Title
[Contract] North 5th Street Parallel Storm Trunk Main [Published for 10-Day Review 06/11/2026]
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FileID
File ID: 2026-01101
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Location
Location: District 4
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Recommendation
Recommendation: Adopt a Resolution: 1) approving the contract plans and specifications for the North 5th Street Parallel Storm Trunk Main Project within the Drainage Improvement Program (W14150700); 2) awarding the contract to Steve P. Rados, Inc. for an amount not-to-exceed $2,791,735; 3) authorizing the City Manager or designee to execute the construction contract with Steve P. Rados, Inc.; and 4) approving budget-related transfers to support completion of the project.
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Contact
Contact: Gary Gulseth, Project Manager, (916) 808-1415, ggulseth@cityofsacramento.org; Michelle Carrey, Engineering & Water Resources Division Manager, (916) 808-1438, mcarrey@cityofsacramento.org; Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract
3-Resolution
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council award a construction contract to Steve P. Rados, Inc., to construct a new parallel 72-inch storm drain trunk line in North 5th Street that extends from just north of Richards Boulevard to within about 130 feet of the Sump 111 Lift Station. The project also includes installing two junction structures, two manholes, reconnection of existing storm drain laterals and restoration of pavement, curb, gutter, and sidewalk. All work will occur within the City right-of-way.
Based on historical data and hydraulic modeling, areas upstream of the project site are subject to localized flooding and property damage during a 100-year/24-hour rainfall event caused by backwater conditions within the existing storm drain system. Because the existing system is undersized and unable to provide sufficient conveyance of stormwater, the Sump 111 capacity is also under-utilized. This proposed project, along with two near-future planned and interconnecting projects, will reduce potential flooding by providing additional stormwater conveyance and storage during large storms.
The project design and construction is funded by reimbursement through the Sacramento Area Council of Governments (SACOG) Green Means Go grant, which is intended to support stormwater infrastructure improvements and future development within the River District. The project must comply with the grant requirements of the funding agreement, including a construction completion date of December 31, 2026, or sooner.
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PolicyConsiderations
Policy Considerations: City Council approval is required to award construction contracts of $250,000 or more per City code 3.56.090. The action requested conforms with City Code Chapter 3.56, Articles I and III, which provide for award of competitively bid contracts to the lowest responsible bidder.
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 two-thirds 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 10 days prior to City Council action. This item was published for 10-day review on June 11, 2026, in compliance with the City Code.
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EconomicImpacts
Economic Impacts: This project is expected to create 11.17 total jobs (6.42 direct jobs and 4.75 jobs through indirect and induced activities) and create $1,723,714.90 in total economic output ($1,086,470.68 of direct output and another $637,244.22 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.
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EnvironmentalConsiderations
Environmental Considerations: The subject project was reviewed and determined to be exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code (PRC) 21080.21 (Public Right-Of-Way Pipeline Projects of Less Than One Mile In Length) and CEQA Guidelines Section 15301 (Existing Facilities). The project consists of placing about 1,600 linear feet of new parallel 72-inch storm drain pipe and minor alterations of existing streets, sidewalks, and gutters.
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Sustainability
Sustainability: The proposed project is consistent with Goal PFS-3.1 in the 2040 General Plan as it improves infrastructure reliability and capacity. The project also supports development to reduce individual development project mitigation.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: On April 14, 2026, City Council approved a motion to suspend competitive bidding and allow the use of a Request for Qualification (RFQ) process for selection of contractors to bid on this phase of the project. The use of this alternative procurement process allowed the City to select the most qualified contractor to complete the project within an accelerated construction schedule to ensure the project’s Green Means Go Program Grant funding is expended in compliance with the grant agreement terms.
The project was advertised to the four contractors selected by the RFQ process and four bids were received and opened on May 6, 2026. Steve P. Rados, Inc. was the lowest responsible bidder.
The bid results are as follows:
|
Contractor |
Amount |
|
Steven P. Rados, Inc |
$2,791,735 |
|
T&S Construction, Inc. |
$2,896,604 |
|
Soracco, Inc. |
$3,428,061 |
|
McGuire Hester |
$4,912,000 |
The Engineer’s construction cost estimate was $3,142,000.
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FinancialConsiderations
Financial Considerations: The total cost for the project is estimated to be $4,000,000. The costs of this phase of the project include the bid amount of $2,791,735 from Steve P. Rados, Inc. for the construction of the new parallel 72-inch storm drain trunk line in North 5th Street. Additional costs for the project in the amount of $1,208,265 will include services for design, construction, contingency, inspection, construction management, design consultant construction support, environmental compliance, and staff time. Staff recommends the following transfers:
|
Name |
Project No. |
Fund No. |
Amount (USD) |
|
Drainage Sump Replacement/Rehabilitation Program |
W14130600 |
6211 |
($4,000,000) |
|
Drainage Improvement Program |
W14150700 |
6211 |
$4,000,000 |
There are no General Funds planned or allocated for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Steve P. Rados is an LBE.
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