Title
Adopt a Resolution to Authorize the City Manager to Execute Program Supplement Agreement No. F032 with the State of California and Accept and Appropriate $1,928,000 in Congestion Mitigation and Air Quality Improvement Program Grant Funds for the I-880 Integrated Corridor Management Project
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
The City was awarded federal grant funding from the CalTrans Congestion Mitigation and Air Quality Improvement Program (CMAQ) for the I-880 Integrated Corridor Management Project. To receive the grant funds for the design phase, the City must execute a Program Supplement Agreement with the State.
RECOMMENDATIONS
Staff recommends adoption of a resolution approving and authorizing the City Manager to execute Program Supplement Agreement No. F032 with the State of California and to accept and appropriate $1,928,000 in Congestion Mitigation and Air Quality Improvement Program grant funding for the I-880 Integrated Corridor Management Project.
BACKGROUND
Congestion Mitigation and Air Quality Improvement Program
The Congestion Mitigation and Air Quality Improvement Program (CMAQ) provides a flexible funding source to State and local governments for transportation projects and programs that help meet the requirements of the Clean Air Act. Funding is available to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality Standards for ozone, carbon monoxide, or particulate matter (nonattainment areas) and for former nonattainment areas that are now in compliance (maintenance areas).
I-880 Integrated Corridor Management
Interstate 880 plays a significant role in the Bay Area, connecting Alameda County to Silicon Valley. When an incident occurs on I-880, commuters, transit providers and trucks use local streets to avoid the freeway. This causes traffic impacts on local communities such as San Leandro. The Metropolitan Transportation Commission’s (MTC) I-880 Corridor Management project helps minimize this impact on neighborhood streets by using state-of-the-art technology known as Intelligent Transportation Systems to better manage traffic flow and improve safety during incidents on I-880 through the use of adaptive traffic signal coordination, cameras and wayfinding signs.
MTC developed the I-880 Corridor Management Project in partnership with CalTrans and the cities of Oakland and San Leandro. Phase 1 of the Project was completed in 2017. The work stretched from San Pablo/West Grand Avenue in Oakland into the City of San Leandro, ending at the intersection of San Leandro Boulevard and Davis Street.
In 2021, MTC and the City entered into a cooperative agreement (City Council Resolution 2016-089) to deliver Phase 2 of the I-880 Integrated Corridor Management (ICM) Project. MTC awarded $1,928,000 of federal CMAQ funds to the City to advertise, award and administer the construction of the Phase 2 improvements. Construction documents for the project were prepared by MTC and handed over to the City.
Phase 2 of the I-880 ICM Project will build on the previous Phase 1 improvements, beginning at the intersection of San Leandro Boulevard and Juana Avenue, extending south along San Leandro Boulevard to Washington Avenue, and continuing south on Washington Avenue to Lewelling Boulevard. Subsequent phases of MTC’s I-880 Corridor Management Project will expand improvements further south through Central and Southern Alameda County and into Santa Clara County.
The specific intersections where enhancements will be installed as part of Phase 2 of the I-880 ICM Project are as follows:
San Leandro Boulevard
1. Juana Avenue
2. Dolores Avenue
3. Williams Street
4. Marina Boulevard
5. Polar Way
6. Washington Avenue
Washington Avenue
1. 143rd Avenue
2. Floresta Boulevard
3. Anza Way
4. Springlake Drive
5. I-880 Off Ramp
6. Beatrice Street
7. Fargo Avenue
8. Lewelling Boulevard
Analysis
CalTrans recently approved the allocation of $1,928,000 in federal CMAQ funding for the construction of Phase 2 of the I-880 ICM Project. This grant does not require a local match and staff does not anticipate that additional City funds will be required to construct the project based on the Engineer’s Estimate.
The City will be responsible for the operation and maintenance of all improvements except at the intersection of Washington Avenue and the I-880 off ramp, which is within CalTrans right-of-way. CalTrans will assume operation and maintenance of the improvements at this location once the Project is complete.
Staff will proceed with the Project’s construction phase after City Council approves and authorizes the City Manager to execute the Program Supplement Agreement No. F032.
Applicable General Plan Policies
• Policy T-7.2 - Capital Improvements: Identify capital improvements and other measures that improve the safety of bicyclists, pedestrians, and motor vehicles on San Leandro streets
Environmental Review
The Project will be required to undergo environmental review and obtain environmental clearance in accordance with the National Environmental Policy Act (NEPA).
Board/Commission Review and Actions
• On November 18, 2025, the Project was presented to the Bicycle and Pedestrian Advisory Commission
• On December 11, 2025, the Project was presented to the City Council Facilities and Transportation Committee
Financial Impacts
The total estimated cost of the Project is detailed below and will be fully funded by federal CMAQ funds. This Council action will not impact the City’s General Fund because there is no required local match. However, per the terms of the Cooperative Agreement with MTC, the City will be responsible for any project cost overruns that exceed the $1,928,000 grant amount awarded to the City.
Construction Cost
Construction Costs:
Construction Contract: $1,059,913
Contract Contingency (15%): $158,987
Construction Management: $250,000
Alternative Bid Items: $245,065
Total Amount Without Bid Alts: $1,468,900
Total Amount With Bid Alts: $1,713,965
Project Budget: 150-38-602
Federal CMAQ Fund (Construction): $1,678,000
Federal CMAQ Fund (Construction Engineering): $250,000
Total Funds: $1,928,000
ATTACHMENT
A: Draft Resolution PSA No. F032
B: PSA No. F032
PREPARED BY: Adrian Toscano, Assistant Engineer, Public Works Department - Engineering Division