Construction of the project is expected to begin in November, according to the city's website.
Pedestrian crossings across Hopkins Street will be located between City Hall and the San Marcos Public Library and at Riverside Drive.
The Capital Area Metropolitan Planning Organization awarded $2 million to the city of San Marcos for the project in 2014 through the federal Surface Transportation Program.
Contractor Montoya Anderson Construction's bid was approved by City Council during their meeting Wednesday. MAC's bid came in at $1,483,214 and beat out a second bid of $1,661,717.20 by $178,503.20—or 10.74%.