REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: PAUL AMICO, PE, Assistant Director
Department of Public Utilities - Administration
JOSEPH DE GEORGE, PMP, Project Manager
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to Site Improvements for the Department of Public Utilities Operations and Maintenance Facility (Project) (Bid File 12500107) (Council District 3):
1. Adopt a finding of Categorical Exemption per staff’s determination, pursuant to Section 15302/Class 2 of the California Environmental Quality Act (CEQA) Guidelines for the Project;
2. ***RESOLUTION - Adopting the 58th Amendment to the Annual Appropriation Resolution No. 2024-122 to appropriate $2,625,700 for the Project (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto);
3. Award a construction contract to Avison Construction, Inc., of Madera, California, in the amount not to exceed $2,584,590.00.
Body
RECOMMENDATION
Staff recommends that City Council adopt a finding of Categorical Exemption per staff’s determination, pursuant to Section 15302/Class 2 of the California Environmental Quality Act (CEQA) Guidelines for the Site Improvements for the Department of Public Utilities Operations and Maintenance Facility (Project); adopt the 58th Amendment to the Annual Appropriation Resolution (AAR) No. 2024-122, appropriating $2,625,700.00 for the Site Improvements for the Department of Public Utilities Operations and Maintenance Facility; award a construction contract to Avison Construction, Inc., of Madera, California, in the amount of $2,584,590.00; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU) acquired the former Fresno Bee property in April 2021 as the site to consolidate the Administration, Utilities Planning & Engineering (UP&E), Water, and Solid Waste Management Divisions to a single location referred to as the DPU Operations and Maintenance Facility (Facility). The consolidation aims to reduce the ongoing costs of operating separate facilities for the different divisions and enhance intradepartmental collaboration. The Facility currently houses DPU’s Administration and UP&E Divisions, and the Solid Waste Management Division is scheduled to relocate to the Facility in 2025.
BACKGROUND
In April 2021, DPU purchased the former Fresno Bee property located at 1626 E Street. The 14.84-acre site includes a 295,227-square-foot industrial building. The facility was developed in phases beginning in 1968, with significant expansions in 1971 and 1991, and tenant improvements in the early 2000s. Since the acquisition, the site has been designated as the DPU Operations and Maintenance Facility.
DPU’s Administration and UP&E Divisions currently occupy a portion of the Facility. The Solid Waste Management Division and Water Division are currently located in two different locations: the Municipal Services Center at 2101 G Street and the Water Yard at 1910 E University Avenue. DPU is planning to consolidate these divisions with DPU Administration and UP&E at the Facility at some point in the future, and the Solid Waste Management Division will relocate from MSC to the site in 2025.
To support the ongoing transition of the Solid Waste Management Division to the site and to accommodate increased staffing, traffic, and equipment, critical site improvements are necessary. These include additional fencing, access control gates, landscaping, irrigation, concrete surface and structural work, and asphalt replacement and repair. These upgrades are essential to enhance site security, improve personnel safety, and ensure the protection of City assets. The site improvements are overdue, as no substantial renewal investments have been made since the last round of tenant improvements nearly two decades ago.
A Notice Inviting Bids was published on March 14, 2025, and posted on the City’s Planet Bids website. The Project plans and specifications were distributed to fifty-four (54) prospective bidders and posted at six (6) Building Exchanges. Six (6) sealed bid proposals were received and publicly opened on April 15, 2025. The bid proposals ranged from $2,584,590.00 to $3,353,017.80. Avison Construction, Inc., was determined to be the lowest responsive and responsible bidder with a submitted bid price in the amount of $2,584,590.00. The engineer’s estimate for the Project is in excess of $1 million, therefore, the Project Labor Agreement (PLA) is incorporated into the bid specifications. The bids will expire 64 days after bid opening, which will be on June 18, 2025.
The staff determination was posted on the City’s Planet Bids website on May 02, 2025. Staff recommends City Council award a construction contract to Avison Construction, Inc., in the amount of $2,584,590.00. Their bid price is 1.8 percent below the Engineer’s Estimate of 2,631,206.00.
The City Attorney’s Office has reviewed and approved all documents as to form.
ENVIRONMENTAL FINDINGS
Staff have performed an environmental assessment for the Project and have determined it is consistent with Categorical Exemption pursuant to Class 2, set forth in the CEQA Guidelines Sections 15302(c) (Replacement or Reconstruction), 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 as the structure replaced. Furthermore, none of the exceptions to Categorical Exemptions set for in the CEQA Guidelines Section 15300.2 apply to this Project.
LOCAL PREFERENCE
Avison Construction, Inc., is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
There is no impact on the General Fund. Approval of the amendment to the AAR will establish funds for this Project in the DPU Operations and Maintenance Budget Fund 5200-5253. This Project is in Council District 3.
Attachments:
Environmental Assessment
58th Amendment to the Annual Appropriation Resolution No. 2024-122
Bid Evaluation and Fiscal Impact Statement
Standardized Construction Contract
Vicinity Map