Agenda Item No: K.3
AGENDA REPORT
DATE: September 16, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025 -177 CM Memorandum of Understanding with Rancho Solano Master Association for Streetlight and Landscape Maintenance
Approving a Memorandum of Understanding Between the City of Fairfield and the Rancho Solano Master Association for Streetlight and Landscape Maintenance
Funding Source: $67,800; General Fund
Contact: David Gassaway, (707) 428-7400
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The City of Fairfield and Rancho Solano Master Association (HOA) have identified terms of a Memorandum of Understanding (MOU) for the HOA to make monetary contributions to the cost of maintaining streetlights and landscaping within the HOA area. The HOA covers the same area as Landscaping and Lighting Maintenance District No. 5 (Smith Ranch) (referred to as LLMD No. 5) which doe s not have sufficient funding to perform landscape maintenance improvements desired by the HOA.
DISCUSSION
In 2023, the City pursued a new Landscaping and Lighting Maintenance District in the Rancho Solano neighborhood. During the background work perform ed for the engineering report, staff determined that there are streetlights on gated, private streets in Rancho Solano. Under the 1972 Landscaping and Lighting Act, Streets and Highways Code Section 22500, et seq, district funds may not pay for streetlights on private roads.
In total, 344 streetlights exist on private roads that are not eligible for funding from LLMD No. 5.
Staff met with HOA leadership and determined that the HOA would pay the City for the cost of operating and maintaining the private streetlights separate from LLMD No. 5. The proposed MOU
provides that the City will invoice the HOA annually for the direct cost of operations and maintenance of the 344 private streetlights. Additionally, the HOA will maintain a reserve of funds for any required emergency work for replacements or knockdowns, which will be invoiced separately.
There are also 46 public streetlights in the HOA area along Rancho Solano Parkway. Those streetlights will continue to receive funding from LLMD No. 5. To defray some costs associated with general public use to access the Rancho Solano Golf Course, the City agreed to provide annual funding from non -LLMD No. 5 funds to cover 26% of the cost of the public streetlights .
Staff estimate this cost to be $1,800 annually based on the 2025 Pacific Gas and Electric Company (PG&E) LS2 rates.
During discussions on streetlights, HOA leadership also identified a desire to make various improvements to landscaping throughout the HOA area. In 2023 , a Proposition 218 vote was conducted for a new LLMD district. However, the vote failed, and no new district was formed.
There is not sufficient funding under LLMD No. 5 to undertake the HOA’s desired improvements.
As such, HOA leadership inquired about privately funding improvements to landscaped areas.
Staff and the HOA discussed options and ultimately determined that an allowance for the HOA to conduct landscape improvements on behalf of their members was desirable. The proposed MOU allows the HOA to make various improvements to landscaping throughout the neighborhood to change or upgrade landscaping. Any changes to landscaping require the HOA to consult with the City prior to making improvements.
At the request of the HOA and based on engineering wo rk performed during the 2023 LLMD formation process, staff also analyzed the amount of General Fund contribution going towards maintenance of the median landscaping along Rancho Solano Parkway. The current budget includes $35,373 of General Fund contributi on to LLMD No. 5 for median maintenance. After analysis, staff determined the amount should be approximately $66,000, or approximately 6% of the total landscaping costs within the district. The proposed MOU obligates the City to increase contributions to landscaping equal to 6% out of non-LLMD No. 5 funds.
FINANCIAL IMPACT
The General Fund currently provides a contribution of $35,373 as a transfer into LLMD No. 5. The proposed MOU would increase the contribution to $67,800 in the current fiscal year 2025-2026 and obligate the City to fund a portion of maintenance of public streetlights and median landscaping going forward.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The Rancho Solano Master Association Board of Directors has reviewed the terms of the proposed MOU.
ALTERNATIVE ACTION
The City Council may choose to deny authorization of the proposed MOU or provide other direction as desired.
COORDINATED WITH
Public Works Department and City Attorney’s Office
STAFF CONTACT
David Gassaway, City Manager
(707) 428-7400
[email protected]
ATTACHMENTS
Attachment 1: Proposed Resolution
Attachment 2: Proposed MOU