City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00386 4/1/2025 Consent Item 4.
Budgetary Adjustments and Construction Funding Agreement with Downtown Railyard Venture, LLC Related to the Sacramento Valley Station Regional Commuter Bus - 5th Street Extension Construction Project (T15029000) [Published for 10-Day Review 3/21/2025] File ID: 2025-00386
Location: District 4
Recommendation: Adopt a Resolution: authorizing the Interim City Manager or designee to: 1) amend the revenue and expenditure budgets of the Sacramento Intermodal Transportation Facility Project (T15029000) to add $4,203,000 (Fund 3704, Other Capital Grants); and 2) execute the Railyards 5th Street Extension Construction Funding Agreement with Downtown Railyard Venture, LLC, in an amount not to exceed $4,020,043.
Contact: Greg Taylor, AIA, LEED AP, Supervising Architect, (916) 808-5268, [email protected]; Lucinda Willcox, Assistant Director, (916) 808-5052, [email protected]; Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-Project Location Map
3-Resolution
4-Exhibit A-Railyards 5th Street Extension Construction Funding Agreement Description/Analysis
Issue Detail: The California State Transportation Agency (CalSTA through the 2022 Transit and Intercity Rail Capital Program (TIRCP), awarded as joint applicants the Capitol Corridor Joint Powers Authority (CCJPA), City of Sacramento, and Downtown Railyard Venture, LLC (DRV), a total of $4,657,000 for engineering, permitting, and construction of a new street segment of 5th Street in the Railyards between Summit Avenue and North B Street (the Project), which will provide improved access to regional buses between the Richards/Interstate 5 interchange and the Sacramento Valley Station (SVS).
File ID: 2025-00386 4/1/2025 Consent Item 4.
As a condition of receiving the TIRCP funding, the City and the State entered into TIRCP Master Agreement No. 64 Sacramento 2023MA, effective March 8, 2023, (the “Master Agreement”).
DRV completed engineering design and specifications for the Project and the City gave approval for the Project final design on November 26, 2024, which was required to apply to California Transportation Commission (CTC) for construction funding.
On January 31, 2025, the CTC approved a funding allocation of $4,203,000 to the City for construction of the Project, which will be carried out by DRV through the Railyards 5th Street Extension Construction Funding Agreement (the Agreement). Under the terms of the grant, DRV is required to execute the third-party contract within six months of the allocation. As required by the Master Agreement, the City and the State will enter into a Project Supplement Agreement (the “Program Supplement”), which stipulates that DRV will receive a not-to-exceed sum of $4,020,043 with the remaining $182,957 stipulated for city staff and administration costs.
Caltrans is currently processing the Program Supplement for the Project; however, Caltrans has indicated to the City that it is experiencing delays in completing its review. The Program Supplement must be executed before the City can provide reimbursement to DRV for eligible grant expenses and invoice the State for reimbursements under the grant.
Under the grant terms, DRV must be in contract with a contractor for the Project no later than August 1, 2025. The timeline for the construction procurement process, which consists of preparation of bid documents, bid period, bid review, and the contract negotiation process, necessitates that the City and DRV execute the Agreement at this time while Caltrans completes its preparation of the Program Supplement. Under the terms of the Agreement, DRV proceeds at its own risk if it incurs costs before the Program Supplement is executed
Policy Considerations: The construction of the Project is consistent with the Railyards Specific Plan and the following 2035 General Plan Policies:
M-1.3 Healthy Transportation System Options. The City shall plan and make investments to foster a transportation system that improves the health of Sacramento residents through actions that make active transportation, nonmotorized modes, high-occupancy, and zero emission vehicles (ZEVs) viable, attractive alternatives to automobiles that use internal combustion engines.
M-1.21 Extension of Transit Service. The City shall coordinate with the Sacramento Regional Transit District (SacRT) to plan for the extension of frequent transit service and other related transit improvements that are comfortable, convenient, and interconnected from the Greater Land Park, North Natomas, Pocket/Greenhaven, South Area, and South Natomas Community Plan Areas to areas with concentrated employment. This may include frequent bus
File ID: 2025-00386 4/1/2025 Consent Item 4.
service provided by SacRT as an interim solution along routes ultimately planned for light rail service.
M-1.22 Increase Transit Ridership. The City shall support work to increase transit ridership citywide.
M-5.1 Regional Mobility System. The City shall partner with regional mobility partners to plan and operate a cohesive regional mobility system.
M-5.2 Sacramento Valley Station. The City shall work to establish Sacramento Valley Station as the premier regional transit hub of Northern California, linking regional rail, light rail, bus, and high-speed rail service, and plan for the expansion of rail service to strengthen connections between Sacramento, the Central Valley, the Bay Area, Northern California, and beyond.
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 March 21, 2025, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): The Project was included in the Sacramento Valley Station Area Plan and Amendment of the Railyards Specific Plan and analyzed as part of those Environmental Impact Reports. The City Council approved the plan amendment and CEQA addendum on April 6, 2021. A Notice of Determination in compliance with Section 21152 of the Public Resources Code was filed on April 13, 2021, SCH Number 2006032058.
The subject action is to provide funding for the Project. None of the criteria set forth in CEQA Guidelines Section 15162 requiring subsequent or supplemental review are present. No further environmental review is required.
Sustainability: The Project will complete a missing segment of 5th Street that will provide a shortened and more efficient route for buses accessing the freeway system through the Railyards for regional bus services to access the passenger rail system at Sacramento Valley Station. Improvements to bus travel time and efficiency can encourage commuters to shift from automobiles that use internal combustion engines to buses, decreasing Vehicle Miles Traveled (VMT) and Greenhouse Gases (GHG).
Commission/Committee Action: None.
File ID: 2025-00386 4/1/2025 Consent Item 4.
Rationale for Recommendation: The SVS is planned to expand as a regional transportation hub to serve multiple modes, which will include intercity passenger rail, regional commuter bus services, local and regional light rail service, local bus service, and bike and pedestrian ways.
The award of $4,203,000 million from the state TIRCP grant to construct this Project reflects the regional and statewide utility and related benefits of rail and transit services at SVS. To proceed with reimbursements, it is necessary to approve the budgetary adjustments to include this funding. As DRV is in the process of constructing major infrastructure in the Railyards and the 5th Street segment needs to be integrated into the private development portion, the State anticipates that DRV will separately procure and manage the Project under City guidance consistent with all grant guidelines and public funding protocols.
Financial Considerations: The estimated cost to construct the Project is $4,203,000. With revenue and expenditure budgetary adjustments to add $4,203,000 (Fund 3704, Other Capital Grants) to the Sacramento Intermodal Facility Project (T15029000), there is sufficient funding to construct the project and to reimburse DRV for its costs under the Agreement.
Local Business Enterprise (LBE): Not applicable.
Background: On April 6, 2021, the Sacramento City Council approved an Addendum to the subsequent environmental impact report for the Sacramento Railyards Specific Plan Update, KP Medical Center, MLS Stadium, & Stormwater Outfall, incorporating changes made by the SVS Area Plan, which included the Project. The Sacramento Railyards Specific Plan, includes the Project segment of 5th Street connecting North B Street to Summit Tunnel Avenue, along with the related entitlements identifies the public improvements required for this mixed-use development. DRV currently owns approximately 160 acres of the Sacramento Railyards, of which four parcels of approximately 39 acres (Assessor Parcel Numbers 002-0010-011, -012, -013, and -080) on which the Project will be constructed in whole or in part.
In preparation of the 2022 TIRCP Cycle 5 grant application, DRV submitted a budget of $4,435,950 to the City for engineering and construction costs. The City included staff and administration costs for a total grant request of $4,657,000.
In June 2022, the California State Transportation Agency (CalSTA), through the TIRCP grant, awarded the Capitol Corridor Joint Powers Authority (CCJPA), City of Sacramento, and Downtown Railyard Venture, LLC (DRV), as joint applicants, a total of $4,657,000 for engineering, permitting and construction of a new street segment of 5th Street in the Railyards between Summit Avenue and North B Street which will provide improved access to regional buses between the Richards/Interstate 5 interchange and the Sacramento Valley Station (SVS). The Project will serve the public interest by promoting efficiency in public transportation and further the parties’ mutual interest in promoting transit-oriented development in the Railyards.
File ID: 2025-00386 4/1/2025 Consent Item 4.
The Project will construct street improvements and signals for the road segment connecting Summit Tunnel Avenue to North B Street, which will provide efficient regional commuter bus circulation from downtown and the SVS and the freeway interchange at Richards Boulevard to/from northern points of origin. These improvements will also improve north/south access for transit and bike connectivity to the rail station for regional commuter and local buses along the Sacramento Downtown Regional Commuter Bus Route that is funded as a separate component of the overall project.
Service Layer Credits:
5 Sacramento
River
5 SACRAMENTO
50 American River
WEST
SACRAMENTO
160
RAILYARDS
SPECIFIC PLAN AREA
Garden Hwy
Richards Blvd
12th
St
Jibboom
St
7th
St
5th
St
7th
St
10th
St
15th
St
16th
St
19th
St
21st St
C St
B St
L St
N St
J St
I St
H St
E St
F St
P St
Capitol Ave
3rd
St
Capitol Mall
S River
Rd
I St
C St
R St
S St
Q St
B
W St
roadway St
T St
24th
St
5th
St
3rd
St
Tower Bridge Gateway
Lighthouse Dr
Golden 1
Center
Raley
Field
State Capitol
Project Vicinity
Specific Plan
Boundary
0 2,000
Feet
5th Street Extension in Railyards Plan Area
Project
RESOLUTION NO. 2025-XXXX
Adopted by the Sacramento City Council
BUDGETARY ADJUSTMENTS AND CONSTRUCTION FUNDING AGREEMENT FOR THE SACRAMENTO VALLEY STATION REGIONAL COMMUTER BUS – 5
TH STREET
EXTENSION CONSTRUCTION PROJECT (T15029000)
BACKGROUND
A. From 2021 to 2022, with funds from Cycle 4 of the Transit and Intercity Rail Capital Program (TIRCP), the Sacramento Area Council of Governments (SACOG) conducted a study for route consolidation that integrates regional commuter bus routes into a unified route that serves both the Sacramento Valley Station (SVS) and the planned Valley Rail service Midtown Station.
B. The study recommended that the route connect to SVS via 5th Street for access between downtown, the Railyards and the River District and connect with the freeway at Richards Blvd.
C. The City of Sacramento was awarded $4,657,000 in TIRCP grant funds in the fifth grant cycle, with a joint application with Capitol Corridor JPA and Downtown Railyard Venture, LLC (DRV), for the design and construction of a segment of 5th Street in the Railyards between North B Street and Summit Tunnel Avenue to complete the route to Richards Blvd via Sequoia Pacific Blvd. As a condition of receiving the TIRCP funding, the City and the State entered into TIRCP Master Agreement No. 64 Sacramento 2023MA, effective March 8, 2023, (the “Master Agreement”). DRV submitted to the City a project budget of $4,435,950 for engineering and construction and the City added costs for City administration of the grant for a total request of $4,657,000.
D. Using TIRCP grant funds designated for engineering design and permitting, DRV retained a qualified professional engineering firm to complete final engineering for the Project and the City approved the final engineering and specifications on November 26, 2024.
E. On January 31, 2025, the California Transportation Commission (CTC) allocated $4,203,000 to the City for construction of the Project. As required by the Master Agreement, the City and the State will enter into a Program Supplement Agreement, which stipulates that DRV will receive a not-to-exceed sum of $4,020,043with the remaining $182,957 stipulated for city staff and administrative costs.
F. Under the terms of the Railyards 5th Street Extension Construction Funding Agreement, DRV shall comply with the terms of the Master Agreement and may receive reimbursement for construction costs not to exceed $4,020,043.
G. DRV will follow City procurement procedures solicit a construction firm to construct and deliver the Project to City.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The Interim City Manager or designee is authorized to increase the revenue and expenditures budget of the Sacramento Valley Station (SVS) Regional Bus Stops Project (T15029000) by $4,203,000 (Other Capital Fund, Fund 3704)
Section 2. The Interim City Manager or designee is authorized to execute the Railyards 5th Street Extension Construction Funding Agreement with Downtown Railyards Venture, LLC, in an amount not to exceed $4,020,043, which is attached as Exhibit A. Exhibit A is part of this resolution.
Attachment:
Exhibit A - Railyards 5th Street Extension Construction Funding Agreement