Title
[Contract Change Order] Franklin Boulevard Complete Street - Phases 1 and 2 (T15165500)
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FileID
File ID: 2026-01260
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Location
Location: Franklin Boulevard between Sutterville Road/12th Avenue and 32nd Avenue, District 5
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to: 1) execute construction Contract Change Order No. 10 to City Agreement No. 2024-1493 with George Reed, Inc., for an amount not-to-exceed $475,081, bringing the agreement’s total not-to-exceed amount to $17,252,810; and 2) resetting the City Manager and designee’s administrative authority to issue Change Orders for the Agreement No. 2024-1493.
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Contact
Contact: Kelli Lacy, Assistant Engineer, (916) 808-8157, kelacy@cityofsacramento.org; Matthew Johns, Supervising Engineer, (916) 808-5760, mjohns@cityofsacramento.org;
Ofelia Avalos, Engineering Services Division 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-Change Order No. 10 to City Agreement No. 2024-1493
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Description/Analysis
IssueDetail
Issue Detail: The Franklin Boulevard Complete Streets Project was developed through an extensive community-driven planning process involving local businesses, residents, partner agencies, and the City. The project transforms Franklin Boulevard into a multimodal corridor that safely accommodates people walking, bicycling, using transit, and driving while enhancing the overall character of the corridor.
Prior to construction, Franklin Boulevard consisted of four travel lanes and a center two-way left-turn lane with no dedicated bicycle facilities. Sidewalks lacked street trees and landscaping, pedestrian crossings were lengthy, and the corridor did not adequately serve users of all ages and abilities. The completed improvements have reconfigured the roadway to provide two travel lanes with a center turn lane, installed Class IV protected bikeways separated from traffic by raised curbs and islands, upgraded and modified traffic signals and intersections, enhanced pedestrian crossings, constructed ADA-compliant sidewalks and curb ramps, and added pedestrian-scale lighting, street trees, landscaping, and irrigation.
On November 19, 2024, the City Council awarded the construction contract to George Reed, Inc. (Motion No. 2024-0339). The approved construction schedule anticipated an 18-month construction period, including a planned winter suspension to accommodate seasonal weather conditions. Construction has progressed substantially as planned and remains on schedule for substantial completion in Summer 2026. Remaining work is limited primarily to final signage installation, irrigation system adjustments, and completion of the required six-month landscape establishment period, during which the contractor is responsible for maintaining the newly installed landscaping prior to final acceptance by the City.
Change Order No. 10 provides compensation for completed work performed in response to unforeseen field conditions and other construction-related directives necessary to successfully complete the project. The cumulative value of the change order exceeds the City Manager's contract amendment authority established by the City Code. Accordingly, City Council approval is required to authorize execution of Change Order No. 10 and restore the City Manager's authority to approve subsequent contract amendments within the limits established by City Code.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are consistent with the provisions of the Sacramento City Code Section 3.04.020 A(4): For contracts originally awarded for a price of $10,000,000 or more, the city manager is authorized to execute contract amendments that increase the contract amount, provided that the sum of all contract amendments executed by the city manager does not exceed 6% of the original contract price.
Per Section 3.04.020 B, notwithstanding subsection A (above), any single contract amendment that increases the contract amount by more than $250,000 requires city council approval.
Including this change order, the sum of all contract amendments is 4.3% of the original contract amount, below the 6% threshold for City Manager authority. However, the contract amendment exceeds $250,000, and therefore, City Council approval is required.
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EconomicImpacts
Economic Impacts: This new infrastructure is expected to create 1.9 total jobs (1.09 direct jobs and 0.81 jobs through indirect and induced actives) and create $293,332 in total economic output ($184,889 of direct output and another $108,442 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 City Council adopted the Franklin Boulevard Complete Street Mitigated Negative Declaration and Monitoring Plan on February 4, 2020 (Resolution 2020-0039).
This project is federally funded. In compliance with the National Environmental Policy Act (NEPA), Caltrans issued a Categorical Exclusion for the Franklin Boulevard Complete Street project on March 16, 2020.
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Sustainability
Sustainability: The proposed project supports City Council’s sustainability priorities. The
transportation sector accounts for 57% of community-wide greenhouse gas emissions, the largest single sector in the community. The City’s Climate Action Plan includes several implementation measures to reduce vehicle trips. The project would increase active transportation, reduce vehicular trips, and help ensure more efficient vehicular flow. These actions will reduce greenhouse gas emissions and help improve local air quality.
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Commission/Committee Action
Commission/Committee Action: The project was presented to the Disabilities Advisory Commission (DAC) on June 7, 2023, to receive and provide feedback. The DAC was supportive of the project and emphasized the need for the project’s improvements.
The project was presented to the City County Bicycle Advisory Committee (now, the Active Transportation Commission) on November 8, 2019, during the environmental review phase. Committee members provided feedback on the concepts being considered, with preference for street-level Class IV bikeways, and were supportive of complete street improvements on Franklin Boulevard.
The project was also presented to the Active Transportation Commission on November 20, 2025, during the construction phase, as an informational update. Commission members were supportive of the project and look forward to its completion.
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RationaleforRecommendation
Rationale for Recommendation: Staff recommend the City Council approve Change Order No. 10 with George Reed, Inc. for City Agreement No. 2023-1493 for $475,081. The proposed Change Order No. 10 provides compensation for $475,081 that is necessary to complete the construction of the project.
The construction contract was awarded to George Reed, Inc for an amount not-to-exceed of $16,534,268. With this Change Order, the new not-to-exceed amount is $17,252,809, which is within 4.3% of the original contract amount.
Resetting the City Manager’s authority to execute change orders will allow for prompt action for any minor outstanding amendments needed to finish out the construction phase.
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FinancialConsiderations
Financial Considerations: The estimated total cost, including planning, preliminary engineering, environmental clearance, design, right of way, and construction, of the Franklin Boulevard Complete Streets (T15165500), Phase 1 and 2 is approximately $29.6 million. There is sufficient funding to award Change Order No. 10 to George Reed, Inc. for $475,081, and to cover the remaining construction management and other project-related costs.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): The contract with George Reed, Inc. is federally funded. The City’s LBE policy is held in abeyance.
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