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
PATRICIA DIEP, Project Manager
Capital Projects Department, Utilities Project Management Division
SUBJECT
Title
Actions pertaining to the Dewatering Cake Pump Improvement Project (Bid File No. 12600757): (Council District 3)
1. Adopt a finding of Categorical Exemption, pursuant to Section 15301/Class 1 and Section 15302/Class 2 of the California Environmental Quality Act Guidelines
2. Approve the Second Amendment to the Consultant Services Agreement with Black & Veatch Corporation, to increase the total contract by an amount not to exceed $207,758.00, for a revised total contract amount not to exceed $834,205.00 with $11.239.00 in remaining contingency
3. Award a Construction Contract in the amount of $8,800,000.00 to W.M. Lyles Co., of Fresno, California, as the lowest responsive and responsible bidder
Body
RECOMMENDATIONS
Staff recommends that the City Council (1) adopt a finding of Categorical Exemption, pursuant to Section 15301/Class 1 and 15302/Class 2 of the California Environmental Quality Act (CEQA) Guidelines; (2) approve the Second Amendment to the Consultant Services Agreement (Agreement) with Black & Veatch Corporation (Consultant), to increase the total contract by an amount not to exceed $207,758.00, for a revised total contract amount not to exceed $834,205.00 with $11,239.00 in remaining contingency; and (3) award a Construction Contract to W.M. Lyles Co., of Fresno, California (Contractor), in the amount of $8,800,000.00 as the lowest responsive and responsible bidder for the Project, and authorize the Capital Projects Director or designee to sign the standardized Construction Contract on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Project will upgrade the existing sludge dewatering system at the Fresno-Clovis Regional Water Reclamation Facility (RWRF) to improve pumping reliability, reduce reactive maintenance, and ensure consistent transfer of dewatered Class B biosolids from the sludge dewatering process to the biosolids storage silos from which biosolids are hauled offsite. The Capital Projects Department seeks to award a Construction Contract in the amount of $8,800,000.00 to the Contactor following a competitive bidding process that identified them as the lowest responsive and responsible bidder. Advancing the Project through construction necessitates a Second Amendment to the Agreement with the Consultant in the amount of $207,758.00 for Engineering Services During Construction (ESDCs). This Project will be funded utilizing appropriations included in the Fiscal Year 2026 Capital Improvement Budget within the Wastewater Management Division’s Wastewater Operating Fund.
BACKGROUND
Sludge dewatering is the final step in the biosolids handling process at the Fresno-Clovis RWRF. The current sludge dewatering system consists of five belt filter presses and three centrifuges, each with a dedicated screw conveyer and progressive cavity pump. The progressive cavity pumps experience frequent operational issues that result in more intensive maintenance. There is no ability to isolate a pump for maintenance without disabling an entire centrifuge-conveyer-pump train, which reduces the overall capacity of the dewatering system. Due to the intensity of operations and maintenance and the risk this configuration has on dewatering operations, the Department of Public Utilities contracted with the Consultant to evaluate the existing sludge dewatering system, propose and evaluate improvement alternatives, and design the selected alternative.
On November 16, 2023, the City and the Consultant entered into the Agreement for an amount not to exceed $587,686.00, with a contingency amount of $50,000.00. The original scope of engineering services included a Feasibility Evaluation for directing sludge cake to a new conveyance system, a Basis of Design Report (BODR) of the selected alternative, construction drawings and specifications, and bid phase services. Based on the completed BODR, the City selected inclined screw conveyors to piston cake pumps as the preferred alternative. The screw conveyors will transfer sludge cake into the piston cake pumps, which will then be pumped into a silo for removal. This configuration will allow for treatment train isolation to accommodate necessary maintenance operations and repairs.
On May 30, 2025 the First Amendment to the Agreement increased the total contract by $38,761.00, for a revised total contract amount not to exceed $626,447.00 with a remaining contingency of $11,239.00. The First Amendment increased the original scope of work to redesign structural anchorage of the dewatering cake pump system to span an existing duct bank, develop specifications for specialized hoisting equipment, and design additional improvements to the existing odor control system. The proposed Second Amendment expands the scope to include ESDCs, including attending meetings, reviewing shop drawings and submittals, reviewing and evaluating requests for information and change orders, and equipment startup and commissioning support.
A Notice of Inviting Bids was advertised on Planet Bids and posted on the City’s website on February 25, 2026. The project plans and specifications were distributed to forty-four (44) prospective bidders and posted at three (3) building exchanges. Three (3) electronic bid proposals were received and publicly opened on March 31, 2026 with the bid amounts ranging from $8,800,000.00 to $10,356,939.20. W.M. Lyles Co. was determined to be the lowest responsive and responsible bidder in the amount of $8,800,000.00. The bids will expire on June 3, 2026.
Staff recommends the City Council adopt a finding of Categorical Exemption, pursuant to Section 15301/Class 1 and 15302/Class 2 of the CEQA Guidelines; approve the Second Amendment to the Agreement with the Consultant in the amount not to exceed $207,758.00; award a Construction Contract to W.M. Lyles Co., of Fresno, California in the amount of $8,800,000.00 as the lowest responsive and responsible bidder; and authorize the Capital Projects Director or designee to sign the standardized Construction Contract on behalf of the City.
The Construction Contract is covered by the Community Workforce Agreement (or Project Labor Amendment, PLA), adopted by Council in September 2021. The contractor shall become signatory to
the PLA by executing the Agreement to Be Bound.
The City Attorney’s Office has reviewed and approved Environmental Assessment, the proposed Amendment, and the Standardized Construction Contract as to form.
ENVIRONMENTAL FINDINGS
Staff performed a preliminary environmental assessment of this Project and determined that it falls within the Categorical Exemptions set forth in CEQA Guidelines Section 15301/Class 1 and Section 15302/Class 2. The Project consists of minimal modification to the sludge handling system in the existing dewatering building at the City’s Wastewater Treatment Plant and will have substantially the same purpose and capacity as the facility replaced, will be located on the same site, and will involve negligible expansion of existing use. Staff has determined that the Project qualifies for exemption from CEQA under CEQA Guidelines Section 15301/Class 1 and Section 15302/Class 2.
Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines, Section 15300.2 apply to this Project. Staff recommend that Council, based upon its own independent judgment, adopt a finding of a Categorical Exemption, pursuant to Sections 15301/Class 1 and 15302/Class 2 of the CEQA Guidelines for the Project.
LOCAL PREFERENCE
W.M. Lyles Co. is a local business as defined by Fresno Municipal Code Section 4-108.
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 Wastewater Management Division’s Wastewater Operating Fund.
Attachments:
Environmental Assessment
Second Amendment to Agreement
First Amendment to Agreement
Original Consultant Agreement
Formal Procurement Evaluation Form
Standard Contract
Vicinity Map
Location Map