REPORT TO THE CITY COUNCIL
June 23, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer
Department of Public Utilities
BY: ORLANDO M. GONZALEZ, PE, Professional Engineer
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Actions pertaining to sewer rehabilitation in Home Avenue (Bid File 3456) (Council District 4 and 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 $75,255 to Burtech Pipeline Inc., of Encinitas, California
Body
RECOMMENDATIONS
Staff recommends that Council 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 (CEQA) Guidelines and approve the construction contract award in the amount of $75,255 to Burtech Pipeline Inc., of Encinitas, California.
EXECUTIVE SUMMARY
The Department of Public Utilities, Wastewater Management Division is seeking to award a construction contract to Burtech Pipeline Inc., for the rehabilitation of a sewer in Home Avenue west of Chestnut Avenue. The existing sewer is cast iron and in need of rehabilitation. The sewer rehabilitation project is necessary to remedy current structural deficiencies and increase the design life of the pipe. Staff is seeking to award a contract in the amount of $75,255 to Burtech Pipeline 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 goal of these inspections is to evaluate the structural integrity and capacity of all sewer pipes within the City of Fresno. The investigation was done using Closed Circuit Television (CCTV). During routine inspection of the sewers in 2008, areas were identified that required rehabilitation or replacement. This sewer line in particular was showing significant signs of structural deficiencies. In addition, the CSMP protocol for cast iron pipe is to remove and/or rehabilitate because of the incompatibility with Hydrogen Sulfide and erosion. Removal of this line was not a viable option due to limited access and railroad crossings. Analysis and evaluation of the pipe determined that relining the cast iron sewer pipe would be the best option.
Plans and specifications were prepared for the project. A Notice Inviting Bids was published on April 18, 2016, and posted on the City’s website. The specifications were distributed to nine prospective bidders, and faxed to nine Builder Exchanges. The Bid will expire within 64 days of bid opening which is July 20, 2016. One sealed bid proposal was received and publicly opened on May 17, 2016. The bid proposal price was $75,255.
Staff has determined Burtech Pipeline Inc.; of Encinitas, California is the lowest responsive and responsible bidder with a submitted bid of $75,255. Its bid price is 42% below the original Engineer’s Estimate of $130,000. Staff determination was posted on the City Website on May 19, 2016.
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 rehabilitation in Home Avenue 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. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
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 4 and 7. This project is identified in the five-year capital improvement plan. Funds in the amount of $127,000 are budgeted in the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $84,255.
Attachments:
Bid Evaluation
Fiscal Impact Statement
Construction Contract
Vicinity Map