REPORT TO THE CITY COUNCIL FROM: NICOLAS D. MASCIA, PE, 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 GARINE KENDOYAN, Project Manager Capital Projects Department, Design Services Division SUBJECT ..Title Approve Contract Change Order No. 1 with Avison Construction, Inc. of Madera, California in the amount of $951,860, with a not to exceed amount of $5,960,857.00, for the Blackstone Smart Mobility Project from State Route 180 to Pine Avenue Project Bid File No. 12601094 (Council Districts 1, 3, and 7) ..Body RECOMMENDATIONS Staff recommends that the City Council approve Contract Change Order No. 1 (CCO No. 1) with Avison Construction, Inc. of Madera, California (Contractor) in the amount of $951,860 for the Blackstone Smart Mobility Project from State Route 180 to Pine Avenue, which provides additional compensation to the Contractor to procure and furnish pedestrian-scale lighting and street lighting materials, and authorize the Capital Project Director or designee to sign CCO No. 1 on behalf of the City of Fresno. EXECUTIVE SUMMARY On February 26, 2026, a Construction Contract (Contract) was awarded in the amount of $5,008,997 to Avison Construction, Inc. of Madera, California (Contractor) for the Blackstone Smart Mobility Project from State Route 180 to Pine Avenue (Project) to construct Class IV protected bikeways, raised median islands, sidewalks, ADA-compliant curb ramps, elevated Bus Rapid Transit platforms, landscaping, and pedestrian-scale and street lighting improvements. City Council approval of Contract Change Order No. 1 (CCO No. 1), in the amount of $951,860, is recommended to allow the Contractor to procure and furnish the pedestrian-scale lighting and street lighting materials required for the Project. CCO No.1 is necessary because the product purchase contract for pedestrian-scale light and street lighting materials that was awarded to AI Construction, LLC, of Fresno, California (Vendor) at the February 26, 2026, Council hearing cannot be fulfilled by the Vendor, requiring the Contractor to assume responsibility for procurement of these materials. CCO No.1 will increase the Contract's total compensation from $5,008,997 to $5,960,857. Cancellation of the previously awarded procurement contract is in process. The Vendor is aware of the city's intent to cancel the contract. This project is fully funded by the Measure C Transit Oriented Development program and the Regional Early Action Planning (REAP) Grant. BACKGROUND The Southern Blackstone Avenue Smart Mobility Strategy was adopted by the Fresno City Council on May 2, 2019, and established a community-driven vision to transform the corridor from State Route 180 to Pine Avenue into a human-scale, multimodal space that supports pedestrian, bicycle, and transit mobility. This phase of the strategy includes a road diet on Blackstone Avenue and Abby Street, construction of Class IV protected bikeways with raised median islands, sidewalks, ADA-compliant curb ramps, elevated BRT platforms, landscaping, and pedestrian-scale lighting. To expedite procurement of long-lead street and pedestrian lighting materials, the Capital Projects Department (CPD) bid these items separate from the Construction Contract. On December 15, 2025, the Notice Inviting Bids for the Project's pedestrian-scale lighting and street lighting materials product purchase contract was posted on the City's website. AI Construction, LLC, of Fresno, California (Vendor) was deemed the lowest responsive and responsible bidder, and on February 26, 2026, City Council awarded the product purchase contract in the amount of $578,794.87 to the Vendor. On February 26, 2026, the City Council also awarded the Construction Contract for the Project to Avison Construction, Inc. of Madera, California (Contractor) in the amount of $5,008,997, as the lowest responsive and responsible bidder. The Contractor's Notice to Proceed (NTP) was issued with a start date of June 8, 2026, and the Project's completion is anticipated in October 2026. Following award of the lighting materials contract, the Vendor repeatedly made submittals that were rejected because they did not satisfy the required criteria. Because timely submittal reviews and approvals are essential to ordering materials within the lead times needed to support the Project's construction schedule, the City issued Notice of Termination for the product purchase contract with the Vendor and make procurement of these materials the responsibility of the Contractor. CPD staff submitted a request for proposal to the Contractor for the lighting materials and the proposal received is the basis for Contract Change Order No. 1 (CCO No. 1), in the amount of $951,860. The elevated cost for the materials from the Contractor's proposal versus that of the Vendor is due, in part, to the expedited nature of this request. City Council approval of CCO No. 1 is required under Resolution 2017-158. This resolution mandates Council approval for any individual Contract Change Order that exceeds 1% of the total contract price or $100,000, as well as for the cumulative total of Contract Change Orders that exceeds 10% of the original contract amount. It also requires approval for contract time extensions greater than 30 days. CCO No. 1 totals $951,860, which is approximately 19% of the original contract amount. With this change, the revised Construction Contract total will be $5,960,857 and the total construction cost will increase by $373,065.13, a 6.7% increase. No additional working days are included in this Contract Change Order. Staff recommends that the City Council authorize the Capital Projects Director, or designee, to sign CCO No.1 for the Blackstone Smart Mobility Project from State Route 180 to Pine Avenue on behalf of the City of Fresno. ENVIRONMENTAL FINDINGS On February 26, 2026, as part of the contract award, the Council adopted a finding of Categorical Exemption per staff's determination pursuant to Sections 15301/Class 1 (Existing Facilities) of the CEQA Guidelines. Furthermore, staff previously determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference does not apply to this action because this is a Contract Change Order to an existing Construction Contract. FISCAL IMPACT The Project is within Council Districts 1, 3, and 7. The Project is fully funded by the Measure C Transit Oriented Development (TOD) program and Regional Early Action Planning (REAP) Grant. Approval of CCO No.1 will have no impact on the General Fund and is included in the current fiscal year budget as previously adopted by the Council. Attachments: Contract Change Order No.1 Executed Construction Contract - Avison Construction, Inc. Vicinity Map