Title
[Contract] I Street Bridge Replacement Project (T15136000): Agreement for Advancement of Measure A Funds with Sacramento Transportation Authority, Supplemental Agreement, Budgetary Adjustments, and Environmental Mitigation Agreements and Surety [Two-Thirds Vote Required]
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FileID
File ID: 2026-00790
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Location
Location: Construction of a new multimodal bridge crossing over the Sacramento River at Railyards Boulevard, located upriver from the existing I Street Bridge; District 4
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Recommendation
Recommendation: Adopt a Resolution by two-thirds vote authorizing the City Manager or designee to: 1) waive the requirement for 10-day posting of agreements over $1 million pursuant to City Code section 4.04.020(c) and Council Rules of Procedure Chapter 7, Section E.2.d; 2) increase the revenue and expenditure budgets of the I Street Bridge Replacement Project (T15136000) by $250,000,000 (Federal Capital Grants, Fund 3703); 3) increase the revenue and expenditure budgets of the I Street Bridge Replacement Project (T15136000) by $25,000,000 (Other Capital Grants, Fund 3704); 4) execute the Agreement For Advancement of Measure A Funds with the Sacramento Transportation Authority for the I Street Bridge Replacement Project (T15136000); 5) execute the Reservation Agreement for Purchase and Sale of Credits from the Hamilton Bend Mitigation Bank with Westervelt Ecological Services, LLC for the I Street Bridge Replacement Project (T15136000) in an amount not-to-exceed $3,367,500; 6) execute the Credit Sale and Transfer Agreement for mitigation credits with Westervelt Ecological Services LLC (Zacharias Ranch) for the I Street Bridge Replacement Project (T15136000) in an amount not-to-exceed $3,260,400; 7) establish a surety in the form of an escrow account or line of credit in an amount not-to-exceed $10,000,000 for mitigation costs identified by California Department of Fish and Wildlife (CDFW); and 8) execute Supplemental Agreement No. 42 to City Agreement No. 2014-0244 with Mark Thomas and Company Inc. for an amount not-to-exceed $2,518,458, bringing the agreement’s total not-to-exceed amount to $23,643,116.
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Contact
Contact: Philip Vulliet, Supervising Engineer, (916) 808-5092, pvulliet@cityofsacramento.org; Ofelia Avalos, Engineering Services Manager, (916) 808-5054, oavalos@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None (Staff available for questions)
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Agreement For Advancement of Measure A Funds - Sacramento Transportation Authority
4-Reservation Agreement for Purchase and Sale of Credits - Westervelt Ecological Services LLC. (Hamilton Bend)
5-Credit Sale and Transfer Agreement - Westervelt Ecological Services LLC. (Zacharias Ranch)
6-Supplemental Agreement - Mark Thomas and Company (2014-0244-42)
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Description/Analysis
IssueDetail
Issue Detail: The I Street Bridge Replacement Project represents a significant, once-in-a-generation public infrastructure investment to construct a new movable bridge over the Sacramento River, providing an essential connection between the cities of Sacramento and West Sacramento. The project supports major transit-oriented and infill development within the regional core and will facilitate community revitalization, economic growth, and improved mobility. The new crossing will enhance multimodal access to regional rail and transit facilities, major healthcare centers, and riverfront amenities, while providing safe and direct routes for pedestrians, cyclists, emergency responders, and transit vehicles. Construction activities are anticipated to generate several hundred high-wage jobs and contribute to sustained regional economic activity. Funding for the project is primarily derived from federal and state transportation programs.
Over the past decade, the California Department of Transportation (Caltrans) has programmed federal Highway Bridge Program (HBP) funds to support preliminary engineering, environmental permitting, and right-of-way acquisition. Most recently, Caltrans issued a Funding Commitment Letter identifying $250 million in HBP funds for project construction. In addition, on June 27, 2025, the California Transportation Commission (CTC) awarded $25 million in competitive State Local Partnership Program (LPP) funds. Contractor bids for construction are currently being solicited, with construction anticipated to begin this summer.
These recent funding commitments enable the City to proceed with construction in 2026, contingent upon the establishment of interim financing to support construction cash-flow needs. Caltrans has subsequently issued a revised Funding Commitment Letter outlining conditions and timelines for federal reimbursement. Under this structure, the City is expected to receive at least $40 million annually, subject to statewide HBP delivery and future federal transportation act reauthorization. Because projected annual construction expenditures exceed annual programmed reimbursements, the City requires a financing agreement through the Sacramento Transportation Authority (STA) to ensure sufficient working capital. Financing costs incurred by the City, such as interest, are not eligible for reimbursement from grant funds.
Staff recommend execution of an agreement with STA to advance Measure A funds and establish the framework and terms for subsequent financing implementation agreements. This action will allow STA to initiate procurement of financing proposals for future City review and potential approval. Staff will return to the City Council later this year with specific financing agreements requiring Council action.
An overview of these forthcoming financial actions was previously presented to the City Council on July 29, 2025. Additionally, the Council approved the CTC baseline agreements and the Caltrans funding commitment letter at its September 16, 2025 meeting.
On June 27, 2025, the CTC approved $25 million in LPP competitive grant funding, and the allocation of those funds was finalized at the CTC’s March 15, 2026 meeting.
Environmental mitigation procurement is also required before issuance of permits necessary to begin construction. City staff and the consultant team have identified the most cost-effective mitigation banks for acquisition of required credits. Mitigation purchase and reservation agreements are needed to fulfill these requirements. For mitigation reservations, the California Department of Fish and Wildlife (CDFW) requires a surety equal to the full cost of the mitigation credits prior to permit issuance. CDFW also requires additional surety for mitigation elements outside of bank purchases, including those benefiting white sturgeon habitat. These sureties may be provided through a line of credit or an escrow account naming CDFW as a party.
Mark Thomas and Company was awarded a professional services agreement (City Agreement No. 2014-0244) in March 2014 to provide preliminary engineering, environmental clearance, and final design services. As the project enters the construction phase, a supplemental agreement is required to provide continued design support and public outreach throughout construction.
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PolicyConsiderations
Policy Considerations: General Plan Policy M-5.1 Regional Mobility System states that the City shall partner with adjacent cities and other partners to plan and operate a cohesive regional mobility system. Policy M-5.3 Bridges states that the City shall maintain existing bridges and plan and seek funding for new bridges, when appropriate, to improve multimodal connectivity and provide for emergency evacuation routes.
This project will provide a new multi-modal bridge, crossing the river between C Street in West Sacramento to Railyards Boulevard in Sacramento. The new bridge is included in the Mobility Element of the General Plan, the Railyards Specific Plan, Transportation Priorities Plan, and the Active Transportation Plan.
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EconomicImpacts
Economic Impacts: The project supports regional economic development by improving access to the Railyards development area and surrounding employment centers. Construction activities are expected to generate construction employment and related economic activity. There is no direct impact to the City General Fund associated with this action.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): The City Council certified an Environmental Impact Report (EIR) and adopted a Mitigation Monitoring Program for the I Street Bridge Replacement Project in compliance with CEQA on June 25, 2019 (Resolution No. 2019-0276). Following certification of the EIR, Staff filed a Notice of Determination with the Sacramento County Clerk on July 2, 2019. The current action consists of steps to implement the project that was approved and is consistent with the analysis contained in the certified EIR. No further environmental review is required.
As a responsible agency the City of West Sacramento also has permit jurisdiction or authorization over certain aspects of the project. The City of West Sacramento approved the EIR on August 7, 2019, and adopted the Findings and Notice of Determination authorizing the project within their jurisdiction. On November 16, 2022, the City of West Sacramento approved minor revisions to the local circulation access.
National Environmental Policy Act (NEPA): The project is funded in part by federal funds. As a result, the project is also subject to requirements of the NEPA. Caltrans is the delegated lead agency for NEPA documentation. On June 10, 2019, Caltrans approved a Final Environmental Assessment (FEA) / Finding of No Significant Impact (FONSI) for the Project pursuant to the requirements of NEPA. The NEPA document was revalidated by Caltrans in February 2023 and September 2025.
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Sustainability
Sustainability: The project is consistent with the City’s sustainability goals to support direct connections that support infill development, promote walking and bicycling, and access to transit. The project will reduce dependence on private automobiles, decrease the use of fossil fuels, and help meet air quality standards by providing an array of transportation choices near jobs for a balanced, healthy city.
While supporting substantial new infill development, the bridge will result in an overall reduction in Vehicle Miles Travelled (VMT) and support reductions in greenhouse gas emissions and other pollutants.
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Commission/Committee Action
Commission/Committee Action: The I Street Bridge Replacement Project was reviewed by the Active Transportation Commission on June 29, 2019, and on September 17, 2020. The project was presented to the Disabilities Advisory Commission for review and comment on May 4, 2022. Comments included consideration of sidewalks connecting to the bridge be accessible and review of any gaps in the sidewalk network approaching the bridge.
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RationaleforRecommendation
Rationale for Recommendation: The Agreement for Advancement of Measure A Funds with the Sacramento Transportation Authority (STA) establishes the framework, conditions, and roles and responsibilities of each partner agency for the solicitation and procurement of project financing agreements for the I Street Bridge Replacement Project (T15136000). This agreement, along with the subsequent financing agreement, is necessary for the City to deliver the project through construction while awaiting reimbursement from programmed state and federal grant sources.
City Council approval of the mitigation bank purchase agreements with Westervelt Ecological Services, as well as the surety instruments required by the California Department of Fish and Wildlife (CDFW), is necessary to secure environmental permits and allow construction to begin as planned in 2026.
Project construction will also require ongoing support from the designers of record and continued public outreach efforts. City Council approval of a supplemental agreement with Mark Thomas and Company is needed to ensure these services are in place prior to the start of construction activities.
City Council approval is further required for the associated budgetary adjustments.
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FinancialConsiderations
Financial Considerations: The estimated total cost to complete the I Street Bridge Replacement is approximately $317,000,000. With the increase of the revenue and expenditure budgets by $250,000,000 (Federal Capital Grants, Fund 3703) and by $25,000,000 (Other Capital Grants, Fund 3704), there will be sufficient funding to execute a supplemental agreement with Mark Thomas and Company for design support and public outreach services during construction, execute the mitigation bank purchase and reservation agreements with Westervelt Ecological Services Inc. for an amount not-to-exceed $6,627,900, and establish surety for the mitigation purchases that are subject to reservation agreements, as well as additional mitigation costs, as required by CDFW.
There is no financial commitment associated with the Agreement for Advancement of Measure A Funds with the Sacramento Transportation Authority (STA). Staff will return to City Council for approval of any financing agreement that is subsequently procured through STA as discussed in the terms of this agreement.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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