REPORT TO THE CITY COUNCIL
May 21, 2020
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
THROUGH: BROCK D. BUCHE, PE, PLS, Assistant Director - UP&E
Department of Public Utilities - Utilities Planning & Engineering
BY: ROBERT A. DIAZ, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to Water Main Replacement in Congo Alley between Fresno Street and Merced Street (Bid File 3696) (Council District 3):
1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301 (Existing Facilities) and Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act.
2. Award a construction contract to West Valley Construction Company, Inc., in the amount of $309,670
Body
RECOMMENDATIONS
Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 1 Section 15301 (Existing Facilities) and Class 2 Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guideline; award a construction contract to West Valley Construction, Inc., in the amount of $309,670, for Water Main Replacement in Congo Alley between Fresno Street and Merced Street (Project); 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, Water Division, seeks to establish a water main replacement and water service transfer contract. The water mains and associated appurtenances in the project area have reached the end of their service life. The scope of work includes replacing 500 linear feet of water main and water service transfers in Congo Alley, between Fresno Street and Merced Street. After a competitive bidding process, the Water Division is seeking to award a construction contract to West Valley Construction, Inc., in the amount of $309,670 as the lowest responsive and responsible bidder for the Project.
BACKGROUND
The Department of Public Utilities, Water Division has responded to water leaks on an old 12-inch cast iron water main in Congo Alley between Fresno Street and Merced Street. As part of the Water Division’s ongoing water main renewal and replacement effort, approximately 500 linear feet of water main, originally installed in 1961, will be replaced. The Project will prevent further failures from occurring along this alignment.
A Notice Inviting Bids was published on March 4, 2020, and posted on the City’s Planet Bids website. The Project plans and specifications were distributed to twelve prospective bidders, and posted at twelve Building Exchanges. Six sealed bid proposals were received and publicly opened on March 31, 2020. The bid proposals ranged from $309,670 to $400,400. The bids will expire 64 days after bid opening, which will be on April 27, 2020.
West Valley Construction Company, Inc., was the lowest responsive and responsible bidder, with the bid amount of $309,670. The staff determination was posted on the City’s Planet Bids website on March 4, 2020. The bid price is 39% below the Engineer’s Estimate of $510,000. Staff recommends that the City Council award a construction contract to West Valley Construction Company, Inc., in the amount of $309,670 as the lowest responsive and responsible bidder.
ENVIRONMENTAL FINDINGS
Staff has reviewed the scope and nature of this project and determined that the scope of this project falls within the Class 1 and Class 2 Categorical Exemption set forth in the CEQA Guidelines, Section 15301 and 15302, as this contract is for the replacement of existing utility systems involving negligible or no expansion of capacity. The project will replace the existing utility system with a new water main and services and will not result in the expansion of capacity of the existing utility system or change the purpose. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference does not apply to this action because the vendor is a local business pursuant to Fresno Municipal Code Section 4-108(d).
FISCAL IMPACT
Award of this contract will not impact the General Fund. Funding for this contract, which will benefit Council District 3, is included in the Fiscal Year 2020 budget within the Water Enterprise Fund (40101).
Attachments:
Attachment 1 - Categorical Exemption
Attachment 2 - Bid Evaluation & Fiscal Impact Statement
Attachment 3 - Sample Contract
Attachment 4 - Vicinity Map