REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: CASSIE L. SCHOLZ, PE, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering DAVID L. SWEET, PE, Licensed Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Security Fence Improvements at Water Tank T-4 Project (Bid File 12501728) (Council District 3): 1. Adopt a finding of Categorical Exemption per staff's determination pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines for the Security Fence Improvement at Tank Site T-4 Project; 2. Award a construction contract in the amount of $387,144.25 to Harris Development Corp., dba HBC Enterprises, of Clovis, California. ..Body RECOMMENDATION Staff recommends City Council adopt a finding of Categorical Exemption per staff's determination pursuant to Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction), of the California Environmental Quality Act (CEQA) Guidelines for the Security Fence Improvements at Tank Site T-4 (Project); award a construction contract in the amount of $387,144.25 to Harris Development Corp., dba HBC Enterprises; and authorize the Director of Public Utilities or designee to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities seeks to award a fence replacement construction contract to Harris Development Corp., dba HBC Enterprises, of Clovis, California, in the amount of $387,144.25, following a competitive bidding process which identified them as the lowest responsive and responsible bidder. The Project will reduce theft and vandalism at Tank Site T-4 in downtown Fresno. The scope of work includes the replacement of approximately 629 linear feet of fencing and modification of approximately 223 linear feet of fencing. Funding for this Project is included in the Fiscal Year 2025 Capital Improvement Budget within the Water Enterprise Fund. BACKGROUND Tank Site T-4 is a three-million-gallon finished water storage tank located north of State Route 41 and H Street in Downtown Fresno, designed to maintain flow and pressure during peak demands in the area. Tank Site T-4 is currently offline, due to repeated incidents of vandalism that have compromised the functionality of the tank. These incidents continue to damage various tank site improvements, along with valuable City materials stored at the site. In August of 2024 the Department of Public Utilities completed an internal review of options to enhance security at public drinking water facilities. In accordance with recommendations of the US Department of Homeland Security and the US Department of Defense, steel fencing with anti-climbing curved pickets was selected to reduce incidents of break-in and theft. Tank Site T-4 was prioritized due to the frequency of these incidents, the significant water assets at this site, and the ultimate need to bring Tank Site T-4 back online. Staff developed construction documents to replace approximately 629 linear feet of fencing and modify approximately 223 linear feet of fencing. The scope of work also includes removal of old fencing, coordination with outside agencies, and new concrete mow strip. A Notice Inviting Bids was advertised and published on the City's website, Planet Bids, and the Business Journal on April 1, 2025. The Project plans and specifications were distributed to 15 prospective bidders and 5 building exchanges inviting bids. One (1) sealed bid proposal was received and publicly opened on April 22, 2025, with the bid being $387,144. Harris Development Corp., dba HBC Enterprises was determined to be the lowest responsive and responsible bidder in the amount of $387,144.25. The bids are set to expire on July 2, 2025. To maintain security of the City water system, Staff recommends City Council award a construction contract in the amount of $387,144.25 to Harris Development Corp., dba HBC Enterprises, as the lowest responsive and responsible bidder for the Project. The City Attorney's Office has reviewed and approved the contract documents as to form. ENVIRONMENTAL FINDINGS Staff has 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. These exemptions apply because the improvements to the Project do not expand any existing facilities. Existing fencing will be replaced or modified in place. These facilities will be located on the same site as the structures being replaced, will have substantially the same purpose and capacity as the structure replaced, and will not involve expansion of existing use. LOCAL PREFERENCE Local preference was not applied since there was only one bidder. Harris Development Corp., dba HBC Enterprises is located in Clovis, California. 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 2025 Capital Improvement Budget within the Water Enterprise Fund. Attachments: Environmental Assessment Notice of Exemption Bid Evaluation and Fiscal Impact Statement Standard Contract Vicinity and Location Map