Council approves nearly $3 million change order for downtown work after discovery of underground tank
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Summary
Council approved a contested-consent change order increasing a downtown infrastructure contract by nearly $3 million to cover additional concrete, paving and removal of an unanticipated underground tank; staff said the accelerated timeline to spend state funding reduced time for subsurface investigations.
The Fresno City Council on Jan. 15 approved a change order that raised the scope and cost of a downtown capital project by roughly $3 million after crews discovered unanticipated subsurface conditions, including a large underground tank.
Council Member Richardson asked staff to explain the sudden cost increase and whether the city should have anticipated the condition. Francisco Magos of the capital projects department said that during construction crews found unexpected concrete and asphalt sections and a large tank within Congo Alley; those discoveries required additional excavation and pavement restoration to ensure a structurally sound roadway.
City Manager and project staff told the council the work had been rushed to move state‑awarded downtown funds quickly: the city received an initial tranche of state funding and was directed to show early progress so additional payments would follow. That accelerated procurement and shortened design windows limited the city’s ability to perform more extensive subsurface investigations before construction, increasing the likelihood of change orders when unknown conditions appeared.
The council approved the change order after discussion, recording a favorable vote on the project item. City staff said lessons from this contract are being applied to subsequent downtown projects to reduce the risk of similar change orders.
Context: The mayor and city manager have previously described a multi‑hundred‑million dollar downtown funding package (a state commitment of $250 million, with $100 million accelerated into the city’s budget and additional grants reported), which created urgency to advance early projects in the downtown core.
What’s next: Staff said it will apply lessons learned to future bids and consider more robust subsurface investigation where feasible; council members asked staff to continue reporting on scope and change orders for large downtown investments.
