REPORT TO THE CITY COUNCIL FROM: DENIX D. ANBIAH, PE, Director Capital Projects Department BY: FRANCISCO V. MAGOS II, PE, Assistant Director Capital Projects Department, Utilities and On-Site Project Management Division ROBERT A. DIAZ, Project Manager Capital Projects Department, Utilities and On-Site Project Management Division SUBJECT ..Title Actions pertaining to the Infill Infrastructure Grant Catalytic Downtown Water and Sewer Improvements Project (Bid File 12600298) (Council District 3): 1. Adopt an Initial Study - Mitigated Negative Declaration as prepared for SCH 2025100590 dated October 14, 2025, for the Infill Infrastructure Grant Catalytic Downtown Water and Sewer Improvements Project pursuant to the California Environmental Quality Act Guidelines; 2. ***RESOLUTION - Adopting the 23rd Amendment to the Annual Appropriation Resolution No. 2025-179 appropriating $2,770,200.00 for the Infill Infrastructure Grant Catalytic Downtown Water and Sewer Improvements Project (Requires 5 Affirmative Votes) (Subject to Mayor's Veto); 3. Award a construction contract in the amount of $23,550,277.49, for the Base Bid plus all four (4) Add Alternates, to Katch Environmental, Inc. dba Katch General of Fresno, California as the lowest responsive and responsible bidder for the Infill Infrastructure Grant Catalytic Downtown Water and Sewer Improvements Project. ..Body RECOMMENDATIONS Staff recommends City Council (1) adopt an Initial Study - Mitigated Negative Declaration (IS-MND) as prepared for SCH 2025100590 dated October 14, 2025 for the Infill Infrastructure Grant Catalytic (IIGC) Downtown Water and Sewer Improvements Project (Project) pursuant to the California Environmental Quality Act (CEQA) Guidelines, (2) adopt the 23rd Amendment to the Annual Appropriation Resolution (AAR) 2025-179 appropriating $2,770,200.00 for the IIGC Downtown Water and Sewer Improvements Project, (3) award a construction contract in the amount of $23,550,277.49 for the Base Bid plus all four (4) Add Alternates, to Katch Environmental, Inc. dba Katch General of Fresno, California, as the lowest responsive and responsible bidder for the 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 (CPD) seeks to award a water and sewer main replacement and services transfer construction contract to Katch Environmental, Inc. dba Katch General following a competitive bidding process which identified them as the lowest responsive and responsible bidder in the amount of $23,550,277.49 for the Base Bid plus all four Add Alternates. The Project will bring water and sewer facilities to current standards. The scope of work includes installation of 12-inch, 16-inch and 24-inch ductile iron water mains and installation of 10-inch and 12-inch sewer mains within the downtown area generally bound by State Routes 41, 180 and 99. The Project includes four (4) Add Alternates which provide the installation of additional 8-inch, 12-inch, and 16-inch ductile iron water main, as well as fire hydrants, water service transfers and 30-inch and 36-inch Cured-in-Place sewer main rehabilitation, 10-inch Cured-in-Place pipe liner with Vinyl Ester Resin and all associated appurtenances. Funding for this Project is provided by dollars received from the State of California via the Downtown Fresno Public Infrastructure Improvement Projects Grant and IIGC funds adopted in the Fiscal Year (FY) 26 budget. BACKGROUND In January 2025, the City began design of the Downtown Fresno IIGC Water and Sewer Improvements Project. The purpose of this Project is to identify and construct water and sewer improvements that would aid in the infill development and growth of Downtown Fresno. The improvements include approximately 13,000 linear feet of water pipelines, 3,400 linear feet of sewer lines and an additional 9,800 linear feet of sanitary sewer rehabilitation and 3,300 linear feet of water line in project Add Alternates. This project takes place within the downtown area, more specifically bound by Van Ness Avenue, Calaveras Avenue, F Street, and Mono Street with the addition of a large diameter sewer trunk rehabilitation extending to the south of the downtown area that parallels State Route 99 just past East Church Avenue. A Notice Inviting Bids was advertised and published on the City's website, Planet Bids, and the Business Journal on October 06, 2025. The Project plans and specifications were distributed to 18 prospective bidders and posted at three (3) Building Exchanges. Three (3) sealed bid proposals were received and publicly opened on November 18, 2025, with bids ranging from $23,550,277.49 to $36,744,031.00. Katch Environmental, Inc. dba Katch General submitted a bid in the amount of $23,550,277.49 and was determined to be the lowest responsive and responsible bidder. The bids are set to expire on January 16, 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. Katch Environmental, Inc. dba Katch General shall become signatory to the PLA by executing the Agreement To Be Bound. Staff recommends City Council adopt an IS-MND as prepared for SCH 2025100590 dated October 14, 2025, for the IIGC Downtown Water and Sewer Improvements Project pursuant to the CEQA Guidelines, adopt the 23rd Amendment to the Annual Appropriation Resolution No. 2025-179 appropriating $2,770,200.00 for the IIGC Downtown Water and Sewer Improvements Project, and award a construction contract in the amount of $23,550,277.49 to Katch Environmental, Inc. dba Katch General as the lowest responsive and responsible bidder for the Project, and authorize the Capital Projects Director or designee to sign and execute all documents on behalf of the City. The project is funded through dollars received from the State of California via the Downtown Fresno Public Infrastructure Improvement Projects Grant and IIGC funds adopted in the FY26 budget. The City Attorney's Office has reviewed and approved the contract documents as to form. ENVIRONMENTAL FINDINGS The environmental evaluation of the project area identified the potential impacts caused by Project implementation. The City was required to develop an IS-MND to fulfill CEQA requirements. The IS-MND identified several mitigation measures that would reduce the impact to surrounding environmental resources to less than significant. These mitigation measures, which are to be implemented during construction, include reduction of impacts to biological habitats and unanticipated underground historic resources, handling hazardous materials, and preservation of encountered cultural resources during construction. Due to the accelerated nature of the engineering design of the Project, the IS-MND was prepared in parallel with the design and is to be adopted by the City of Fresno for incorporation into the Project scope of work. It is apparent that with mitigation measures in place as planned, the proposed project will not cause significant impacts to surrounding environmental resources. Staff is therefore recommending that the City comply with CEQA by adopting this IS-MND and its supporting documentation to be incorporated into the Project. LOCAL PREFERENCE Katch Environmental, Inc. dba Katch General is a local business, as defined by the Fresno Municipal Code. FISCAL IMPACT This Project is located in Council District 3 and will have no impact to the General Fund. Funding for this Project was provided by dollars received from the State of California Downtown Fresno Public Infrastructure Improvement Projects Grant and IIGC funds adopted in the FY26 budget. Adoption of the attached 23rd Amendment to the AAR No. 2025-179 will fully fund the construction contract. Attachments: Initial Study Mitigated Negative Declaration 23rd Amendment to the Annual Appropriation Resolution No. 2025-179 Formal Procurement Evaluation Form Standardized Contract Vicinity Map Location Map