REPORT TO THE CITY COUNCIL FROM: DENIX D. ANBIAH, PE, Director Capital Projects Department JENNIFER K. CLARK, AICP, Director Planning and Development Department BY: ANTONIO BUELNA, PE, Assistant Director Capital Projects Department, Administration Division KELLY YOST, PE, Construction Manager Capital Projects Department, Construction Management Division SUBJECT ..Title Approve Contract Change Order No. 01 with Katch Environmental Incorporated dba Katch General of Fresno, California in the amount of $203,438.20 with fourteen additional working days for the Garage 9 Renovation Project - Project ID HG00020. (Bid File 12500982) (Council District 3) ..Body RECOMMENDATION Staff recommends that the City Council approve Contract Change Order No. 01 with Katch Environmental Incorporated dba Katch General of Fresno, California in the amount of $203,438.20, with fourteen (14) additional working days to allow for completion of Architectural, Mechanical, Plumbing, and Electrical design changes for the Garage 9 Renovation Project, and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 01 on behalf of the City of Fresno. EXECUTIVE SUMMARY On January 09, 2025, a Contract was awarded in the amount of $3,462,279.00 to Katch Environmental Incorporated dba Katch General of Fresno, California for the Garage 9 Renovation Project, to upgrade the existing site to a "move-in-ready" building space that will accommodate offices, cubicles, reception area, conference room, staff lounge, storage, and restrooms. City Council approval of Contract Change Order No. 01 in the amount of $203,438.20, with fourteen (14) additional working days, will allow for work related to Architectural, Mechanical, Plumbing, and Electrical design changes. Approval of this proposed Contract Change Order will allow the project to move forward and provide the necessary improvements required for project completion. This increase will result in a revised contract total of $3,665,717.20. The Contract Change Order will be funded using Fiscal Year 2026 appropriations from revenue generated through the City's Homekey development projects. BACKGROUND On January 09, 2025, a Contract was awarded in the amount of $3,462,279.00 to Katch Environmental Inc. for the Garage 9 Renovation Project. The Notice to Proceed was issued on August 4, 2025. There have been no previous Contract Change Orders and no additional contract working days approved to date. The original construction contract included upgrading the existing site to a "move-in-ready" building space that will accommodate offices, cubicles, reception area, conference room, staff lounge, storage, and restrooms. The project site shall be used to relocate the staff from Community Development, Housing Production, Housing Finance, Homeless Assistance Response Team (HART), and Homeless Divisions within the Planning and Development Department. This contract change order reflects an internal design modification requested by the client department, resulting from the expansion of the restrooms, which have been reconfigured from unisex to separate facilities on the first floor to better accommodate staff needs. As a result of this expansion, the janitorial room will be relocated, and the existing mechanical room will be reduced in size to allow for the necessary layout adjustments. City Council approval of Contract Change Order No. 01 for an additional $203,438.20 is required by Resolution 2017-158, which sets the approval threshold for individual Contract Change Orders up to one percent (1%) of the total Contract Price. The amount of Contract Change Order No. 01 is $203,438.20, which is 5.9% of the original Contract amount. This increase will result in a revised contract total of $3,665,717.20. There will be fourteen (14) additional working days added to the contract time by this Contract Change Order. 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. Staff recommends that the City Council authorize the Capital Projects Department Director, or designee, to sign Contract Change Order No. 01 for the Garage 9 Renovation Project on behalf of the City of Fresno. ENVIRONMENTAL FINDINGS On January 09, 2025, the Council adopted a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the CEQA Guidelines. Staff has 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 was not implemented because of federal funding through the American Rescue Plan Act (ARPA). In addition to ARPA, the original contract was funded with Fiscal Year 2025 appropriations from revenue generated through the City's Homekey Development projects. FISCAL IMPACT Garage 9 is located in City Council District 3 and will have no impact to the General Fund. Contract Change Order No. 1 is funded with Fiscal Year 2026 appropriations from revenue generated through the City's Homekey Development projects. Attachments: Construction Contract - Katch Environmental Inc. dba Katch General Contract Change Order No. 01 Vicinity Map