Agenda Item No: K.2
AGENDA REPORT
DATE: May 5, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-68 CD Operating Memorandum No. 1 with One Lake Holding, LLC for Vanden Road Improvements
Authorizing the City Manager to Enter into Operating Memorandum No. 1 Between the City of Fairfield and One Lake Holding, LLC. to Begin Phase 1 Construction of Vanden Road Improvements
Funding Source: $7,083,477 ($4,722,317.67, Northeast Transportation; $2,361,158.83, AB1600 Transportation)
Contact: Dave Zellers, (707) 428-7436
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
In order to utilize as much of the available construction time during the summer and fall months for the Vanden Road project, as well as increase the city’s competitiveness for federal funds that will enhance transportation infrastructure and safety in the Train Station Specific Plan area, city staff have negotiated an operating memorandum with One L ake Holding, LLC (One Lake) that will allow the Vanden Road project to commence while a full amendment to the development agreement related to the One Lake project is finalized.
DISCUSSION
Beginning in August 2024, city staff and One Lake have been in ne gotiations to amend a development agreement with the primary goal of ensuring the planned improvements to Vanden Road are the prioritized transportation infrastructure deliverable. The Vanden Road project, as designed, includes roadway widening and other improvements including a new bridge to be built over the Union Pacific Railroad tracks running through Planning Area 6 (PA6) of the Train Station Specific Plan thus eliminating the at-grade crossing that is currently at the intersection of Vanden Road and Canon Road. The bridge is also a critical asset for the complete development of approximately 300 acres of industrial property in PA6. Without the bridge futu re development
and other infrastructure improvements in PA6 would be stymied ; this in turn would have a negative impact on the city’s economic development and the utility of Travis Air Force Base ’s north gate.
Phase 1 of the project, as addressed in the Operating Memorandum, is for the construction of an embankment that will one day be the new path of travel for Vanden Road. Construction timing is critical because the embankment material needs time to settle before the next phases of the Vanden Road project can commence. Future phases will include bridge construction over Union Creek, the preparation of the new path of travel for the bridge over the Union Pacific Railroad tracks, utility improvements to service increased development in PA6, and paving. Staff are working to bring a full amended and restated development agreement to council in the summer of 2026 and have the remaining scope of work for the Vanden Road project incorporated into that agreement.
FINANCIAL IMPACT
The total estimated construction cost for Vanden Road Phase 1, based on a 65% design level cost estimate, is $8,267,510. Including a 15% contingency, the total construction budget is estimated at $9,507,636.50. The developer will contribute $2,424,160 towards the construction of Phase 1 improvements. The remaining project cost of approximately $7,083,476.50 will be funded by the City using a combination of development impact fees, with approximately two -thirds funded by the Northeast Transportation Impact Fee (Fund 290, $4,722,317.67) and one-third funded by the AB 1600 Citywide Transportation Impact Fee (Fund 262, $2,361,158.83).
Sufficient funding is anticipated to be available within these fee programs, subject to timing of revenue collection and cash flow considerations. Use of thes e funds is consistent with the adopted nexus and intended purpose of each fee program to support regional and citywide transportation infrastructure improvements. Staff will return to the City Council with updated funding implications upon completion of fi nal design, conclusion of the bid process, and execution of the construction contract.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
Council may choose not to adopt the resolution.
COORDINATED WITH
City Manager’s Office, City Attorney’s Office, and Public Works Department
STAFF CONTACT
Dave Zellers, Director of Community and Economic Development (707) 428-7436
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Operating Memorandum No. 1 Between the City of Fairfield and One Lake Holding, LLC