City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00698 5/21/2024 Consent Item 11.
Budgetary Adjustments and Contract Award: Dixieanne Neighborhood Clean and Green Alleys (T15235100) [Published for 10-Day Review 05/09/2024]
File ID: 2024-00698
Location: District 2, Represented by Councilmember Thao Recommendation: Adopt a Resolution: 1) approving the Plans and Specifications for Dixieanne Neighborhood Clean and Green Alleys (T15235100); 2) authorizing the City Manager or the City Manager’s designee to increase the expenditure budget for Dixieanne Neighborhood Clean and Green Alleys (T15235100) by transferring $500,000 (General Fund, Fund 1001) from the State and Federal Grant Match Project (T15007200); 3) awarding the construction contract for the Dixieanne Neighborhood Clean and Green Alleys (T15235100) to McGuire and Hester, in an amount not to exceed $3,729,492; and 4) authorizing the City Manager or the City Manager’s designee to execute the construction contract for the Dixieanne Neighborhood Clean and Green Alleys (T15235100).
Contact: Stephanie Saiz, Assistant Civil Engineer, (916) 808-6808, [email protected]; Philip Vulliet, Senior Engineer, (916) 808-5092, [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-Project Plans
4-Construction Contract - Dixieanne Neighborhood Clean and Green Alleys - McGuire and Hester Description/Analysis
Issue Detail: The Dixieanne neighborhood ranks among the most economically challenged communities in the state, with a California Healthy Places Index in the 2nd percentile. To Address concerns about illegal dumping and criminal activity, the City has approved temporary closures with gates for many alleys in the area. In a pilot initiative, the City secured a Clean California grant to repurpose these neglected alleys into spaces that support active transportation and enhance
File ID: 2024-00698 5/21/2024 Consent Item 11.
community aesthetics. However, existing drainage poses challenges, particularly when rain causes sheet flows from the unpaved compact dirt alleys.
The purpose of this project is: 1) to remove the debris that has accumulated in the neighborhood alleys and deter future dumping and littering; 2) to educate the community regarding the proper reporting of illegal dumping activity; 3) to improve and beautify the alleys with permeable interlocking pavers and new and repaired fences; 4) to provide low-impact stormwater management through the installation of permeable interlocking pavers; 5) to provide additional shade to the alleys through the planting of trees in private yards; and 6) to enhance the corridors with public art to encourage outdoor activity, community pride, and engagement.
The Dixieanne Neighborhood Clean and Green Alleys Project (T15235100) was advertised on February 6, 2024, and one bid was received on February 28, 2024, for $4,199,910. The bid was substantially higher than expected at 14% over the Engineer’s Estimate of $3,704,000.
Due to the costs exceeding the available budget for the project, the bid was rejected by the City Council on April 9, 2024 (Motion 2024-0088), and negotiations with McGuire and Hester were initiated. Through a series of meetings and discussions with McGuire and Hester and the City design team, the project material and construction requirements were adjusted to ensure the goals of the project are met while also delivering a project that is economically viable for the City.
Policy Considerations: The project supports the following General Plan policy: M 1.16 - Barrier Removal for Accessibility: The City shall remove barriers, where feasible, to allow people of all abilities to move freely and efficiently throughout the city.
The Sacramento City Code Section 4.04.020 and the City 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 City Council action. This item was published for 10-day review on May 9, 2024, in compliance with the City Code.
The Sacramento City Code Section 3.60.160 provides that, in the event of City Council rejecting all bids on a construction contract, the requirement of competitive bidding process has been satisfied and staff can directly negotiate for the services proposed in the subject bid.
Economic Impacts: This new infrastructure is expected to create 14.92 total jobs (8.58 direct jobs and 6.34 jobs through indirect and induced actives) and create $2,302,719 in total economic output ($1,451,421 of direct output and another $851,298 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
File ID: 2024-00698 5/21/2024 Consent Item 11.
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 of Sacramento Environmental Planning Services reviewed this project and determined that it is exempt from the provisions of CEQA under Class 1, Section 15301 which consists of the operation, repair, maintenance, or minor alteration of existing public or private structures or facilities involving negligible or no expansion of existing or former use and Class 2, Section 15302 which consists of the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structured replaced.
Sustainability: The recommended action supports City Council’s sustainability priorities. This project intends to reduce waste and debris in public spaces and to support actions to mitigate the urban heat island effect. The project will help advance climate resiliency and support safe and active transportation.
Commission/Committee Action: The project was presented to the Active Transportation Commission (ATC) on February 15, 2024, for review and comment. The ATC supported the project.
Rationale for Recommendation: Only one bid was received for the project. The bid amount of $4,199,910 was substantially higher than the budgeted estimate. City staff performed outreach to the contractors to determine whether there were specific issues with the bid requirements or other factors which may have caused the bid pricing to exceed the project budget. Responses received indicated that the project working conditions necessitate more extensive mobilization and resources to secure the construction area requiring more time and costs to meet the schedule. Rejecting the bid and entering into negotiations to revise the amount of working days would yield a more suitable project cost.
The project design team reviewed the recommendations from the contractor and held several meetings to discuss construction requirements which could reduce construction pricing to a level within the project budget. Through this coordination effort, the project design team was able to revise the contract scope and requirements to achieve an agreed upon contract scope and cost that meet the project goals and needs while also adhering to the established project budget. City Council approval is required to award the contract and move forward with construction.
Financial Considerations: The estimated project total cost of the Dixieanne Neighborhood Clean and Green Alleys (T15235100) is approximately $5.8 million. With the transfer of $500,000 (General
File ID: 2024-00698 5/21/2024 Consent Item 11.
Fund, Fund 1001) from the State and Federal Grant Match Project (T15007200), there will be sufficient funding to cover expenses to deliver the project and award the construction contract to McGuire and Hester, for an amount not to exceed $3,729,492.
Work in alleys is not eligible for most transportation funds as it does not meet roadway standards. As a result, all local funds on this project have been General Fund, unlike most transportation projects that rely on local transportation funds.
Local Business Enterprise (LBE): McGuire and Hester met the 5% LBE participation goal by utilizing local subcontractors, John Padilla Trucking for 3.6% and Anrak Corporation for 1.5% LBE utilization.
Version Dated 10/16/19
RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
Budgetary Adjustments and Contract Award: Dixieanne Neighborhood Clean and Green Alleys (T15235100) [Published for 10-Day Review, 05/XX/2024]
BACKGROUND
A. The Dixieanne Neighborhood Clean and Green Alleys (T15235100) received Clean California Local Grant Program funds from Caltrans. The Clean California Local Grant Program has the following goals which include: reducing the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces; enhancing, rehabilitating, restoring, or installing measures to beautify and improve public spaces and mitigate the urban heat island effect; enhancing public health, cultural connection, and community placemaking by improving public spaces for walking and recreation; and advancing equity for underserved communities.
B. The Dixieanne Neighborhood Clean and Green Alleys (T15235100) will clean and beautify at least 3,000 linear feet of public right-of-way of residential alleys in the community of North Sacramento with permeable interlocking pavers, fencing repairs, shade trees, and public art to enhance the neighborhood and to encourage community gathering and active transportation. While the primary function of alleys throughout Sacramento is to provide access to the rear of properties, the low volume of traffic and narrow widths allow alleys to also function as safe, low-stress corridors for pedestrians, bicyclists, and even casual play.
C. The Plans and Specifications for the Dixieanne Neighborhood Clean and Green Alleys (T151235100) were completed.
D. The project was advertised for construction, and only one bid was received on February 28, 2024, for $4,199,910. The bid was substantially higher than expected at 14% over the Engineer’s Estimate of $3,704,000. Due to the costs exceeding the available budget for the Project, the bid was rejected by the City Council on April 9, 2024 (Motion 2024-0088), and negotiations with McGuire and Hester were initiated.
Through a series of meetings and discussions with McGuire and Hester and the City design team, the project material and construction requirements were adjusted to ensure the goals of the project are met while also delivering a project that is economically viable for the City. The City Council approval is required to award the contract.
Version Dated 10/16/19
E. The project has received state grant funds through the Caltrans-Clean California Local Grant Program. The estimated total project cost of the Dixieanne Neighborhood Clean and Green Alleys (T15235100) is approximately $5.8 million. With the transfer of $500,000 (General Fund, Fund 1001) from the State and Federal Grant Match Project (T15007200), there will be sufficient funding to cover expenses to deliver the project and award the construction contract to McGuire and Hester, for an amount not-toexceed $3,729,492.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Plans and Specifications for the Dixieanne Neighborhood Clean and Green Alleys (T15235100) are approved.
Section 2. The City Manager or the City Manager’s designee is authorized to transfer $500,000 (General Fund, Fund 1001) from the State and Federal Grant Match Project (T15007200) to the expenditure budget of the Dixieanne Neighborhood Clean and Green Alleys (T15235100).
Section 3. The construction contract for the Dixieanne Neighborhood Clean and Green Alleys (T15235100) is awarded to McGuire and Hester, in an amount not to exceed $3,729,492.
Section 4. The City Manager or the City Manager’s designee is authorized to execute the construction contract for the Dixieanne Neighborhood Clean and Green Alleys (T15235100).