Title
[Contract] Plans and Specifications Approval: Sacramento Last Mile Project Package 1 (A07001800) [Published for 10-Day Review 05/29/2026]
End
FileID
File ID: 2026-00975
End
Location
Location: District 1, 2, and 4
End
Recommendation
Recommendation: Pass a Motion: 1) approving plans and specifications for the Sacramento Last Mile Project Package 1 (A07001800); 2) awarding a construction contract to HP Communications for the Sacramento Last Mile Project Package 1; 3) authorizing the City Manager or designee to execute the construction contract for the Sacramento Last Mile Project Package 1 (A07001800) with HP Communications for an amount not-to-exceed $3,215,347; 4) authorizing the City Manager or designee to execute a Professional Services Agreement for an amount not-to-exceed $464,323 with HDR Construction Controls Corporation for construction management services for the Sacramento Last Mile project (A07001800); and 5) authorizing the City Manager or designee to execute Supplemental Agreement No. 1 to City Agreement No. 2023-1076 with Bear Electrical Solution, Inc. in an amount not-to-exceed $500,000, for a new total not-to-exceed amount of $3,500,000.
End
Contact
Contact: Adam Randolph, Senior Engineer, (916) 808-7803, arandolph@cityofsacramento.org; Judy Matsui-Drury, Supervising Engineer, (916) 808-7610, jmatsui-drury@cityofsacramento.org; Ofelia Avalos, Engineering Services Manager, (916) 808-5054, oavalos@cityofsacramento.org; Department of Public Works
End
Presenter
Presenter: None
End
Attachments
Attachments:
1-Description/Analysis
2-Project Plans
3-HP Communications Contract
4-HDR Contract
5-Bear Electrical Solution, Inc. Supplemental Agreement No.1
End
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 our "Sacramento Last Mile Connectivity Project" to connect underserved communities to affordable broadband infrastructure. The underserved 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, the City Council adopted Resolution 2024-0309 authorizing staff to accept the Last Mile Connectivity Grant (G07000200) from the CPUC to expand internet access for underserved communities in Sacramento. Throughout California these communities face many barriers to deploying resilient and accessible broadband networks. On March 25, 2025, to appropriately reflect the capital improvements aspect of this project, City Council approved the establishment of a Capital Improvement Project and the transfer of the budget from the Last Mile Connectivity Grant (G07000200) to Last Mile Connectivity Project (A07001800). The Sacramento Last Mile Project will be delivered in five construction packages.
The Sacramento Last Mile Project Package 1 was advertised for construction, and three bids were received on March 11, 2026. Upon bid analysis, all bidders were found to be non-responsive. On April 28, 2026, City Council approved the suspension of competitive bidding, and authorized staff to negotiate with HP Communications.
Construction of this project will require construction management services. A competitive procurement process for construction management and inspection services was performed, and staff recommends the selection of HDR Construction Control Corporation.
The delivery of this project will also require repairs of existing municipal communications infrastructure. To perform these repairs, staff used the City's On-Call contractor services list to issue a task order with Bear Electrical Solutions.
Council approval is needed to: approve plans and specifications; award and execute the agreements with HP Communications and HDR Construction Control Corporation; authorize a supplemental agreement with Bear Electrical Solutions; and proceed with construction.
End
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 Public Private Partnership.
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 May 29, 2026, in compliance with the City Code.
End
EconomicImpacts
Economic Impacts: None.
End
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) and 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.).
End
Sustainability
Sustainability: Under Phase 1 of the City of Sacramento’s Climate Action Plan, all applicable “Green” technology initiatives have been considered prior to the purchase of IT cabling and wiring services.
End
Commission/Committee Action
Commission/Committee Action: None.
End
RationaleforRecommendation
Rationale for Recommendation: Sacramento Last Mile Project Package 1 will achieve the goals of CPUC’s FFA Program to connect underserved communities to affordable broadband infrastructure. Construction of the Project allows the City to achieve the deliverables and meet the requirements of the Last Mile Connectivity Project.
The Sacramento Last Mile Project Package 1 was advertised for construction, and three (3) bids were received March 11, 2026. All bidders were found to be non-responsive. On April 28, 2026, City Council approved the suspension of competitive bidding and authorized staff to negotiate with HP communications. The HP Communications bid was deemed non-responsive due to failing to provide a price for the bid-alternate items. Staff obtained prices for bid-alternate items and have determined that there is not adequate budget to award the bid alternate items. Staff recommends awarding HP Communications the base bid package for the Sacramento Last Mile Project Package 1 for an amount not to exceed $3,215,347.
Construction of this project also requires construction management services including a trained Resident Engineer. A competitive procurement for construction management and inspection was performed and HDR Construction Control Corporation was selected as the firm to provide these services for all construction packages of the Sacramento Last Mile Project.
To perform needed repairs of the City’s existing city communications infrastructure related to the Sacramento Last Mile Project, City staff issued a task order from Bear Electrical Solutions on the City’s On-Call contractor services for traffic signal maintenance, repair, and modification (City Agreement No. 2023-1076). To complete these repairs, as well as to ensure there is adequate authority remaining in the agreement for traffic signal maintenance, staff recommends execution of Supplemental Agreement No. 1 to City agreement No. 2023-1076 with Bear Electrical Solutions, increasing Agreement’s total not-to-exceed amount to $3,500,000.
End
FinancialConsiderations
Financial Considerations: There is sufficient funding (Federal Capital Grant, Fund 3703) in the Last Mile Connectivity Project (A07001800) to fund both the construction and construction management contracts. The City adopted Resolution No. 2024-0309 accepting the Last Mile Grant with the CPUC to receive funding and reimbursement for the fiber installations.
The costs expended under the Bear Electrical contract will be paid by the project or program that creates an individual task order and is not required to be separately funded.
End
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.
End