Title
[Contract] Public Improvement Agreements for Sacramento Railyards (Project P15-040)
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FileID
File ID: 2026-01302
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Location
Location: District 4
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to: 1) execute a Public Improvement Acceptance Agreement with Downtown Railyard Venture, a Delaware limited liability company (“DRV”) to accept the public improvements for Sump 163, a stormwater pump station serving the Sacramento Railyards Developments; and 2) execute a Public Improvement Agreement for Sump 163 Remaining Elements with DRV to construct the remaining elements of Sump 163.
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Contact
Contact: Brett Grant, Supervising Engineer, (916) 808-1413, bgrant@cityofsacramento.org; Michelle Carrey, Engineering & Water Resources Division Manager, (916) 808-1438, mcarrey@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-Public Improvement Agreement; Sacramento Railyards Project P15-040
3-Public Improvement Acceptance Agreement; Sacramento Railyards Project P15-040
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Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council approve two agreements with Downtown Railyard Venture, a Delaware limited liability company (“DRV”), related to Sump 163, the stormwater pump station serving the Sacramento Railyards Developments. The first agreement provides a framework for the City to accept the public improvements for Sump 163. The second agreement addresses DRV’s construction of the remaining elements of Sump 163 needed to complete the facility as required for the Railyards development.
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PolicyConsiderations
Policy Considerations: Pursuant to section 20 of the City Charter, all contracting power is vested in the City Council unless delegated. City Council has not delegated authority to enter into these agreements.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: On November 10, 2016, the City Council certified a Subsequent Environmental Impact Report (SEIR) and adopted Findings of Fact and a Statement of Overriding Considerations and a Mitigation Monitoring Plan for the Railyards Specific Plan Update, KP Medical Center, MLS Stadium, & Stormwater Outfall Projects (P15-040) (Original Project) (Resolution No. 2016-0379). The proposed agreements involve the acceptance of the existing stormwater pump station and the completion of remaining elements associated with the facility that was evaluated in the certified SEIR. The subject agreements would not result in effects that were not considered, evaluated, and/or mitigated in the certified SEIR. None of the circumstances set forth in CEQA Guidelines Section 15162 are present and no additional review is required.
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Sustainability
Sustainability: Sump 163 supports the 2040 General Plan Goal, PFS-3, to provide “efficient, high-quality utility infrastructure and services to meet the needs of residents and business throughout the city” by providing adequate drainage facilities for the Sacramento Railyards area.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The purpose of these Agreements is to provide for: 1) the City’s acceptance of the pump station required by Condition A83 (Sump 163) at substantial completion; and 2) satisfaction of Condition A83 required by the Existing Projects Building Permits for the Existing Projects in exchange for: A) the Developer’s commitment to expeditiously finish the punch list items required to obtain a Notice of Completion for the Sump 163 project; and B) the Developer’s execution of a separate agreement to complete remaining elements of the Sump 163 project consisting of installation of a load bank and potential transformers consistent with City specifications for the project (“Sump 163 Remaining Elements”).
The punch list items are required to be completed within three (3) months of the execution of Public Improvement Acceptance agreement and are secured by a $75,000 deposit. This deposit will be returned upon issuance of the Notice of Completion. If DRV has not completed the punchlist items within the time specified, the City may use funds from the deposit to complete some or all of the remaining punchlist items.
The Sump 163 Remaining Elements are needed for the back-up generators to be operational and have a long lead time to procure. The Public Improvement Agreement requires DRV to complete the Sump 163 Remaining Elements within 545 days from the execution of the agreement. The scope of work related to Item 1 of the Sump 163 Remaining Elements, the load bank, shall be completed within 60 days from the delivery of the load bank to Developer or Developer’s contractors (“Load Bank portion of Required Improvements”). The completion of the Sump 163 Remaining Elements are secured by an improvement security and liquidated damages.
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FinancialConsiderations
Financial Considerations: Not applicable.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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Background
Background: Certain projects within the corporate limits of the City, including the Republic FC Stadium and the Kaiser Permanente Sacramento Railyards Medical Center, are being developed subject to the Amended and Restated Development Agreement (DA) for Sacramento Railyards Project No. P15-040 (Project) and require building permits. In conjunction with the City’s approving of the Railyards DA, the City also approved the Tentative Subdivision Map for the Project. Because the Tentative Map establishes infrastructure obligations applicable to all development within the Railyards, the City requires each project applicant to demonstrate satisfaction of applicable Tentative Map conditions, including Condition A83, before building permits will be issued.
Condition A83 provides: “Construct DOU [Department of Utilities] approved pump station and discharge pipes, and construct inlet and outlet structures for the pump station at the time specified by DOU. The construction shall be to the satisfaction of the DOU. The applicant is responsible for obtaining all necessary permits, easements and approvals from federal, state and local agencies, and private landowners for the construction of these facilities.” This condition ensures that the stormwater and utility infrastructure necessary to support development within the Railyards is completed in accordance with Department of Utilities standards and in coordination with ongoing vertical development.
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