REPORT TO THE CITY COUNCIL
FROM: PAUL AMICO, PE, Director
Department of Public Utilities
BY: JOSEPH DE GEORGE, PMP, Project Manager
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Cancellation of the Construction Contract between the City of Fresno and Avison Construction, Inc., of Madera, California, in the amount of $2,584,590 for the Site Improvements for the Department of Public Utilities Operations and Maintenance Facility (Bid File 12500107) (Council District 3).
Body
RECOMMENDATION
Staff recommends that the City Council cancel the Construction Contract between the City of Fresno (City) and Avison Construction, Inc. (Avison), of Madera, California in the amount of $2,584,590 for the Site Improvements for the Department of Public Utilities (DPU) Operations and Maintenance Facility (Facility) located on the former Fresno Bee property located at 1626 E Street.
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU) acquired the former Fresno Bee property at 1626 E Street with the goal of consolidating the Water, Solid Waste, and Administration Divisions into a single location. The pavement was significantly deteriorated in large portions of the parking lot, security fencing needed to be upgraded, and other site improvements were needed to update the site for use. Following a competitive bidding process, City Council awarded a construction contract for these improvements to Avison Construction, Inc. for $2,584,590 on May 22, 2025. Before work began, the Facility's central air conditioning system suffered a catastrophic failure, and it cannot be cost-effectively replaced. Staff recommends terminating the contract with Avison under City of Fresno Standard Specifications Section 6-6 while the options for future site use are evaluated.
BACKGROUND
In April 2021, DPU purchased the former Fresno Bee property at 1626 E Street, a 14.84-acre site with a 295,227-square-foot industrial building. The Facility was intende...
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