REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director-Capital Projects Department
BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: francisco V. magos II, PE, Assistant Director
Capital Projects Department, Utilities and On-Site Project Management Division
ROBERT A. DIAZ, Project Manager
Capital Projects Department, Utilities and On-Site Project Management Division
SUBJECT
Title
Actions pertaining to the Water Main Replacements In The Area Bound By Clinton, Teilman, University and West Avenues Project (Bid File 12500340-1) (Council District 3):
1. Adopt a finding of Categorical Exemption per staff’s determination pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for the Water Main Replacements In The Area Bound By Clinton, Teilman, University and West Avenues Project;
2. Award a construction contract in the amount of $5,525,000.00 to West Valley Construction Company, Inc., as the lowest responsive and responsible bidder for the Water Main Replacements In The Area Bound By Clinton, Teilman, University and West Avenues Project.
Body
RECOMMENDATIONS
Staff recommends City Council (1) adopt a finding of Categorical Exemption per staff’s determination pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines, (2) award a construction contract in the amount of $5,525,000.00 to West Valley Construction Company, Inc., as the lowest responsive and responsible bidder for the Water Main Replacements In The Area Bounded By Clinton, Teilman, University and West Avenues 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 (CPD) seeks to award a water main replacement and services transfer construction contract to West Valley Construction Company, Inc., of Fresno, California, following a competitive bidding process which identified them as the lowest responsive and responsible bidder in the amount of $5,525,000.00. The Project will bring water facilities to current standards and there will be little to no increase in capacity or use. The scope of work includes replacement of approximately 7,845 linear feet of 6-inch and 8-inch diameter water mains and approximately 3,255 linear feet of 10-inch diameter water mains with 8,199 linear feet of 8-inch diameter polyvinyl chloride and ductile iron water mains and 3,476 linear feet of 16-inch diameter ductile iron water mains. The scope of work also includes approximately 232 existing water service transfers, trenching, excavation, pavement restoration, reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Funding for this Project is included in the Fiscal Year 2025 Capital Improvement Budget within the Water Enterprise Fund.
BACKGROUND
Department of Public Utilities staff have identified 6-inch, 8-inch and 10-inch diameter water mains within the area bound by West Clinton Avenue, West University Avenue, North West Avenue, and North Teilman Avenue as being in need of replacement. The current facilities may be prone to unexpected failures due to inferior steel water mains installed as early as 1934 that have outlived their life expectancy. The scope of work includes replacement of approximately 7,845 linear feet of 6-inch and 8-inch diameter water mains and approximately 3,255 linear feet of 10-inch diameter water mains with 8,199 linear feet of 8-inch diameter polyvinyl chloride and ductile iron water mains and 3,476 linear feet of 16-inch diameter ductile iron water mains as well as the transfer of approximately 232 water services. The Project will bring water facilities to current standards and will provide more reliable water services and fire protection for the local service area. The scope of work also includes trenching, excavation, pavement restoration, reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Funding for this Project is included in the Fiscal Year 2025 Capital Improvement Budget within the Water Enterprise Fund.
A Notice Inviting Bids was previously advertised and published on the City’s website, Planet Bids, and the Business Journal on January 24, 2025. Two (2) sealed bid proposals were received and publicly opened on March 11, 2025, with bids ranging from $5,692,452.00 to $6,297,927.00. The bids were rejected by the City Council on May 1, 2025, as the lowest bidder was determined to be non-responsive due to a change in the contractor license requirements included in the bid specifications.
The Bid Specifications were revised to update the contractor license requirements to be like previous water main replacement projects. A Notice Inviting Bids was re-advertised and published on the City’s website, Planet Bids, and the Business Journal on May 2, 2025. The Project plans and specifications were distributed to 32 prospective bidders and posted at eight (8) Building Exchanges. Three (3) sealed bid proposals were received and publicly opened on May 28, 2025, with bids ranging from $5,525,000.00 to $6,497,922.00. West Valley Construction Company, Inc., was determined to be the lowest responsive and responsible bidder in the amount of $5,525,000.00. The bids are set to expire on July 31, 2025. If the bids are rejected or expire, the Project must be rebid which will result in a delay to the Project.
This contract is covered by the Community Workforce Agreement (PLA), adopted by the Council in September 2021. West Valley Construction Company, Inc., shall become signatory to the PLA by executing the Agreement To Be Bound.
The Project is necessary to prevent future water main failures comparable to those seen in nearby areas with similar aging infrastructure. Staff now recommends City Council adopt a finding of Categorical Exemption per staff’s determination pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines and award a construction contract in the amount of $5,525,000.00 to West Valley Construction Company, Inc., as the lowest responsive and responsible bidder for the Project and authorize the Capital Projects Interim Director or designee to sign and execute all documents on behalf of the City. The Project will improve safety and reliability of water services in the area by bringing water facilities up to current standards.
The City Attorney’s Office has reviewed and approved the contract documents as to form.
ENVIRONMENTAL FINDINGS
Staff has reviewed the scope and nature of this Project and determined that it is categorically exempt from the requirements of CEQA pursuant to Sections 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. These exemptions apply because the improvements to the Project do not expand any existing facilities. Existing water mains will be replaced, and water service connections re-established between existing water service lead lines, meter boxes and replacement water mains. Due to confined spacing within alley ways, existing water mains will be replaced with new water mains installed in adjacent existing road rights of way to meet State Water Resources Control Board separation requirements from sanitary sewer mains. These facilities will be located on the same site as the structures being replaced and will have substantially the same purpose and capacity as the structure replaced and will involve negligible expansion of existing use.
None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the Project.
LOCAL PREFERENCE
West Valley Construction Company, Inc., is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
The Water Main Replacements In The Area Bound By Clinton, Teilman, University and West Avenues Project is located in Council District 3 and will have no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2025 Capital Improvement Budget within the Water Enterprise Fund.
Attachments:
Environmental Assessment
Bid Evaluation
Fiscal Impact Statement
Standardized Contract
Vicinity Map
Location Map