REPORT TO THE CITY COUNCIL
October 15, 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 the construction of 2,700 linear feet of 16-inch diameter water main for the Armstrong - Kings Canyon to Butler Water Main Replacement Project (Bid File 3742) (Council District 5 and Fresno County):
1. Adopt a finding of Notice of Exemption pursuant to 14 CCR Section 15282(k), Public Resources Code Section 21080.21 (California Environmental Quality Act does not apply to any project of less than one mile in length within a public street for the replacement of an existing pipeline within a public street)
2. Award a construction contract to West Valley Construction Company, Inc., in the amount of $809,298
Body
RECOMMENDATIONS
Staff recommends that City Council adopt a finding of Notice of Exemption pursuant to 14 CCR Section 15282(k), Public Resources Code Section 21080.21 (California Environmental Quality Act (CEQA), does not apply to any project of less than one mile in length within a public street for the replacement of an existing pipeline within a public street); award a construction contract to West Valley Construction Company, Inc. (West Valley), in the amount of $809,298, for the construction of 2,700 linear feet of 16-inch diameter water main for the Armstrong - Kings Canyon to Butler Water Main Replacement Project (Project); and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Department of Public Utilities, Water Division, seeks to award a water main replacement and service transfers construction contract to West Valley following a competitive bidding process which identified it as the lowest responsive and responsible bidder in the amount of $809,298. The Project is necessary to replace an existing 14-inch water main which is experiencing unexpected failures. The scope of work includes construction of 2,700-linear feet of 16-inch diameter water main, fire hydrants, valves and service transfers.
BACKGROUND
The Department of Public Utilities, Water Division, has identified 2,700-linear feet of an existing 14-inch water main located in Armstrong Avenue between Kings Canyon Road and Butler Avenue that is experiencing unexpected failures and needs to be replaced. The scope of work includes the replacement of the existing 14-inch diameter water main with a 16-inch diameter ductile iron water main, fire hydrants, valves and service transfers. Replacement of this main will prevent further expensive failures from occurring along this alignment.
A Notice Inviting Bids was published on July 8, 2020, and posted on the City’s Planet Bids website. The Project plans and specifications were distributed to 18 prospective bidders, and posted at 15 Building Exchanges. Five sealed bid proposals were received and publicly opened on August 4, 2020 with bid proposals ranging from $779,012 to $911,020. Of the five bids received the lowest and third lowest proposed bids were deemed non-responsive.
West Valley was identified as the lowest responsive and responsible bidder, with the bid amount of $809,298. The Staff Determination of Award was posted on the City’s Planet Bids website on Thursday, September 24, 2020. Staff recommends that the City Council award a construction contract to West Valley in the amount of $809,298, as the lowest responsive and responsible bidder. Their bid price is 17% below the Engineer’s Estimate of $980,000. The bids will expire 94 days after bid opening, which will be on November 6, 2020.
ENVIRONMENTAL FINDINGS
Staff has reviewed the scope and nature of this Project and determined that the scope of this Project falls within 14 CCR section 15282(k); Public Resources Code Section 21080.21 (CEQA does not apply to any project of less than one mile in length within a public street for the replacement of an existing pipeline within a public street). The Project will replace the existing utility system of 2,700-linear feet with new water mains and services and will not result in the expansion of capacity of the existing utility system or change the purpose.
LOCAL PREFERENCE
Local Preference was not implemented because the lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(d).
FISCAL IMPACT
There is no impact to the General Fund. This Project is located in Council District 5 and Fresno County. Funding for this Project is included in the Fiscal Year 2020 capital improvement budget within the Water Enterprise Fund 40101.
Attachments:
Attachment 1 - Notice of Exemption
Attachment 2 - Bid Evaluation and Fiscal Impact Statement
Attachment 3 - Sample Contract
Attachment 4 - Vicinity Map