REPORT TO THE CITY COUNCIL
June 16, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Approval of a Purchase Agreement between Westervelt Ecological Services, LLC, and the City of Fresno, for the purchase of habitat conservation credits from the Grasslands Mitigation Bank in the amount of $73,500, in support of construction of a turnout/diversion facility associated with the Friant-Kern Canal Raw Water Pipeline, to be constructed in the U.S. Bureau of Reclamation’s Friant-Kern Canal (Council District 6, County).
Body
RECOMMENDATIONS
Staff recommends that City Council:
1. Approve the Purchase Agreement between Westervelt Ecological Services, LLC., and the City of Fresno, for the purchase of 0.485 (0.49) acres of habitat conservation credits from the Grasslands Mitigation Bank in the amount of $73,500, in support of construction of a turnout/diversion facility associated with the Friant-Kern Canal Raw Water Pipeline, to be constructed in the U.S. Bureau of Reclamation’s Friant-Kern Canal.
2. Authorize the Director of Public Utilities, or his designee, to sign all documents on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The Department of Public Utilities, Water Division, is finalizing the permitting of the Friant-Kern Raw Water Pipeline Project to deliver raw water from the Friant-Kern Canal to the existing Northeast Surface Water Treatment Facility (NESWTF). With the Project awarded on April 21, 2016, and agency permitting completed, execution of the Purchase Agreement (PA) will be necessary prior to start of construction in affected areas.
The PA between Westervelt Ecological Services, LLC. (Westervelt), and the City for the purchase of habitat conservation credits from the Grasslands Mitigation Bank is in accordance with the requirements outlined in the U.S. Army Corp of Engineers (USACE) Nationwide/Section 404 Permit for the project.
BACKGROUND
Presently, the City's contract with the U.S. Bureau of Reclamation (USBR) for Central Valley Project (CVP) surface water, travels nearly 55 miles in open canals from Friant Dam (Millerton Lake) to the NESWTF. The proposed Project consists of the construction and operation of a 5.6-mile raw water pipeline. The new pipeline reroutes the CVP water directly to the NESWTF and will eliminate nearly 47 miles from the conveyance distance. The Project will convey water in an enclosed system and greatly reduce the threat to water quality, in otherwise open canals which are exposed to contamination from environmental debris, and accidental or malicious acts. The pipeline will be constructed across numerous properties in unincorporated Fresno County and connected to the existing one-mile long segment of pipeline constructed in 2007. Additional benefits of the Project include reduced power consumption, chemical utilization, and increased operational reliability at the NESWTF.
ENVIRONMENTAL FINDINGS
An initial study and Mitigated Negative Declaration was prepared and adopted on June 14, 2012 for this project. A Notice of Determination was subsequently filed with the Fresno County Clerk’s Office on June 19, 2012. The Proposed Project consists of the construction and operation of a 5.6-mile raw water supply pipeline northeast of the City of Fresno, in unincorporated Fresno County at the City's existing NESWTF. The Proposed Project would be located between the NESWTF near Chestnut and Behymer Avenues and the Friant-Kern Canal to the northeast. The purpose of the Proposed Project is to develop a reliable raw water conveyance system with reduced potential for water quality contamination that will bring the City's existing CVP contract supply water directly from the Friant-Kern Canal to the NESWTF.
An analysis has been performed pursuant CEQA Guidelines §15162 to determine whether subsequent environmental review is required for the project. Based upon this analysis the following findings are made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the project which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case there are no changes to the project.
2. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case, the proposed pipeline alignment has not changed.
3. There is no new information, which was not known and could not have been known at the time of the previous Mitigated Negative Declaration that the project will have significant effect not discussed in the Mitigated Negative Declaration.
Additionally, the City has been working with the USBR, and other Federal agencies, to meet the requirements of the National Environmental Policy Act (“NEPA”). The US Fish and Wildlife Service (USFWS) and the US Army Corp of Engineers approved the Biological Opinion (BO), identifying mitigations for Project effects on endangered plants and wildlife. Following the USFWS’ approval of the BO and endangered species mitigations, the BO was submitted to the USBR for their review and eventual acceptance. The USACE has issued their Section 404 Permit, and the USBR has issued the Project’s Environmental Assessment (EA) with a Finding of No Significant Impact (“FONSI”), giving the City authorization to begin construction of the FKCP Project.
Based upon these findings, it has been determined that no further environmental documentation is required for this project.
LOCAL PREFERENCE
Local Preference was not considered because this action does not include a bid or an award of a City construction or services contract.
FISCAL IMPACT
There is no impact to the General Fund. The award of this PA will be funded by the State Revolving Fund Low Interest Loan through the State Water Resources Control Board as part of the Friant-Kern Canal Pipeline project. Appropriations are included in Water Division’s FY2016 Capital Improvement Program adopted budget within the State Low Interest Loan FKCP Fund (40184). The loan repayments for the low interest loan were included in the water rate model used to create the five-year utility rate plan that was adopted by the City Council on February 26, 2015.
Attachment:
Purchase Agreement