REPORT TO THE CITY COUNCIL FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Director-Capital Projects Department BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: FRANCISCO V. MAGOS II, PE, Assistant Director Capital Projects Department, Utilities and On-Site Project Management Division JOSE M. VALENZUELA, Project Manager Capital Projects Department, Utilities and On-Site Project Management Division SUBJECT ..Title Reject the bid received for the Fresno Northeast Surface Water Treatment Facility Polymer Batcher Equipment Replacement Project. (Bid File No. 12500793) (Council District 6) ..Body RECOMMENDATION Staff recommends that the City Council reject the bid proposal received for the Fresno Northeast Surface Water Treatment Facility (NESWTF) Polymer Batcher Equipment Replacement Project (Project) and direct staff to re-bid the Project. EXECUTIVE SUMMARY Staff recommends that the City Council reject the bid proposal received for the Project. The bid proposal received in the amount of $477,514.93 was thirty-three percent (33%) above the engineer's estimate for the Project. However, upon evaluation of the bids, the sole bidder was deemed non-responsive due to taking exceptions to the specification terms and conditions. Upon rejection of the bid received, staff will work with the Department of Public Utilities (DPU) to re-bid the Project. BACKGROUND The two polymer batching systems located in the chemical storage building at the NESWTF have been in operation since 2004. The existing polymer batching systems function to introduce dry polymer which initiates the flocculation chemical process in untreated water. The solids within the untreated water clump together to create a heavy solid/sludge and facilitate the removal of unwanted material. Water Treatment Plant personnel have identified the two polymer batchers as units needing replacement due to equipment age and frequency of repairs. The Notice Inviting Bids was advertised on Planet Bids and posted on the City's website on April 2, 2025. Five (5) building exchanges received the Notice Inviting Bids. The specifications were distributed to fourteen (14) prospective bidders, and one (1) sealed bid proposal was received and opened in a public bid opening on April 29, 2025. The sole bid submitted by UGSI Chemical Feed, Inc. in the amount of $477,514.93 was 33% above the engineer's estimate. Upon evaluation of the bid received, staff determined that the sole bidder was non-responsive due to exceptions taken. The vendor took exception to Section 46 36 33 of the technical specifications which identified performance testing requirements. Furthermore, the vendor submitted Terms and Conditions of Sale which did not conform to the requirements outlined in the specifications. Staff now recommends that the City Council reject the sole bid received for the Project and direct staff to re-bid the Project. The bid will expire on July 28, 2025. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines, Section 15378, the rejection of bids does not qualify as a "project" as defined by the CEQA requirements. LOCAL PREFERENCE Local preference was not considered as this is an action recommending the rejection of all bids. FISCAL IMPACT The Polymer Batcher Equipment Replacement Project is within Council District 6 and will have no impact to the General Fund. The Project was to be funded with Water Enterprise allocations adopted in the Fiscal Year 2025 Budget. Staff will work with DPU to identify funding in FY 2026. Attachments: Bid Evaluation Vicinity Map Location Map