Agenda Item No: K.3
AGENDA REPORT
DATE: March 3, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolutions 2026 -28 and 2026 -29 PW Awarding Construction Contract for the Solano Irrigation District (SID) Dally Canal Unit South Improvement Project and Approving an Agreement with SID for Dally Canal Project
Resolution 2026-28 Approving the Plans, Specifications, and Awarding a Contract to Vaca Valley Excavating and Trucking Inc., for the Vanden Road Widening Improvements (Segment 19) Solano Irrigation District Dally Canal Unit South Improvement Project; and
Resolution 2026-29 Approving an Agreement Between the City of Fairfield and Solano Irrigation District for the Dally D -1 Canal and Vanden Road Widening Improvements – Jepson Parkway Segment 19
Funding Source: $598,647 ($399,098 Northeast District Transportation Fund and $199,549 AB1600 Streets Fund)
Contact: Ryan Panganiban, (707) 428-7017
RECOMMENDED ACTION
Adopt resolutions.
STATEMENT OF ISSUE
The Jepson Parkway Segment 19 Project (Segment 19) involves widening of approximately 2,250 linear feet of Vanden Road extending from the northeast City limit to the southeast. The widening will add a lane in each direction. Prior to widening necessary improvements to a section of the Solano Irrigation District (SID) Dally Canal, which runs perpendicular to Vanden Road, must be completed to accommodate the future widening. To facilitate these SID Dally Canal improvements, construction activities will be scheduled during the winter and spring months when the canal is at its lowest water levels.
Approval of the two resolutions allow authorization for construction to begin. The first resolution approves the plans and specifications for the SID Dally Canal South Improvement Project (Project; CPW070108) and awards a contract to Vaca Valley Excavating and Trucking Inc. (Vaca Valley), of Vacaville California, in the amount of $544,224.60. The second approves an agreement between the City and SID for the construction of the Project.
DISCUSSION
The Project will remove a portion of the existing canal, concrete structures, and pipes adjacent to Vanden Road. These facilities will be replaced with new Polyvinyl Chloride piping (PVC) and steel raw-water pipelines. Any pipeline installed beneath the existing and future widened Vanden road will be protected within a larger steel casing. Additional improvements include the installation of chain-link fencing and swing gates.
Bids for the Project were received from two contractors and opened on February 4, 2 026. Bids ranged in price from $544,224.50 and $792,125.65. The engineer’s estimate for the bid was $170,000. After reviewing the engineer’s estimate and bid results, staff concluded that bids came in significantly higher than the engineer’s estimate primarily due to two key factors.
First, this type of utility relocation work would typically be incorporated into a larger construction effort and benefit from economies of scale. As a standalone capital improvement project, the work carries additional ineff iciencies and costs associated with single mobilization, bonding, traffic control, and project-specific overhead. As federal funding is associated with a future phase of construction, relocation of all conflicting utilities is a prerequisite to maintain project eligibility and schedule.
Second, current market conditions in the construction industry continue to reflect elevated labor, material, and contractor availability costs. In addition, the specialized nature of the work, removal of existing canal infr astructure, installation of new PVC and steel raw -water pipelines, placement of steel casings beneath Vanden Road, and installation of fencing and gates , further contributes to higher pricing. After reviewing the bid results and current market conditions, staff determined that the bids received are fair and reflective of the true cost to construct a standard- alone public works project of this type and complexity. Despite this difference, staff have reviewed the bids and found that they are fair. The apparen t low bid was submitted by Vaca Valley. Staff have reviewed the bid submitted by Vaca Valley and have deemed the bid responsible and responsive.
The purpose of the agreement with SID is to facilitate the relocation and protection of SID’s existing Dally D-1 Canal and associated water pipeline facilities that conflict with the planned Vanden Road Widening improvements. The agreement allows SID to relinquish portions of its property interests needed for the roadway expansion while retaining an easement for continued operation, maintenance, and replacement of its water conveyance facilities. It also establishes each party’s roles, responsibilities, and cost obligations for constructing the protective casement, relocating and maintaining the pipeline, and coo rdinating future access and maintenance activities. Execution of this agreement is necessary to secure the required property rights, define long-term maintenance responsibilities and ensure the Project can proceed in compliance with federal funding requirements tied to the roadway expansion.
FINANCIAL IMPACT
The construction authorization for this Project will be $598,647.06, which is the total bid amount plus 10% contingency ($544,224.60 + $54,422.46 contingency). Funding for this Project is allocated as follows : $199,549 from the AB1600 Streets Fund (Fund 261) and $399,098 the Northeast District Transportation (Fund 290).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A notice inviting bids for this project was advertised twice in the Daily Republic newspaper on January 21, 2026, and January 28, 2026. Additionally, a notice of the Project and a complete bid package were distributed to a total of twelve builder’s exchanges in the State of California covering the areas from Redding to San Jose, and from Stockton to Santa Rosa. One contractor purchased bid documents for this Project.
ALTERNATIVE ACTION
If the City Council has any questions, the recommended actions may be delayed so that staff can provide the necessary background information. Staff do not recommend this, however, as this will result in a significant delay in the schedule, risking staff’s ability to construct during the appropriate season.
COORDINATED WITH
Solano Irrigation District
STAFF CONTACT
Phil Layoso, Assistant Engineer
(707) 428-7505
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution – Construction Contract Attachment 3: Proposed Resolution – SID Agreement
Attachment 4: Bid Results
Attachment 5: SID agreement