Agenda Item No: N.1
AGENDA REPORT
DATE: April 1, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-48 PW Amendment #1 to the Memorandum of Understanding for Cost-Sharing of the Lopes Road and Water Pipeline Reconstruction
Approving Amendment #1 to the Memorandum of Understanding Amendment #1 Between the City of Fairfield and the City of Benicia for Cost-Sharing of the Lopes Road and Water Pipeline Reconstruction Project and Authorizing the City Manager to Execute the Amendment on Behalf of the City
Funding Source: N/A
Contact: Jason Riley, (707) 428-7481
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
During the winter storms in 2023, the hillside along Lopes Road became saturated and caused a landslide that significantly damaged a section of Lopes Road, a City of Fairfield 30 -inch potable water pipeline , and a 36 -inch City of Benicia raw water pipeline. The City is working collaboratively with the Federal Emergency Management Agency (F EMA), Federal Highway Administration (FHWA), California Office of Emergency Services (Cal OES), and the City of Benicia to reconstruct the damaged critical infrastructure. Adoption of the proposed resolution executes Amendment #1 to the Memorandum of Understanding (MOU) between the City of Fairfield and the City of Benicia establishing project cost sharing between the agencies for design, environmental clearance/permitting, and construction engineering/inspection, with shared construction items allocated as 75% to be paid by the City of Fairfield and 25% to be paid by the City of Benicia.
DISCUSSION
During the winter storms, the hillside along Lopes Road became saturated and caused a landslide that significantly damaged a section of Lopes Road, a City of Fairfield 30 -inch potable water pipeline, and a 36-inch City of Benicia raw water pipeline. Both Cities declared local emergencies to se ek assistance from the State and Federal governments. In late March 2023, Governor Newsom announced that the White House approved the State’s request for federal assistance to support local response and recovery efforts. On June 9, 2023, Solano County was added to the list of counties eligible for disaster-related assistance from Cal OES and FEMA. In August 2024, it was determined that only the roadway portion of the project is ineligible for FEMA reimbursement and may be reimbursable through FHWA. An application for the roadway portion has been submitted to FHWA for consideration.
The Cities of Fairfield and Benicia experienced water pipeline and roadway damage and shared the need to repair the infrastructure and stabilize the adjacent hillside slope. The Cities have worked collaboratively to execute an MOU for efficient project delivery. Through this process, Public Works staff from each City formed a project delivery team that meets weekly to discuss project progress. FEMA and Cal OES staff regularly attend these meetings for assistance. The team developed the MOU to memorialize cost-sharing and delivery obligations.
As the design consultants advanced the plans for the Lopes Road and Water Pipeline Reconstruction Project (Project), they developed a 35% cost estimate that serve s as the foundation for determining the cost -sharing arrangement between Fairfield and Benicia. To allocate expenses, staff meticulously reviewed each line item in the estimate, examining the scope and specifics of the work invo lved. Exhibit B, attached to Amendment #1, establishes the estimated cost -sharing agreement. Staff mutually agreed that the cost -sharing for soft -costs, which include design, environmental clearance/permitting, and construction engineering and inspection, are allocated 75% to be paid by the City of Fairfield and 25% to be paid by the City of Benicia. This ratio is established based on estimated construction costs for each agency.
The City of Fairfield and the City of Benicia will each submit for FEMA rei mbursement for their respective items, as outlined in the MOU.
The cities are actively working to obtain FEMA authorization on the proposed mitigation of performing deep soil mixing between the hill landslide and the proposed permanent pipeline repairs. On March 14, 2025, the city sent a formal letter and supporting te chnical documents to FEMA requesting their concurrence that the mitigation measures are justified and fundable under the Federal Disaster Declaration FEMA DR -4699-CA (Project Number 733116). Given the uncertain prospect of obtaining FEMA funding, staff may return to the City Council at a later date with a funding plan that includes the utilization of local resources.
FINANCIAL IMPACT
Approval of Amendment #1 has no financial action. Staff will return to the council once the engineering design is complete to award the construction contract and amend the project funding, as necessary.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The City of Benicia approved the memorandum on February 18, 2025.
ALTERNATIVE ACTION
The council may choose not to approve Amendment #1 . However, that alternative is not recommended to minimize delay in reconstructing Lopes Road and the City’s 30” potable water pipeline, which are critical infrastructure within the city.
COORDINATED WITH
City Attorney’s Office and Finance
STAFF CONTACT
Jason Riley, Assistant City Engineer
(707) 428-7481
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed MOU Amendment #1
Attachment 4: Exhibit A to First Amendment to MOU
Attachment 5: Exhibit B to First Amendment to MOU