TOWN OF WINDSOR
AGENDA REPORT

Alejandro Perez, Senior Civil Engineer

Professional Services Agreement with GHD, Inc. for the Old Redwood Highway Complete Streets from Arata Lane to Windsor Road Project Engineering Design Services

1. Amend the Adopted Fiscal Years 2025-2030 Capital Improvement Program to include and prioritize the Old Redwood Highway Complete Streets from Arata Lane to Windsor Road Project.
2. Amend the Fiscal Year 2026-27 Budget to appropriate AHSC Grant Funds in the amount of $7,650,000 for the Old Redwood Highway Complete Streets from Arata Lane to Windsor Road Project.
3. Approve a Professional Services Agreement (PSA) with GHD, Inc. for the Old Redwood Highway Complete Streets from Arata Lane to Windsor Road Project Engineering Design Services in an amount not to exceed $956,637 and authorize the Town Manager to execute said agreement and any additional amendments up to 20% of the agreement amount, on behalf of the Town.

In January 2023, the California Department of Housing and Community Development (Department) and Strategic Growth Council (SGC) issued a Notice of Funding Availability for the Affordable Housing & Sustainable Communities (AHSC) Program. The Town submitted a joint application with Burbank Housing, the Kashia Band of Pomo Indians of the Stewarts Point Rancheria, Sonoma-Marin Area Rail Transit (SMART), and Sonoma County Transit (SCT). On August 31, 2023, SGC awarded $19,966,182 to the Windsor Apartments project (AHSC0001032), including $10,246,932 in AHSC Program Loan funds and $9,719,250 in AHSC Program Grant funds.

The Town's award includes $443,520 for Transit Related Infrastructure (TRA) and $7,206,480 for Sustainable Transportation Infrastructure (STI). The TRA scope includes enhanced bus stops on Old Redwood Highway between Arata Lane and Windsor Road and at Starr Road/Entrada Lane and Windsor Road/Howard Drive, including shelters, ADA improvements, landscaping, street trees, and streetlights. The STI scope includes approximately 1.4 miles of bicycle and pedestrian improvements, including Class II buffered or Class IV bicycle facilities, sidewalk improvements, ADA ramp upgrades, pavement rehabilitation, crosswalk and bike lane striping, and storm drainage improvements. Of the STI allocation, $2,650,000 is passed through to SCT for expanded Route 66 service, five years of operations, and a new zero-emission transit bus. This amount is not available for the Town's design and construction scope, leaving $5,000,000 for the Old Redwood Highway Complete Streets Project.

On October 4, 2023, the Town Council adopted Resolution No. 3886-23 authorizing the Town Manager to execute the AHSC Program Award Documents. The Town's AHSC Grant Standard Agreement No. 23-AHSC-17976 was executed on July 11, 2025. The Grant Disbursement Agreement, which establishes the terms for reimbursement of eligible project expenditures, was executed on April 27, 2026.

The Town's Fiscal Years 2025-2030 Capital Improvement Program (CIP) was adopted on May 27, 2025, prior to execution of the Grant Disbursement Agreement and therefore does not include the Project. Adding the Project to the CIP will formally incorporate the grant-funded improvements into the Town's capital program and prioritize the Project for implementation. Adding and prioritizing the Project in the CIP will also strengthen the Town's competitive position for the Metropolitan Transportation Commission's Transit-Oriented Communities (TOC) Incentive Program. The Project is located within the Station Area and demonstrates a funded and prioritized commitment to multimodal infrastructure that supports transit-oriented development.

On June 29, 2026, the Town issued an RFP for Final Engineering Design Services. Five proposals were received by the August 6, 2026 deadline. The proposals were evaluated through a qualifications-based selection process using a weighted rubric covering qualifications, project understanding, approach, and relevant experience. GHD, Inc. received the highest overall evaluation, and its proposed scope and fee of $956,637 was determined to be fair and reasonable for the services requested. GHD has successfully delivered many CIP projects for the Town, including the Old Redwood Highway Pavement Preservation Project. Their experience with the Town and familiarity with the Old Redwood Highway corridor will provide continuity as the Project moves into design.

Because the Project was not included in the current CIP, adding and prioritizing it will incorporate the grant-funded improvements into the Town's capital program and establish the Project as a priority for implementation. This will also strengthen the Town's competitive position for the Metropolitan Transportation Commission's Transit-Oriented Communities (TOC) Incentive Program. The Project is located within the Station Area and includes bicycle, pedestrian, transit, and other multimodal improvements that support transit-oriented development.

The Grant Disbursement Agreement provides reimbursement for eligible project expenditures, including design services, upon submission of required documentation and completion of grant milestones, up to the Town's allocated award.

Adopted appropriations in the FY 26/27 budget are not sufficient to cover the full cost of the proposed action item. However, the associated expenditure will be offset by a corresponding revenue source. A budget amendment is required to increase both revenues and appropriations. The following tables summarize the cost, and budget amendment details:

The net change to the Grant Fund is zero.  The proposed budget adjustment increases revenue by $7,650,000 and expenditures by $7,650,000.

This action does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.  CEQA review will be conducted during the design phase and will completed prior to bidding and construction.