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
KIMBERLY SANDOVAL, Engineer II
Capital Projects Department, Utilities Project Management Division
SUBJECT
Title
Actions pertaining to the Pump Station 290A Project (Bid File 12601642) (County)
1. Adopt the Mitigated Negative Declaration pursuant to the California Environmental Quality Act Guidelines
2. Award a Construction Contract to Parks Water Resources LLC of Zamora, California in the amount of $850,155.65 to drill a new water production well
Body
RECOMMENDATION
Staff recommends the City Council (1) adopt the Mitigated Negative Declaration pursuant to the California Environmental Quality Act (CEQA) Guidelines; and (2) award a Construction Contract in the amount of $850,155.65 to Parks Water Resources LLC as the lowest responsive and responsible bidder to drill a new water production well for the Pump Station 290A Project, and authorize the Capital Projects Director, or designee to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
A new drinking water well is required at Pump Station (PS) 290A. Groundwater investigations have been successfully completed and well drilling is necessary to construct a replacement municipal water well. The Capital Projects Department seeks to award the PS 290A Project (Project) for well drilling in the amount of $850,155.65 to Parks Water Resources LLC following a competitive bidding process that identified them as the lowest responsive and responsible bidder. Funding for the Project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund.
BACKGROUND
The Department of Public Utilities operates and maintains more than 260 municipal groundwater wells and 3 surface water treatment facilities to meet the City’s water customers’ demands. The production wells provide between 40 and 50 percent of the water supply when surface water supplies are available, and may need to provide up to 100 percent of the water demands in dry years when surface water allocations are limited. New wells are required to sustain the capacity of the system and provide reliable service. The proposed Project includes construction of a replacement well, and is necessary to offset water production losses resulting from destruction of outdated wells in the area, including the original PS 290.
The Capital Projects Department solicited construction services for the Project through the formal bidding process. A Notice Inviting Bids was published on the City’s website on March 23, 2026. Project plans and specifications were distributed to twelve (12) prospective bidders and two (2) Builder’s Exchanges. Six (6) bid proposals were received and revealed in a public opening on April 21, 2026. Parks Water Resources LLC was the lowest responsive and responsible bidder in the amount of $850,155.65. If the bids are rejected or allowed to expire, the Project must undergo the rebidding process. This will result in schedule delays preventing utilization of the funding allocated to this Project for the current fiscal year. Consequently, funding will need to be reallocated from an alternative source in subsequent fiscal year(s).
Staff recommends that the City Council award a Construction Contract in the amount of $850,155.65 to Parks Water Resources LLC, as the lowest responsive and responsible bidder for the Project; and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City. The City Attorney’s Office has reviewed and approved the contract documents as to form.
ENVIRONMENTAL FINDINGS
Upon completion of the Initial Study, it was determined that a Mitigated Negative Declaration (MND) was appropriate. An MND was prepared for this Project in accordance with the requirements of the California Environmental Quality Act (CEQA) Guidelines.
A Notice of Intent to Adopt the MND was noticed and published on February 23, 2026, as required by the CEQA Guidelines, with no comments received within the 30-day comment period.
With all applicable mitigation measures applied to the Project, impacts have been reduced to less than significant and the Project will not cause adverse cumulative impacts, growth inducing impacts, or irreversible significant effects. Therefore, based on the MND and the list of identified mitigation measures, staff has determined that the Project will not have a significant effect on the environment and that the adoption of the an MND is appropriate.
LOCAL PREFERENCE
Parks Water Resources of Zamora LLC, California is not considered a local business, as defined by the Fresno Municipal Code. Local preference was applied but did not change the outcome of the bid.
FISCAL IMPACT
The Project is located within a Fresno County island, directly adjacent to Council District 2. It will not impact the General Fund. Funds for the Project are included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund.
Attachments:
Procurement Evaluation
Sample Contract
Initial Study and Mitigated Negative Declaration