City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01296 7/22/2025
Contract: Pioneer Structural Repairs [Published for 10 Day Review 07/09/2025] File ID: 2025-01296
Location: Citywide
Recommendation: Pass a Motion: 1) approving the contract plans and specifications for the Pioneer Structural Repairs Project (X14170500) and awarding the contract to NMI Industrial Holdings LLC for an amount not-to-exceed $1,215,200, and 2) authorizing the Interim City Manager or designee to execute the construction contract with NMI Industrial Holdings LLC.
Contact: Tim Moresco, Project Manager, [email protected], (916) 808-1432; Roxanne Dilley, Supervising Engineer, [email protected], (916) 808-1458; Michelle Carrey, Interim Engineering & Water Resources Division Manager, (916) 808-1438, [email protected]; Sherill Huun, Interim Director, [email protected], (916) 808-1455; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Contract
Description/Analysis
Issue Detail: Staff recommends Council award a construction contract to NMI Industrial Holdings LLC, to perform the concrete repairs on the exterior of the City’s Pioneer Reservoir, as well as install several vertical steel columns to provide additional support to the concrete beams and roof.
In August 2023, JDH Corrosion Consultants, Inc and Brown and Caldwell teamed up and performed a condition assessment of the interior and exterior of Pioneer Reservoir. In this condition assessment, several locations were identified to be suffering from concrete cracks and spalling, compromising the structural integrity of the structure. Brown and Caldwell later used these findings when performing a Business Case Evaluation (BCE), which is a structured process used for assessing feasibility, viability, and potential impacts of several different alternative solutions. This project was identified from the BCE as a necessary project to design and construct to extend the life of the facility and provide the City with enough time to plan and budget for the long-term
File ID: 2025-01296 7/22/2025
recommended alternative.
Policy Considerations: City Council approval is required to award construction contracts of $250,000 or more. The action requested conforms with City Code Chapter 3.56, Articles I, II, and III, which provide for award of competitively bid contacts to the lowest responsible bidder.
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 July 9, 2025, in compliance with the City Code.
Economic Impacts: This project is expected to create 4.86 total jobs (2.79 direct jobs and 2.07 jobs through indirect and induced activities) and create $750,307.01 in total economic output ($472,924.24 of direct output and another $277,382.77 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: The subject project was reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA). The project includes performing restoration or rehabilitation of deteriorated or damaged structures to meet current standards of public health and safety (CEQA Guidelines Section 15301 (d)).
Sustainability: The proposed project is consistent with the 2040 General Plan goal PFS-3.6, “Combined Sewer System Rehabilitation and Improvements” as it aims to rehabilitate aging CSS facilities to continue to decrease flooding, CSS outflows or combined sewer overflows.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The project was advertised, and four bids were received and opened on May 28, 2025. NMI Industrial Holdings, LLC was the lowest responsible bidder.
The bid results are as follows:
File ID: 2025-01296 7/22/2025
Contractor Amount
NMI Industrial Holdings, LLC $1,215,200
Capital Industrial Restoration $1,234,286
NMN Construction $1,239,111
Ashron Construction and Restoration, Inc. $1,669,000
The Engineer’s construction cost estimate was $1,573,000.
Financial Considerations: Sufficient funds exist in the CSS Sump/Treatment Facilities Program (X14170500, Funds 6006 and 6021) to award a contract to NMI Industrial Holdings LLC for an amount not-to-exceed $1,215,200.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): NMI Industrial Holdings LLC is a LBE.