Title
[Contract] Pocket Road Sewer Replacement at East Shore Project
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FileID
File ID: 2026-00865
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Location
Location: District 7
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Recommendation
Recommendation: Pass a Motion: 1) approving the contract plans and specifications for the Pocket Road Sewer Replacement at East Shore Project (X14120300); 2) awarding the contract to Subterra Construction, Inc. for an amount not to exceed $457,600, and 3) authorizing the City Manager or designee to execute the construction contract with Subterra Construction, Inc.
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Contact
Contact: Angelo Vasquez, Project Manager (916) 808-1701, arvasquez@cityofsacramento.org; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, shuun@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-Construction Contract - Subterra Construction, Inc.
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council award a construction contract to Subterra Construction, Inc., to perform all the work necessary to remove and replace roughly 50 linear feet of separated sewer pipe, remove and replace the damaged manhole, and repave along the intersection of Pocket Road and East Shore Drive.
This location was identified as a high priority due to the roadway depression that has been reported by residents in the area that has been slowly developing over the years. City Operations and Maintenance staff confirmed that the sewer manhole in the area had settled and was taking on groundwater.
The Department of Utilities recently dealt with an emergency project in 2023 that was located further east on Pocket Road. That project started out similarly and highlighted the vulnerability of this area’s subsurface conditions and has since prompted heightened monitoring and proactive planning by City Staff.
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PolicyConsiderations
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 and III, which provide for award of competitively bid contacts to the lowest responsible bidder. Rehabilitation of aging and deteriorated sewer pipes is consistent with the criteria set forth in the Department of Utilities’ Capital Improvement Programming Guide (such as rehabilitating, replacing, and expanding critical infrastructure to ensure reliability and safety of the City’s sewer system).
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EconomicImpacts
Economic Impacts: This project is expected to create 1.8304 total jobs (1.05248 direct jobs and 0.77792 jobs through indirect and induced activities) and create $282,538.26 in total economic output ($178,086.02 of direct output and another $104,452.23 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: This project is exempt from the California Environmental Quality Act (CEQA) under Class 1, Section 15301 (Existing Facilities) and Class 2, Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines. The project consists of the restoration or rehabilitation of existing deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety (CEQA Guidelines Section 15301); and replacing existing utility systems involving negligible expansion of capacity (CEQA Guidelines Section 15302).
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Sustainability
Sustainability: The proposed project is consistent with the 2040 General Plan goal PFS-3.1, “Provision of Adequate Utilities”, as the City continues to provide reliable water, wastewater and stormwater drainage utility services, and with PFS-3.8, “Capital Improvement Programming”, as the City is giving high priority to fund the replacement of critical infrastructure that has reached the end of its useful life, considering probability and risk of infrastructure failure.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The project was advertised (B26141311004) and two bids were received and opened on March 18, 2026. Subterra Construction, Inc. was the lowest responsible bidder. The bid results are as follows:
|
Contractor |
Amount |
|
Subterra Construction, Inc. |
$457,600 |
|
Soracco, Inc. |
$493,200 |
The Engineer’s construction cost estimate was $352,908.
The bids exceeded the Engineer’s construction cost estimate primarily due to the elevated groundwater levels present in the Pocket area. High groundwater conditions increase the complexity and risk associated with excavation and pipe installation, resulting in higher unit costs. Contractors accounted for potential groundwater contamination, dewatering requirements, and the need for reinforced shoring to safely perform trench excavation in these conditions.
The original Engineer’s estimate assumed more conservative base excavation and pipe installation unit costs because a separate bid item was included to address groundwater-related activities. However, based on the bids received, information available at the time of the Engineer’s estimate did not fully capture the level of uncertainty and risk associated with groundwater conditions. As a result, contractors incorporated higher costs into their base bid items to account for the unpredictability of groundwater excavation, leading to bids that exceeded the Engineer’s estimate.
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FinancialConsiderations
Financial Considerations: Sufficient funds exist in the Sewer Unplanned Repairs Program (X14120300, Fund 6006) to award a contract to Subterra Construction, Inc. for an amount not to exceed $457,600.
There are no General Funds allocated or planned for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Subterra Construction, Inc. is not an LBE but has partnered with Granite Construction Supply for this project to exceed the minimum LBE participation requirement. Granite Construction Supply will provide trench backfill and street restoration material.
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