Agenda Item No: N.4
AGENDA REPORT
DATE: May 19, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026 -76 PW Mankas Blvd Distribution Main Replacement Award Construction Contract
Approving Plans and Specifications and Awarding a Contract to Subterra Construction, Inc. for the Mankas Boulevard Water Distribution Main Replacement Project and Authorizing an Update to the Fiscal Year 2025-2026 Budget
Funding Source: $1,295,272 ($1,262,272, Water Enterprise Capital Fund; $33,000, Senate Bill 1)
Contact: Michael Hether, (707) 428-7493
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Fairfield Municipal Utility (FMU) provides water to City residents on a continuous basis and is responsible for maintaining the existing water system, as well as ensuring that it is designed to meet future growth . An aging 16 -inch diameter cast iron distribution main pipe in Mankas Boulevard between Barbour Drive and Interstate 80 has experienced several leaks over the last year and needs to be replaced. This resolution approves the plans and specifications for the Mankas Boulevard Water Distribution Main Replacement (Project; CPW090070) and awards a contract to Subterra Construction, Inc (Subterra) of San Francisco in the amount of $1,295,272.
DISCUSSION
The existing 16 -inch cast iron water distribution main pipe currently runs east to west down Mankas Boulevard and across Interstate 80 where it connects to a main on Buckingham Drive.
The City’s water model has shown that the freeway crossing is no longer needed in this location and the distribution of the main pipe itself can be downsized to 8-inch diameter.
The proposed Project includes the replacement of the existing 16 -inch cast iron water distribution main pipe with a new 8-inch diameter water main pipe, abandonment of the existing
16-inch main from Barbour Drive across the freeway to Buckingham Drive, and reconnection of existing residential water services and fire hydrants to the new main. The Project will also include a two-inch grind and overlay of the existing asphalt concrete street surface and installation of Americans with Disabilities (ADA) curb ramps at each intersection.
Bids for the Project were opened on November 20, 2025. Nine bids were received and ranged in priced from $981,803.80 to $1,305,989. The engineer’s estimate was $1,550,000. The apparent low bidder is R.J. Gordon Construction, Inc of Pleasant Hill, CA.
City staff worked with the City Attorney’s Office to resolve a bid protest , which delayed the Project’s contract award. As a result of this delay, the lowest bidder, RJ Gordon Construction of Pleasant Hill, withdrew its bid. Therefore, staff recommend awarding the contract to the second lowest bidder, Subterra. Staff have reviewed their Subterra’s bid documents and found them to be complete and compliant.
FINANCIAL IMPACT
The total construction authorization for this Project will be $ 1,295,272, which is the total bid amount plus a 10% management reserve ($ 1,177,520 total base bid + $ 117,752 management reserve). Funding for this construction contract will be captured through the Water Enterprise Capital Fund (Fund 462) in the amount of $ 1,262,272 and $33,000 from the Senate Bill 1 Fund (Fund 163).
Senate Bill 1 funding in the amount of $33,000 was not allocated in the fiscal year (FY) 2025-2026 capital budget for this Project. Accordingly, a budget adjustment is required to authorize the reallocation of funding of $33,000 from the Water Enterprise Capital Fund (Fund 462) to Senate Bill 1 (Fund 163). This adjustment does not require additional funding for the project.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A notice inviting bids for this Project was advertised twice in the Daily Republic newspaper on October 26, 2025, and November 2, 2025. Additionally, a notice of the Project, a complete bid package, or both were distributed to 12 builder’s exchanges throughout the State of California, covering the regions of Redding, San Jose, Stockton and Santa Rosa.
ALTERNATIVE ACTION
If City C ouncil has any questions, this request may be delayed so that staff can provide the necessary background information.
COORDINATED WITH
N/A
STAFF CONTACT
Bryan Heinzelman, Associate Civil Engineer
(707) 424-6157
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Bid Results