City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01250 10/24/2023 Consent Item 3.
Contract: Construction Change Order and Budgetary Adjustments: Del Rio Trail Project (K15165100) [Published for 10-Day Review 10/12/2023]
File ID: 2023-01250
Location: District 5, Represented by Councilmember Maple and District 7, Represented by Councilmember Jennings
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to transfer $800,000 from the Transportation Development Impact Fee (Fund 3215) available fund balance to the expenditure budget of the Del Rio Trail Project (K15165100); 2) authorizing the City Manager or the City Manager’sdesignee to execute Change Order No. 4 to City Agreement No. 2022-1216 with Mountain Methods, Inc. (MMI), for an amount not to exceed $1,035,047, bringing the agreement’stotal not-to-exceed amount to $13,240,034; and 3) resetting the City Manager’s authority to issue Change Orders for City Agreement No. 2022-1216.
Contact: Adam Randolph, Senior Engineer, (916) 808-7803, [email protected]; Judy Matsui-Drury, Supervising Engineer, (916) 808-7610, [email protected]; Ofelia Avalos, Engineering Manager, (916) 808-5054, [email protected], Department of Public Works
Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
3-Change Order No. 4
Description/Analysis
Issue Detail: The Del Rio Trail Project (“Project”)is a multi-use trail currently under construction that runs from the Sacramento River Parkway by Riverside Boulevard, near William Land Park to an existing multi-use trail at Freeport Boulevard near the Sacramento Water Tower. The City approved the Environmental Impact Report (EIR) and preliminary design of the project on March 26, 2019 (Resolution No. 2019-0095).
The City approved the tree removal and replacement plans for the project on April 19, 2022, (Resolution No. 2022-0111). Replacement trees are planned to be planted by the Sacramento Tree
File ID: 2023-01250 10/24/2023 Consent Item 3.
(Resolution No. 2022-0111). Replacement trees are planned to be planted by the Sacramento Tree Foundation, acknowledging that a separate construction contract for the irrigation system would be needed for tree establishment.
The City advertised a contract for the trail construction called a “BaseBid”and included an Optional Bid Alternative item for tree irrigation that could be additionally awarded should favorable bids be received. The low bidder was determined based on the “Base Bid” for trail construction. When bids were opened, the average price among bidders for irrigation work was roughly $1,000,000. However, the lowest overall bidder, Mountain Methods, Inc. (MMI) had an irrigation item bid price of $4,523,000. The City awarded the Base Bid construction contract to MMI on November 15, 2022 (Resolution No. 2022-0347). The Optional Bid Alternative for irrigation work was not awarded as part of that contract.
City staff negotiated the price of the bid alternative work with MMI, who identified a local subcontractor acceptable to the City to perform the irrigation work for $1,035,047 (roughly equivalent to the original average bid price and within 3% of the engineer’s estimate). Staff recommends executing a construction change order with MMI for the bid alternative at the negotiated price. This approach maintains contract efficiencies under one contract and reduces contract administration.
The transfer of Transportation Development Impact Fee funds is needed to complete the irrigation work for this project.
Policy Considerations: The Del Rio Trail Project is consistent with the City General Plan goals and key policies of promoting safety and enhancing livability, sustainability, and economic vitality. The project promotes the development of a connected network (General Plan ERC 2.1.2), connections to other trails (General Plan ERC 2.4.3), providing multi-modal choices (General Plan M 1.2.1), and providing a continuous bikeway network (General Plan M 5.1.3). The project is consistent with the Mobility Element to create a well-connected transportation network through integration of recreation and community facilities with other public spaces and rights-of-way that includes Regional Transit facilities and service points. The project is a near-term goal for the bikeway implementation plan.
The Sacramento City Code Section 3.60.210 limits the Authority of the City Manager to execute change orders up to 6% of the original contract price. In addition, any single change order that increases the contract amount by more than $250,000 requires City Council approval.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on October 12, 2023, in compliance with the City Code.
Economic Impacts: This new infrastructure is expected to create 4.14 total jobs (2.38 direct jobs and 1.76 jobs through indirect and induced actives) and create $639,074 in total economic output
File ID: 2023-01250 10/24/2023 Consent Item 3.
and 1.76 jobs through indirect and induced actives) and create $639,074 in total economic output ($402,813 of direct output and another $236,261 of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
Environmental Considerations:
California Environmental Quality Act (CEQA): The City approved an Environmental Impact Report for the Del Rio Trail Project in compliance with CEQA on March 26, 2019.
National Environmental Policy Act (NEPA): Caltrans is the lead agency for NEPA on this project and approved a Categorical Exclusion in compliance with NEPA on October 25, 2019.
Sustainability: This Project is consistent with the City’s General Plan Climate Action Plan policies and programs to support active transportation connections.
Commission/Committee Action: The Project was presented as an information item to the Sacramento City/County Bicycle Advisory Committee on March 17, 2017, and to the Active Transportation Commission (ATC) on November 6, 2018. The Project was presented to the Disabilities Advisory Commission (DAC) to receive and provide feedback on July 27, 2022.
No actions resulted from these presentations.
Rationale for Recommendation: The Project will provide communities in south Sacramento, including South Land Park, Freeport Manor, Z’bergPark, Land Park, Meadowview and Pocket an Americans with Disabilities Act (ADA)-compliant path to downtown Sacramento. This fills a large gap in the City’sactive transportation network, decreasing multiple communities’automotive dependency and vehicle miles traveled for trips to schools, retail, jobs, and recreational amenities.
The Project will:
· Advance and complete the planned connection between the Sacramento River Parkway and the Freeport Shores Bikeway in accordance with the City of Sacramento Bikeway Master Plan utilizing public right-of-way and public agency parcels; · Connect logical origins and destinations proximate to the trail alignment by improving pedestrian and bicycle access throughout the South Land Park, Freeport Manor, Z’berg
File ID: 2023-01250 10/24/2023 Consent Item 3.
pedestrian and bicycle access throughout the South Land Park, Freeport Manor, Z’berg Park, Land Park, Meadowview, and Pocket communities; and · Provide an ADA-compliant, active transportation connection to adjacent communities throughout the south Sacramento area for pedestrians and bicyclists of all ages and abilities to access schools, retail, jobs, and recreational amenities.
The City will plant over 800 new trees with the Project. To ensure the survival of these trees, an irrigation system must be constructed. Change Order No. 4 will allow the contractor to install the needed irrigation system at a competitive, negotiated cost.
Because Change Order No. 4 is a is a reasonable cost and there are additional cost savings in not having to administer a separate construction contract, staff recommends that the Change Order No. 4 be executed with MMI.
Financial Considerations: The estimated total cost to complete design, right-of-way, and construction support for the Del Rio Trail Project (K15165100) is approximately $23 million, including the costs for the irrigation installation. With the transfer of $800,000 from the Transportation Development Impact Fee (Fund 3215) available fund balance, there will be sufficient funding to award Change Order No. 4 to MMI for an amount not to exceed $1,035,047 and cover the remaining construction management and other project related costs.
There is sufficient funding within the Transportation Development Impact Fee (Fund 3215) available fund balance to support the transfer to the Del Rio Trail Project (K15165100) in the amount of $800,000.
Local Business Enterprise (LBE): The contract with MMI is a federally funded contract and as a result Disadvantaged Business Enterprise (DBE) project participation requirements apply. The City’s LBE policy is held in abeyance. MMI is a DBE, Native American owned business. They are self- performing over 33% of the work for the Base Bid contract, exceeding the DBE goal of 24%.
RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
October 24, 2023
CONSTRUCTION CHANGE ORDER AND BUDGETARY ADJUSTMENTS: DEL RIO TRAIL PROJECT (K15165100)
BACKGROUND
A. The Del Rio Trail Project (“Project”) is a planned multi -use trail that will run from the Sacramento River Parkway by Riverside Boulevard, near William Land Park to an existing multi-use trail at Freeport Boulevard near the Sacramento Water Tower. The City approved the Environmental Impact Report (EIR) and preliminary design of the project on March 26, 2019 (Resolution No. 2019-0095).
B. The City approved the tree removal and replacement plans for the project on April 19, 2022 (Resolution No. 2022-0111). Replacement trees are planned to be planted by the Sacramento Tree Foundati on, but a separate construction contract for the irrigation system is needed for tree establishment.
C. The City advertised a contract for the trail construction called a “Base Bid” and included an Optional Bid Alternative item for tree irrigation that could be additionally awarded should favorable bids be received. The low bidder was determined based on the “Base Bid” for trail construction. When bids were opened, the average price among bidders for irrigation work was roughly $1,000,000. However, the lowest overall bidder, Mountain Methods, Inc. (MMI) had an irrigation item bid price of $4,523,000. The City awarded the Base Bid construction contract to MMI on November 15, 202 2 (Resolution No. 2022 - 0347). The Optional Bid Alternative for irrigation work was not awarded as part of th e original contract.
D. City staff negotiated the price of the bid alternative work with MMI, who identified a local subcontractor acceptable to the City to perform the irrigation work for $1,035,047 (roughly equivalent to the original average bid price and within 3% of the engineer’s estimate ).
Staff recommends executing a construction change order with MMI for the bid alternative at the negotiated price.
E. The transfer of Transportation Development Impact Fee funds is needed to complete the irrigation work for this project.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to transfer $800,00 from the Transportation Development Im pact Fee (Fund 3215) available fund balance to the expenditure budget of the Del Rio Trail Project (K15165100)
Section 2. The City Manager or the City Manager’s designee is authorized to execute Change Order No. 4 to City Agreement No. 2022-1216 with Mountain Methods, Inc. (MMI), for an amount not to exceed $1,0 35,047, bringing the agreement’s total not -to- exceed amount to $13,240,034.
Section 3. The City Manager’s authority to issue Change Orders for City Agreement No. 2022-1216 is reset.