City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01502 8/30/2022 Consent Item 15.
Suspension of Competitive Bidding Rio City Café Deck Repair Project (B18119000) (Two- Thirds Vote Required)
File ID: 2022-01502
Location: 1100 Front Street, District 4
Recommendation: Pass a Motion: 1) suspending competitive bidding in the best interest of the City, as set forth in this report; and 2) approving the use of the Request for Proposal (RFP) project delivery method for the Rio City Café Deck Repair (B18119000).
Contact: Nguyen Tran, Associate Mechanical Engineer, (916) 808-4970, [email protected]; Mark C. Brown, Supervising Engineer, (916) 808-7118, [email protected], Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-Background
Description/Analysis
Issue Detail: In 2019, the Facilities and Real Property Management division of the Department of Public Works conducted a field study to follow up on complaints of deck damage raised by the restaurant owner at Rio City Café. The purpose of the study was to evaluate and develop a narrative to determine the feasibility of deck replacement at the Café located at 1100 Front Street in Old Sacramento. Based on the report summary, it is recommended to have a new deck installed utilizing wood timber and structural steel. The purpose of the request for suspending competitive bidding is due to the specialized expertise required for this project. This project will require expertise in structural engineering, work over a marine environment, and coordination with many state and local jurisdictions.
If construction funding can be secured, work could begin on site in May 2024 with completion by November 2024.
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File ID: 2022-01502 8/30/2022 Consent Item 15.
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Chapter 3.60.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): The action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301. Required maintenance and rehabilitation of existing serviceable deck and structure and part of existing building with no expansion of existing use.
Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: Suspending competitive bidding is recommended as being in the best interests of the City to allow the use of a qualified contractor to deliver this project. This project delivery method has proven to be successful in delivering complex construction projects.
The request for suspension of competitive bidding and use of a qualified Contractor would address the following critical issues of the Project:
1. Retaining a qualified contractor with knowledge and experience in constructing cantilevered structural elements in keeping with Life Safety parameters required by City.
2. Minimizing the amount of Change Orders due to lack of familiarity with a complex project.
Financial Considerations: There is sufficient funding in the Joes Crabshack Repair Program (B18119000) to fund the project through its current phase. Additional funding will be needed to complete construction. This effort will help define the construction costs.
Local Business Enterprise (LBE): Not applicable.
Background:
Rio City Café is located in the Old Sacramento Waterfront Historic District. The city owns the building and leases it to Riverwalk Ventures LLC. The building sits partially on land and partially over the Sacramento River. The wood framed deck sits over the river and is constructed of wood framing on top of piles.
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File ID: 2022-01502 8/30/2022 Consent Item 15.
Rio City Café was constructed in approximately 1986. In 1993 an agreement with Waterfront Management Inc. (CC93-098) was made in which Waterfront Management Inc. would perform substantial capital improvements to turn the space into a restaurant. Per Section 6.b.2 of the agreement the city is responsible for maintenance and repair of the substructure of the deck. More than 3 decades of exposure to moisture and other elements have compromised the wooden sub structure which now requires replacement.
In 2016 Agreement 1993-0098-1 reassigned the lease from Waterfront Management Inc. to Riverwalk Ventures LLC.
In November of 2019 the City was notified of a concern regarding the northwest side of the deck (below a storage area). The city restricted access to that area and engaged the city’s current on-call consulting firm Lionakis to perform an evaluation of the deck. An initial site visit identified a section of the deck as a potential hazard. Subsequent site visits confirmed varying states of dry rot and other structural issues not only with that northwest side but throughout the deck system. At the recommendation of Lionakis the City enforced a reduced capacity plan for the deck which significantly limited the capacity of the deck.
In 2020 Lionakis’ scope was expanded to evaluate the deck, provide an engineering report, and develop a Schematic Design (SD) and cost estimate. Based on the 2020 report and SD, the estimated construction cost was $1,629,855, however the city expects the cost to be closer to $3 million.
Lionakis continues to monitor the deck periodically and to evaluate if further restrictions are required for occupant safety.
Construction Estimate
There is an approximate balance of $487,806 in the Joes Crabshack Repair Program (B18119000). A construction estimate of $1,629,855 was prepared by the consultants, however the estimate did not account for reconstruction of the deck over the Sacramento River, which will have a significant impact on total cost. A qualified contractor is required to provide a complete cost estimate.
Even without a final cost estimate, the city knows that a river barge with a crane will most likely be required. In addition, there are significant environmental protections and precautions required so nothing falls in the river during construction. This is a very specialized type of construction that comes with a significant premium due to the complexity and working conditions. With the current construction climate, we also anticipate increased costs due to labor shortages, increased material, and equipment costs as well as supply line delays.
All these factors contribute to the construction estimate of $3,000,000.
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File ID: 2022-01502 8/30/2022 Consent Item 15.
Alternatives to Construction
Further degradation of the deck could render the deck structurally unfit for occupation, potentially resulting in an injury or deck failure, resulting in a significant environmental and cleanup effort.
If the City does not correct the deficiencies, Riverwalk Ventures LLC shall be entitled to a reduction in rent based on losses reasonably incurred because of the inability to use the building.
If Rio City Café is willing to continue to operate at its current location a lease amendment would be required with a substantially reduction in rent of about 65% due to the loss of the outdoor deck amenity. A potential loss of about $117,000 of rent annually in addition to a loss for Rio City Café of about $2,766,000 a year in sales.
If Rio City Café cannot operate without the deck, then the overall loss to the city would be about $180,000 annually in rent and roughly $4,240,000 in economic benefit to the city with the loss of Rio City Café as tenant in this location.
This does not take in account the additional indirect economic loss to the parking garages, foot traffic to Old Sacramento, in addition to having an abandoned building on the waterfront.
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