REPORT TO THE CITY COUNCIL FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Director, Capital Projects Department PAUL AMICO, PE, Director Department of Public Utilities BY: CASSIE L. SCHOLZ, PE, Assistant Director Capital Projects Department, Utilities Project Management Division CHARLES MASTERS, Engineer II Capital Projects Department, Utilities Project Management Division SUBJECT ..Title Approve Contract Change Order No. 2 with Floyd Johnston Construction Co., Inc., in the amount of $1,669,659.62, increasing the total not to exceed of $6,883,047.62, with ninety-two (92) additional calendar days for Leaky Acres Groundwater Recharge Facility Improvement Project (Bid File 12601278) (Council District 4) ..Body RECOMMENDATION Staff recommends the City Council approve Contract Change Order No. 2 with Floyd Johnston Construction Co., Inc. in the amount of $1,669,659.62 with ninety-two (92) additional calendar days for the Leaky Acres Groundwater Recharge Facility Improvement Project (Project), and authorize the Capital Projects Department Director or designee to sign Contract Change Order No. 2 on behalf of the City of Fresno. EXECUTIVE SUMMARY On April 23, 2026, a Construction Contract was awarded in the amount $5,213,388.00 to Floyd Johnston Construction Co., Inc., for the Project to increase operational efficiency of the Leaky Acres Groundwater Recharge Facility (Facility). Due to receipt of additional State of California Department of Water Resources (DWR) Urban Community Drought Relief Grant funds for the Project, the Capital Projects Department seeks approval of Contract Change Order No. 2. This includes four (4) additive alternates for a total increase of $1,669,659.62 and time extension of 92 calendar days, for a revised contract total of $6,883,047.62 and 197 total calendar days. BACKGROUND On April 23, 2026, a Construction Contract was awarded in the amount $5,213,388.00 to Floyd Johnston Construction Co., Inc., for the Project to replace the intake structure, regrade the basins, and install new distribution pipelines and turnout structures to increase operational efficiency of the Facility. The bid package was advertised as a base bid with six (6) additive alternates. The original Contract award included the base bid and one (1) additive alternate in the total amount of $5,213,388.00, and five (5) additive alternates were omitted. Due to recent restructuring of the funds provided by the DWR's Urban Community Drought Relief Grant Agreement, four (4) additional additive alternates can now be constructed within the Project's budget. The Contractor's Notice to Proceed was issued with a start date of June 8, 2026, and a Contract completion date of November 1, 2026. On August 6, 2026, Contract Change Order No. 1 was approved by the Capital Projects Director to update insurance and indemnification requirements as required by the State, with no change to time or compensation. Contract Change Order No. 2 adds additional scope contained within four (4) additive alternates that will improve the facility including (1) New pipeline, turnout structures and grading for the North Basins, (2) New slide gate to the North Basin inlet standpipe, (3) Additional grading for Basins 14 and 15, and (4) Removal of six inches of soil from the serpentine basin floors. This Contract Change Order adds $1,669,659.62 and ninety-two (92) additional calendar days to the Contract to account for the additional scope. City Council approval of Contract Change Order No. 2 is required by Resolution 2017-158, which sets approval thresholds for individual Contract Change Orders based on both compensation and time. City Council approval is required for Contract Change Orders which exceed 1% of the total Contract price or $100,000.00, whichever is greater; and multiple change orders, which aggregate more than 10% of the original Contract amount or $100,000.00 whichever is greater. Council approval is also required when individual Contract Time extensions aggregated with time increases under previous Change Orders equal up to thirty (30) days or 20 percent (20%) of the total time allowed under the Contract, whichever is greater. Contract Change Order No. 2 is $1,669,659.62, which is 32% of the original Contract amount. This increase will result in a revised total Contract amount of $6,883,047.62. There will be ninety-two (92) additional calendar days added to the Contract time by Contract Change Order No. 2, which is 88% of the original Contract time. With no weather days, and no suspension days, the resulting revised Contract completion date is February 1, 2027. Previous Contract Change Orders are summarized in the table below. CCO # CCO Amount Additional Days Approved By: Reason Scope Change 1 $0 0 Capital Projects Director Regulatory or Code Requirements No This Contract is subject to the Community Workforce Agreement, adopted by City Council in September 2021. The Contractor has become signatory to the Community Workforce Agreement by executing the Agreement to be Bound. ENVIRONMENTAL FINDINGS Staff has reviewed the scope and nature of this Project and determined that it is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301/Class 1 (Existing Facilities) and Section 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. These exemptions apply because the improvements to the Project serve the existing purpose of the facility, and do not provide any expansion of existing use. The Project does not have the potential to have an adverse effect on the environment and will be compliant with CEQA �15300.2. A Categorical Exemption was adopted on April 23, 2026 (Action Item File ID 26-393). LOCAL PREFERENCE Local Preference was not implemented as this is a change order to an existing contract. FISCAL IMPACT The proposed Project is in Council District 4. The Project is funded by a DWR Urban Community Drought Relief Grant. Any overage not covered by the grant may be paid from the Water Enterprise Fund. This project has no impact to the General Fund. Attachments: Contract Change Order No. 2 Contract Change Order No. 1 Construction Contract - Floyd Johnston Construction Co., Inc. Vicinity Map Location Map