Title
Sacramento Last Mile Project Package 2 (A07001800): Approval of Plans and Specifications and Contract Award [Published for 10-Day Review 09/17/2026]
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FileID
File ID: 2026-01603
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Location
Location: District 8
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Recommendation
Recommendation: Pass a Motion: 1) approving the Plans and Specifications for the Sacramento Last Mile Project Package 2 (A07001800); 2) awarding the construction contract for the Sacramento Last Mile Project Package 2 (A07001800) to Tennyson Electric LLC for an amount not-to-exceed $2,212,487; 3) authorizing the City Manager or designee to execute the construction contract for the Sacramento Last Mile Project Package 2 (A07001800) to Tennyson Electric LLC for an amount not-to-exceed $2,212,487; and 4) ratifying the executed Professional Services Agreement in the amount not-to-exceed $1,911,545 with HDR Construction Controls Corporation for construction management services for the Sacramento Last Mile project (A07001800).
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Contact
Contact: Adam Randolph, Senior Engineer (916) 808-7803, arandolph@cityofsacramento.org; Matthew Johns, Supervising Engineer (916) 808-5760, mjohns@cityofsacramento.org; Ofelia Avalos, Engineering Services 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-Project Plans
3-Tennyson Electric LLC Contract
4-HDR Construction Control Corporation Contract
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Additional Description/Analysis
IssueDetail
Issue Detail: On September 29, 2023, staff applied for grant funding through the California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) to implement the "Sacramento Last Mile Connectivity Project" to connect unserved communities to affordable broadband infrastructure. The unserved locations were selected based on criteria established by the CPUC's FFA program while overlaying the City network with the FFA Public Map, which identifies areas at the census block level lacking reliable broadband service of at least 25 Mbps downstream and 3 Mbps upstream. On September 13, 2024, the City received an award letter for $38,696,843 after the CPUC voted and approved the grant award in Resolution T-17835.
On October 15, 2024, Council adopted Resolution 2024-0309 authorizing staff to accept the Last Mile Connectivity Grant (G07000200) from the CPUC to expand internet access for unserved communities in Sacramento. These communities across California face many barriers to deploying resilient and accessible broadband networks. To appropriately recognize the capital improvements of this project, staff recommend the budget moved from Last Mile Connectivity Grant (G07000200) to Last Mile Connectivity Project (A07001800).
The Sacramento Last Mile Project Package 2 was advertised for construction, and four bids were received on July 8, 2026. Upon bid analysis, the first low bidder was found to be non-responsive. Staff recommend awarding the construction contract to the second lowest and most responsive bidder, Tennyson Electric LLC.
On June 9, 2026, City Council approved a contract for construction management services to HDR Construction Control Corporation (PRC004274). After review, staff found that the not-to-exceed amount included in the staff report and set forth in the motion that was passed was shown incorrectly at $464,323 despite the fact the agreement was published 10-days prior to Council action and the agreement attached to the staff report was in the correct amount of $1,911,545. The agreement with HDR Construction was subsequently signed by the City Manager’s Office for the amount of $1,911,545. Staff request that City Council ratify the contract that was executed to the correct not-to-exceed amount of $1,911,545.
City Council approval is needed to: approve plans and specifications; award and execute the agreement with Tennyson Electric LLC; ratify the contract with HDR Construction Control Corporation for the correct amount; and proceed with construction.
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PolicyConsiderations
Policy Considerations: This initiative aligns with the Information Technology Department’s Digital Strategy Update 2024-2025 document that includes expanded broadband to underserved communities as a key initiative goal. Investment in infrastructure will strategically position the City for the next economy. The City stands to receive significant short and long term economic gains from this PPP.
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 17, 2026, in compliance with the City Code.
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EconomicImpacts
Economic Impacts: This new infrastructure is expected to create 8.86 total jobs (5.09 direct jobs and 3.76 jobs through indirect and induced actives) and create $1,367,302 in total economic output ($861,821 of direct output and another $505,481 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:
California Environmental Quality Act (CEQA): The project is consistent with the 2040 General Plan and certified Master EIR (Resolution No. 2024-0065) is categorically exempt. The infrastructure installation project involves existing small structures and minor alterations to land, including minor trenching and backfilling where the surface is restored as described in sections 15301, 15303, and 15304 (f) of the CEQA Guidelines (14 C.C.R. §§ 15000, et seq.).
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Sustainability
Sustainability: Under Phase 1 of the City of Sacramento’s Climate Action Plan, all applicable “Green” technology initiatives will be considered prior to the purchase of IT cabling and wiring services.
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Commission/Committee Action
Commission/Committee Action: None
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RationaleforRecommendation
Rationale for Recommendation: Construction of Bid Package 2 will allow the City to achieve the deliverables of the Last Mile Connectivity Project.
The Sacramento Last Mile Project Package 2 was advertised for construction, and four (4) bids were received March 11, 2026. The results of the bids are summarized below:
|
Contractor |
Bid |
|
Utilities One, Inc. |
$1,993,844 |
|
Tennyson Electric LLC |
$2,212,487 |
|
Daleo Inc |
$2,357,308 |
|
Teichert Energy & Utilities Group |
$3,544,250 |
The Engineer’s Estimate was $2,000,000. The lowest bidder was found to be non-responsive. The second lowest bidder met all required bid conditions. Staff recommend that the construction contract be awarded to the second lowest and most responsive and responsible bidder, Tennyson Electric LLC. Construction is anticipated to begin October 2026 and be completed February 2027.
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FinancialConsiderations
Financial Considerations: No additional funding is needed. There is sufficient funding in the Last Mile Connectivity Project (A07001800). The City adopted Resolution 2024-0309 accepting the Last Mile Grant with the CPUC to receive funding and reimbursement for the fiber installations.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Because the project is federally funded with American Rescue Plan Act (ARPA) funds, Local Business Enterprise requirements are held in abeyance.
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