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
ANITA LUERA, Project Manager
Capital Projects Department, Utilities Project Management Division
SUBJECT
Title
Actions pertaining to the Wellhead Treatment Improvements at Pump Station 177 Project (Bid File 12601613) (Council District 6):
1. Adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1 (Existing Facilities) and 15303/Class 3 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act Guidelines
2. Award a Construction Contract in the amount of $3,944,000 to W. M. Lyles Co., as the lowest responsive and responsible bidder
Body
RECOMMENDATIONS
Staff recommends that the City Council (1) adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1 (Existing Facilities) and 15303/Class 3 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines; and (2) award a Construction Contract in the amount of $3,944,000 to W. M. Lyles Co., as the lowest responsive and responsible bidder for the Wellhead Treatment Improvements at Pump Station 177 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 wellhead treatment system Construction Contract in the amount of $3,944,000 to W. M. Lyles Co. following a competitive bidding process that identified them as the lowest responsive and responsible bidder. The scope of work includes construction and installation of granular activated carbon (GAC) vessels, an aeration tank, a booster pump, treatment process piping, and associated electrical and instrumentation facilities at the existing Pump Station 177 groundwater production well. Funding for this project is included in the Department of Public Utilities (DPU) Fiscal Year 2026 Capital Improvement Budget.
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. In 2018, the State of California established new groundwater regulations for 1,2,3-Trichloropropane (TCP), setting the allowable maximum contaminant level (MCL) at 5 parts per trillion present in drinking water. TCP is a component of agricultural soil fumigants historically used within the Central Valley. TCP does not adhere to soil after spray application, which resulted in the chemical leaching into the groundwater. Any groundwater containing elevated detections of TCP requires advanced levels of treatment prior to distribution for potable use.
Pump Station 177 was removed from service in 2018 due to groundwater TCP concentrations above the MCL, and a wellhead GAC treatment system is required to return the well to service. On April 28, 2021, the City entered into a Consultant Services Agreement with Michael K. Nunley and Associates, Inc. (Consultant) to provide engineering services for design of a wellhead treatment system at Pump Stations 177 and 185. The Consultant evaluated groundwater quality data, prepared a Basis of Design report, and prepared construction plans and specifications. The scope of work at Pump Station 177 includes construction and installation of GAC vessels, an aeration tank, a booster pump, treatment process piping, and associated electrical and instrumentation facilities.
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 twelve (12) prospective bidders and posted at one (1) Building Exchange. Two (2) sealed bid proposals were received and publicly opened on April 21, 2026, with bids ranging from $3,944,000 to $4,574,008. W. M. Lyles Co. submitted a bid in the amount of $3,944,000 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 be rebid. This will result in schedule delays preventing utilization of the funding allocated to this Project for the current fiscal year.
The Construction Contract for this Project is covered by the Community Workforce Agreement (or Project Labor Agreement, 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 Sections 15301/Class 1 (Existing Facilities) and 15303/Class 3 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act (CEQA) Guidelines; and (2) award a Construction Contract in the amount of $3,944,000 to W. M. Lyles Co. 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
Staff have 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 15303/Class 3 (New Construction or Conversion of Small Structures) of the CEQA Guidelines. 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 DPU Fiscal Year 2026 Capital Improvement Budget within the Water Division TCP Settlement Fund.
Attachments:
Categorical Exemption
Formal Procurement Evaluation
Standardized Construction Contract