REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim 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 $1,216,898.25 to Fortis General Construction, Incorporated, of Atwater, California for the Merced Street Reconnection Project (Bid File No. 12501885) (Council District 3)
Body
RECOMMENDATION
Staff recommends the City Council award a construction contract to Fortis General Construction, Incorporated, of Atwater, California, in the amount of $1,216,898.25 as the lowest responsive and responsible bidder for the Merced Street Reconnection 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 at the northerly corner of Masten Towers to intersect with the proposed Merced Street reconnection providing improved traffic circulation and access to Hotel Fresno. The construction contract is funded by the Measure C Transit Oriented Development Grant (TOD) with local match from 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 proposed 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 adopted a Resolution dedicating Accessor Parcel Numbers 466-206-31T and 466-206-29T, both City-owned properties, 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 was omitted from the original scope but was determined as beneficial to the Project. This additional scope, including restriping, curb ramps, and removal of existing ramps, was incorporated into Consultant’s scope of work. 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.
The Notice Inviting Bids was published in the Business Journal on April 1, 2025, and posted on the City’s website. Six (6) sealed bid proposals were received and opened in the public bid opening on May 6, 2025, with bids ranging from $1,216,898.25 to $1,807,817.15. Fortis General Construction, Incorporated, of Atwater, CA is deemed the lowest responsive and responsible bidder. The bids will expire sixty-four (64) days after the bid opening, on July 9, 2025. If the bids are rejected or expire, the project will be rebid, resulting in a delay of approximately 90 days.
Staff recommends award of the construction contract to Fortis General Construction, Incorporated, of Atwater, CA, in the amount of $1,216,898.25 to construct the Merced Street Reconnection 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
Local Preference was considered with this project’s bid evaluation but did not affect the outcome.
FISCAL IMPACT
The Merced Street Reconnection project is located in Council District 3. The overall cost of the project is $1,846,968 and is funded by a Measure C Transit Oriented Development Grant (TOD) with required local match funding by Measure C Flexible funding. Of the overall budget, $1,216,898.25 will be allocated for award of the construction contract. All funds necessary for the contract award are included in this fiscal year approved budget, as previously adopted by the Council.
Attachments:
Bid Evaluation
Fiscal Impact Statement
Standardized Contract
First Amendment to Consultant Agreement
Agreement Consultant Services
Vicinity Map