Agenda Item No: N.8
AGENDA REPORT
DATE: May 19, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026 -80 PW Reimbursement Agreement for East Tabor Avenue/Tolenas Road Safe Routes to School and Sidewalk Gap Closure Project
Authorizing the City Manager to Execute a Reimbursement Agreement for One Bay Area Grant 2 with the City of Benicia for the East Tabor Avenue/Tolenas Safe Routes to School and Sidewalk Gap Closure Project
Funding Source: $334,710; Local Grants
Contact: Ryan Panganiban, (707) 428-7017
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
In collaboration with the Solano Transportation Authority and City of Benicia, the city secured a $2,731,000 One Bay Area Grant 2 (OBAG 2) federal grant to construct the East Tabor Avenue/Tolenas Road Safe Routes to School and Sidewalk Gap Closure Project (Project). As part of this coordinated funding plan, the City agreed to reimburse the City of Benicia in the amount of $334,710 for pr evious local contributions. Adoption of the proposed resolution will approve the reimbursement agreement and authorize the City Manager to execute the agreement on behalf of the City.
DISCUSSION
In 2017, the City of Benicia was awarded OBAG funds for their Park Road Improvement Project which was subsequently approved by the Benicia council. On June 6, 2023, the Benicia council rejected all bids for the local project due to insufficient funding and on June 14, 2023, the Board for the Solano Transportation Authority (STA) approved reprogramming the OBAG funding from the Benicia project to this Project.
The Project is a high-priority initiative focused on improving active transportation infrastructure to enhance pedestrian and bicycle safety, particularly for students commuting to Tolenas Elementary School and Grange Middle School. Planned improvements include closing sidewalk gaps, upgrading the Union Pacific Railroad crossing, and widening sidewalks along Tolenas Avenue. On May 5, 2026, the City Council approved a construction contract with Quimu Contracting Inc., of Dixon, California, in accordance with Reso lution 2026 -70. Construction is scheduled to begin this summer and is expected to continue throughout 2026.
Between 2023-2025, several funding authorizations were presented to the council as part of ongoing efforts to secure sufficient funding while staff pursued Union Pacific Railroad permitting and Caltrans approvals necessary for construction.
The Project is partially funded through federal OBAG funds that were reprogrammed from the City of Benici a. As a condition of this reprogramming, the city agreed to reimburse the City of Benicia for these prior local contributions. The reimbursement agreement formalizes this obligation and key provisions include:
Fairfield will reimburse Benicia in the amount of $334,710 for prior local contributions. Payment will be made as a single deposit within 30 days of the agreement’s effective date. The agreement ensures compliance with regional funding requirements and supports delivery of the Project.
Approval of this agreement is a necessary administrative step to finalize the OBAG funding arrangement and ensure continued eligibility for federal reimbursement.
FINANCIAL IMPACT
The reimbursement agreement with Benicia is for a not to exceed amount of $334,710. Funding for this reimbursement is supported by previously approved sources:
$234,710 from Transportation Development Act (TDA) Article 3 funds, approved by council on November 4, 2025, in accordance with Resolution No. 2025-215. $100,000 from Transportation Funds for Clean Air (TFCA), approved by council on February 20, 2024, in accordance with Resolution No. 2024-34.
These funds are already programmed for the Project (CPW070008) and sufficient to cover the reimbursement obligation. No additional General Fund impact is anticipated.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose not to approve the reimbursement agreement. However, this action would jeopardize the OBAG funding arrangement and could delay or impact delivery of the Project.
COORDINATED WITH
City Attorney’s Office, City of Benicia, and Solano Transportation Authority
STAFF CONTACT
David Vong, Senior Civil Engineer
(707) 428-7017
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Reimbursement Agreement