REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
PAUL AMICO, PE, Director
Department of Public Utilities
BY: CasSIE L. SCHOLZ, PE, Assistant Director
Capital Projects Department, Utilities Project Management Division
SAMUEL C. NADORES, Licensed Professional Engineer
Capital Projects Department, Utilities Project Management Division
SUBJECT
Title
Reject all bids for the Repairs and Rehabilitation of Structural Components at the Fresno-Clovis Regional Wastewater Reclamation Facility Headworks Building - Phase 2 (Bid File 12601031) (Council District 3)
Body
RECOMMENDATION
Staff recommends that City Council reject all bid proposals received for the Repairs and Rehabilitation of Structural Components at the Fresno-Clovis Regional Wastewater Reclamation Facility Headworks Building - Phase 2 (Phase 2 Project).
EXECUTIVE SUMMARY
Staff recommends that the City Council reject all bid proposals received for the Phase 2 Project. Three bid proposals were received with bid amounts ranging from $4,728,134.60, to $5,687,456.90 along with a fourth bid in the amount of $3,793,850 that was returned for lack of bid deposit. The two lowest bids were determined to be non-responsive. The single responsive bidder, Davis Moreno Construction, Inc., of Fresno, California submitted a proposal with a contract price that is fifty-eight percent (58%) above the engineer’s estimate for the Phase 2 Project. This exceeds the estimated cost for this project significantly, which has led to the recommendation to reject all bids. Upon rejection of the bids received, staff will work with the Department of Public Utilities (DPU) to make any modifications necessary and rebid the Phase 2 Project.
BACKGROUND
The Headworks Building houses the pumping, screening, and grit removal treatment processes at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF). Structural deterioration is occurring throughout the building’s reinforced concrete structural components. This includes spalling on the pedestals for the tanks and pumps in the chemical storage room, cracks and concrete spalling on the outer walls of the grit chambers and within the mezzanine room floor and walls, leak stains observed along the walls of the pump room below the intake flumes, and cracking around the exterior building walls. If left unaddressed, the structural deterioration will progress, and the risk of structural failure could increase to the point that complete replacement of the structural components is needed.
In June 2021, the City approved a Consultant Services Agreement with Pcubed Associates, Inc. (Consultant), for a total contract amount of $117,300.00, and a contingency amount of $11,730. The original scope of work included a forensic investigation of structural deterioration, recommendation and prioritization of repairs in the Consultant’s Assessment of Fresno RWRF Headworks Building Report (Report), and preparation of construction documents for the Repairs and Rehabilitation of Structural Components at the RWRF Headworks Building - Phase 1 Project (Phase 1 Project). The Phase 1 Project included all repairs designated as high priority in the Consultant’s Report. On July 25, 2023, the First Amendment to the Agreement extended the term to December 31, 2024.
Progressive structural deterioration was observed in the medium priority areas originally identified in the Report and not addressed by the Phase 1 Project. On August 21, 2025, the Second Amendment to the Agreement expanded the scope of services to include the preparation of construction documents for the Repairs and Rehabilitation of Structural Components at the RWRF Headworks Building - Phase 2 Project, and to also perform a preliminary structural assessment of several tanks in the RWRF secondary treatment process. The Phase 2 Project included all repairs designated as medium priority in the Report. The Second Amendment increased the total contract by $184,875, for a revised total contract amount of $302,175, and a contingency amount of $11,730; and extended the term of the Agreement to June 30, 2026. On August 21, 2025, the Third Amendment to the Agreement expanded the Consultant's scope of services to include additional material testing to support the structural assessment efforts. The Third Amendment utilized contract contingency in the amount of $10,000, increasing the total contract to an amount of $312,175, with a remaining contingency amount of $1,730.
The Phase 1 Project was awarded for construction on March 30, 2023, in the amount of $1,981,400, and completed in May of 2025.
A Notice Inviting Bids for the Phase 2 Project was advertised and posted on the City’s Planet Bids website on January 26, 2026. The project plans and specifications were distributed to 51 prospective bidders and posted at 3 Building Exchanges. Three electronic bid proposals were received and publicly opened on March 31, 2026, of which only one was considered responsive and responsible. The evaluated bid proposals ranged from $4,728,134.60 to $5,687,456.90, along with a fourth bid in the amount of $3,793,850 that was returned for lack of bid deposit. The Engineer’s Estimate for the Phase 2 Project was $3,609,000. The single responsive and responsible bid submitted by Davis Moreno Construction, Inc., in the amount of $5,687,456.90 is fifty-eight percent (58%) above the engineer’s estimate. While a range of bids were received that more closely aligned with the engineer’s estimate, these bids were either returned or determined to be unresponsive. For this reason, staff recommends that City Council reject all bids. Upon rejection of the bids, staff will work with DPU to make any modifications necessary and rebid the Phase 2 Project. The bids will expire on June 3, 2026.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines, Section 15378, the rejection of bids does not qualify as a ‘project’.
LOCAL PREFERENCE
Local preference was not considered as this is an action recommending the rejection of all bids.
FISCAL IMPACT
There is no impact to the General Fund. The Phase 2 Project is funded within the Department of Public Utilities Fiscal Year 2026 Capital Improvements Budget within the Wastewater Management Division’s Sewer Enterprise Fund. These funds will not be utilized at this time, if all bids are rejected per staff recommendation. The Phase 2 Project is located in Council District 3.
Attachments:
Formal Procurement Evaluation Form
Vicinity Map
Location Map