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August 19, 2020 ITEM #10 SUBJECT: CONSIDERATION of ADOPTION of RESOLUTION 20-86 AUTHORIZING the CITY

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August 19, 2020 ITEM #10 SUBJECT: CONSIDERATION of ADOPTION of RESOLUTION 20-86 AUTHORIZING the CITY CITY COUNCIL AGENDA REPORT MEETING DATE: August 19, 2020 ITEM #10 SUBJECT: CONSIDERATION OF ADOPTION OF RESOLUTION 20-86 AUTHORIZING THE CITY CITY MANAGER TO MODIFY AND EXECUTE AMENDMENT #1 TO THE INTERAGENCY AND OF _ UI~•'~ WEST COST REIMBURSEMENT AGREEMENT (2018-1217), AND RECOMMEND THE SACRAMENTO SACRAMENTO REGIONAL TRANSIT DISTRICT AND ITS BOARD OF DIRECTORS TO ADVANCE THE REVISED DOWNTOWN RIVERFRONT STREETCAR PROJECT INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY: [ ] Council [X] Staff Jason McCoy, Supervising Transportation Planner Capital Projects and Transportation Department [ ] Other ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action OBJECTIVE The objective of this report is to provide the City Council with an update on the status of the revised Downtown Riverfront Streetcar (Streetcar Project), to request authorization to modify and execute an amendment to the existing funding agreement, and request City Council recommend a series of actions by the Sacramento Regional Transit District and its Board of Directors to advance the project. RECOMMENDED ACTION Staff respectfully recommends that the City Council adopt Resolution 20-86 for the Downtown Riverfront Streetcar Project, authorizing the City Manager to: 1) Modify and execute Amendment #1 to the Interagency and Cost Reimbursement Agreement (2018-1217) between the City of West Sacramento and City of Sacramento (Cities), and the Riverfront Joint Powers Authority (Riverfront JPA), including: a) Extending the term of the Agreement to June 31, 2021; and b) Amending the project description to reflect the revised Streetcar Project; and 2) Recommend that the Sacramento Regional Transit District (SacRT) and its Board of Directors advance the revised Downtown Riverfront Streetcar Project by: a) Approving the Third Amendment to the Contract for the Downtown Riverfront Streetcar Design Service with engineering firm HDR; b) Executing the Memorandum of Understanding (MOU) between SacRT and the Riverfront JPA allowing SacRT to continue moving forward with delivering the Streetcar Project; c) Approving the first amendment to the Environmental Support Services contract with AECOM; and d) Submitting the completed Small Starts Grant Application update to the Federal Transit Administration (FTA) prior to the August 28, 2020 deadline to retain the 2017 $50 million federal appropriation before it expires in September 2021. BACKGROUND The Streetcar Project received approval from the FTA to enter Project Development as a Small Starts Project in 2014. This FTA discretionary grant program funds transit capital investments such as light rail and bus rapid transit and requires completion of the Project Development phase in advance of receipt of a construction grant agreement. The original scope of the Streetcar Project was an approximately four-mile looped system extending between the West Sacramento Civic Center and Riverfront Street, across Tower Bridge over the Sacramento River and into Downtown and Midtown Sacramento. The project was environmentally cleared, designed, and issued for bids in November 2018 by SacRT. The Engineer’s Estimate and projected budget for this work was $108,000,000. On January 11, 2019, SacRT received three bids, with the lowest bid at $183,943,279. Due to the bids being significantly over the Engineer’s Estimate, SacRT, under direction from the two Cities and the Sacramento Area Council of Governments (SACOG), rejected all three bids on February 27, 2019. In March 2019, the Mayors of both Cities subsequently directed the formation of a Mobility Technical Working Group (MTWG). The goal of the MTWG was to present technical alternatives to the currently proposed Streetcar Project (independent of funding and regulatory obstacles) that achieve the best mobility for and between both Cities. The alternatives were to be “forward looking,” allow for future innovation, be achievable in phases, and implemented within five years. The project team was expanded to include representatives from Sacramento Municipal Utility District (SMUD), the Sacramento Metropolitan Air Quality Management District (SMAQMD), the Sacramento Mayor’s Office and Congresswoman Matsui’s Office. Over the next several months, over a half- dozen MTWG meetings were held to establish clear objectives and explore various project alternatives to reduce costs and to deliver a project consistent with the original intent, purpose, and need. Two of the principal objectives Consideration Of Resolution 20-86 - The Downtown Riverfront Streetcar Project August 19, 2020 Page 2 of 6 driving the analysis included: 1) Preservation of the Congressionally appropriated $50 million to complete the Streetcar Project; and 2) Connect the two Cities and the region with frequent, high-quality mass-transit service over the Sacramento River. The decision was made by the MTWG to move forward with a reduced-scope rail project that preserved the portion of the original Downtown Riverfront Streetcar connecting West Sacramento from Sutter Health Park (formerly Raley Field) with Sacramento Valley Station (SVS). This alternative offered many of the benefits of the original Streetcar Project, in that the West Sacramento to SVS connection: • is within the original environmentally-cleared alignment, requiring minimal environmental document updates; • was substantially designed by the consulting engineering team, requiring minimal design revisions; • maintained three of the planned Streetcar stations along the existing route; • provided an opportunity to preserve the $50 million federal appropriation to the project; and • would establish the much-needed regional mass-transit connection between the two Cities. The Streetcar Project partners, with leadership and direction from Congresswoman Matsui, agreed to proceed with the reduced-scope project. After several discussions with the FTA, SACOG and SacRT (with support from the Cities) sent a letter to the FTA on February 13, 2020, (attached Exhibit A) outlining the revised project, expressing the partners’ commitment to the Streetcar Project as revised, and committing to deliver a full Streetcar Project update (including updated environmental documentation, engineering design, revised project management plan, operating plan, and associated studies by January 2021, and notified the FTA of our intent to submit an updated Small Starts Grant application before the August 28, 2020 deadline. Staff are seeking authorization from the Cities and SacRT Board of Directors to move forward with the Streetcar Project. ANALYSIS Work prepared for the prior and rescoped Streetcar Project is funded through execution of several prior and existing funding commitments between SacRT, the Cities, SACOG and the Riverfront JPA. A breakdown of these commitments is shown in Table 1.1 - Revised Streetcar Project Funding. Initial Project Development Funding Agreements The first of these contracts was executed February 24, 2015, between the City of Sacramento and SACOG with Sacramento providing $2 million and SACOG providing $2.7 million toward initial (Phase 1) Streetcar Project Development tasks. This budget has not been fully expended with approximately $1.25 million in committed funding remaining. Table 1.1 – REVISED STREETCAR PROJECT FUNDING FOR DESIGN, ENGINEERING, CONSTRUCTION, AND VEHICLE PROCUREMENT Dollars in Millions Commitment Commitment Commitment Commitment Total Env. per Agreement per Agreement per Agreement Balance Commitment Work Dated per Agreement Remaining Dated 2/24/15 11/16/16 Dated 7/10/17 Dated 8/17/18 Small Starts $50 $50 (FTA) City of West $25 $3 $2.45 $2.3 $17.25 Sacramento TIRCP (RT)* $30 $30 Prop 1A (RT)** $17 $17 PTMISEA (RT) $1.57 $1.57 $0 City of $9 $2 $3 $2.45 $0.3 $1.25 Sacramento CMAQ (SACOG) $5 $2.3 $2.7 $0 TOTAL $137.57 $115.5 * Funds currently cannot be used until receipt of the federal SSGA. ** Prop1A funds obligated for Light Rail Modernization Project funding the acquisition of light rail vehicles. SacRT is seeking FTA authorization to use these same vehicles for Streetcar operations. The second agreement (2017-0038) was executed November 16, 2016, and provided $6 million to SacRT ($3 million from each City) to complete Phase 2: Final Design (HDR Tasks 2, 3, & 4). This budget was fully Consideration Of Resolution 20-86 - The Downtown Riverfront Streetcar Project August 19, 2020 Page 3 of 6 expended. The third agreement (2017-0798) was executed on July 10, 2017, for $4.9 million ($2.45 million from each City) to complete Phase 3 of Project Development and carry the Streetcar Project through construction bid award. The Design, Procurement and Construction (DPC) Agreement and Current Interagency and Cost Reimbursement Agreement The DPC Agreement currently in effect was executed between SacRT and the Riverfront JPA in July 2018. It provides for the reimbursement of SacRT costs to advance the Project, up to the maximum Project budget of $203.5 million; reflective of the original Streetcar Project budget. Funding for this phase of work was secured through a fourth cost reimbursement agreement intended to complete Phase 4 Project Development activities and carry the Streetcar Project through receipt of the Small Starts Grant Agreement; thus unlocking State and federal funds to complete project construction. The most recent Interagency and Cost Reimbursement Agreement (2018-1217) between the City of Sacramento, the City of West Sacramento and the Riverfront JPA, was executed on August 17, 2018. The allocation of this last contribution by the Cities ($2.3
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