REPORT TO THE CITY COUNCIL
May 25, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MICHAEL CARBAJAL, Planning Manager
Department of Public Utilities - Water Division
BY: ANITA LUERA, Senior Engineering Technician
Department of Public Utilities - Water Division
SUBJECT
Title
Actions pertaining to construction of well site improvements at Pump Station 303A (PS 303A) located at 6780 N. Lafayette Avenue (Bid File 3457) (County island within Council District 2):
1. Award a Contract to V&G Builders, Inc., for $275,563 to construct well site improvements at PS 303A.
2. Authorize the Director of Public Utilities, or their designee, to sign all documents on behalf of the City of Fresno.
Body
RECOMMENDATIONS
Staff recommends City Council award a Contract for $275,563 to V&G Builders, Inc., to construct well site improvements at PS 303A; and authorize the Director of Public Utilities, or their designee, to sign all documents on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The Department of Public Utilities, Water Division, solicited contractor services to construct well site improvements at PS 303A. V&G Builders, Inc., was found to be the lowest responsive and responsible bidder with a bid in the amount of $275,563. The proposed well site improvements are necessary to bring the existing water well site to completion. This will allow for operation of the existing municipal water supply well that was recently constructed onsite. Once operational, PS 303A will ensure appropriate levels of service are maintained in the surrounding area.
BACKGROUND
The Department of Public Utilities, Water Division, maintains a network of more than 260 municipal water supply wells providing approximately 88% of the City’s potable water. The construction of new wells for this network is required to meet increased demands, replace wells that have reached the end of their useful life, or to assist in remediating water quality issues. The new PS 303A is necessary to offset water production losses resulting from both recent and future destruction of multiple outdated wells in the area.
The property for this project was previously acquired, and a new water supply well was recently constructed onsite. Well site improvements are required to complete the pump station and bring the existing well to an operational state. Site improvements will comply with the requirements of the associated Conditional Use Permit.
The Water Division solicited contractor services for construction of the required well site improvements through the bidding process. A notice inviting bids was published in the Business Journal and posted on the City of Fresno website on March 13, 2017. Project plans and specifications were distributed to 24 prospective bidders and 10 Building Exchanges. Five sealed bid proposals were received and revealed in a public opening on April 4, 2017.
V&G Builders, Inc., submitted a bid price in the amount of $275,563 and is the lowest responsive and responsible bidder. The Staff Determination of Award was posted on the City of Fresno website on April 25, 2017. The price submitted is 1.6% below the Engineer’s Estimate of $280,000.
ENVIRONMENTAL FINDINGS
Staff prepared Environmental Assessment C-14-110 for this project in accordance with the requirements of the California Environmental Quality Act (CEQA) Guidelines. The Initial Study resulted in staff concluding that a finding of Mitigated Negative Declaration (MND) was appropriate. The proposed project has been determined to not be fully within the scope of Master Environmental Impact Report (MEIR) SCH 2012111015 prepared for the Fresno General Plan. With all applicable mitigation measures of the MEIR applied to the project, together with project specific mitigation measures, impacts have been reduced to less than significant, and the project will not cause significant adverse cumulative impacts, growth inducing impacts and irreversible significant effects beyond those identified by MEIR. No substantial changes have occurred with respect to the circumstances under which the MEIR was certified and no new information, which was not known and could not have been known at the time that the MEIR was certified as complete, has become available. Therefore, all necessary environmental reviews required by the California Environmental Quality Act have been completed for the construction of PS 345 as contemplated by the award of this contract.
LOCAL PREFERENCE
Local Preference was not implemented as the lowest responsive and responsible bidder is a local business.
FISCAL IMPACT
The project, which is located in a County island within Council District 2, will not impact the General Fund. Funds for the construction of PS 303A are included in Water Division’s Fiscal Year 2017 Capital Improvement Program budget within the Water Enterprise Fund (40101). The construction of replacement water wells was included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 26, 2015. No additional funding is required for this project.
Attachments:
Evaluation of Bid Proposals and Fiscal Impact Statement
Sample Contract