Title
Contract Change Order and Budgetary Adjustments: Power Inn Queue Cutter Project (T15186000)
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FileID
File ID: 2024-00702
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Location
Location: District 6, Represented by Councilmember Guerra
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Recommendation
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to increase the revenue and expenditure budgets of the Power Inn Queue Cutter Project (T15186000) by $385,700 (Other Capital Grants, Fund 3704); 2) authorizing the City Manager or the City Manager’s designee to execute Change Order No. 2 to City Agreement No. C2021-1237 with McGuire & Hester Inc, for an amount not to exceed $250,543, bringing the agreement’s total not-to-exceed amount to $1,557,664; and 3) resetting the City Manager’s administrative authority to issue Change Orders for City Agreement No. C2021-1237.
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Contact
Contact: Avtar Banwait, Assistant Civil Engineer, (916) 808-6805, abanwait@cityofsacramento.org; Judy Matsui-Drury, Supervising Engineer, (916) 808-7610, jmatsui-drury@cityofsacramento.org; Ofelia Avalos, Engineering Manager, (916) 808-5054, oavalos@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None.
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Contract Change Order No. 2 - McGuire and Hester
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Description/Analysis
IssueDetail
Issue Detail: The Power Inn Road Queue Cutter Project (T15186000) will improve vehicular and pedestrian safety at the Power Inn Road Railroad Crossing between 21st Avenue and Fruitridge Road. It will include the construction of a queue cutter traffic signal for southbound automobile traffic, close an existing sidewalk gap on the west side of Power Inn Road, install new railroad warning devices, and construct new concrete paneling to facilitate pedestrian crossings of the railroad tracks.
The Section 130 Railroad-Highway Crossings Program (RHCP), intended to improve crossing safety at at-grade rail crossings, is administered by the Caltrans Division of Local Assistance. The Caltrans RHCP is a collaborative effort led by the California Public Utilities Commission (CPUC), funded by the Federal Highway Administration (FHWA), and implemented by Caltrans in cooperation with local agencies and railroads throughout California. Caltrans is responsible for administering funds, contracting and oversight of the Section 130 projects. The CPUC is responsible for creating the Section 130 priority funding list, development of scope and preliminary cost estimates. Local Agencies and the Railroad Company must work together to complete design, environmental and construction for section 130 funded safety improvements.
The City was initially awarded $929,813 in Section 130 funds for design and construction in March 2018. With design and bidding complete, City staff requested and received authorization for an additional $984,624 for construction and construction management costs.
At the start of construction (May 2022), the contractor located an unanticipated conflict with a PG&E high pressure gas main which required that the project be paused while Union Pacific Railroad (UPRR) and City staff revisited the project design to avoid the conflict. The City was ultimately able to arrive at an acceptable design with UPRR; however, the delay in construction has resulted in price increases to the contractor due to material and labor price escalations. Caltrans agreed these increased costs are eligible for additional Section 130 funds and authorized an additional $385,700 for the project. Change Order No. 2 will construct the improvements per the re-design and provide an adjustment to the bid prices during the construction work suspension period. These budgetary adjustments exceed administrative authority and require approval by the City Council to execute the construction contract change order needed to complete construction.
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PolicyConsiderations
Policy Considerations: The action requested supports the City’s General Plan goals of improving the transportation system and expanding public safety. The project provides needed safety improvements at the at-grade crossing and fulfills contractual obligations with UPRR related to other capital improvement projects in the City. The Sacramento City Code Section 3.60.210 limits the authority of the City Manager to execute change orders to a cumulative total of 8% of the original contact price. Change Order No. 2 brings the cumulative change order total to 19.2% of the original contract price, requiring approval of the City Council to authorize the execution of this change order.
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EconomicImpacts
Economic Impacts: This new infrastructure as part of this Change Order is expected to create 1.00 total jobs (0.58 direct jobs and 0.42 jobs through indirect and induced actives) and create $154,695 in total economic output ($97,505 of direct output and another $57,190 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 CS ER shall be held responsible for consequences resulting from such differences.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): The project has been determined to be categorically exempt from CEQA under Sections 15301(c) and 15303 (d)(e).
National Environmental Policy Act (NEPA): In compliance with NEPA, Caltrans performs NEPA clearance pursuant to Section 130 Funding program guidelines and has determined that the project qualifies for a Categorical Exclusion and is therefore categorically excluded from having to prepare an environmental assessment (EA) or environmental impact statement (EIS).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Budgetary adjustments are needed to reflect the additional Section 130 funds, and City Council approval is needed to execute Change Order No. 2 to complete the project.
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FinancialConsiderations
Financial Considerations: The total estimated cost to complete design, right-of-way, and construction activities for the Power Inn Road Queue Cutter Project (T15186000) is approximately $2.38 million. With the approval of $387,500 (Other Capital Grants, Fund 3704), there will be sufficient funding to execute Contract Change Order No. 2 with McGuire & Hester for an amount not to exceed $250,543 and cover the remaining construction management and all other project related costs.
There are no General or Measure U funds planned or allocated for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): McGuire & Hester is an LBE.
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