REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Construction Management Division
KELLY YOST, PE, Construction Manager
Capital Projects Department, Construction Management Division
SUBJECT
Title
Approve Contract Change Order No. 1 in the amount of $136,415.00, with no additional working days for work required outside of the original scope on Cesar Chavez Blvd with Cal Valley Construction, of Fresno, California for the City of Fresno Pave Now - Bid Package A Project - Project ID CP00017. (Bid File 12600087) (Council Districts 1, 2, 3, 4, 5, 6, and 7)
Body
RECOMMENDATION
Staff recommends that the City Council approve Contract Change Order No. 1 with Cal Valley Construction, of Fresno, California which increases the contract amount by $136,415.00, for a revised contract total of $5,859,614.00, for work required outside of the original scope on Cesar Chavez Blvd but deemed necessary to avoid cutting into a newly paved roadway, and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 1 on behalf of the City of Fresno.
EXECUTIVE SUMMARY
On August 28, 2025, a contract was awarded in the amount of $5,723,199.00 with Cal Valley Construction, of Fresno, California to 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.
City Council Approval of Contract Change Order No. 1 in the amount of $136,415.00, with no additional working days, is necessary to compensate Cal Valley Construction, for work required outside of the original scope but deemed necessary. Added work provides for demolition of existing curb and gutter, sidewalk, curb ramps, portion of valley gutter, and portions of asphalt roadway along with construction of new concrete curb and gutter, concrete curb ramps, asphalt sidewalk and asphalt plug paving. Approval of this proposed Contract Change Order will allow for the descoping of work originally included in the Ventura Avenue Transit-Oriented Development (TOD) Affordable Housing Street Improvement Project (PW01068) and including it in the scope for the Pave Now project to avoid cutting into the newly paved portions of Cesar Chavez Blvd. This change order will be funded by existing local funds previously appropriated under the Ventura TOD Street Improvement Project and will result in a revised contract total of $5,859,614.00.
BACKGROUND
On August 28, 2025, a contract was awarded in the amount of $5,723,199.00 to 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. The Notice to Proceed was issued with a starting date of September 22, 2025, and contract completion date of June 10, 2026. Ther have been zero (0) prior Change Orders approved to date.
City Council approval of Contract Change Order No. 1 for an additional $136,415.00 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 $100,000.00 or aggregate Contract Orders that exceed 10% of the original Contract amount. The amount of Contract Change Order No. 1 is $136,415.00, which is an aggregate total of 2.4% of the original Contract amount. This increase will result in a revised contract total of $5,859,614.00. There will be no additional working days added to the contract time by this Contract Change Order resulting in a contract completion date of June 10, 2026.
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 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 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. The change order of $136,415 will be funded by Bicycle and Pedestrian local funding.
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). All funds necessary for the $136,415.00 contract change order are included in Public Works’ FY26 budget under the Ventura TOD Street Improvement Project. The contract change order will have no impact to the General Fund and will result in no additional costs for the Pave More Now program.
Attachments:
Construction Contract - Cal Valley Construction
Contract Change Order No. 1
Vicinity Map