REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANIBIAH, 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
GUSTAVO RANGEL, Project Manager
Capital Projects Department, Transportation Project Management Division
SUBJECT
Title
Award a Construction Contract in the amount of $1,337,601.00 to Agee Construction Corporation, of Fresno, California for the Merced Street Reconnection Rebid Project (Bid File No. 12601347) (Council District 3)
Body
RECOMMENDATION
Staff recommends the City Council award a Construction Contract to Agee Construction Corporation, of Fresno, California, in the amount of $1,337,601.00, as the lowest responsive and responsible bidder, for Merced Street Reconnection Rebid Project and authorize the Capital Projects Director or designee to sign the Construction Contract on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The City of Fresno seeks to award a Construction Contract for the construction of the Merced Street Reconnection Project. This project will re-establish a previously existing segment of Merced Street, between H Street and Congo Alley and extend Broadway Street from its current terminus, in front of Masten Towers, to intersect with the proposed Merced Street reconnection. The Construction Contract is funded by Measure C Transit Oriented Development Grant (TOD) with local match through Measure C Flexible Funds. This project will have no impact to the General Fund.
BACKGROUND
In October of 2018, the City of Fresno (City) adopted the Downtown Specific Plans which identifies the need for the Merced Street Reconnection Project (Project). The Project will construct and reestablish an approximate 600-foot segment of Merced Street, between H Street and Congo Alley. In addition, a 230-foot northerly extension of Broadway Street will carry traffic through to the Merced Street extension from its current terminus at the Broadway Street connector roadway (280-feet north of Fresno Street), intersecting with the Merced Street extension. These segments of Merced Street and Broadway Street previously existed as evidenced by the existing street right-of-way for both streets. On May 26, 2022, City Council approved an agreement for professional engineering services with Provost & Pritchard Consulting Group for $132,070 with a $10,000 contingency for design and construction support services. The design phase commenced in July 2022 following approval of the Consultant Services Agreement with Provost & Pritchard Consulting Group. Topographic survey, project management, and preparation of the construction documents took approximately 30 months to complete.
On December 7, 2023, Council passed a Resolution dedicating Accessor Parcel Numbers 466-206-31T, and 466-206-29T City-owned property for public street purposes to accommodate the construction of the Merced Street Reconnection Project.
During the design phase, City staff identified an adjacent crosswalk that needed to be incorporated into the project, necessitating additional scope of work including restriping, curb ramps, and removal of existing ramps. The First Amendment to the Consultant Agreement was executed on September 26, 2024, in the amount of $4,200, utilizing existing contingency funds for a total contract amount of $136,270 with a remaining contingency of $5,800.
On June 12, 2025 Council awarded a Construction Contract to Fortis General Construction, Incorporated, of Atwater, California for the Merced Street Reconnection Project as ID 25-754. Despite numerous attempts by city staff to work with Fortis General Construction to obtain the required insurance and compliance documents needed to issue the Notice to Proceed, including extending deadlines two times for a total of 95 days, it was determined that the contractor was unwilling or unable to perform the scope of work for which they were selected. On September 23, 2025, a letter of Notice of Award Withdrawal was sent to Fortis General Construction for failure to provide said documents and at the December 14, 2025, Council hearing, Council voted to reject all bids and directed staff to rebid the project.
The Second Amendment to the Consultant Agreement was executed on December 19, 2025, in the amount of $3,610, utilizing existing contingency funds for a total contract amount of $139,880 with a remaining contingency of $2,190 to incorporate design features necessary to integrate the project with the adjacent Parking Structure Project at Parking Lot 2.
The Third Amendment to the Consultant Agreement was executed on March 25, 2026, in the amount of $2,190 utilizing the remaining contingency, increasing the total contract amount to $142,070, to further integrate the proposed Broadway Reconnection Project the adjacent Parking Structure Project at Parking Lot 2.
After revising the plans and specifications to better coordinate the Project with the parking structure, the Merced Street Reconnection Rebid Project was advertised and a Notice Inviting Bids was published in the Business Journal on April 10, 2026, and posted on the City’s website. Eight (8) sealed bid proposals were received and opened in the public bid opening on May 12, 2026, with bids ranging from $1,328,509.43 to $1,748,560.81. After implementing local preference, Agee Construction Corporation, of Fresno, CA, was determined to be the lowest responsive and responsible bidder. The bids will expire on July 15, 2026, sixty-four (64) days after the bid opening. If the bids are rejected or expire, the project will be rebid, resulting in additional project costs and a delay of approximately 90 days.
Staff recommends awarding a Construction Contract to Agee Construction Corporation, of Fresno, CA, in the amount of $1,337,601.00 to construct the Merced Street Reconnection Rebid Project, as the lowest responsive and responsible bidder, and authorize the Capital Projects Director or designee to sign and execute the standardized contract on behalf of the City of Fresno.
This 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 Construction Contract as to form.
ENVIRONMENTAL FINDINGS
This Project was determined to be Categorically Exempt under Section 15302/Class II of the California Environmental Quality Act Guidelines, which was previously adopted by City Council on December 7, 2023, as agenda item ID 23-1665.
LOCAL PREFERENCE
Section 4-108(d) of the Fresno Municipal Code requires the City to apply a 5% local preference when evaluating competitive bids. Agee Construction Corporation qualifies as a local business under this provision; therefore, the 5% local preference was applied, resulting in Agee Construction Corporation being identified as the lowest responsive and responsible bidder.
FISCAL IMPACT
The Merced Street Reconnection Project is located in Council District 3. The overall cost of the project is $1,979,741. The project is grant funded with a grant through Measure “C” Transit Oriented Development (TOD) Sub-Program. Required local match is funded by ABX8 Gas Tax and local Measure “C” Flexible Spending funding. Of the overall budget of the project, $1,337,601 will be used for the Construction Contract award. The project will have no impact to the General Fund.
Attachments:
Standardized Contract
Procurement Evaluation Form
Vicinity Map
Location Map