For City Council and Rialto Utility Authority Meeting [June 8, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Acting City Manager
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority Board Approve the Final Construction Work Authorization (FCWA) in the Not-to-Exceed Amount of $134,988 for the Water Facility Improvement Project W15 - Fencing at Miro Well #3 Project.
(ACTION)
Body
BACKGROUND
During a routine evaluation of the utility sites owned by the City of Rialto (City)/Rialto Utility Authority (RUA) and operated by Rialto Water Services (RWS), two water sites were identified as needing additional security measures. Specifically, Miro Well #3 needs a perimeter block wall and Rialto Well #3 needs perimeter fencing.
The Rialto Well #3 site work was determined to not be the City’s responsibility and Emhart has completed the fence work for this location at their expense; however, the Miro Well #3 is the responsibility of the City/RUA.
ANALYSIS/DISCUSSION
This project is being brought forward to City/RUA for approval using the Facility Improvement Project (FIP) process as described in the Concession Agreement. Project management tasks will be completed by RWS/Veolia staff and payment will be made through the concession trust account, not the City or RUA directly. Finally, RWS/Veolia was not asked to complete the Disclosure Form since they are Concession Agreement partners.
With the requested action, staff is requesting the RUA board approve the fence project utilizing funds set aside, but not needed, for other FIP work. The City Council/RUA Board has already taken action to approve use of these funds on FIP projects during the Concession Agreement approval process and as part of several other Concession Agreement related actions.
RWS/Veolia obtained pricing and developed the project estimates with guidance by City utilities staff. The scope of work includes all design, engineered drawings and construction work necessary to provide and install approximately two hundred (200) linear feet of six (6) feet high block wall, tan split face on one side. This wall will be constructed using blocks to match the block wall fencing at the Miro Well #2 location. This fencing will be equipped with a rolling steel gate, to enable vehicular access for maintenance and monitoring by City staff and RWS-Veolia personnel.
As a normal practice, RWS/Veolia attempted to obtain a minimum of three (3) bids or price quotes. For this FCWA, RWS/Veolia contacted the following eight firms.
1. Big Sky Electric - proposal rescinded
2. CP Construction - no bid
3. Cora Constructors Inc. - proposal dated 4/22/21
4. H7 Contracting - no bid
5. Kretchmar & Smith Masonry - no bid
6. NuWay Masonry Inc. - no bid
7. R.C. Foster - no bid
8. The Patterson Co. - no bid
Issues encountered during the bid process included the contractors reported being unable to hold bid pricing for more than fifteen (15) days due to rapidly escalating costs, contractors not being interested in smaller jobs such as the proposed FCWA, and difficulty obtaining materials to construct the fence. As shown on the list above, Big Sky Electric rescinded their bid and is no longer interested in the project resulting in one remaining bidder, Cora Constructors, Inc. Cora Constructors has offered to complete the work at $94,990. Due to the sensitivity of this location, staff is requesting the City Council/Rialto Utility Authority to approve the FCWA at a total cost of $134,988, which includes contingency in the amount of $12,000.
If the proposed FCWA is approved, RWS/Veolia anticipates the fabrication, materials procurement and construction will be complete within one hundred and twenty (120) days. A copy of the proposed FCWA documents are included as Attachment 1.
The FCWA W15 was discussed at the November 18, 2020, and February 24, 2021 Water Subcommittee meetings. The proposed project was also presented to the Utility Commission on November 17, 2020, which recommended taking the project to Council for its approval.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act (CEQA). The Guidelines are required to include a list of classes of projects which have been determined not to have a significant effect on the environment and which are exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment, and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with Section 15301 “Existing Facilities”, of the CEQA Guidelines, a Class 1 project consists of the operation, repair, maintenance, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The replacement of existing water valves is considered a Class 1 project, and is categorically exempt from CEQA. A Notice of Exemption will be filed with the San Bernardino County Clerk of the Board. A copy of the Notice of Exemption is included as Attachment 2.
GENERAL PLAN CONSISTENCY
Approval of this action complies with the following City of Rialto Guiding Principle:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policy:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Policy 3-8.4: Advocate regular evaluation of the entire water supply and distribution system to ensure its continued adequacy, reliability, and safety.
LEGAL REVIEW
The City Attorney has reviewed and supports the staff report
FINANCIAL IMPACT:
Operating Budget Impact
Operating costs are not expected to change; however, construction of the project will improve security for the well site thereby protecting the supply. Operating costs will continue to be absorbed by the Rialto Utility Authority through the Concession Agreement.
Capital Improvement Budget Impact
Staff would like to move forward with the improvements at the Miro Well #3 site as a Final Construction Work Authorizations project (FCWAs) using leftover Concession Agreement Facility Improvement Project funds for water facilities. The total FCWA is in the not to exceed amount of $134,988. This amount includes the negotiated percentages as allowed in the Concession Agreement and a contingency if needed. Sufficient budget is available in Water Fund Account No. 670-500-7960-3001 for the W15 - Fencing at Miro Well #3 Project. No additional appropriation is required. The following table summarizes the W15 Project costs:
Licensing
A Business License tax is not required with the proposed action.
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board approve the Final Construction Work Authorization in the not to exceed amount of $134,988 for the Water Facility Improvement Project W15 - Fencing at Miro Well #3 Project.