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
SHAHENAZ ALWERDANI, Engineer II
Capital Projects Department, Utilities Project Management Division
SUBJECT
Title
Award a Construction Contract to Alpha1 Engineering, P.C. of Fresno, California, in the amount of $1,718,112.50, for construction of the Well Site Improvements at Pump Station 372 Project (Bid File 12601633). (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council award a Construction Contract in the amount of $1,718,112.50 to Alpha1 Engineering, P.C. of Fresno, California (Contractor), as the lowest responsive and responsible bidder for the Well Site Improvements at Pump Station 372 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 372 to meet service demands due to local development. The well has been drilled and site improvements are now required to complete the pump station and commission it for service. The Capital Projects Department seeks to award the Well Site Improvements at Pump Station 372 Project (Project) in the amount of $1,718,112.50 to Alpha1 Engineering, P.C. of Fresno, California, 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 Capacity Fee 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 the wells may need to provide up 100 percent of the water demands in dry years when surface water allocations are curtailed. As the community and water system grows, new wells are required to keep pace with the additional water system demands and provide reliable service.
Completion of PS 372 is necessary to serve increased demands resulting from recent development in the surrounding area. On September 18, 2019 after successful completion of groundwater monitoring investigations, the City purchased the property for PS 372. On May 26, 2022, the City entered into a Construction Contract with Zim Industries, Inc. to drill the production well, and a Professional Services Agreement with Kleinfelder, Inc. for associated hydrogeological services. On June 6, 2023 the City entered into a contract with Western Oilfields Supply Company, DBA Rain for Rent to install the pump assembly. The design for the Project was completed by City staff and includes site piping, equipment building, electrical power, instrumentation and controls, and perimeter fencing. The Project will complete the pump station and allow the City to bring the new well into operation.
A Notice Inviting Bids was advertised and published on the City’s website, Planet Bids, on March 23, 2026. The Project plans and specifications were distributed to 32 prospective bidders and posted at two (2) Building Exchanges. Three (3) sealed bid proposals were received and publicly opened on April 21, 2026, with bids ranging from $1,278,663.12 to $2,487,691.07. Harris Development, Corp. of Clovis, California, was the lowest bidder in the amount of $1,278,663.12, but ultimately withdrew their bid proposal, thus establishing Alpha1 Engineering, P.C. of Fresno, California as the lowest responsive and responsible bidder in the amount of $1,718,112.50. 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, resulting in schedule delays.
Staff recommends that the City Council award a Construction Contract in the amount of $1,718,112.50 to Alpha1 Engineering, P.C. of Fresno, California, 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
An environmental assessment was previously completed for the Project. Negative Declaration Environmental Assessment No. P19-04891 was adopted by the City Council on June 9, 2022. An analysis has been performed pursuant to CEQA Guidelines Section 15162 to determine whether a subsequent environmental review is required for this project. Based upon this analysis, the following findings are made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the project which will require major revisions to the Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects because the project is being implemented as planned. Specifically, this item will implement the construction of site piping, equipment building, electrical power, instrumentation and controls, and perimeter fencing. All of these improvements were contemplated and analyzed in the Negative Declaration adopted by Council.
2. No substantial changes have occurred with respect to the circumstances under which the project is undertaken which will require major revisions to the Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
3. There is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous Negative Declaration was adopted showing that:
a. The project will have one or more significant effects not discussed in the previous Negative Declaration;
b. Significant effects previously examined will be substantially more severe than shown in the previous Negative Declaration;
c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project;
d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous Negative Declaration would substantially reduce one or more significant effects on the environment.
Based upon these findings, it has been determined that a subsequent environmental analysis is not required for this approval.
LOCAL PREFERENCE
Alpha1 Engineering, P.C. of Fresno, California is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
The 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 2026 Capital Improvement Budget within the Water Capacity Fee Fund.
Attachments:
Formal Procurement Evaluation
Standardized Construction Contract