REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
PAUL AMICO, PE, Interim Director
Department of Public Utilities
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Construction Management Division
KELLY YOST, PE, Construction Manager
Capital Projects Department, Construction Management Division
SUBJECT
Title
Approve for the substitution of listed Subcontractor, Safety Network Incorporated of Fresno, California, for traffic control with KRC Safety Company Incorporated of Visalia, California for the Rebid Requirements Contract to Furnish and Install Polyethylene Water Service Replacements - Year No. 2, - Project ID WC00095. (Bid File 12300617) (City Wide)
Body
RECOMMENDATION
Staff recommends that the City Council approve the request from West Valley Construction Company Incorporated of Fresno, California, to substitute Safety Network Incorporated of Fresno, California and utilize KRC Safety Company Incorporated of Visalia, California for the remaining traffic control of this project.
EXECUTIVE SUMMARY
On March 09, 2023, a contract was awarded in the amount of $1,529,500.00 to West Valley Construction Company, Inc. (WVCC) of Fresno, California, for the replacement of failing water services in various locations. WVCC has requested to substitute Safety Network Incorporated (Safety Network) of Fresno, California, who is listed in the bid documents as performing the traffic control portions of the project, with KRC Safety Company Incorporated (KRC) of Visalia, California. This action requires City Council approval per Public Contract Code Section 4107, whereas the consent of the awarding authority is required to approve a request by a prime contractor for a substitution of a subcontractor.
The replacement of the Subcontractor for traffic control portions of the contract will not increase the cost of the project.
BACKGROUND
On March 09, 2023, a one-year Requirements Contract in the amount of $1,529,500.00 was awarded to WVCC with provisions for two one-year extensions to Furnish and Install Polyethylene Water Service Replacements.
The Notice to Proceed for Contract Year No. 1 was issued for December 04, 2023, with a completion date of December 04, 2024.
In WVCC’s original proposal, Safety Network was listed as the Subcontractor for the traffic control portions of the contract. On June 25, 2025, WVCC provided the City of Fresno with a written request to substitute the listed Subcontractor, as the listed Subcontractor refused to perform work pursuant to the subcontract documents. WVCC has requested that they be allowed to substitute for KRC to perform the remaining traffic control portions of the contract in place of Safety Network.
On July 31, 2025, in accordance with provisions of Section 4107 of the Public Contract Code, the City of Fresno sent notification to Safety Network, at the company’s last known address, of the proposed substitution via certified mail shipment through United States Parcel Service (USPS), which a delivery attempt to Safety Network was made on July 31, 2025. The City of Fresno has not received any correspondence from the contractor opposing the substitution.
The Subletting and Subcontracting Fair Practice Act requires the Prime Contractor to secure the permission of the awarding agency before substituting a non-listed subcontractor for a listed subcontractor in order to protect the public and subcontractors from bid shopping and bid peddling (Southern California Acoustics Co., Inc. v. C.V. Holder, Inc. (1969), 71 Cal.2d 719,726). Section 4107 of the Public Contract Code allows the Prime Contractor to substitute listed Subcontractors with prior consent from the awarding authority. The City Attorney’s Office finds the proposed substitution of subcontractor to be legal and proper if the City Council consents to the substitution.
Staff recommends the City Council approve the request from WVCC to substitute Safety Network and utilize KRC for the remaining traffic control portions of this project.
ENVIRONMENTAL FINDINGS
On March 09, 2023, the Council approved a finding of Categorical Exemption pursuant to Sections 15301/Class 1, 15302/Class 2, and 15303/Class 4 of the California Environmental Quality Act (CEQA) Guidelines. Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the proposed project and none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local Preference was not implemented because the lowest responsive and responsible bidder is a local business pursuant to the Fresno Municipal Code Section 4-108(d).
FISCAL IMPACT
There is no impact on the General Fund. This Project is located in all Council Districts and County islands. Funding for this Project is included in the Fiscal Year 2026 capital improvement budget within the Water Enterprise Fund 40101.
Attachments:
Executed Contract - Year No. 1
Renewal Extension - Year No. 2
West Valley Construction Company Inc., Letter to Request Substitution of Subcontractor
City of Fresno, Letter to Notify Safety Network
USPS Delivery Notification