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Council Approves $2.04 million 41st Avenue Pavement and Multimodal Project; Council Allocates $60,000 from Gas Tax Balance

Capitola City Council · March 27, 2026
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Summary

Council approved the 41st Avenue pavement rehabilitation and multimodal improvements after staff reported a low bid of $2,040,000; staff proposed and council approved allocating $60,000 from an unallocated gas tax fund balance so the base project plus add‑alternate can proceed as night work in May–June.

The Capitola City Council voted unanimously to move forward with the 41st Avenue Pavement Rehabilitation and Multimodal Improvements project after staff said the low bid for the work came in at $2,040,000, above the $1.7 million budget. The project includes night work (7 p.m.–6 a.m.), bike and pedestrian upgrades, 88 curb ramps, updated striping and signage, and targeted lane configuration changes to improve multimodal safety.

Director Khan explained the project scope and the bid results: “We received two bids… it is above what we have budgeted for this project, but it is a very good price at $2,040,000.00.” Staff recommended allocating $60,000 from an existing gas tax fund balance to deliver the base bid and the add‑alternate that extends work down to Clare Street. Staff said the tentative schedule with Granite Rock would be May–June and that night work outreach to affected businesses will be conducted.

Council members discussed design details (bollard types, bike lane realignment near Clare Street) and funding questions, and then moved and seconded the recommended action. A roll call recorded unanimous approval.

The project authorization directs staff to finalize contracting and outreach; staff will return with implementation details and notify affected businesses about the night work schedule.