REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: PETER A. MARACCINI, PE, PHD, Licensed Engineer Manager
Department of Public Utilities - Utilities Planning & Engineering
SARAH AGUILA, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
***RESOLUTION - Amending Resolution 2023-075, declaring an urgent necessity for the preservation of life, health, property and authorizing the City Manager or designee, to enter into agreements without advertised competitive bidding for the emergency repair of the North Avenue sewer trunk main to increase the not to exceed cost from $3,200,000 to $4,200,000. (Requires 5 Affirmative Votes) (Subject to Mayor's Veto) (Council Districts 3, 5, and Fresno County)
Body
RECOMMENDATIONS
Staff recommends that City Council adopt the proposed Resolution to amend Resolution 2023-075, declaring an urgent necessity for the preservation of life, health, property, and authorizing the City Manager or designee, to enter into agreements without advertised competitive bidding for the emergency repair of the North Avenue sewer trunk main (Project), which will increase the cost not to exceed from $3,200,000 in Resolution 2023-075 to $4,200,000 for various service agreements, material purchase agreements, railroad agreements, and construction contracts necessary to complete the emergency repair work.
EXECUTIVE SUMMARY
Following a localized structural collapse in the North Avenue sewer main near multiple railroad crossings on February 24, 2019, the Department of Public Utilities (DPU) diligently worked to design and construct a realignment of the sewer main and repair the deteriorating infrastructure. However, permitting delays, unforeseen utility conflicts, and a second localized structural collapse on January 27, 2023, necessitated that DPU obtain a Declaration of Urgent Necessity through Resolution 2023-075, which was approved by City Council on March 30, 2023. Resolution 2023-075 authorized City Manager to negotiate, enter, and execute service agreements, materials purchase agreements, railroad agreements, and construction contracts for the emergency repair work at a cost not to exceed $3,200,000.
DPU has worked with various contractors to stabilize the infrastructure and complete work within the conflicting rights-of-way before moratoriums prevent additional construction from proceeding. Unfortunately, the sum total of the various agreements and contracts will exceed the previously approved cost not to exceed of $3,200,000. DPU hereby requests that City Council approve the Resolution to amend Resolution 2023-075, which will increase the cost not to exceed from $3,200,00 to $4,200,000.
BACKGROUND
The existing sewer trunk main in North Avenue conveys an average of 11.5 million gallons of wastewater per day to the Regional Wastewater Treatment Facility. On February 24, 2019, the sewer trunk main experienced a localized structural collapse in the proximity of Union Pacific Railroad (UP) and Burling Northern Santa Fe Railway (BNSF) facilities, approximately 0.2 miles west of Maple Avenue. The collapse presented a risk to the health and safety of the community and the essential operations of the DPU, resulting in a June 13, 2019, Declaration of Urgent Necessity (Declaration). The Declaration authorized dispensing of the competitive bid process in order to expedite the procurement of contractor services for soils stabilization over the collapse area and installing a temporary cover.
With the temporary provisions in place, the DPU was allowed time to contract with an engineering consultant to design a permanent solution for the collapsed sewer trunk main, and on June 27, 2019, City Council approved an agreement (Consultant Agreement) with Carollo Engineers Inc., (Consultant) to provide the required services. The design prepared by the Consultant proposed the construction of a new segment of 66-inch trunk main to the south of the existing sewer trunk main in North Avenue (Realignment Project). Upon completion of the Realignment Project, the collapsed trunk main segment was intended to be fully assessed for making an informed decision regarding its repair or abandonment.
On September 25, 2019, the Consultant submitted plans for the Realignment Project to UP and BNSF in order to obtain design approval and necessary work area permits for the sewer main crossing within the railroad right-of-way. The permit agreement with UP was executed on June 12, 2020. However, the BNSF permit process continued nearly a year beyond that largely due to concerns relative to the Golden State Boulevard overpass footings. BNSF rejected multiple submittals citing adverse effects the proposed trenching methods may potentially have on the railroad’s operations in proximity to the footings. And although the DPU paid additional fees to BNSF for expedited review, the delay in obtaining approval was also attributed to BNSF’s lengthy response time to review each submittal. DPU staff found it necessary to frequently call and email BNSF to move the processes forward. A permit agreement was ultimately executed with BNSF on June 8, 2021, approximately 21 months after the initial submittal.
The construction contract for the Realignment Project was awarded to Emmett’s Excavation Inc., (Emmett’s) on November 4, 2021, following a competitive bid process. The Notice to Proceed was issued to Emmett’s on March 1, 2022. The first order of work required Emmett’s to locate existing utilities within the project area to identify potential conflicts with the proposed improvements. It was then discovered that BNSF and CenturyLink Communications, LLC (Lumen) own utilities that conflict with the Realignment Project and that were not disclosed during the permitting process. The Consultant and the DPU engaged with BNSF and Lumen to coordinate the relocation of these utilities. Concurrently, the Consultant also analyzed options for redesigning the Realignment Project around the existing utilities. Having determined no viable options, DPU ultimately pursued utility relocation agreements with BNSF and Lumen. In order to accommodate the utility relocations, the DPU issued a suspension of contract time to Emmett’s on May 13, 2022, which currently remains in place.
On January 27, 2023, prior to the start of the utility relocations by BNSF and Lumen, the sewer trunk main experienced a second localized structural collapse that occurred adjacent to the original collapse location. Subsequently, on March 1, 2023, the second collapse area enlarged due to heavy rains. It has become evident that the structural failure of the remaining segment of the sewer trunk main is eminent, therefore it is necessary to expedite the assessment and repair of the collapsed segment of the sewer trunk main (Emergency Repair). An Urgent Necessity Resolution (Resolution 2023-075) was executed on March 30, 2023. The Resolution allowed DPU to enter into various agreements necessary for performing the Emergency Work including the installation of a sewer bypass facility, video inspections for assessing the feasibility of performing repairs, obtaining railroad permits, and the construction repair, itself. The total cost of the Emergency Repair was estimated at an amount not to exceed $3,200,000, the amount of which was included in Resolution 2023-075 as the total approved cost not to exceed.
Since commencement of the Emergency Repair, unforeseen costs and price escalations require that the cost not to exceed amount be increased to $4,200,000 through the proposed Resolution amending Resolution 2023-075. The City Attorney’s Office has reviewed and approved as to form this proposed Resolution.
ENVIRONMENTAL FINDINGS
By the definition of the California Environmental Quality Act (CEQA) Guidelines Section 15378, the administrative action is not a “Project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because the work is being performed on an emergency basis.
FISCAL IMPACT
There is no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2024 capital improvement budget within the Wastewater Management Division, Sewer Enterprise Fund. The Project is located in Council Districts 3, 5 and Fresno County.
Attachments:
Attachment 1 - Resolution
Attachment 2 - Resolution 2023-075
Attachment 3 - Vicinity Map