Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: April 2, 2024
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Kern River Interconnect Project - Approve Notice of Exemption and Award of a Construction Contract
Recommendation:
That the Honorable City Council:
(1) Open and conduct a public hearing, receiving testimony regarding the proposed capital improvement project;
(2) Close the Public Hearing;
(3) Approve the Notice of Exemption and authorize staff to file the notice with the Office of Planning and Research and the County clerk; and
(4) Award a construction contract to Arizona Pipeline Company, in the amount of $709,024.79 for Kern River Interconnect Project.
Fiscal Impact:
This action will result in fiscal impact of $709,024.79. This project is funded by the Victorville Municipal Utilities Services (VMUS) Gas Fund, No. 419. An additional appropriation is not required. There are sufficient funds available in the project budget to cover the planned expenses.
Account Number Account Description Amount Available
4190210-55080-30067 Kern River Interconnection $779,539.63 Strategic Plan Goal:
This item aligns with Goal E “Invest in Infrastructure” Strategy 8 “Complete Kern River interconnection project with Victorville Municipal Utility Services” in the City of Victorville Strategic Plan 2023-2026. Establishing a connection with Kern River Gas Transmission Company will allow VMUS to provide reliable, quality, and affordable gas service to the City’s natural gas users within the Southern California Logistics Airport service area. 3 5
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Background:
On February 7, 2023, the City Council approved an Interconnection Agreement with Kern River Gas Transmission Company (KRGT) for a natural gas pipeline interconnection and meter station facilities. Under that agreement, KRGT will construct, operate, and maintain a new delivery meter station and associated facilities that will allow for a direct natural gas supply to VMUS. The project, which has an environmental exemption, will be located at the Southern California Logistics Airport (“SCLA”).
From the interconnection point with KRGT, VMUS will construct, operate, and maintain new high and low-pressure distribution facilities which will connect to the existing VMUS distribution system. The primary components of the new facilities will include an odorization station near the KRGT connection, a regulation and metering station, and the station inlet and outlet piping consisting of approximately 100-feet of aboveground high- pressure steel pipe, 200-feet of underground high-pressure steel pipe, and 80-feet of underground distribution polyethylene pipe.
This project will increase the maximum available system distribution pressure from 60 pounds per square inch gauge (“psig”) to a higher distribution pressure of approximately 500 psig. The new gas supply pipeline will result in a lower cost to customers and allow VMUS to meet the anticipated growth and future customer expansions at SCLA. It will attract more industrial and commercial companies that will bring jobs to the community.
Construction is expected to be complete in the third quarter of 2024.
Discussion:
It is a routine requirement to comply with the California Environmental Quality Act (CEQA) before construction starts on a capital improvement project. A Notice of Exemption, Attachment B, describes the project activities and states that the project is categorically exempt under CEQA section 15301 Class1(b) because the project involves minor alteration of existing facilities without expansion of an existing use.
This project was bid using formal bidding procedures in accordance with Victorville Municipal Code Section 2.28.210 and the California Public Contract Code. Formal bidding procedures are used for Public Works contracts with an estimated cost in excess of five hundred thousand dollars. The bid package was emailed to six (6) prospective bidders on January 12, 2024, and posted on the City of Victorville website. On January 17, 2024, a Notice of Inviting Bids was advertised on the Daily Press and San Bernardino Sun on January 24, 2024. On February 28, 2024, two (2) formal bids were received, publicly opened and read aloud.
The Engineer’s estimate for this project is $750,000.00. The bid results are shown below:
Company Bid Amount
Arizona Pipeline Company, Hesperia, CA $709,024.79
A.M. Ortega Construction Inc, Lakeside, CA $1,280,099.22 3 5
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After a review of the bid proposals, it was determined that the lowest responsive, responsible bidder is Arizona Pipeline Company with a bid amount of $709,024.79. The current low bid is 5.4 percent below the estimate.
Staff recommends that the City Council approve the Notice of Exemption and award a construction contract to Arizona Pipeline Company, in the amount of $709,024.79, for the Kern River Interconnect Project.
Staff remains available for any questions Council may have.
Attachments: A. Location Map
B. Notice of Exemption
C. Construction contract