Agenda Item No: N.3
AGENDA REPORT
DATE: April 7, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 202 6-45 PW Cost Sharing Agreement for Green Valley Road Overcrossing Amendment No. 2
Authorizing the City Manager to Approve and Execute Amendment No. 2 to the Cost Sharing Agreement for the Green Valley Road Overcrossing with the Solano Transportation Authority
Funding Source: $2,088,774; AB1600 Streets Fund
Contact: Ryan Panganiban, (707) 428-7017
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The attached resolution approves the second amendment to the cost share agreement with the Solano Transportation Authority (STA) for construction of the Green Valley Road Overcrossing Project (Project). The proposed amendment extends the maintains the term through September 15, 2029, and adjusts the minimum annual payment amount from $500,000 to $522,193 to ensure the Project can complete repayment by the end of the term.
DISCUSSION
On August 19, 2014, the City Council adopted Resolution No. 2014-190 approving a Cost Sharing Agreement (Agreement) between the STA for the Project . This Agreement is in part with STA’s I80/680/12 Interchange Project (Project) to improve and widen major fr eeway connections, including the construction of the Green Valley Road Interchange. Portions of the Green Valley Road Interchange were completed in 2018 as part of the first phase of the Project, with additional improvements planned in future phases.
Under the Agreement, the City is responsible for contributing a total of $10.4 million toward the Project, payable to STA in annual installments of $1,040,000 over a ten -year period. The Agreement also includes a provision that limits the City’s annual pay ment to no more than 25%
of the AB1600 Traffic Impact Fee (TIF) Program funds collected during the preceding 12-month period.
In June 2022, STA approached the City to propose establishing a guaranteed minimum annual payment. On August 18, 2020, the counci l adopted Amendment No. 1 to this Agreement by Resolution No. 2020-169. This Amendment established a minimum annual payment amount of $500,000 or 25% of the TIF revenue received in the preceding 12 months.
Throughout the term of the Agreement, the City h as collected less AB1600 TIF revenue than originally anticipated. This shortfall is largely attributable to several factors, including the use of fee credits and reimbursements where developers have constructed backbone infrastructure in lieu of paying cas h fees, thereby reducing actual revenue received by the city. In addition, reduced building permit activity, driven by market conditions and project phasing, has also slowed the pace of fee generation.
To date, the City has paid $8,311,226 toward its obli gation, with annual payments ranging from $515,427 to $1,196,397. The remaining balance is $2,088 ,774, with the next payment of $522,193 due later in fiscal year (FY) 2025–2026.
FINANCIAL IMPACT
The City has been providing an annual payment to STA since the execution of the Agreement. In 2020, the amount was adjusted to a minimum annual payment of $500,000. Pursuant to the terms of Amendment No. 2, the minimum annual payment will be set at $522,193 beginning FY 2025-2026 through FY 2028-2029. Funding for this Project has been allocated from the AB1600 Streets Fund (Fund 261).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
If t he council has any questions, the recommended action may be delayed so that staff can provide necessary background information.
COORDINATED WITH
City Attorney’s Office and Finance Department
STAFF CONTACT
Ryan Panganiban, Assistant Public Works Director and City Engineer (707) 428-7017
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Second Amendment