REPORT TO THE CITY COUNCIL
FROM: PAUL AMICO, PE, Director
Department of Public Utilities
BY: AHMED ALY, PE, Assistant Director
Department of Public Utilities - Utilities Planning & Engineering
MICHELLE STARNER, EIT, Engineer II
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to Wellhead Treatment Improvements at Pump Station 347 Project (Bid File 12601675) (Council District 7)
1. Adopt a finding of Categorical Exemption pursuant to Section 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act Guidelines
2. Award a Construction Contract in the amount of $857,000.00 to West Valley Construction Company Inc., as the lowest responsive and responsible bidder
Body
RECOMMENDATIONS
Staff recommends that the City Council adopt a finding of Categorical Exemption pursuant to Section 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines, and award a Construction Contract in the amount of $857,000.00 to West Valley Construction Company Inc. (West Valley), as the lowest responsive and responsible bidder for the Wellhead Treatment Improvements at Pump Station 347 Project (Project); and authorize the Director of Public Utilities, or designee, to sign and execute all related documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
Manganese is a naturally occurring element in both surface water and groundwater sources. In 2022, the State of California (State) established new groundwater regulations for Manganese which set the secondary maximum contaminant level (MCL) to 0.05 mg/L in drinking water. The City identified a need for Manganese filtration at the existing Pump Station 347 (PS 347). This Project will construct and install a Manganese filtration system and all associated piping and site improvements at PS 347. On April 28, 2026, the City received three bids ranging from $857,000.00 to $1,253,000.00. Staff recommends that the City Council award a Construction Contract in the amount of $857,000.00 to West Valley as the lowest responsive and responsible bidder. This Project is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. West Valley Construction shall become signatory to the PLA by executing the Agreement to be Bound. Bids are set to expire on July 1, 2026, and rejecting or allowing them to expire would require rebidding and delaying the Project by approximately 120 days.
BACKGROUND
The Department of Public Utilities (DPU) operates and maintains more than 260 municipal groundwater wells and three 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 to 100 percent of the water demands in dry years when surface water allocations are curtailed.
In 2022, the State established new groundwater regulations for Manganese, setting the secondary maximum contaminant level (MCL) at 0.05 mg/L in drinking water. Manganese is a naturally occurring element in both surface water and groundwater sources. Unlike primary MCLs, the secondary standard was established to address issues of aesthetics (discoloration) and not health concerns. Pump Station 347 was prioritized as a project because it is a critical asset that serves an area which relies heavily on groundwater.
On March 25, 2026, a Notice Inviting Bids was advertised and published on the City’s website, Planet Bids, and the Business Journal. The Project plans and specifications were distributed to 37 prospective bidders and posted at two Building Exchanges. Three sealed bid proposals were received and publicly opened on April 28, 2026, with bids ranging from $857,000.00 to $1,253,000.00. West Valley Construction Company Inc. submitted a bid in the amount of $857,000.00 and was determined to be the lowest responsive and responsible bidder. Bids are set to expire on July 1, 2026. Funding for this project is included in the Fiscal Year 2026 Capital Improvement Budget within the Urban Growth Management (UGM) Wellhead Treatment Area 501-S Fund. If the bids are rejected or allowed to expire, the Project must undergo the rebidding process. This will result in schedule delays preventing utilization of the funding allocated to this Project for the current fiscal year. Consequently, funding will need to be reallocated from an alternative source in subsequent fiscal year(s).
The Construction Contract for this Project 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.
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 Section 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. The Project described herein represents the necessary water treatment improvements to an existing public owned drinking water well (PS 347) that supplies drinking water to the City of Fresno municipal water system supporting residential, commercial, and fire protection demands. The improvements will not expand the facility’s existing operational purpose or scale, and are required to improve pump station’s overall performance, efficiency, and water quality. The proposed project is not expected to have significant effect on the environment. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the Project.
LOCAL PREFERENCE
Although West Valley Construction Company Inc. is a local business per the Fresno Municipal Code, local preference was not applied.
FISCAL IMPACT
This Project is located in Council District 7. It will have no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2026 Capital Improvement Budget within the UGM Wellhead Treatment Area 501-S Fund.
Attachments:
Environmental Assessment
Notice of Exemption
Bid Evaluation and Fiscal Impact Statement
Sample Contract