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
JUSTIN CHAN, PE, Licensed Professional Engineer
Capital Projects Department, Utilities Project Management Division
SUBJECT
Title
Actions pertaining to the Booster Pump Replacements for Pump Stations 89A, 150 and 176 Project (Bid File 12601793) (Council District 6)
1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act Guidelines
2. Award a Construction Contract in the amount of $2,538,800 to W. M. Lyles Co., as the lowest responsive and responsible bidder
Body
RECOMMENDATIONS
Staff recommends the City Council (1) adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; (2) award a Construction Contract in the amount of $2,538,800 to W. M. Lyles Co., as the lowest responsive and responsible bidder for the Booster Pump Replacements for Pump Stations 89A, 150 and 176 Project (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
The Capital Projects Department seeks to award a Construction Contract with W. M. Lyles Co. in the amount of $2,538,800 to replace booster pumps at Pump Stations 89A, 150 and 176 following a competitive bidding process that identified them as the lowest responsive and responsible bidder. The scope of work includes replacement of booster pumps, interconnecting piping, and associated electrical and instrumentation facilities for existing Pump Stations (PS) 89A, 150, and 176, as well as the replacement of an aeration tank at Pump Station 89A. Funding for this project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund.
BACKGROUND
The Department of Public Utilities (DPU) 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.
The City’s Northeast Surface Water Treatment Facility (NESWTF) was commissioned in 2004, and system pressures in the distribution system adjacent to the plant are higher than in areas with only groundwater production wells. Because the City’s primary source of water supply is groundwater, DPU is required to operate and maintain the groundwater production wells on a continuous basis to provide well service in the event the surface water treatment facility is removed from service or if water allocations are limited. The booster pumps at PS 89A, 150, and 176 are required to maintain pump service and allow the City to pump at the higher pressures in the NESWTF service area.
The City entered into a Consultant Services Agreement (Agreement) dated June 10, 2022, with Michael K. Nunley and Associates, Inc. for an amount not to exceed $102,523 with a $15,378 contingency, to provide design and construction support services for the Project. The Scope of Services originally included replacing the booster pumps at the existing PS 89A, 150, and 133. On December 16, 2024, the First Amendment to the Agreement extended the term of the Agreement to October 31, 2026 and replaced PS 133 with PS 176. PS 176 pumps water to PS 168 for blending and treatment, and PS 168 is where the booster pump will be installed. On August 28, 2025, the Second Amendment increased the total contract to $229,277 with a $34,392 contingency, adding design and construction support services for the replacement of the deteriorating carbon dioxide removal tank at PS 89A. Carbon dioxide does not pose health risks on its own, but affects taste and corrosivity which can have secondary effects if not addressed. It was decided to incorporate this work into the Project for potential construction cost savings and consolidation of system impacts.
The Capital Projects Department solicited construction services for the Project through the formal bidding process. A Notice Inviting Bids was advertised and published on the City’s website, Planet Bids, on March 24, 2026. The Project plans and specifications were distributed to forty-eight (48) prospective bidders and posted at three (3) Building Exchanges. Three (3) sealed bid proposals were received and publicly opened on April 21, 2026, with bids ranging from $2,538,800 to $3,660,000. W. M. Lyles Co. submitted a bid in the amount of $2,538,800 and was determined to be the lowest responsive and responsible bidder. Bids are set to expire on June 24, 2026. 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 would need to be reallocated from an alternative source in subsequent fiscal year(s).
The Construction Contract is covered by the Community Workforce Agreement (or Project Labor Amendment, PLA), adopted by Council in September 2021. W. M. Lyles Co. shall become signatory to the PLA by executing the Agreement to be Bound.
Staff recommends that the City Council (1) adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; and (2) award a Construction Contract in the amount of $2,538,800 to W. M. Lyles Co. as the lowest responsive and responsible bidder for the Booster Pump Replacements for PS 89A, 150 and 176 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
Staff have reviewed the scope and nature of this Project and determined that it is categorically exempt from the requirements of CEQA pursuant to Section 15301/Class 1 (Existing Facilities) of the CEQA Guidelines because the repairs will occur within the footprint of the existing pump station facilities, and will involve negligible expansion of the existing use. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the Project.
LOCAL PREFERENCE
W. M. Lyles Co. is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
This Project is located in Council District 6. It will have no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund.
Attachments:
Environmental Assessment
Procurement Evaluation and Fiscal Impact Statement
Standardized Construction Contract