PREPARED BY: CHRISTIAN LARREYNAGA DATE OF MEETING: 08/03/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO (1) APPROVING AND ADOPTING THE PLANS AND SPECIFICATIONS FOR THE GIANT ROAD PAVEMENT REHABILITATION (CIP 0601); (2) ACCEPTING AND APPROPRIATING ONE BAY AREA GRANT 2 (OBAG 2) FUNDS IN THE AMOUNT OF $618,000 TO THE PROJECT; (3) AWARDING A CONSTRUCTION CONTRACT TO VSS INTERNATIONAL, INC., IN THE AMOUNT OF $626,211 WITH A 15% CONTINGENCY FOR A TOTAL CONTRACT AUTHORIZATION NOT TO EXCEED AMOUNT $720,143; AND (4) AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION AGREEMENT WITH VSS INTERNATIONAL, LLC
CEQA Compliance Statement: The Giant Road Pavement Rehabilitation Project was assessed and determined to be Categorically Exempt from environmental review under Section 15301(c)&(d) and 15304(f) of the CEQA Regulations. The CEQA Notice of Exemption (NOE) was originally filed at the Contra Costa County Clerk’s Office on August 11, 2021.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2023-2025 Council Priority Workplan Compliance Statements:
Build a Healthy Community: Priority 109 Develop Public Facilities for Active Living and Improve Public Safety: Priority 510 Traffic Safety Program are adopted policy items under City of San Pablo City Council Priority Work Plan FY 2025-27, effective April 7, 2025, pursuant to Resolution 2025-044.
BACKGROUND
In October 2019, the Metropolitan Transportation Commission (MTC), through the One Bay Area Grant 2 (OBAG 2) Local Streets and Roads Preservation Program, awarded the City of San Pablo $618,000 in federal funding for the Giant Road Pavement Rehabilitation Project. The project will rehabilitate Giant Road between Brookside Drive and Miner Avenue and includes pavement base failure repairs, crack sealing, slurry sealing, construction of ADA-compliant curb ramps, and roadway restriping to improve pavement conditions and enhance roadway safety.
Following the grant award, the City initiated design and environmental review activities necessary to advance the project. While the project was originally combined with a proposed Giant Road cycletrack improvement, that portion of the project was subsequently discontinued after the California Public Utilities Commission (CPUC) and BNSF Railway required installation of a railroad pre-signal as a condition of obtaining a General Order 88 (GO 88) permit. The estimated cost of the required improvements exceeded available funding, making the bicycle improvements financially infeasible. As a result, the City formally abandoned the cycletrack component, rescinded the associated OBAG 2 Quick Strike funding, and proceeded with the pavement rehabilitation project as a standalone capital improvement project.
The pavement rehabilitation project has since completed design, environmental clearance, right-of-way certification, and federal authorization requirements and is now ready to proceed to construction.
On May 14, 2026, the City advertised the Notice Inviting Bids for the construction phase of the project. The Engineer's Estimate for construction was $760,000. On May 28, 2026, Addendum No. 1 was issued to revise the bid items on the bid schedule. One new bid item, “STOP Legend (Thermoplastic)”, was added to the bid schedule.
On June 4, 2026, the City received and publicly opened two bids in the following order:
|
1) |
Apena Engineering Inc. |
San Leandro, CA |
$716,057.70 |
|
2) |
VSS International, Inc. |
West Sacramento, CA |
$626,211.00 |
VSS International, Inc. submitted the lowest responsive and responsible bid and properly acknowledged Addendum No. 1. Staff reviewed the bid for responsiveness and found no irregularities. Accordingly, staff recommends awarding the construction contract to VSS International, Inc. in the amount of $626,211.
Construction is anticipated to begin in September 2026 and reach substantial completion by the end of October 2026. The contract allows for a construction duration of forty (40) working days. To minimize impacts to the traveling public, localized traffic control measures and temporary detours will be implemented throughout construction. As with similar roadway rehabilitation projects, moderate temporary impacts to adjacent residents are expected during construction.
Funding Background:
The City was awarded $618,000 in OBAG 2 Local Streets and Roads Preservation Program funding for the Project. The grant requires an 11.47% match, or approximately $81,000.
The lowest responsive bid for construction is $626,211. Staff recommends including a 15% construction contingency of $93,932, resulting in a total contract authorization not to exceed of $720,143.
The required local funding of $102,143, consisting of the required grant match and additional amount needed to fully fund the construction contract and contingency, will be funded through SB1 Road Maintenance and Rehabilitation Account (RMRA) funds. These funds were previously appropriated by the City Council pursuant to Resolution 2025-119 as part of the FY 2025-26 Capital Improvement Program (CIP) Budget. Therefore, no additional local fund appropriation is required.
FISCAL IMPACT
Staff recommends accepting and appropriating $618,000 in OBAG 2 grant funds for construction of the Giant Road Pavement Rehabilitation Project (0601).
|
Accept & Appropriate OBAG 2 Grant Funds |
|
Action |
Description |
Accept TO: Fund/Account |
Appropriate TO: Fund/Account |
Amount |
|
Accept & Appropriate |
OBAG 2 Grant Funds |
320-0601-33402-OBA-121 |
320-0601-43604-OBA-121 |
$618,000 |
|
TOTAL |
$618,000 |
|
Construction Contract Funding |
|
Funding Source |
Fund/Account Code |
Amount |
|
OBAG 2 Grant Funds |
320-0601-43604-OBA-121 |
$618,000 |
|
Local SB1 RMRA Funds |
320-0601-43604-SB1-326 |
$102,143 |
|
TOTAL |
$720,143 |
Staff further recommends awarding a construction contract to VSS International, Inc. in the amount of $626,211 and authorizing a 15% contingency, for a total contract authorization not to exceed amount of $720,143.
|
Estimated Construction Contract Expenditures |
|
Description |
Amount |
|
Construction Contract (VCC International, Inc.) |
$626,211 |
|
Construction Contract Contingency (15%) |
$93,932 |
|
TOTAL |
$720,143 |
ATTACHMENTS
Att A. Resolution
Att B. Contract for construction executed by VSS International, LLC