REPORT TO THE CITY COUNCIL
June 13, 2019
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
THROUGH: DEJAN PAVIC, PE, Public Utilities Manager
Department of Public Utilities - Utilities Planning & Engineering
BY: PATRICIA DIEP, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to Madison-Whitesbridge Recycled Water Main (Bid File 3620) (Council District 3 and County of Fresno):
1. Adopt Addendum 2 to the Fresno Recycled Water Distribution System, Southwest Quadrant Tiered Mitigated Negative Declaration (State Clearinghouse No. 2014081078)
2. Award a construction contract to West Valley Construction Company, Inc., in the amount of $3,854,224
3. Authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno
Body
RECOMMENDATIONS
Staff recommends that City Council adopt Addendum 2 to the Fresno Recycled Water Distribution System, Southwest Quadrant Tiered Mitigated Negative Declaration (MND) for Madison-Whitesbridge Recycled Water Main (Project); award a construction contract to West Valley Construction Company, Inc., in the amount of $3,854,224; and authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Department of Public Utilities, Wastewater Management Division, is seeking to award a construction contract for the Project to West Valley Construction Company, Inc. in the amount of $3,854,224. Starting at the intersection of South Cornelia Avenue and West Madison Avenue of the Recycled Water Distribution System (RWDS) Segment SW1A, the Project is the continuation of the RWDS. The scope of work for the Project includes construction of approximately 2.9 miles of 16-inch diameter pipeline to extend the RWDS and expand the recycled water main system bringing tertiary treated water from the Regional Wastewater Reclamation Facility (RWRF) to West Fresno and beyond.
BACKGROUND
In 2009, the State of California adopted a recycled water policy establishing a mandate to increase the use of recycled water in California by 200,000 acre-feet per year by 2020 and an additional 300,000 acre-feet per year by 2030. The Recycled Water Master Plan prepared by the Department of Public Utilities identifies opportunities to assist with compliance of this law by reducing groundwater pumping and replacing groundwater with recycled water for non-potable purposes (i.e. outdoor irrigation, dust control, fountains, etc.). On April 11, 2013, the City Council adopted the Recycled Water Master Plan and associated environmental documents.
The scope of work for this Project includes construction of recycled water pipeline extensions at the following locations: from RWDS Segment SW1A at the intersection of West Madison Avenue and South Cornelia Avenue; from Segment SW1B at the intersection of Belmont Avenue and North Brawley Avenue; and from Segment SW1C2 at the intersection of South Hughes Avenue and West Whitesbridge Avenue. This Project includes construction of approximately 2.9 mile 16-inch diameter pipeline and will bring recycled water from the RWRF Tertiary Treatment facility located at West Jensen Avenue and South Cornelia Avenue to Madison Elementary School, Nielsen Basin, and future Oasis residential development.
Plans and specifications were prepared for the Project. A Notice of Inviting Bids was published on April 24, 2019, on the City’s Planet Bids website and faxed to eleven building exchanges. The specifications were distributed to seven prospective bidders. Four sealed bid proposals were received and publicly opened on May 14, 2019. Bid proposal prices range from $3,854,224 to $5,747,431. The bid will expire with 64 days of bid opening, on July 17, 2019.
Staff has determined that---- West Valley Construction Company, Inc., is the lowest responsible and responsive bidder with a submitted bid of $3,854,224. Their bid price is 18% below the Engineer’s Estimate of $4,702,386. The staff determination was posted on the City website on May 20, 2019.
ENVIRONMENTAL FINDINGS
On December 18, 2014, the City Council adopted the Tiered MND (State Clearinghouse No. 2014081078). An analysis has been performed pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15162 and Section 15164 and Addendum 2 to the MND has been prepared because of refinements to the pipeline routes. It has been determined that all applicable mitigation measures of the MND have been applied to the Project and the Project will not cause significant adverse cumulative impacts, growth inducing impacts, or irreversible significant effects beyond those identified. In addition, pursuant to CEQA Guidelines Section 15162, staff has determined that no substantial changes have occurred with respect to the circumstances under which the previous environmental documents were certified and/or adopted and that no new information, which was not known and could not have been known, has become available. As such, none of the conditions set forth in CEQA Guidelines Section 15162 are applicable to this Project. Therefore, it has been determined based upon the evidence on record that the Project will not have significant impact on the environment and that Addendum 2 to the MND is appropriate pursuant to CEQA Guidelines Section 15164.
LOCAL PREFERENCE
Local preference was not implemented because the lowest responsive and responsible bidder is a local business.
FISCAL IMPACT
There is no impact to the General Fund. This Project is located in Council District 3 and County of Fresno. This Project is identified in the Wastewater Management Division’s five-year Capital Improvement Plan. Funds in the amount of $9,599,010 for this Project are budgeted in the Fiscal Year 2019 Sewer Enterprise Fund 40501.
Attachments:
Attachment 1 - Addendum 2 to the Tiered MND
Attachment 2 - Bid Evaluation and Fiscal Impact Statement
Attachment 3 - Sample Contract
Attachment 4 - Vicinity Map