Agenda Item No: K.7
AGENDA REPORT
DATE: July 21, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 202 6-165 PW Awarding Construction Contract for the Lopes Road Emergency Storm Damage Repair Project
Approving the Plans a nd Specifications and Awarding a Construction Contract to Teichert Construction for the Lopes Road Emergency Storm Damage Repair Project and Authorizing an Update to the Fiscal Year 2026-2027 Capital Budget
Funding Source: $9,344,057 ($902,529.38, Federal Emergency Management Agency Grant; $3,702,490.95, Federal Highway Administration Grant; $ 225,632.34, California Office of Emergencies Grant; $3,240,311.08, City of Benicia; $870,730.78, Water Enterprise Capital Fund; $392,362.08, Senate Bill 1)
Contact: Jason Riley, (707) 428-7481
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
During the winter storms in 2023, the hillside along Lopes Road became saturated and caused a landslide that significantly damaged a section of Lopes Road, a City of Fairfield 30 -inch potable water pipeline, and a 36 -inch City of Benicia raw water pipeline. The City is working collaboratively with the Federal Emergency Management Agency (FEMA), Federal Highway Administration (FHWA), California Office of Emergency Services (Cal OES), and the City of Benicia to reconstruct the damaged critical infrastructure. Adoption of the proposed resolution approves the plans specifications for the Lopes Road Emergency Storm Damage Repair Project (Project, CPW090069) and awards a construction contract in the amount of $8,485,506 to Teichert Construction of Roseville, California.
DISCUSSION
During the winter storm in 2023 , the hillside adjacent to Lopes Road experienced saturation, resulting in a landslide that caused substantial damage to a segment of Lopes Road, as well as to
a 30-inch potable water pipeline operated by the City of Fairfield and a 36-inch raw water pipeline managed by the City of Benicia. Both Cities declared local emergencies to seek assistance from the State and Federal governments. In late March 2023, Governor Newsom announced that the White House approved the State’s request for federal assistance to support local response and recovery efforts. On June 9, 2023, Solano County was added to the list of counties eligible for disaster-related assistance from Cal OES and FEMA. In August 2024 , it was determined that the roadway portion of the Project is ineligible for FEMA reimbursement and may be reimbursable through FHWA. An application for the roadway portion was submitted to FHWA and has been awarded.
The Cities of Fairfield and Benicia experienced water pipeline and roadway damage and share the need to repair the infrastructure and stabilize the adjacent hillside slope. The Cities have worked collaboratively to execute a Memorandum of Understanding (MOU) for efficient Project delivery. Through this process, Public Works staff from each City formed a Project delivery team that meets weekly to discuss Project progress. FEMA and Cal OES staff regularly attend these meetings for assistance. The team developed the MOU to memorialize cost-sharing and delivery obligations.
As the design consultants advanced the plans for the Project, a cost estimate was prepared that serves as the foundation for determining the cost -sharing arrangement between Fairfield and Benicia. The City of Fairfield and the City of Benicia will each submit for FEMA and FHWA reimbursement for their respective items, as outlined in the MOU.
The Project includes stabilization of the slope above Lopes Road using Deep Soil Mixing (DSM), removal and replacement of the damaged 30-inch City of Fairfield water line and 36-inch City of Benicia water line, reconstruction of Lopes Road, striping installation and guardrail replacement.
The cities have received authorization from FEMA and FHWA to proceed with construction for the Project. Bids were received from seven contractors and were public ly opened on June 25, 2026. Bid proposals ranged from $9,129,511.50 to $11,835,214.00. The apparent low bidder was Teichert Construction of Roseville, California in the amount of $9,129,511.50. Staff reviewed the bid package submitted by Teichert Construction and determined that the bid was responsive and met all bid requirements. Teichert Construction and their subcontractors are appropriately licensed to complete the Project.
The bid advertisement included two bid alternatives for work related to the City of Benicia. In order to compare bid proposals between contractors, the basis of bids for contract award included Alternative #1. However, the City of Benicia has chosen to proceed with Alternative #2 rather than Alternative #1. Therefore, the total bid received from Teichert Construction which includes Alternative #2 is $8,485,506. 00. Staff recommend that the City Council adopt the Resolution to award a construction contract to Teichert Construction for the Project.
FINANCIAL IMPACT
The construction authorization for this Project will be $9,334,056.61, which is the total bid amount plus a 10% contingency for any unforeseen field conditions encountered during construction such as unsuitable soils or underground utility conflicts ( $8,485,506 total bid + $848,550.61 10 % contingency). This Project will be funded with $902,529.38 from FEMA grant, $3,702,490.95 from FHWA grant, $225,632.34 from CalOES grant, $ 3,240,311.08 from City of Benicia, $870,730.78 from the Water Enterprise Capital Fund (Fund 462) and $392,362.08 from Senate Bill 1 (Fund 163). The City of Benicia will work independently with FEMA and CalOES for reimbursements related to Benicia’s share of Project costs.
Award of the construction contract for the Lopes Road Emergency Storm Damage Repair Project (requires a budget adjustment of the adopted F iscal Year (FY) 2026-2027 Capital budget. This budget adjustment is necessary to account for the inclusion of the FHWA grant and more accurate costs from the construction bid. As a result, the net adjustment of City of Fairfield local funds is $272,092.86. A summary of the budget adjustment is provided below:
Construction Contract Budget Adjustment Summary
Revenue Source Approved FY26-27
Budget
Requested Budget
Adjustment
Total
FEMA Grant $3,411,000 -$2,508,470.63 $902,529.38
FHWA Grant $0 +$3,702,490.95 $3,702,490.95
CalOES Grant $633,000 -$407,367.66 $225,632.34
City of Benicia $2,502,000 +$738,311.08 $3,240,311.08
Fairfield Fund 462 $521,000 +$349,730.78 $870,730.78
Fairfield Fund 163 $470,000 -$77,637.92 $392,362.08
Total $7,537,000 +$1,797,056.60 $9,334,056.61
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A notice inviting bids for this Project was advertised twice in the Daily Republic newspaper on May 31, 2026, and June 7, 2026. Additionally, a notice of the Project, 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
The council may choose not to award the contract, reject all bids and restart the bid process, which would result in a significant delay in the Project construction schedule. Staff does not recommend this as it would delay ordering and installation of critical water pipeline for both the City of Fairfield and City of Benicia, and the City may potentially lose Federal grant funding for the repairs.
COORDINATED WITH
City of Benicia
STAFF CONTACT
Jason Riley, Assistant City Engineer/Acting Transportation Manager (707) 428-7481
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Bid Results