Agenda Item Wording:
title
Conduct a Public Hearing (the second of two) to appropriate $2.7M of Measure N Funds for the Downtown Streetlight Project, appropriate $2,700,000 from Measure N (141) Fund in additional funding and authorize the City Manager to execute an agreement with A-C Electric Company for the Downtown Streetlight and Pavement Rehabilitation Projects in the amount of $8,853,574.15 (CIP 1410-72000/CP0345-999 & CIP 2390-72000/CP0373-999).
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Deadline for Action: 5/16/2022 - 2nd of two public hearings in order to allocate funds for the award and start of construction.
Submitting Department: Administration - CIP Engineering
Contact Name and Phone Number:
Eric Bons, Senior Civil Engineer, Eric.Bons@visalia.city, 713-4350
Frank Senteno, City Engineer, Frank.Sentento@visalia.city, 713-4331
Nick Mascia, Assistant City Manager, Nick.Mascia@Visalia.city, (559) 713-4323
Department Recommendation:
Staff recommends that City Council:
1. Conduct the second of two public hearings to amend the Measure N plan and appropriate $2.7M towards the Downtown Streetlight Project (CIP 1410-72000/CP0345-999) to address a shortfall in the Downtown Streetlight project’s budget.
Upon completion of the public hearing:
2. Appropriate $2,700,000 from Measure N (141) Fund for the Downtown Streetlight Project; and
3. Authorize the City Manager to execute an agreement with A-C Electric Company for the Downtown Streetlight and Pavement Rehabilitation Projects in the amount of $8,853,574.15 for the Downtown Streetlight and Pavement Rehabilitation Project.
Background Discussion:
Action performed at this City Council meeting will complete the Measure N process to appropriate additional Measure N funds in order to have a budget that can complete the City Council approved scope. Upon completion of the public hearing, if Council chooses to proceed, Staff is recommending City Council to appropriate the Measure N funds and approve the construction contract.
Public Hearings:
On May 2, 2022, staff presented the 1st of two public hearings to appropriate $2,700,000 of Measure N Funds for the Downtown Streetlight Project per the Measure N procedure.
On April 4, 2022, staff presented the bid results for the Downtown Streetlighting Project and the Downtown Pavement Rehabilitation Project for information. The April 4 staff report also identified the budget shortfall in each project. Council authorized staff to begin the Measure N amendment process for the additional appropriation of $2.7M towards the Downtown Streetlight Project (CP0345).
On April 7, 2022, the Measure N Oversight Committee reviewed and approved the recommendation to appropriate $2.7M of Measure N funds towards the Downtown Streetlight Project (CP0345). Staff is returning to City Council in accordance with the city’s Accountability Ordinance (Ordinance 16-21) to hold two public hearings to authorize the $2.7M appropriation. The Notice for the first Public Hearing was published on April 15, 2022, as required in a newspaper of general circulation within 14 days of the regularly scheduled and appropriately noticed City Council meeting. The notice for the second Public Hearing was published on May 2, 2022, within 14 days of the regularly scheduled and appropriately noticed City Council meeting.
Measure N Background:
In November of 2016, the voters of Visalia passed a ½ cent Sales Tax Override, Measure N - The Visalia Essential City Services Measure. Sales Tax from Measure N will provide for essential city services such as police and fire, as well as maintenance of parks and roads. The measure uses a detailed, 10-year plan which includes hiring of personnel, construction of capital projects and equipment purchases.
As part of the measure, Council adopted an Accountability Ordinance (Ordinance 16-21) to have a high degree of accountability when using Measure N funds. As a result, the following actions are necessary to amend the Measure N spending plan:
• City Manager makes a recommendation to City Council and makes changes as requested. (Authorization granted by City Council on April 4, 2022.)
• Comments and recommendation received by Sales Tax Oversite Committee. (Measure N Oversight Committee reviewed and approved the appropriation of the additional $2.7M of Measure N funds for the Downtown Streetlight Project.)
• Two public Hearings are held at regular Council Meetings to consider recommendation to amend expenditure plan (tonight’s 2 of 2 public hearings).
Downtown Streetlight Project History:
The Downtown Street Light Project consists of replacing a 70+ years old lighting system in Downtown Visalia with a modern lighting system that meet current industry standards. It’s important to note that the primary purpose of the project is to replace this outdated and unsafe high voltage (4,000-volt) electrical lighting system. This system, with aging and deteriorated assets, makes the repair and maintenance very unsafe for City maintenance staff. Therefore, the proposed project will replace the existing system with a new multi-functional streetlight system which will provide longer lasting serviceability, normal maintenance per industry standards, lowered operational cost, and an aesthetically pleasing finished product. In addition, the project also includes pavement rehabilitation and installation of joint trench facilities to take advantage of construction efficiencies and minimize construction disruptions in the future.
The Downtown Streetlight Project and the Downtown Pavement Rehabilitation Project were advertised together because they are complimentary projects that impact the same areas. The construction proposals were higher than the engineer’s estimate and additional construction funding is needed. The Downtown Streetlight Project will make use of additional Measure N funds to make up the construction cost difference. The Downtown Pavement Rehabilitation Project is making use of additional Senate Bill 1- Road Maintenance and Rehabilitation Account (SB1 RMRA) Fund (113) and was approved at the April 4, 2022, City Council meeting.
Bidding Process:
These two projects were advertised together (RFB 21-22-18 and RFB 21-22-19) for the Installation of the Downtown Streetlight Project and the Pavement Rehabilitation Project since they are complimentary projects. An alternative bid was included in the request for proposals for additional pavement rehabilitation of the adjoining streets, but the alternative bid is not being utilized due to budget constraints. The alternative bid was for the pavement rehabilitation area of Floral Street from Acequia Avenue to Center Avenue and Church Street between Acequia Avenue to Main Street.
Staff advertised these two projects for the Downtown Streetlight and Pavement Rehabilitation Projects which closed on March 17, 2022. Two (2) companies responded with the following bids.
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A-C Electric Company, Inc |
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Papich Construction Company, Inc |
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Base Bid A |
$6,279,317.60 |
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$6,798,370.85 |
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Base Bid B |
$2,574,256.55 |
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$3,049,006.99 |
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Alternative Bid C |
$2,574,256.55 |
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$509,993.00 |
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Total: |
$9,223,413.25 |
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$10,357,370.84 |
Staff has reviewed the bids and found that each bidder submitted the required information. A-C Electric Company, Inc. bid proposal was determined to be the lowest responsive bid and as part of the bid review process, the references provided by A-C Electric Company, Inc. have been verified. The response from each reference was favorable and demonstrated that A-C Electric Company, Inc., and their listed sub-contractors can perform the work for these two projects. A-C Electric Company has Yarbs Grading and Paving, Inc. as a subcontractor for the paving and concrete work associated with this project. Yarbs Grading and Paving has recently completed the Akers Street at Hwy-198 project and the Tulare at Santa Fe Roundabout project where they delivered a quality projects and managed the projects professionally.
The low bidder was determined by the lowest total bid for Base Bid A (Downtown Streetlight Project) plus Base Bid B (Downtown Pavement Rehabilitation Project) plus Alternative Bid C (Additional Pavement Rehabilitation area). Staff recommends the award of Base Bid Schedule A in the amount of $6,279,317.60 for the Downtown Streetlight Project (CP0345) and Base Bid Schedule B in the amount of $2,574,256.55 for the Downtown Pavement Rehabilitation Project (CP0373). The total for Base Bid Schedule A plus Base Bid Schedule B is $8,853,574.15. Alternative Bid C is not recommended at this time due to the budget constraints. Alternative Bid C included the rehabilitation of the pavement on Floral Street and Church Street between Center Avenue and Acequia Avenue. These two streets will be included in upcoming pavement rehabilitation projects associated with Center Avenue and Acequia Avenue adjacent to these two roadway segments. S
Increased Costs Analysis:
Staff reviewed the two bid proposals received to determine where the cost increases occurred. Staff followed up with the two bidders and both bidders stated that labor costs have increased between 15% and 25% over the past year along with a 25% increase in the cost of materials from a year ago.
The construction estimate presented to City Council in March of 2021 was based on the 75% completed construction plans. There was significant effort and detail work added to the plans that resulted in a higher construction estimate than the estimate presented in March 2021. Both projects have factors that contribute to higher construction costs. Those factors include risk of unknown existing infrastructure, working within a downtown with the associated construction constraints, a high level of custom work requisite to meet the existing conditions along Main Street in the downtown area and nighttime work.
Staff will work with the contractor to identify areas for value engineering and review any means to provide savings while delivering the projects as defined within the plans and specifications for each project.
Construction Schedule and Outreach:
The contractor will be providing their detailed construction schedule after the award of the construction contract. The construction schedule and phasing plan will be used in the public outreach portion of this project which will be coordinated through the construction management team of NV5, Inc. and their subconsultant, The Lockwood Agency, for the public outreach portion of this project. At this time, A-C Electric Company has indicated that the work on Main Street is anticipated to be completed in November. The project specifications dictate the work to be done at night, Sunday through Thursday, from 9 PM to 6 AM. Should significant changes to this plan be proposed or if they provide cost savings, Staff will return to City Council with an update and ensure all public outreach outlets are informed prior to commencing work.
Fiscal Impact:
The Downtown Streetlight project (CP0345) and the Downtown Pavement Rehabilitation project (CP0373) have a combined project cost of $13,120,800 as shown in the table below. Each project will be discussed in following paragraphs.
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Project Funding: |
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Downtown Street Lighting Project (CP0345) |
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Current project funding: |
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$6,900,000 |
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Additional Measure N funding |
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$2,700,000 |
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Total Project: |
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$9,600,000 |
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Project Costs: |
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Downtown Pavement Rehabilitation Project (CP0373) |
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Current Project funding |
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$1,379,000 |
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Approved SB-1 RMRA appropriation |
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$2,700,000 |
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Total Project Costs: |
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$3,520,800 |
Downtown Streetlight Project (CP0345)
The streetlight component of the Downtown project is funded by the Measure N (141) Fund with a total project budget of $6.9M.
The table below shows the budget summary for the Downtown Streetlight Project:
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Project Funding: |
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Measure N Fund (141) - Streetlighting: |
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$6,900,000 |
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Total Project Funding: |
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$6,900,000 |
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Project Costs: |
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Design Staff Time (Estimated) |
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$350,000 |
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Design -Consultant (QK Inc.) |
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$460,590 |
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Construction Management -Staff Time (Estimated) |
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$196,000 |
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Streetlight Procurement |
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$822,050 |
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Construction Management (NV5, Inc.) |
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$515,386 |
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Construction -Streetlighting (AC Electric, Not Awarded) |
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$6,279,318 |
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Construction Contingency (Estimated 15%) |
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$942,000 |
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Total Project Costs: |
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$9,565,344 |
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Summary: |
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Total Project Funding: |
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$6,900,000 |
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Total Project Cost: |
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$9,565,344 |
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Approx. Funding Needed: |
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($2,665,344) |
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Total Proposed Funding: |
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Measure N Fund (141) - Streetlighting: |
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$6,900,000 |
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Measure N Transfer Request: |
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$2,700,000 |
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Total Proposed Funding: |
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$9,600,000 |
Due to the identified budget shortfall and in order to complete the project for the Downtown Streetlight, staff has presented the request for the additional $2.7M to the Measure N Oversight Comment and received their approval to process the amendment to the Measure N Expenditure Plan. This is the second of two public hearings, which comprises the process for the amendment to the Measure N Expenditure Plan associated with the appropriation of the funds for the Downtown Streetlight Project.
Downtown Pavement Rehabilitation Project (CP0373)
The pavement rehabilitation component of the Downtown Project is funded by funds from the Senate Bill 1- Road Maintenance and Rehabilitation Account (SB1 RMRA) Fund (113) with a total project budget of $1,379,000. These funds are for the design and construction of pavement rehabilitation, limited sidewalk repairs & curb ramps, and ADA-compliant parking stalls.
The table below shows the budget summary for the Downtown Pavement Project: Project Funding:
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Project Funding: |
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Measure N Fund (141) - Streetlighting: |
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$1,379,000 |
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Total Project Funding: |
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$1,379,000 |
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Project Costs: |
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Design Staff Time (Estimated) |
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$56,230 |
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Design -Consultant (QK Inc.) |
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$325,388 |
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Construction Management -Staff Time (Estimated) |
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$49,000 |
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Construction Management (NV5, Inc.) |
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$128,847 |
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Construction -Streetlighting (AC Electric, Not Awarded) |
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$2,574,257 |
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Construction Contingency (Estimated 15%) |
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$387,000 |
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Total Project Costs: |
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$3,520,722 |
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Total Funding: |
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SB1 Funding (113) - Pavement Rehab. (Org. Budget) |
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$1,379,000 |
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SB1 (113) Funding -additional approved appropriations |
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$2,141,800 |
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Approx. Funding Needed: |
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$3,520,800 |
For the pavement portion of the project, the construction cost increase is generally due to the increase in labor costs and material costs. More specifically, the unit cost of the asphaltic concrete pavement has increased significantly due to the cost of crude oil and the nighttime work associated with this portion of the project.
City Council approved the authorization of the additional appropriation of $2,141,800 from the SB1 RMRA Fund to the Downtown Pavement Rehabilitation Project (CP0373) at the April 4, 2022, City Council meeting.
Prior Council Action:
May 2, 2022 - City Council conducted the first of two public hearings to amend the Measure N plan and appropriate $2,700,000 towards the Downtown Streetlight Project (CIP 1410-72000/CP0345-999) to address a shortfall in the Downtown Streetlight project’s budget.
April 7, 2022 - The Measure N Oversight Committee reviewed and approved the Measure N amendment for the appropriation of $2,700,000 towards the Downtown Streetlight Project.
April 4, 2022 - City Council received the bid results for the Downtown Streetlight and Downtown Pavement Rehabilitation Projects for information. Authorized staff to begin the Measure N amendment process for the appropriation of $2.7M towards the Downtown Streetlight Project. Council authorized the appropriation of $2,141,800 of SB1 RMRA funds towards the Downtown Pavement Rehabilitation Project.
December 6, 2021 - City Council authorized the City Manager to execute an agreement with NV5, Inc. to provide the construction management services for the Downtown Streetlight Project and Pavement Rehabilitation Project in the amount of $644,233.00.
November 15, 2021 - City Council authorized the City Manager to purchase the streetlight poles for the Downtown Streetlight Project from AV Poles and Lighting of Lancaster, CA, in the amount of $822,050.25.
November 15, 2021 - City staff presented the preliminary construction staging plans for the Downtown Streetlight Project and Downtown Pavement Rehabilitation Projects.
June 7, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the second public hearing. The committee reviewed and approved the recommendations.
May 17, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the first public hearing. The committee reviewed and approved the recommendations.
April 22, 2021 - City Staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight project to the Measure N Oversight Committee. The Committee reviewed and approved the recommendation.
March 15, 2021 - City Staff presented decorative streetlight options for the downtown streetlight project. City Council approved the recommendation for the layout option 3 and streetlight scenario 3 and Measure N amendment process to approve the appropriation of $2.4M for the Streetlight project.
December 07, 2020 - City Staff presented standards for installing Back Flow Preventors within the public right of way. City Council approved the recommendation for the standards.
July 21, 2020 - City Staff presented revised layout options for the Downtown Streetlight Project. City Council approved the recommendation for a core decorative streetlight style.
June 01, 2020 - City Staff presented layout options for the Downtown Streetlight Project. City Council requested additional information from City Staff.
October 21, 2019 - Council authorized award of the design contract for the Downtown Streetlight Project to Quad Knopf for an amount not to exceed $407,098.00.
October 15, 2018 - City Staff presented an update of the downtown streetlights project to City Council during a work session item.
April 16, 2018 - Council approved Resolution No. 2018-25 to designate various road projects for 2018/19 funding from the State of California Road Repair and Accountability Act of 2017 (Senate Bill SB1)
Other:
None.
Alternatives:
None
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to amend the Measure N spending plan and appropriate $2.7M of Measure N Funds for the Downtown Streetlight Project and authorize the City Manager to execute a construction contract with A-C Electric Company for the Downtown Streetlight and Pavement Rehabilitation Projects in the amount of $8,853,574.15.
end
Environmental Assessment Status:
No NEPA Environmental Assessment required for this project.
CEQA Review:
Categorical Exemption, Section 15301(c), issued February 06, 2020, for the Downtown Streetlight Project.
Attachments:
Power Point Presentation.