REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: Scott p. sehm, PE, Assistant Director
Capital Projects Department, Design Services Division
VICTOR VALDEZ, PE, Licensed Professional Engineer
Capital Projects Department, Design Services Division
SUBJECT
Title
Actions pertaining to the City of Fresno Pave More Now - Bid Package A Project (Bid File No. 12600087) at various locations (Citywide):
1. Adopt Environmental Assessment No. CP00017, dated August 19, 2025, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines, Sections 15301/Class 1 and 15302/Class 2;
2. Award a Construction Contract in the amount of $5,723,199 to Cal Valley Construction, Inc. of Fresno, CA, as the lowest responsive and responsible bidder for pavement construction relating to the City of Fresno “Pave More Now” - Bid Package A Project (Bid File No. 12600087).
Body
RECOMMENDATIONS
Staff recommends the City Council (1) adopt Environmental Assessment No. CP00017, dated August 19, 2025, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines Sections 15301/Class 1 and 15302/Class 2, (2) Award a construction contract in the amount of $5,723,199 to Cal Valley Construction, Inc. of Fresno, CA, as part of the City of Fresno “Pave More Now” - Bid Package A Project (Bid File No. 12600087), and authorize the Capital Projects Director or designee to sign on behalf of the City of Fresno.
EXECUTIVE SUMMARY
As part of the City of Fresno’s bond-funded “Pave More Now” roadway improvement program, the first project grouping, Bid Package A (Project), will rehabilitate the pavement in seven (7) separate project areas, which include segments of Shields Avenue, Shaw Avenue, a portion of the McKinley-Palm-Olive-Fruit neighborhood, McKinley Avenue, Cesar Chavez Boulevard, First Street, and portions of Los Angeles, Cherry and Fulton Street near Downtown Fresno. Restorative pavement work will include grind and overlay of the asphaltic concrete roadway to extend the service life of the pavement. Other work includes replacement of roadway striping to match existing, installation of advance stop bars and replacement of traffic signal loops at affected signalized intersections, and adjustment of water valves and manhole lids to match proposed pavement grades. These project areas are similar in scope and combining them into a single bid package provides economy of scale and streamlines the process of designing, bidding, and awarding the contract.
Staff recommends Council award a construction contract to Cal Valley Construction, Inc. of Fresno, CA, in the amount of $5,723,199 as part of the City of Fresno “Pave More Now” - Bid Package A Project along various location areas in all seven Council districts.
The Project will be funded through a $100 million bond initiative (Fresno City Council Resolution No. 25-700). There is no impact to the General Fund.
BACKGROUND
The Department of Public Works maintains 1,832 miles of streets throughout the City of Fresno. As pavements age beyond their service life and fail, they require repaving. The streets included in Bid Package A of the “Pave More Now” program (Project) are a combination of various local neighborhood streets, one collector and five arterial streets in seven (7) separate areas. These seven areas are located along Shields Avenue (Fruit Avenue to Palm Avenue), Shaw Avenue (Blythe Avenue to Valentine Avenue), streets within the southeast quadrant of the McKinley-Palm-Olive-Fruit neighborhood, McKinley Avenue (Peach Avenue to Clovis Avenue), Cesar Chavez Boulevard (Orange Avenue to Cedar Avenue), First Street (Sierra Avenue to Bullard Avenue), and the South Downtown area (Los Angeles Street, Butler Avenue, Cherry Avenue and Fulton Street). These project areas are located throughout Fresno and are spread across all seven Council districts.
The Project scope of work includes grind and overlay of the asphaltic concrete roadway to extend the service life of the pavement. Other work includes replacement of roadway striping to match existing, installation of advance stop bars and replacement of traffic signal loops at affected signalized intersections, and adjustment of water valves and manhole lids to match proposed pavement grades.
The roadway improvements were designed and specifications prepared by the Capital Projects Department (CPD) for the Department of Public Works; the preliminary engineering phase took approximately three months to complete. No additional right-of-way was required for this project.
Staff prepared a Notice Inviting Bids, which was published in the Fresno Business Journal on July 16, 2025, and posted on the City’s Website. Project specifications were distributed to thirty (30) prospective bidders. Eight (8) sealed bid proposals were received and opened in a public bid opening on August 12, 2025, with bids ranging from $5,723,199 to $8,465,338. Cal Valley Construction, Inc. of Fresno, CA, with their bid of $5,723,199 was determined to be the lowest responsive and responsible bidder. The expiration date of the bids is October 15, 2025. If bids are rejected or expired the project must be rebid with will result in a delay of approximately 90 days.
The total project cost is $7,905,783, including soft costs, and is fully funded (reimbursed) through repayment as authorized by Council resolution from the $100 million “Pave More Now” bond initiative (City of Fresno, Resolution 25-700) that will be brought to a future Council hearing for approval by the Finance Department.
Staff recommends the City Council adopt Environmental Assessment No. CP00017, dated August 19, 2025, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15301/Class1 and Section 15302/Class2, award a construction contract in the amount of $5,723,199 to Cal Valley Construction, Inc. of Fresno, CA, as part of the City of Fresno Pave Now - Bid Package A Project (Citywide), and authorize the Capital Projects Director or designee to sign on behalf of the City of Fresno.
The Contract is covered by the Community Workforce Agreement (PLA), adopted by Council in September 2021. The Contractor shall become signatory to the PLA by executing the Agreement To Be Bound.
The City Attorney’s Office has reviewed and approved the standardized Contract and CEQA determination as to form.
ENVIRONMENTAL FINDINGS
Staff performed a preliminary environmental assessment of this project and determined it falls within the Categorical Exemption set forth in CEQA Guidelines, Section 15301/Class 1 (Minor alteration to existing facilities), which exempts the repair and maintenance of existing facilities that involves negligible or no expansion of an existing use, and Section 15302/Class 2 (Replacement or reconstruction of existing structures and facilities), which exempts the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity.
The proposed project is consistent with Class 1 and Class 2 exemptions because the project is proposing to make improvements to existing roadways by repairing and replacing existing asphalt pavement, reinstalling signage and striping, replacing traffic signal loops, and adjusting water valves and manhole covers to grade. The proposed improvements are minor, do not constitute an expansion of use, and will improve the public right-of-way without increasing capacity because the only changes to the roadway will be repairs to the existing facilities. The proposed project involves negligible expansion of the existing use, will have substantially the same purpose and capacity and will be located on the same site as the facilities being replaced.
The proposed project complies with all conditions described in Sections 15301/Class 1 and 15302/Class 2 of the California CEQA Guidelines. Based on staff analysis, it was determined that no adverse environmental impacts would occur as a result of the proposed project and none of the exemptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project. Therefore, a categorical exemption, as noted above, has been prepared for the project.
LOCAL PREFERENCE
Local preference was applicable per the project specifications but did not change the outcome of the bid as the lowest responsive and responsible bidder is a local business as defined by the Fresno Municipal Code.
FISCAL IMPACT
The Pave More Now projects are fully funded through the FY2026 budget previously adopted by the Council. In accordance with Resolution No. 2025-700, the City will utilize bond proceeds to reimburse project costs incurred prior to the issuance of the bonds. The first project grouping, Bid Package A (Project), is located in Council Districts 1, 2, 3, 4, 5, 6, and 7. The overall cost of this project is $7,905,783 and is fully funded through a $100 million bond initiative (City of Fresno, Resolution 25-700). Of the overall budget, $5,723,199 will be allocated for the construction contract award and all funds necessary for the contract award are included in Public Works’ FY26 budget. The project will have no impact to the general fund.
Attachments:
Environmental Assessment No. CP00017
Standardized Construction Contract
Formal Procurement Evaluation Form
Vicinity Map