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 ANTHONY AQUINO, Engineer II Capital Projects Department, Utilities Project Management Division SUBJECT ..Title Actions pertaining to the First Street between Shields and Princeton Water Main Replacement Project (Bid File 12601230) (Council District 4 & 7): 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 Guidelines; 2. Award a Construction Contract in the amount of $1,193,060.00 to Walsh Montgomery Construction, Inc., as the lowest responsive and responsible bidder. ..Body RECOMMENDATION Staff recommends 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, and (2) award a Construction Contract in the amount of $1,193,060.00 to Walsh Montgomery Construction, Inc., as the lowest responsive and responsible bidder for the First Street between Shields and Princeton Water Main Replacement 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 water main Construction Contract in the amount $1,193,060.00 to Walsh Montgomery Construction, Inc. following a competitive bidding process which identified them as the lowest responsive and responsible bidder. The scope of work includes replacing aging steel pipe and cast iron pipe (CIP) that has reached the end of its service life, with ductile iron pipe (DIP) and C-900 polyvinyl chloride (PVC) pipe. This includes mainline construction, water service transfers, trenching, excavation, pavement restoration, reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Funding for this project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund. BACKGROUND The Department of Public Utilities has identified existing 12-inch and 6-inch diameter water mains that require replacement within North First Street between East Shields Avenue and East Princeton Avenue. The existing water mains were constructed of steel pipe and CIP in the 1950's, and have reached the end of their service life. Aging steel water mains are prone to leaks and experience relatively high rates of failure throughout the City. The scope of work includes replacing approximately 1400 linear feet of 12-inch steel pipe with 16-inch Class 250 DIP, replacing approximately 120 linear feet of existing 12-inch CIP with 12-inch C900 PVC pipe, and replacing approximately 50 linear feet of 6-inch steel pipe with 8-inch C900 PVC pipe, as well as the transfer of approximately nine water services. The Project will connect the 8-inch local main into the replaced 12-inch transmission grid main and will increase service pressure and reliability for drinking water and fire protection in the local service area. Funding for this Project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund. A Notice of Inviting Bids was advertised and published on the City's website, Planet Bids, and the Business Journal on February 17, 2026. The Project plans and specifications were distributed to 29 prospective bidders and posted at three (3) Building Exchanges. Seven (7) sealed bid proposals were received and publicly opened on March 10, 2026, with bids ranging from $1,193,060.00 to $1,672,259.00. Walsh Montgomery Construction, Inc. submitted a bid in the amount of $1,193,060.00 and was determined to be the lowest responsive and responsible bidder. The bids are set to expire on May 13, 2026. If the bids are rejected or expire, the project must be rebid which will result in a delay to the project. This contract is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. Walsh Montgomery Construction, 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 Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines, award a Construction Contract in the amount of $1,193,060.00 to Walsh Montgomery Construction, Inc., as the lowest responsive and responsible bidder, 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 Section 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. Existing water mains will be replaced, and water service connections re-established between existing water service lines, meter boxes and adjacent water mains. The replacement water main will be located on the same site as the existing facility, and any increase in capacity will be negligible. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to the Project. LOCAL PREFERENCE Walsh Montgomery Construction, Inc. is a local business, as defined by the Fresno Municipal Code. FISCAL IMPACT The First Street between Shields and Princeton Water Main Replacement Project is located in Council District 4 & 7 and will have no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund. Attachments: Environmental Assessment Procurement Evaluation Standardized Contract Vicinity Map Location Map