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 SHAHENAZ ALWERDANI, Engineer II Capital Projects Department, Utilities Project Management Division SUBJECT ..Title Approve the First Amendment to the Requirements Contract to furnish and install Polyethylene Water Service Replacements with West Valley Construction Company, Inc., to increase the total annual contract by an amount not to exceed $1,200,000.00, paid on a time and materials basis for a revised total annual contract amount not to exceed $2,853,770.00 (Bid File 12300617). (Citywide and County) ..Body RECOMMENDATION Staff recommends that City Council approve the First Amendment to the Requirements Contract to furnish and install Polyethylene Water Service Replacements (Contract) with West Valley Construction Company, Inc., (WVCC), to increase the total annual contract by an amount not to exceed $1,200,000.00, paid on a time and materials basis for a revised total annual contract amount not to exceed $2,853,770.00; and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY On April 20, 2023, a Contract was entered in the amount of $1,529,500.00 with WVCC for the replacement of failing polyethylene water services throughout the City. Staff has approved WVCC to extend the contract into Year 2 and subsequently Year 3, with unit price adjustments in accordance with the original contract terms. Staff now recommends approval of the First Amendment to the Requirements Contract to repair additional water services within the timeframe of the Year No. 3 extension. BACKGROUND Water service laterals connect the public water main to the water meter and are owned and maintained by the City. Approximately 25,000 new homes were constructed in the 1990s using plastic water service laterals, and these laterals have experienced significant degradation due to manufacturing defects, resulting in frequent, unpredictable line failures. The peak system failure occurs during the summer months when water demand is highest. On April 20, 2023, a one-year Contract in the amount of $1,529,500.00 was entered into with WVCC with provisions for two optional one-year extensions to replace failing polyethylene water services citywide. The Notice to Proceed for Contract Year No. 1 was issued on December 4, 2023, with a scheduled completion date of December 04, 2024. City staff approved an extension of the contract to Year No. 2 effective December 4, 2024, and ending on December 4, 2025, in the amount of $1,577,099.88. Subsequently, the contract was extended to Year No. 3, effective December 4, 2025, through December 4, 2026, in the amount of $1,653,769.40. These extensions were made in accordance with the original contract terms, which allow for annual renewals with unit price adjustments. WVCC is proceeding with the water service replacements at a rapid rate, and has performed satisfactory work for the City. This Contract is critical to completing water service replacement expeditiously, and sufficient budget exists within the Fiscal Year 2026 Capital Improvement Budget to perform additional replacements within Year No. 3. Staff now recommends approval of the First Amendment to the Contract to increase the Year No. 3 total annual contract by an amount not to exceed $1,200,000.00, paid on a time and materials basis for a revised total annual contract amount not to exceed $2,853,770.00, and authorization of the Capital Projects Director or designee to sign the First Amendment on behalf of the City. This First Amendment will allow the Contractor to address additional water service replacements citywide. The First Amendment to the Contract will be funded utilizing appropriations included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund. The City Attorney's Office has reviewed and approved the contract documents and the First Amendment to the Contract as to form. ENVIRONMENTAL FINDINGS On March 09, 2023, the Council approved a finding of Categorial Exemption pursuant to Sections 15301/Class 1, and 15302/Class 2 of the California Environmental Quality Act (CEQA) Guidelines. Staff determined that no adverse environmental impacts would occur because of the proposed project and no exceptions to Categorial Exemptions set forth in the CEQA Guidelines Section 15300.2 apply. LOCAL PREFERENCE Local preference does not apply to this action because this is an amendment to an existing Requirements Contract. FISCAL IMPACT There is no impact to the General Fund. This is a Citywide Project that includes County islands. Funding for this Project is included in the Fiscal Year 2026 Capital Improvement Budget within the Water Enterprise Fund. Attachment: 12300617 First Amendment