Agenda Item No: K.5
AGENDA REPORT
DATE: July 15, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025 -151 PW Funding Agreement for Cement Hill Water Treatment Plant New Entrance Project
Approving a Funding Agreement between the City of Fairfield and Suisun-Solano Water Authority for the Cement Hill Water Treatment Plant Improvements and Manuel Campos Parkway Extension Phase 2 Project, and Authorizing an Update to the Fiscal Year 2025-2026 Budget
Funding Source: N/A
Contact: Ryan Panganiban, (707) 428-7017
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
On April 15, 2025, the City Council adopted Resolution No. 2025-56, which authorized the award of a construction contract to Ghilotti Bros. Inc., (Ghilotti Bros.) to complete access and frontage improvements to the Cement Hill Water Treatment Plant leased to and operated by the Suisun- Solano Water Authority (SSWA). These improvements are being completed in conjunction with the road-widening occurring along Manuel Campos Parkway. The attached resolution provides for SSWA’s reimbursement of the costs for this work to the city.
DISCUSSION
In 2016, the City and Solano Irrigation District (SID) entered into a Memorandum of Understanding (MOU) establishing the framework for constructing the Cement Hill Water Treatment Plant New Entryway ( CPW070123). SID owns, and SSWA leases and operates the Cement Hill Water Treatment Plant. Completion of the Project is a pr erequisite for the planned widening of Manuel Campos Parkway eastward to Clay Bank Road.
In 2022, the City and SSWA agreed that it would be beneficial if the City performed the work.
Over the past several years, the City and SSWA staff have collaborated on the design, permitting,
and bid phases for the project. A preconstruction meeting with Ghilotti Bros. was held on June 24, and construction is scheduled to begin in mid -July, with completion anticipated by winter 2025.
Pursuant to the 2016 MOU and the contract with Ghilotti Bros., the Project will receive $411,859 from SSWA. Additional City contributions identified in the funding agreement include a $10,000 payment to SSWA for electric gate improvements previously completed by SSWA, as outlined in the MOU. The MOU also commits the City to reimbursing SSWA for additional on -site pond grading work, up to a maximum of $55,680 —the bid amount for the work. This reimbursement will be provided once the work is completed and documented, with SSWA having up to t hree years to complete the grading.
As with any construction project, field modifications may necessitate adjustments to the contract amount. To ensure timely reimbursement from SSWA, City staff recommends authorizing amendments to the funding agreement , which includes the Ghilotti Bros. contract amount of $991,401.72 plus a 15% contingency ($148,710.11). The total full construction authorization will be $1,140,110.83. The proposed resolution authorizes the City Manager to execute the funding agreement between the City and SSWA for the Project.
FINANCIAL IMPACT
A total of $346,178 in SSWA reimbursements will be received for the Project (CPW070123) and deposited in the Capital Streets Fund (Fund 252) . The reimbursed amount of $ 346,178, representing the SSWA’s share of the total Project cost ($411,859) less than the incidental costs identified in the funding agreement ($10,000 for an electric gate and $55,680 for pond grading).
This will require a budget adjustment of $346,178 to change the funding source, which was previously funded with AB1600 Streets Fund ( $115,381; Fund 261) and Northeast District ($230,797; Fund 290) to SSWA reimbursement. This funding will offset a portion of Fairfield’s local contribution and allow the City to utilize local funding on other capital improvements.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The funding agreement was approved at the June 9, 2025, SSWA Board Meeting.
ALTERNATIVE ACTION
If the council has any questions, this request may be delayed so that staff can provide the necessary information later.
COORDINATED WITH
City Attorney
STAFF CONTACT
Ryan Panganiban Assistant Public Works Director and City Engineer (707) 428-7017
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Agreement