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: LITO BUCU, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to Pump Station 208-2:
1. Adopt a finding of Categorical Exemption per staff’s determination, pursuant to Sections 15301, 15302, and 15303 of the California Environmental Quality Act Guidelines
2. Award a Construction Contract to Nor-Cal Pump & Well Drilling, Inc., in the amount of $418,167 to drill and construct a new production well at Pump Station 208-2, located at 4554 North Wishon Avenue (Bid File 3754) (County Island near Council Districts 4 and 7)
Body
RECOMMENDATIONS
Staff recommends that City Council award a Construction Contract in the amount of $418,167 to Nor-Cal Pump & Well Drilling, Inc., to drill and construct a new production well at Pump Station 208-2 (PS 208-2) (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, solicited Contractor services to perform the drilling, construction, and development of a new water production well at PS 208-2. Nor-Cal Pump & Well Drilling, Inc., was found to be the lowest responsive and responsible bidder with a bid in the amount of $418,167. The proposed replacement well is essential in ensuring appropriate levels of service are maintained in the surrounding area.
BACKGROUND
The Water Division maintains a network consisting of more than 260 municipal water supply wells that provide just under 50% 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 proposed well at PS 208-2 is necessary to offset lost production resulting from the recent destruction of wells in the vicinity.
In order to construct the proposed new well, the Water Division solicited Contractor services through the bidding process. A Notice Inviting Bids was published in the Business Journal and posted on the City’s Planet Bids website on August 5, 2020. Project plans and specifications were distributed to 19 prospective bidders. Two bid proposals were received and unsealed in a public opening on September 1, 2020.
Nor-Cal Pump & Well Drilling, Inc., who submitted a bid price in the amount of $418,167, was determined to be the lowest responsive and responsible bidder. The Staff Determination of Award was posted on the City’s website on September 24, 2020. The price submitted is 16.4% below the Engineer’s Estimate of $500,000
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment of this Project and has determined it falls within the Categorical Exemption for existing facilities set forth in Section 15301/Class 1(Existing Facilities). CEQA Guidelines exempts from the provisions of CEQA, projects consisting of the operation, repair, maintenance, permitting, or minor alteration of existing public facilities that involve negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.
Section 15302/Class 2 (Replacement or Reconstruction) of the CEAQ Guidelines exempts from the provisions of CEQA, projects consisting of the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Section 15303/Class 3 (New Construction or Conversion of Small Facilities) of the CEQA Guidelines exempts from the provisions of CEQA, projects consisting of the construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure.
Therefore, the necessary environmental review required by the CEQA has been completed for the drilling and construction of a well at PS 208-2 as contemplated by the award of this contract.
LOCAL PREFERENCE
Local preference was implemented, but the local business exceeds the allowable 5% preference.
FISCAL IMPACT
The Project will not have any impact to the General Fund. Funds for the construction of PS 208-2 are included in Water Division’s Fiscal Year 2021 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:
Attachment 1 - P19-06102 Categorical Exemption
Attachment 2 - Bid Evaluation and Fiscal Impact Statement
Attachment 3 - Sample Contract
Attachment 4 - Vicinity Map