REPORT TO THE CITY COUNCIL FROM: DENIX D. ANBIAH, 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 and Transportation Project Management Divisions ABDUL O. BINMAHFODH, Project Manager Capital Projects Department, Transportation Project Management Division SUBJECT ..Title Approve Contract Change Order No. 2 in the amount of $188,137.20, with no additional working days, for bid item overruns in Hot Mix Asphalt paving with Avison Construction, Incorporated, of Madera, California, for the Herndon Avenue Overlay from Valentine Avenue to Marks Avenue - Project ID PW01003 (Bid File 12500989) (Council District 2) ..Body RECOMMENDATION Staff recommends that the City Council approve Contract Change Order No. 2 with Avison Construction, Incorporated, of Madera, California, increasing the contract amount by $188,137.20 for a revised total of $1,228,398.20, with no additional working days. The change order addresses additional asphalt quantities necessary to complete the project, and authorizes the Capital Projects Department Director, or designee, to sign Contract Change Order No. 2 on behalf of the City of Fresno. EXECUTIVE SUMMARY On May 22, 2025, the City of Fresno (City) awarded a contract in the amount of $992,655 to Avison Construction, Incorporated for the Herndon Avenue Overlay project from Valentine Avenue to Marks Avenue. The project includes full-depth pavement reconstruction of a portion of the Eastbound travel lanes, with the remaining receiving a grind and overlay to restore roadway integrity and service life. Approval of Contract Change Order No. 2 in the amount of $188,137.20 is requested to compensate the contractor for additional Hot Mix Asphalt (HMA) paving. The increased cost is due to an underestimation of asphalt tonnage in the original bid documents that was not corrected during bidding nor communicated internally as the project progressed into construction. The unit price for HMA was established through competitive bidding and remains unchanged. This change order reflects only the cost of the additional tonnage required to complete the original scope of work. The total HMA quantity, including the amount covered by Contract Change Order No. 2, has been verified by the project engineer in their revised bid item estimate. The project is funded by the Surface Transportation Block Grant (STBG), with local match from SB1 Road Maintenance and Rehabilitation Account (RMRA) funds, as included in the FY2025 budget adopted by Council. BACKGROUND On May 22, 2025, a contract was awarded in the amount of $992,655 to Avison Construction, Incorporated for the Herndon Avenue Overlay from Valentine Avenue to Marks Avenue. The scope of work for this Project includes full-depth pavement reconstruction for a portion of the Eastbound travel lanes, with the remaining receiving a grind and overlay process to restore the integrity of the roadway within the project limits. Other work includes full restriping of the roadway, signage improvements, and reconstruction of existing curb ramps at three corners of the Marks Avenue intersection. The Notice to Proceed was issued with a start date of September 2, 2025, and a contract completion date of December 4, 2025. One prior change order totaling $47,606.00 was approved using contingency funds, bringing the revised contract total to $1,040,261.00. No additional working days were added. CCO # CCO Amount Days Added Approved by: Reason 1 $47,606 0 Staff Unforeseen conditions During paving operations, it was discovered through the collection of delivery tickets that the actual quantity of HMA exceeded the quantity listed in the bid documents due to a miscalculation in the original quantity estimates by the design consultant. This increase was provided to the City Project Manager; however it was not reflected in the RFB. This resulted in HMA paving bid item overruns and caught through the normal "balance of quantities" that occurs at the completion of a project. The unit price for HMA was established through competitive bidding and remains unchanged. This change order reflects only the cost of the additional tonnage required to complete the original scope of work. The total HMA quantity, including the amount covered by Contract Change Order No. 2, has been verified by the project engineer in their revised bid item estimate. City Council approval of Contract Change Order No. 2 for an additional $188,137.20 is required by Resolution 2017-158 which sets the approval thresholds for individual Contract Change Orders exceeding 1% of the contract amount or $100,000, or aggregate Contract Orders that exceed 10% of the original Contract amount. The amount of Contract Change Order No. 2 is $188,137.20, which when combined with previously approved change orders, is an aggregate total of 23.7% of the original Contract amount. This increase will result in a revised contract total of $1,228,398.20. No additional working days will be added by this Contract Change Order, the Contract Completion date remains December 4, 2025. This contract is subject to the Community Workforce Agreement (or Project Labor Agreement, PLA), adopted in September 2021. The Contractor of this project has become signatory to the PLA by executing the Agreement to Be Bound. Staff recommend that the City Council authorize the Capital Projects Department Director, or designee, to sign Contract Change Order No. 2 for the Herndon Avenue Overlay from Valentine Avenue to Marks Avenue Project on behalf of the City. ENVIRONMENTAL FINDINGS On May 22, 2025, Council adopted a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines. Staff analysis confirmed that no adverse environmental impacts would result, and none of the exceptions under Section 15300.2 apply. LOCAL PREFERENCE Local Preference is not applicable due to the Federal funding requirements. FISCAL IMPACT The Herndon Avenue Overlay from Valentine Avenue to Marks Avenue project is located in Council District 2. The project is funded by STBG funds, with a local match from SB1 RMRA funds. All necessary funds are included in the FY2026 budget adopted by Council. Change Order No. 2 will have no impact on the General Fund. Attachments: Executed Contract Bid Evaluation Contract Change Order No. 1 Contract Change Order No. 2 Vicinity Map