REPORT TO THE CITY COUNCIL
June 16, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Approve Agreement to Reimburse Fresno Irrigation District for Activities Related to the Implementation of Recharge Fresno Projects in an Amount Not To Exceed $200,000, for Necessary Plan Review Services, Construction Permits, Construction Inspections, and Related Activities (Citywide).
Body
RECOMMENDATION
The Administration recommends Council approve a Reimbursement Agreement for an amount not to exceed $200,000 between the Fresno Irrigation District (FID) and the City of Fresno, to reimburse FID for activities related to the City’s Recharge Fresno Projects, and authorize the Director of Public Utilities or designee to sign the Agreement on behalf of the City of Fresno.
EXECUTIVE SUMMARY
Implementation of the City’s Recharge Fresno Program will require the City to work closely with FID. As the City’s surface water supply provider, FID will incur costs for necessary planning, permitting, designing, and construction of new groundwater recharge facilities; new raw water conveyance facilities; new surface water treatment facilities; and new finished water distribution pipelines. For those Recharge Fresno project elements that cross, interfere or otherwise encroach on FIDs existing water supply facilities, FID must review and approve the construction drawings; issue construction permits and provide construction inspection services to ensure that the City’s projects do not adversely impact the structural integrity, hydraulic capacity, or operational performance of FID’s system.
City staff and FID staff have negotiated a time-and-materials reimbursement agreement to cover FID’s reasonable and actual costs to review and approve the construction drawings, issue construction permits, and provide construction inspection services. The current estimate of FID’s actual and reasonable costs to be expended through June 30, 2019, is $200,000.
BACKGROUND
On February 26, 2015, the City Council adopted a five-year water utility rate plan to finance the construction of a five-year water capital plan totaling approximately $429 million (Recharge Fresno). The five-year capital plan is intended specifically to implement a more robust conjunctive-use water resource management strategy which will allow the City to use more surface water, in lieu of groundwater, to meet the many and varied water demands of the residents, businesses, industries, and institutions in the City’s service area.
The implementation of this conjunctive-use strategy will require the City to work closely with the Fresno Irrigation District (FID), as the City’s surface water supply provider, on the planning, permitting, designing, and constructing of new groundwater recharge facilities; new raw water conveyance facilities; new surface water treatment facilities; and new finished water distribution pipelines. For those Recharge Fresno project elements that cross, interfere or otherwise encroach on FID’s existing water supply facilities, FID’s role is to review and approve the construction drawings; issue construction permits and provide construction inspection services to ensure that the City’s projects do not adversely impact the structural integrity, hydraulic capacity, or operational performance of FID’s system. For example, the Kings River Pipeline Project requires 12 crossings of FID facilities, and those crossings need to be carefully planned and closely coordinated in collaboration with FID during design and construction.
City staff and FID staff have negotiated a time-and-materials reimbursement agreement to cover FID’s reasonable and actual costs to review and approve the construction drawings; issue construction permits and provide construction inspection services. The current estimate of FID’s actual and reasonable costs to be expended through June 30, 2019 is $200,000. City staff and FID staff will monitor the actual and reasonable costs expended on a monthly basis, and if necessary will prepare an amendment to the reimbursement agreement in the event the level of FID’s effort is projected to exceed the amount of the not-to-exceed amount.
Staff recommends that Council approve the Reimbursement Agreement between Fresno Irrigation District and the City of Fresno for a not-to-exceed amount of $200,000 for Plan Review Services, Construction Permits, Construction Inspections, and other Related Construction Activities required for the City’s Recharge Fresno Projects, and authorize the Director of Public Utilities, or designee, to sign the reimbursement agreement on behalf of the City of Fresno.
The Reimbursement Agreement has been reviewed as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Approval of the Reimbursement Agreement is not a “project” within the meaning of Public Resources Code Section 21803 (CEQA Guidelines § 15378). A project does not include the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
LOCAL PREFERENCE
Local preference is not applicable because this Reimbursement Agreement is not an award of a contract.
FISCAL IMPACT
There is no financial obligation to the General Fund for this Reimbursement Agreement. Funds for the Recharge Fresno Project activities covered under this Agreement are included in Water Division’s proposed Fiscal Year 2017 Capital Improvement Program budget within the Water Enterprise Fund (40101) and various State Water Resources Control Board (SWRCB) Safe Drinking Water State Revolving Fund Low Interest Loan Funds (40188, 40161, 40162). The Recharge Fresno Projects were included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 26, 2015.
Attachment:
Reimbursement Agreement between the City of Fresno and the Fresno Irrigation District.