKGROUND
The Department of Public Utilities identified, 8-inch, 6-inch, and 2-inch diameter water mains located in Van Ness Avenue between Divisadero Street and Amador Street, Amador Street between the Fulton Street and Van Ness/Fulton Alley, and Van Ness/L Alley between Amador Street and Stanislaus Street that may be prone to unexpected failures due to inferior steel water mains installed as early as 1945. The scope of work includes construction of 2,060 linear feet of 16-inch and 724 linear feet of 12-inch diameter water mains, fire hydrants, and valves; including trenching, excavation, water service transfers, pavement restoration, repair, and reconstruction of existing improvements affected by the Project.
A Notice Inviting Bids was advertised and published on the City’s website, Planet Bids, and the Business Journal on May 17, 2024. The Project plans and specifications were distributed to 27 prospective bidders and posted at ten (10) Building Exchanges. Two (2) sealed bid proposals were received and publicly opened on June 25, 2024, with bids ranging from $2,223,895 to $5,173,690. West Valley Construction Company, Inc., submitted a bid in the amount of $2,223,895 and was determined to be the lowest responsive and responsible bidder. The bids are set to expire on August 28, 2024. If the bids are rejected or expire, the project must be rebid which will result in a delay to the project.
This contract is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. West Valley Construction Company, Inc., shall become signatory to the PLA by executing the Agreement To Be Bound.
Staff recommends City Council adopt an addendum to the previously adopted Mitigated Negative Declaration pursuant to the California Environmental Quality Act Guidelines, and award a construction contract in the amount of amount of $2,223,895 to West Valley Construction Company, Inc., of Fresno, California, as the lowest responsive and responsible bidder for the Van Ness Avenue Transmission Grid Main Project, and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City.
The City Attorney’s Office has reviewed and approved the contract documents as to form.
ENVIRONMENTAL FINDINGS
On April 28, 2022, the City adopted a mitigated negative declaration (MND) for the construction of 0.55 miles of replacement water transmission grid main pipelines within Van Ness Avenue between Divisadero Street and Merced Street, and within Amador Street between Fulton/Van Ness Alley and Van Ness Avenue. The City is now proposing a change to the project description that would add 362 feet of pipeline within Stanislaus Street from Van Ness Avenue to L Street and 489 feet of pipeline within L Street from Stanislaus Street to Calaveras Street, with a reduction in pipeline being replaced in Van Ness Avenue between Divisadero Street and Stanislaus Street. The proposed change to the project description requires that the City reevaluate the potential for environmental impacts, pursuant to the California Environmental Quality Act (CEQA). CEQA requires the adoption of an addendum to the previously adopted MND in this situation because the proposed changes are minor and will not result in significant environmental impacts.
The City contracted with environmental specialists to analyze potential impacts from storage and transportation of hazardous waste, as well as potential impacts to cultural and historical resources, based on the proposed change in the project description. It is apparent that with mitigation measures in place as planned, the proposed project will not cause significant impacts. The addendum to the MND calls for identical mitigation measures as those contained in the previously adopted MND. Staff therefore recommends that the City comply with CEQA by adopting the addendum to the MND.
LOCAL PREFERENCE
West Valley Construction Company, Inc. is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
There is no impact to the General Fund. This Project is located in Council District 3. The necessary $2,725,600 will be appropriated into Fiscal Year 2025 of the Water Capacity Fee Fund upon adoption of the 11th Amendment to the AAR No. 2024-122.
Attachments:
Addendum to the Initial Study Mitigated Negative Declaration
11th Amendment to the Annual Appropriation Resolution No. 2024-122
Bid Evaluation
Fiscal Impact Statement
Standardized Contract
Vicinity Map
Location Map