REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim-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
Actions pertaining to the Requirements Contract to Furnish and Install Polyethylene Water Service Replacements (Bid File 12700039) (Citywide and County)
1. Adopt a finding of Categorical Exemption, pursuant to Section 15301/Class 1 (Existing Facilities) and Section 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines
2. Award a Requirements Contract to West Valley Construction Company, Inc., of Fresno California, in an amount not to exceed $3,084,875 per year, for one year with two optional one-year extensions
Body
RECOMMENDATIONS
Staff recommends the City Council (1) adopt a finding of Categorical Exemption 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 Requirements Contract to West Valley Construction Company, Inc., of Fresno California in an amount not to exceed $3,084,875 per year, for one-year with two optional one-year extensions to Furnish and Install Polyethylene Water Service Replacements (Project); and authorize the Purchasing Manager to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Capital Projects Department seeks to award a Requirements Contract for one year with two optional one-year extensions. The contract is necessary to address the replacement of failing polyethylene water services lines throughout the City. Following a competitive bidding process, West Valley Construction Company, Inc., is deemed to be lowest responsive and responsible bidder in the amount of $3,084,875 per year.
BACKGROUND
The Department of Public Utilities, Water Division, provides and maintains water service throughout the City, as well as some Fresno County Islands. Residential water service lines range from 0.75-inches to 2-inches in diameter, and have been constructed of various material types over the years including steel, copper, and polyethylene. Polyethylene became the industry standard for residential water services in the 1990’s due to its lightweight material, ease of installation, affordability, and perceived durability. Since that time, the polyethylene services installed throughout the City have not met performance standards for durability, and have started to experience failure. When a polyethylene service fails, the line bursts, interrupts service, may cause localized flooding, and requires emergency repair. The Water Division has determined that the most effective solution is to replace the failing polyethylene service lines with copper water service lines. Copper service lines have been a City standard for decades, and have proven to significantly outlast their polyethylene counterparts. Unfortunately, this requires the Water Division to respond on an emergency basis, tying up resources designated for other critical operational needs. Therefore, this requirements contract will be utilized to repair when needed.
On March 9, 2023, the City awarded a Requirements Contract to West Valley Construction Company, Inc., This Requirements Contract allowed service replacements to be performed by an external contractor, leaving Water Division resources available for other critical operational duties. The Requirements Contract has been a successful solution to this issue, and is set to expire on December 4, 2026. In order to continue as-needed replacements for polyethylene water services throughout the City, a new Requirements Contract has been advertised.
A Notice of Inviting Bids was advertised and published on the City’s website, Planet Bids, on August 31, 2026. Planet Bids automatically notified 2,767 potential bidders, of which 6 downloaded the project documents. Two (2) sealed bid proposals were received and publicly opened on September 29, 2026, with bids ranging from $3,084,875 to $3,103,500. West Valley Construction Company, Inc. submitted a bid in the amount of $3,084,875 and was determined to be the lowest responsive and responsible bidder. The bids are set to expire on December 2, 2026.
The Contract is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. West Valley Construction Company, Inc., shall become signatory to the PLA by executing the Agreement to be Bound.
Staff recommends City Council adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines, award a one-year Requirements Contract in the amount of $3,084,875 to West Valley Construction Company, Inc., with provisions for two one-year extensions, as the lowest responsive and responsible bidder and authorize the Capital Projects Director to sign and execute all documents on behalf of the City of Fresno.
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 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. Existing water services will be replaced, and water service connections will be re-established. The existing water services will be replaced within existing right of way. These facilities will be located on the same site, will have substantially the same purpose and capacity as the facility replaced.
None of the exceptions to Categorial 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
This is a Citywide Project that includes Fresno County islands. Funding for this Project is included in the Fiscal Year 2027 Capital Improvement Budget within the Water Enterprise Fund. There is no impact to the General Fund.
Attachments:
Environmental Assessment
Bid Evaluation
Standardized Contract