Title
[Contract Award] Plans and Specifications Approval, Budgetary Adjustments, Contract Supplement and Contract Award for the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) [Two-Thirds Vote Required]
End
FileID
File ID: 2026-01604
End
Location
Location: Valley Hi Drive / La Mancha Way between Creek Center Court and Bamford Drive, District 5 and District 8
End
Recommendation
Recommendation: 1) Pass a Motion by two-thirds vote waiving the 10-day posting requirement of City Code section 4.04.020.C for the La Mancha Way / Valley Hi Drive Corridor Improvements Project; 2) adopt a Resolution approving the Plans and Specifications for the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300); 3) authorizing the City Manager or designee to increase the revenue and expenditure budget of the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) by $1,584,730 (Other Capital Grants, Fund 3703); 4) authorizing the City Manager or designee to transfer $1,396,270 (Major Street Construction Fund, Fund 2007) from the expenditure budget of the State and Federal Grant Match Program (T15002700) to the expenditure budget of the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300); 5) awarding the construction contract for the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) to Zara Construction for an amount not-to-exceed $1,619,710; and 6) authorizing the City Manager or designee to execute the construction contract for the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) with Zara Construction for an amount not-to-exceed $1,619,710.
End
Contact
Contact: James Kragh, Associate Engineer, (916) 808-6842, jmkragh@cityofsacramento.org; William Shunk, Senior Engineer, (916) 808-2986, wshunk@cityofsacramento.org; Ofelia Avalos, Engineering Services Division Manager, (916) 808-5054, oavalos@cityofsacramento.org; Department of Public Works
End
Presenter
Presenter: None
End
Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Project Plans
4-Construction Contract
End
Description/Analysis
IssueDetail
Issue Detail: The La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) will add a traffic signal at the commercial driveways between the Valley Mack Plaza and the Valley Hi Village to provide a safe crossing for pedestrians, manage traffic accessing the two shopping centers, and install median fencing to encourage crossings at the signals. The project will also install a raised median to extend the existing raised median north and south of the Valley Hi Dr./Mack Rd. intersection. Additionally, this project will construct Class IV bikeways on Valley Hi Drive.
The project was identified for funding in Cycle 9 of the Highway Safety Improvement Program (HSIP), a federal-aid program with the purpose of reducing traffic fatalities and serious injuries on public roads. This location is an arterial roadway on the city's High Injury Network, identified in the City of Sacramento Vision Zero Action Plan adopted by the City Council in August 2018.
The project plans and specifications have been completed and are included as Attachment 3. Construction of the project is being funded in part with the HSIP program. Appropriation of HSIP construction funding is necessary to construct the project.
The project was advertised for construction and received seven bids. Staff recommends awarding the construction contract to the lowest responsive and responsible bidder, Zara Construction.
End
PolicyConsiderations
Policy Considerations: The actions requested herein are consistent with the City General Plan goals and key policies that accommodate and promote safe and convenient travel for all users. The project will prioritize pedestrian mobility (M 1.2); increase bicycling and walking (M-1.11); improve walking connectivity (M-1.15); and enhance walking safety (M-1.19).
End
EconomicImpacts
Economic Impacts: This new infrastructure is expected to create 6.48 total jobs (3.73 direct jobs and 2.75 jobs through indirect and induced actives) and create $1,000,065.64 in total economic output ($630,349.02 of direct output and another $369716.62 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.
End
EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): The City of Sacramento Environmental Planning Services has reviewed this project and determined that it is exempt from the provisions of CEQA under Class 1, Section Number 15301 which consists of the operation, repair, maintenance, or minor alteration of existing public or private structures or facilities involving negligible or no expansion of existing or former use.
National Environmental Policy Act (NEPA): Caltrans has determined the project is categorically excluded from National Environmental Policy Act (NEPA) review under Sections 23 USC 326 and 23 CFR 771 (c).
End
Sustainability
Sustainability: The project is consistent with the City’s General Plan goals to help improve the health of residents by promoting walking and bicycling, and to create a healthier urban environment by eliminating pedestrian barriers with the construction of safe pedestrian crossings. The project will reduce dependence on private automobiles, decrease the use of fossil fuels, and encourage active modes of transportation.
End
Commission/Committee Action
Commission/Committee Action: The project was presented as an informational item at the August 2024 meeting of the Sacramento Disabilities Advisory Commission and the November 2024 meeting of the Sacramento Active Transportation Commission.
End
RationaleforRecommendation
Rationale for Recommendation: City Council action is required to perform the budgetary adjustments necessary to award and complete construction of the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) which includes appropriation of $1,584,730 in HSIP construction grant funding, and transfer of $1,396,270 of local transportation funding from the State and Federal Grant Match Program.
The project was advertised for construction with an engineer’s estimate of $2,004,000. A total of seven bids were received on June 24, 2026, as summarized below:
|
Contractor |
Bid |
|
ZARA CONSTRUCTION |
$1,619,710.00 |
|
GHILOTTI BROS |
$1,629,934.18 |
|
ALL-AMERICAN CONSTRUCTION |
$1,642,614.75 |
|
MARTIN GENERAL |
$1,764,465.70 |
|
FBD VANGUARD |
$1,787,602.00 |
|
MCGUIRE AND HESTER |
$2,023,774.50 |
|
MARTIN BROTHERS |
$2,055,271.78 |
All bidders met the required bid conditions. Staff recommend the construction contract be awarded to the lowest responsive and responsible bidder, Zara Construction. Construction is anticipated to begin October 2026 and be completed by June 2027.
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 September 18, 2026, in compliance with the City Code.
End
FinancialConsiderations
Financial Considerations: The estimated total cost to complete construction and construction management activities for the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300) is approximately $1,890,400. By approving the budgetary adjustments for $1,584,730 (Other Capital Grants, Fund 3703) and the transfer of $1,396,270 (Major Street Construction Fund, Fund 2007) to the expenditure budget of the La Mancha Way / Valley Hi Drive Corridor Improvements Project (T15205300), there will be sufficient funding to award the construction contract to Zara Construction for an amount not-to-exceed $1,619,710 and remaining construction administration costs.
No General Funds are planned or allocated to this project.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): The City’s LBE requirement for this project is held in abeyance due to federal funding requirements.
End