REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
JENNIFER K. CLARK, AICP, Director
Planning and Development Department
BY: FRANCISCO V. MAGOS II, PE, Assistant Director
Capital Projects Department, On-Site Project Management Division
KELLY YOST, PE, Construction Manager
Capital Projects Department, Construction Management Division
SUBJECT
Title
Approve Contract Change Order No. 03 with Katch Environmental Incorporated dba Katch General of Fresno, California in the amount of $83,886.57 increasing the total contract amount to $3,892,302.81 with 26 additional working days for the Garage 9 Renovation Project. (Bid File 12500982) (Council District 3)
Body
RECOMMENDATION
Staff recommends that City Council approve Contract Change Order No. 03 with Katch Environmental Incorporated dba Katch General of Fresno, California in the amount of $83,886.57 with twenty-six (26) additional working days to allow for completion of changes for the Garage 9 Renovation Project (Project), and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 03 on behalf of the City of Fresno.
EXECUTIVE SUMMARY
On January 09, 2025, a Contract was awarded in the amount of $3,462,279.00 to Katch Environmental Incorporated dba Katch General of Fresno, California for the Garage 9 Renovation Project. Council approved Contract Change Order No. 01 for $203,438.20, raising the contract total to $3,665,717.20. Subsequently, CCO No. 02 was executed for $142,699.04, resulting in a revised contract total of $3,808,416.24.
City Council approval of Contract Change Order No. 03, in the amount of $83,886.57, is recommended to support the continued progress of the Project. This change includes twenty-six (26) additional working days, which will allow for the completion of the necessary improvements and ensure the project remains on track for successful delivery. This increase will result in a revised contract total of $3,892,302.81. The Contract Change Order will be funded using Fiscal Year 2026 General Funds appropriated through the Planning Department.
BACKGROUND
On January 09, 2025, a Contract was awarded in the amount of $3,462,279.00 to Katch Environmental Inc. for the Garage 9 Renovation Project. The Notice to Proceed was issued on August 4, 2025. The original construction contract included upgrading the existing site to a “move-in-ready” building space that will accommodate offices, cubicles, reception area, conference room, staff lounge, storage, and restrooms. The project site shall be used to relocate the staff from Community Development, Housing Production, Housing Finance, Homeless Assistance Response Team (HART), and Homeless Divisions within the Planning and Development Department.
On August 28, 2025, a Contract Change Order No. 01 was approved by Council in the amount of $203,438.20. This contract change reflects an internal design modification resulting from the expansion of the restrooms, which have been reconfigured from unisex to separate facilities on the first floor to better accommodate staff needs. As a result of this expansion, the janitorial room was relocated, and the existing mechanical room was reduced in size to allow for the necessary layout adjustments. City Council approval of Contract Change Order No. 01 for an additional $203,438.20 was required by Resolution 2017-158, which sets the approval threshold for individual Contract Change Orders up to one percent (1%) of the total Contract Price. The amount of Contract Change Order No. 01 was $203,438.20, which was 5.9% of the original Contract amount.
On April 15, 2026, a Contract Change Order No. 02 with Katch Environmental Incorporated dba Katch General was executed in the amount of $142,699.04. This contract change addressed modifications stemming from unforeseen site conditions, design discrepancy and design modifications requested by Client Department.
This Contract Change Order will provide funding needed to complete the necessary improvements including up-sizing the water line from 1.5-inches to 2-inches with a new booster pump, adding a Merced Street entrance concrete ramp, polished and sealed flooring, and adding code-required light control. Additionally, unforeseen field conditions required exploratory work to resolve existing HVAC damper issues. Finally, City-requested modifications are incorporated, including adding acoustic tiles in the janitor’s room and first-floor conference room, installing plumbing and electrical infrastructure for a second-floor mini-fridge and ice maker, and relocating security cameras per Information Services Department (ISD) recommendations.
City Council approval of Contract Change Order No. 03 for an additional $83,886.57 is required by Resolution 2017-158, which sets the approval thresholds for individual Contract Change Orders which exceed 1% of the total contract price or $100,000 or aggregate Contract Change Orders that exceed 10% of the original Contract amount. The aggregate Contract Change Order is $430,023.81, which is 12.42% of the original Contract amount. This increase will result in a revised total contract amount of $3,892,302.81. There will be twenty-six (26) additional working days added to the contract time by this Contract Change Order. The Contract Change Order will be funded using Fiscal Year 2026 General Funds appropriated through the Planning Department.
|
CCO # |
CCO Amount |
Additional Days |
Approved By: |
Reason |
Scope Change |
|
1 |
$203,438.20 |
14 |
Council |
Owner Directed Changes |
Yes |
|
2 |
$142,699.04 |
10 |
City Manager’s Office |
Design Errors and Omissions; Owner Directed Changes; Unforeseen Conditions |
Yes |
This contract is subject to the Community Workforce Agreement, adopted by City Council in September 2021. The Contractor has become signatory to the Community Workforce Agreement by executing the Agreement To Be Bound.
Staff recommends that the City Council authorize the Capital Projects Department Director, or designee, to sign Contract Change Order No. 03 for the Garage 9 Renovation Project on behalf of the City of Fresno.
ENVIRONMENTAL FINDINGS
On January 09, 2025, the Council adopted a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the CEQA Guidelines. Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this Project.
LOCAL PREFERENCE
Local preference does not apply to this action because this is a Contract Change Order to an existing Construction Contract.
FISCAL IMPACT
Garage 9 is located in City Council District 3. Contract Change Order No. 3 is funded with Fiscal Year 2026 General Funds appropriated through the Planning Department.
Attachments:
Construction Contract - Katch Environmental Inc. dba Katch General
Contract Change Order No. 01
Contract Change Order No. 02
Contract Change Order No. 03
Vicinity Map
Location Map