City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-02004 1/13/2026
Contract Change Order: Franklin Boulevard Complete Street (T15165500) File ID: 2025-02004
Location: Franklin Boulevard between Sutterville Road/12th Avenue and 32nd Avenue, District 5 Recommendation: Pass a Motion authorizing the City Manager or designee to execute construction Contract Change Order No. 4 to City Agreement No. 2024-1493 with George Reed, Inc., for the Franklin Boulevard Complete Street Project (T15165500) for zero-cost change.
Contact: Megan Johnson, Senior Engineer, (916) 808-1967, [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-Change Order No. 4 to City Agreement No. 2024-1493
Description/Analysis
Issue Detail: The Franklin Boulevard Complete Street Project was formed through a community- driven effort in coordination with local businesses, residents, partner agencies, and the City to transform the roadway into an active transportation corridor that serves all modes of transportation.
Franklin Boulevard currently has four travel lanes, a center turn lane, and no bicycle lanes. The existing sidewalks have no landscaping or City street trees, and the pedestrian crossings of the street are long. This project will provide two travel lanes, a center turn lane, and install Class IV separated bikeways (using raised curbs and islands for separation from moving traffic); new and modified traffic signals and intersections; trees, landscaping and irrigation; pedestrian-scale lighting; and accessible sidewalk and curb ramps for all users.
On November 19, 2024, City Council awarded the construction contract to George Reed, Inc (Motion No. 2024-0339). The project construction schedule shows an anticipated duration of 18 months, including a winter suspension period to address weather conditions. Recognizing the long- lead times needed to obtain traffic signal and streetlighting equipment that is in high demand and
File ID: 2025-02004 1/13/2026
made-to-order, the project contract special provisions directed the Contractor to order the materials as the first order of work. The material orders were placed in January 2025, accounting for the long durations involved to order, fabricate, and deliver materials. The installation of these items began on July 28, 2025, and are anticipated to be finished in April 2026, in coordination with the sequence of construction activities along the project corridor.
Per City Standard Specifications Section 8-2 “Scope of Payment,” payment for materials purchased is not allowed until the materials are installed and incorporated into the work. Due to the magnitude and complexity of the project as well as the volume of advanced material procurement for electrical items required specifically for this project, the Contractor resources are being overextended. An estimated $595,935 in electrical materials have been procured for this project that are pending installation due to other preceding items of work that need to be completed along the corridor. In effort to partner with the Contractor a modification to the contract is necessary.
The California Department of Transportation (Caltrans) State Standard Specifications Section 9-
1.16C “Materials on Hand” provides allowances for payments of materials on hand which have been furnished but have not been incorporated into the work. This State Standard Specification may be used by local agencies. This Contract Change Order changes the bid documents to modify the special provisions to: 1) incorporate Section 9-1.16C of the State Standard Specifications; and 2) strikeout Section 8-2 of the City Standard Specification, so that payment of materials on hand could be made for this project.
Staff does not have the authority to amend Section 8 of the City Standard Specifications. City Council adopted Resolution No. 2020-0354, which approved the revised City of Sacramento Standard Specifications for Public Construction. The Resolution delegated authority to the City Manager or designee to approve future revisions and additions to the technical specifications and drawings in sections 10 through 38 of the Standard Specifications. Any revisions or requests to suspend application of sections 1 through 9 of the City Standard Specifications, requires the approval of City Council. City Council approval of the Contract Change Order No. 4 to modify the bid documents and suspend application of section 8.2 of the Standard Specifications for this particular project is required to allow for the partial payments. This Change Order is a zero-cost change and does not increase the total contract value.
Policy Considerations: The recommendations in this report are in accordance with City Standards and Specifications, which require City Council approval for modifications to or to suspend application of Sections 1-8 on a specific construction project.
The actions requested herein are consistent with the City’s goals of improving and expanding public safety and enhancing livability. Specific General Plan goals the project addresses are as follows:
M-1.11 Increase Bicycling and Walking. The City shall strive to increase bicycling and walking
File ID: 2025-02004 1/13/2026
citywide so that it can meet its equity, reduced vehicle miles traveled and sustainability goals.
M-1.11 Bicycling Safety. When designing projects, the City shall prioritize designs that strengthen the protection of people bicycling such as improvements that increase visibility of bicyclists, increase bikeway widths, raise bikeways, design safer intersection crossings and turns, and separate bikeways from driving traffic wherever feasible.
These improvements will accommodate cyclists of varying experience levels and abilities, will improve pedestrian safety, and may calm traffic speeds. This project is also consistent with the City’s Vision Zero efforts, the goal of which is to eliminate traffic fatalities and serious injuries (Resolution No. 2017-0032). These streets are on the High Injury Network, and in addition to installing bicycle facilities, the project will also improve visibility to pedestrians and bicyclists at intersections.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The City Council adopted the Franklin Boulevard Complete Street Mitigated Negative Declaration and Monitoring Plan on February 4, 2020 (Resolution 2020-0039).
This project is federally funded. In compliance with the National Environmental Policy Act (NEPA), Caltrans issued a Categorical Exclusion for the Franklin Boulevard Complete Street project on March 16, 2020.
Sustainability: The proposed project supports City Council’s sustainability priorities. The transportation sector accounts for 57% of community-wide greenhouse gas emissions, the largest single sector in the community. The City’s Climate Action Plan includes several implementation measures to reduce vehicle trips. The project would increase active transportation, reduce vehicular trips, and help ensure more efficient vehicular flow. These actions will reduce greenhouse gas emissions and help improve local air quality.
Commission/Committee Action: The project was presented to the Disabilities Advisory Commission (DAC) on June 7, 2023, to receive and provide feedback. The DAC was supportive of the project and emphasized the need for the project’s improvements.
The project was presented to the City County Bicycle Advisory Committee (now, the Active Transportation Commission) on November 9, 2017, during the environmental review phase.
Committee members provided feedback on the concepts being considered, with preference for street -level Class IV bikeways, and were supportive of complete street improvements on Franklin Boulevard.
File ID: 2025-02004 1/13/2026
The project was also presented to the Active Transportation Commission on November 20, 2025 during the construction phase, as an informational update. Commission members were supportive of the project and look forward to its completion.
Rationale for Recommendation: Staff recommends the City Council approve Change Order No. 4 with George Reed, Inc. for City Agreement No. 2023-1493 for zero-cost change. The proposed Change Order modifies the special provisions in the construction contract to allow for partial payments for materials on hand for the Franklin Boulevard Complete Street Project. This modification only applies to this specific construction contract.
This Contract Change Order changes the bid documents to modify the special provisions to: 1) incorporate Section 9-1.16C of the State Standard Specifications; and 2) strikeout Section 8-2 of the City Standard Specification, so that payment of materials on hand could be made for this project.
This is consistent with State Standard Specifications, which is recommended by Staff due to the magnitude and complexity of the project as well as the volume of advanced material procurement for electrical items required specifically for this project.
Should Staff decide to bring forward a permanent revision to the Standard Specifications that will apply to all future public construction contracts, it will have any changes or additions reviewed by the City Standard Specifications Review Committee and bring a separate item to City Council for review and consideration of a modification to the Standard Specifications.
Financial Considerations: The estimated total cost the Franklin Boulevard Complete Streets (T15165500), Phase 1 and 2 is approximately $29.6 million. There is sufficient funding to award Change Order No. 4 to George Reed, Inc. for a zero-cost change and cover the remaining construction management and other project-related costs.
Local Business Enterprise (LBE): The contract with George Reed, Inc. is federally funded. The City’s LBE policy is held in abeyance.
CITY OF SACRAMENTO - DEPARTMENT OF PUBLIC WORKS
CONTRACT CHANGE ORDER
T15165500_Franklin Boulevard Complete Street | Project No: T15165500 CCO No.
4.00 Project #:
T15165500
Change Order #:
4.00 Project Name:
T15165500_Franklin Boulevard
Complete Street
Date:
Tuesday, November 4, 2025
Contract #:
2024-1493
Ext Days:
0 TO:
George Reed, Inc
, ("Contractor")
CONTRACT FOR:
T15165500_Franklin Boulevard Complete Street
Upon Mutual acceptance of this document by the City of Sacramento, hereinafter referred to as "City", and your firm, hereinafter referred to as "Contractor", in accordance with the terms and conditions of the original contract documents, you are hereby directed to make the following changes for the consideration set forth below:
DESCRIPTION:
See Exhibit A
The original contract sum was:
$16,534,268.00
The net change by previous Change Orders was:
$226,248.64
The contract sum prior to this Change Order was:
$16,760,516.64
The contract sum will be increased by this Change Order:
$0.00
The new contract sum including all Change Orders:
$16,760,516.64
Contractor agrees that the amount of increase or decrease in the contract sum specified in this Change Order shall constitute full compensation for the work required by this Change Order, including but not limited to all compensation for the additional and/or revised work specified herein, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised work, including any changes disruptions or delays in work schedules or in the performance of other work by Contractor. The time for the performance of the contract is increased by 0 Working Days
by reason of the
performance of the work required by this Change Order. Except as herein above expressly provided, Contractor further agrees that the performance of the work specified in this Change Order or the rescheduling of other project work made necessary by this Change Order, shall not constitute a delay which will extend the timelimit for completion of the work as said term is used in the contract between the City and the Contractor for the project.
Approval Recommended By:
Approved as to Form By:
Project Manager
City Attorney
Approved By:
Contractor
Approved By:
Attested to By:
City of Sacramento
Executed Date
City Clerk
Printed On:
11/04/2025
CCO #:
4.00 © c-mis.com
CITY OF SACRAMENTO - DEPARTMENT OF PUBLIC WORKS
POTENTIAL CHANGE ORDER SUMMARY - EXHIBIT B
T15165500_Franklin Boulevard Complete Street | Project No: T15165500 CCO No.
4.00 PCO # 18.00
DATE:
10/21/2025
REASON:
Changes to Bid Documents
TYPE:
Other
AMOUNT:
$0.00
This contract section referencing non-compensation for materials on hand is being amended to allow for payment. Due to the extensive material procurement for this project, the Contractor resources are being overextended with the current rate of work. These extraordinary circumstances will be relieved with payment for certain materials on hand as determined and verified by the Engineer. This change in the contract will allow for such future payments on this project. Specific contract text changes have been italicized for convenience.
For the Special Provisions of the Franklin Boulevard Complete Street project, replace the first and third paragraph of section
5.12 Payments
with:
5.12 Payments
Attention is directed to Section 8, “Measurement and Payment” of the City Standard Specifications, these special provisions, and Section 9-1.16C, “Materials on Hand” of the State Standard Specifications.
Partial payment can be made for materials on hand which are furnished but not incorporated in the work, upon verification of appropriate documentation and storage, in accordance with the State Standard Specifications. The specific material items to be compensated shall be determined at the discretion of the Engineer.
This change order does not impact the controlling activity of the project; therefore, no adjustment of contract time is warranted.
PCO # 19.00
DATE:
10/21/2025
REASON:
Changes to Bid Documents
TYPE:
Other
AMOUNT:
$0.00
This contract section referencing non-compensation for materials on hand is being amended to allow for payment. Due to the extensive material procurement for this project, the Contractor resources are being overextended with the current rate of work. These extraordinary circumstances will be relieved with payment for certain materials on hand as determined and verified by the Engineer. This change in the contract will allow for such future payments on this project. Specific contract text changes have been italicized for convenience.
For the City of Sacramento Standard Specifications, dated November 2020, replace the second paragraph of section 8-2 Scope of Payment
with:
8-2 Scope of Payment
For unit price items, payment for those items at the unit price bid by Contractor constitutes full payment for all work and services related to such items, except as otherwise specified in the Contract Documents. For any work or services required to perform the Work that are not specifically described in the Contract Documents, Contractor will include payment for such work and services under the bid of any item(s) that Contractor deems appropriate and City shall not pay additional compensation for any such work or services.
Payment for materials stored on- or off-site not yet
incorporated in the Work may be paid in accordance with the project Special Provisions.
This change order does not impact the controlling activity of the project; therefore, no adjustment of contract time is warranted. (Client Initiated Changes) Sub-Total =
$0.00
(Changes to Bid Documents) Sub-Total =
$0.00
(Changed/Unforeseen Conditions) Sub-Total =
$0.00
(Other) Sub-Total =
$0.00
Total =
$0.00