REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: ANTHONY WHITE, MBA, Assistant Director Department of Public Utilities - Water Division CHAD COLBY, Water/Wastewater Manager - Certified Department of Public Utilities - Water Division SUBJECT ..Title Actions pertaining to the Requirements Contract with Dawson-Mauldin, LLC., to Furnish and Install Permanent Asphalt Concrete Pavement Repairs (Bid File 12302384) (Citywide): 1. Approve an increase to the requirements contract to an annual amount not to exceed of $1,634,299.00; 2. Authorize an extension option to extend the requirements contract for an additional three years, with the total contract amount not to exceed $6,440,197.00. ..Body RECOMMENDATION Staff recommends that the City Council authorize the Manager of Purchasing, or designee, to exercise the remaining three one-year extensions of the requirements contract with Dawson-Mauldin LLC., increase the annual contract amount to $1,634,299.00, and establish a total not-to-exceed contract amount of $6,440,197.00 for the full potential four-year term of the contract for the furnishing and installation of permanent asphalt concrete pavement repairs throughout the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities - Water Division (Division) relies on external contractors to perform permanent asphalt concrete pavement repairs following underground water system maintenance and emergency repairs. These paving services are essential to restoring roadway integrity, ensuring public safety, and maintaining compliance with City standards. On September 14, 2023, the City Council awarded a one-year requirements contract to Dawson-Mauldin LLC. (Dawson) in the amount of $1,537,300, with provisions for up to three additional one-year extensions to continue these vital services. Due to increased field activity and a higher-than-anticipated volume of pavement restoration needs, staff recommends exercising the remaining three one-year extensions of the contract, increasing the annual contract amount to $1,634,299, and establishing a total not-to-exceed amount of $6,440,197 for the potential four-year term. The recommended action will ensure that the City can continue to meet the ongoing demand for permanent paving restorations without modifying the existing contract terms and conditions. BACKGROUND The Division is responsible for maintaining and repairing the City's underground water system. Utility repairs often require the removal of street pavement to access buried pipelines. Once the repair work is complete, City crews install a temporary patch to restore surface functionality. Permanent pavement restoration is then performed by an external contractor to ensure long-term roadway integrity and public safety. Timely and consistent restoration is essential to preserving the condition of City streets and protecting critical underground infrastructure. To support this work, the City issued a Notice Inviting Bids (NIB) on June 9, 2023. The project specifications, including Project Labor Agreement (PLA) provisions, were distributed to 12 prospective bidders and posted at nine regional building exchanges. On July 11, 2023, five sealed bids were received. Dawson-Mauldin LLC. was identified as the lowest responsive and responsible bidder, with a base bid of $1,537,300. On September 14, 2023, staff recommended that the City Council approve a one-year requirements contract with Dawson-Mauldin LLC., including provisions for up to three additional one-year extensions. The Council approved the contract as recommended. Staff recommends authorizing the remaining contract extensions and increasing the annual contract amount to $1,634,299 to meet the growing demand for permanent pavement restorations due to increased field activity. This action does not modify the original contract terms and conditions. The City Attorney's Office has reviewed the extension and approved it as to form. ENVIRONMENTAL FINDINGS On September 14, 2023, the City Council determined that this project - furnishing and installing permanent asphalt concrete pavement repairs - is exempt from the California Environmental Quality Act (CEQA) under Sections 15301(b) and (d), Class 1 (Existing Facilities), and 15302(c), Class 2 (Replacement and Reconstruction), of the CEQA Guidelines. The current action authorizes remaining contract extension options and increases the annual not-to-exceed amount. It does not change the scope or type of work previously approved. As such, no further CEQA review is required under CEQA Guidelines Section 15162, as there are no substantial changes proposed that would affect the original environmental determination. The previously approved CEQA Categorical Exemption has been included as CEQA Environmental Assessment. LOCAL PREFERENCE Local preference is not applicable as this is an approval of a cost increase and extension of an existing requirements contract. FISCAL IMPACT There is no impact on the General Fund. This is a citywide expenditure, and funding for this project is included in the Fiscal Year 2025 operating budget within the Water Division's Enterprise Fund 40101. Attachments: BF No.12302384 F&I RC Agreement Fully Executed CEQA Environmental Assessment.