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 ISAAC CAMPOS, Project Manager Capital Projects Department, Design Services Division SUBJECT ..Title Actions pertaining to the Shaw Avenue Roadway Improvements from Fruit Avenue to Palm Avenue (Council Districts 1 and 2) 1. Adopt a finding of Categorical Exemption, pursuant to Section 15301, Existing Facilities (Class 1) of the California Environmental Quality Act Guidelines 2. ***RESOLUTION - Adopting the 3rd Amendment to the Annual Appropriations Resolution (AAR) No. 2026-159 to appropriate $1,448,000 for the Shaw Avenue Roadway Improvements from Fruit to Palm Avenues Project in the Public Works Department (Requires Five Affirmative Votes) (Subject to Mayor's Veto) 3. Award a Construction Contract in the amount of $1,636,501 to Cal Valley Construction, Inc. of Fresno, California - Bid File No. 12602350 ..Body RECOMMENDATIONS Staff recommends the City Council 1) adopt a finding of Categorical Exemption pursuant to Section 15301, Existing Facilities (Class 1) of the California Environmental Quality Act (CEQA) Guidelines; 2) adopt the 3rd Amendment to the Annual Appropriations Resolution (AAR) No. 2026-159 appropriating $1,448,000 for the Shaw Avenue Roadway Improvements from Fruit Avenue to Palm Avenue; and 3) award a Construction Contract to Cal Valley Construction, Inc. of Fresno, California in the amount of $1,636,501 as the lowest responsive and responsible bidder and authorize the Capital Projects Director or designee to sign the Construction Contract on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The City of Fresno has identified the need for a roadway restoration project along Shaw Avenue, between Fruit Avenue to approximately 950 feet east of Palm Avenue. The purpose of this project is to extend the lifespan of a heavily traveled arterial road through pavement rehabilitation. Improvements will include pavement restoration, curb ramp improvements, median nose adjustments, vehicle detection loop replacements, and updated signage and striping, all of which will enhance safety and promote multimodal connectivity for all users of this segment of Shaw Avenue. Approval of the Construction Contract, totaling $1,636,500 to Cal Valley Construction, Inc. of Fresno, California, will allow the construction phase of this project to commence. This project is funded federally through the Surface Transportation Block Grant and Senate Bill 1 (SB1) Road Maintenance and Rehabilitation Account funds. BACKGROUND The City of Fresno Public Works Department identified the need for pavement rehabilitation along Shaw Avenue, from Fruit Avenue to about 950 feet east of Palm Avenue, a total of approximately 3,600 feet (0.7 miles). In September 2021, the City applied for Surface Transportation Block Grant (STBG) funds to encompass the design and construction support services of the Shaw Avenue Roadway Improvements. Along with pavement restoration, this project also includes curb ramps improvements and median nose adjustments to bring the pedestrian infrastructure into compliance with Americans with Disabilities Act (ADA) compliance, reinstallation of vehicle detection loops, and updated roadway striping and signage. This project is federally funded by a grant through the STBG program and SB1 Road Maintenance and Rehabilitation Account (RMRA) funds. The engineering design phase commenced following the City Council's approval of a Consultant Services Agreement with BKF Engineers in November 2023. The right-of-way phase began in March 2024 with the authorization to proceed and City's approval of schematic design. The engineering design and right-of-way phases were completed in February 2026. Originally advertised on March 18, 2026, with bids opened on April 14, 2026, staff discovered that the Notice Inviting Bids contained a material error in the contractor license requirements during the bid evaluation process which rendered the bid specifications legally defective. The project was brought to Council on June 4, 2026, and at that hearing Council voted to reject all bids. Staff then corrected the issue, updated the bid package, and readvertised the project shortly afterward. The Notice Inviting Bids for the project's Construction Contract was published in the Fresno Business Journal and posted on the City's website on June 12, 2026. Five (5) sealed bid proposals were received and opened in the public bid opening on July 7, 2026, with bids ranging from $1,636,501 to $1,839,846. Cal Valley Construction, Inc. of Fresno, California is deemed the lowest responsive and responsible bidder. The bids will expire on September 9, 2026, sixty-four (64) days after the bid opening. If the bids are rejected or expire, the project will be rebid resulting in a delay of approximately three (3) months. The Community Workforce Agreement (PLA), adopted by City Council in September 2021, does not apply to this contract due to suspension of FHWA PLA approval in 2025. Staff recommends the City Council (1) adopt a finding of Categorical Exemption pursuant to Section 15301, Existing Facilities (Class 1) of the California Environmental Quality Act Guidelines and (2) adopt the 3rd Amendment to the Annual Appropriations resolution (AAR) No. 2026-159 appropriating $1,448,000 for the Shaw Avenue Roadway Improvements from Fruit Avenue to Palm Avenue and (3) award a Construction Contract for the Shaw Roadway Improvements from Fruit Avenue to Palm Avenue to Cal Valley Construction Inc. of Fresno, California in the amount of $1,636,501 as the lowest responsive and responsible bidder; and to authorize the Capital Projects Director or designee to sign and execute the contract on behalf of the City of Fresno. The City Attorney's Office has reviewed and approved the contract as to form. ENVIRONMENTAL FINDINGS Staff utilized an on call environmental consultant to perform an environmental assessment of this project and determined it falls within the Categorical Exemption set forth in CEQA Guidelines, Section 15301/Class 1 (Existing facilities), which exempts the repair and maintenance of existing facilities that involves negligible or no expansion of an existing use. The proposed project would be consistent with the provision of a Class 1 Categorical Exemption because it would be limited to the rehabilitation of existing pavement and replacement of failing segments of pavement to optimal conditions along an existing roadway segment in a developed portion of the City. The project would not increase the number of travel lanes or otherwise increase roadway capacity. Based on the environmental assessment, it was determined that no adverse environmental impacts would occur because the proposed project is exempt under Section 15301/Class 1 of the CEQA Guidelines and none of the exceptions to the Categorical Exemptions set forth in Section 15300.2 of the CEQA Guidelines apply. LOCAL PREFERENCE Local preference was not implemented for this project because this project is federally funded, which precludes local preference. FISCAL IMPACT The Shaw Avenue Roadway Improvements between Fruit Avenue and Palm Avenue is in City Council Districts 1 and 2. The project is federally funded with STBG grant funds. Required local match is being met by SB1 RMRA funds. This project will not impact the General Fund. Adoption of the attached AAR amendment resolution will appropriate the necessary funding to award the project in the current fiscal year. Attachments: Environmental Assessment No. PW01011 3rd Amendment to the Annual Appropriations Resolution (AAR) No. 2026-159 Procurement Evaluation Form for Product Purchase Bid File No. 12602350 Standardized Construction Contract Vicinity Map