REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: PAUL AMICO, PE, Assistant Director
Department of Public Utilities - Administration
DEBBIE KHOUNSAVATH, Planner II
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Actions pertaining to the planning study of the Britten Avenue Sewer Construction Project (Unincorporated Fresno County):
1. Adopt findings of Categorical Exemption per staff determination pursuant to Class 6, Section 15306 (Information Collection) and Statutory Exemption pursuant to Section 15262 (Feasibility and Planning Studies) of the California Environmental Quality Act (CEQA) Guidelines;
2. ***RESOLUTION - Authorizing the Director of Public Utilities or designee(s) to prepare and submit grant applications, accept funds, and execute any financial assistance agreements and amendments with the California State Water Resources Control Board on behalf of the City of Fresno for the planning of the sewer infrastructure to serve the community of Britten Avenue. (Subject to Mayor’s veto)
Body
RECOMMENDATION
Staff recommends that City Council adopt findings of Categorical Exemption pursuant to Class 6, Section 15306 for Information Collection and Statutory Exemption 15262 for Feasibility and Planning Studies of the California Environmental Quality Act Guidelines (CEQA); and adopt the resolution authorizing the Director of Public Utilities, or designee(s), to prepare and submit grant applications, accept funds, and execute any financial assistance agreements and amendments with the California State Water Resources Control Board (SWRCB) on behalf of the City of Fresno (City) for the planning of the sewer infrastructure to serve the community of Britten Avenue (Project).
EXECUTIVE SUMMARY
The community of Britten Avenue (Community) is a small, disadvantaged community (DAC) outside the City’s Sphere of Influence (SOI). The Community is currently served by septic systems. Water quality samples collected from the taps of three homes in the Community contained nitrate and/or uranium levels meeting or exceeding the maximum contaminant level (MCL) for drinking water. The source for the nitrate is likely residential septic tanks. The Community desires to connect to the City’s sewer collection system. The City received approval from the Fresno Local Agency Formation Commission (LAFCo) to extend water and sewer services to the Community.
The cost of the planning study for the sewer improvements and extension of sewer services has been found eligible for grant funding under the SWRCB’s Clean Water State Revolving Fund (CWSRF) program. The planning application process requires the adoption of this resolution that will authorize the Director of Public Utilities, or designee(s), to prepare and submit grant applications, accept funds, and execute the financial assistance agreements and any amendments thereto on behalf of the City. The subject resolution is to authorize the Department of Public Utilities (DPU) to submit a planning application to the SWRCB. DPU intends to subsequently apply for construction funding, which will be brought to City Council later for approval and will require a separate environmental review.
BACKGROUND
The Community is located east of South Cherry Avenue, between Central Avenue and American Avenue. It is outside the City’s SOI and is not currently eligible for annexation. There are approximately 30 residential homes in the Community.
Residents of the Community are presently relying upon individual septic systems and leach fields for sewage disposal. Water quality samples collected from the taps of three homes in the Community contained nitrate and/or uranium levels meeting or exceeding the maximum contaminant level (MCL) for drinking water. The source for the nitrate is likely residential septic tanks and fertilizer applied to neighboring agricultural areas, whereas the uranium originates from natural deposits in the groundwater aquifer. Maintaining individual septic systems is also more costly per capita than connections to a regional sewer collection and treatment system. Due to the higher per capita cost to maintain the systems and their current age and condition, the Community desires to connect to the City’s sewer collection system. Connection to a regional sewer collection and treatment system eliminates the chances of leaking septic system contaminating groundwater and other nearby wells.
Pursuant to California Government Code section 56133(c), LAFCo has the authority to authorize a city or special district to provide new or extended services outside of its jurisdictional boundaries and outside its SOI to respond to an existing or impending threat to the health or safety of the public or residents of the affected territory. On June 6, 2023, LAFCo approved Resolution OS-23-02 authorizing the City to extend sanitary sewer and domestic water services to the Community.
The Community is part of the South Fresno Community Alliance, which is party to the Northpointe Settlement Agreement. The City is committed to seeking appropriate state and/or federal funding to pay 100 percent of costs for the extensions and connections of City water and sewer services.
The Community is identified as a DAC per SWRCB Division of Financial Assistance criteria. The sewer service extension and the planning study for the sewer improvements for this Community are eligible for 100 percent grant funding through the SWRCB’s CWSRF program.
As part of the planning application process, and prior to any potential award, the SWRCB requires that the governing body of the applicant submit a resolution that designates an authorized representative or their designee(s) to prepare and submit applications, accept funds, and execute the financial assistance agreements and any amendments thereto. This resolution is for the planning project. Thereafter, DPU intends to apply later for construction grant funding.
The City uses Self-Help Enterprises (SHE) through a Technical Assistance Workplan to perform the tasks of the planning study to determine project feasibility; the planning study includes design, environmental review, and preparation of a funding application for construction. If awarded, the planning grant will fund:
1. The consultant costs for design, environmental review, and preparation of a construction funding application.
2. The administrative costs for the City to oversee the consultant and complete all City processes for the construction funding application.
To apply for construction funding, the City needs to have a minimum of 30 percent completed design and a completed environmental consideration. The planning study includes a Preliminary Engineering Report which consists of the design and environmental review. This report serves as a feasibility study to determine project viability and continuity for construction. The planning study is not a prerequisite for a construction application; however, the activities that will be completed as part of the planning study are necessary for the construction funding application.
The City has not been awarded funding for the planning study. Even if planning funds are received, construction funding is not guaranteed. After completing the planning phase, DPU intends to apply for grant funding for construction.
On February 22, 2024, the Council adopted Resolution 2024-033 authorizing the Director of Public Utilities to prepare and submit applications, accept funds, and execute financial agreements, and amendments thereto with the SWRCB for the planning, design, and construction of water and sewer infrastructure to serve the Community. The proposed water and sewer planning studies and construction projects were combined in Resolution 2024-033. However, these are separate and independent studies and projects, so DPU will be pursuing these studies and construction projects separately and will be requesting approval to submit separate applications for grant funding. The proposed resolution requests authority to apply for funding for a planning study for the sewer infrastructure project, only. Should the City receive grant funding for the planning study, DPU intends to submit a funding application for construction grant funding after completion of the planning study. In a separate item, DPU is asking Council to repeal and replace Resolution 2024-033.
ENVIRONMENTAL FINDINGS
Staff have performed an environmental assessment for the Project and have determined it is consistent with Categorical Exemption pursuant to 15306/Class 6 and Statutory Exemption 15262, set forth in the CEQA Guidelines.
Under Section 15306/Class 6, projects are exempt from CEQA requirements when they consist of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted, or funded.
Under Section 15262, a project involving only feasibility or planning studies for possible future actions which the agency, board, or commission has not approved, adopted, or funded does not require the preparation of an Environmental Impact Report or Negative Declaration but does require consideration of environmental factors. This section does not apply to the adoption of a plan that will have a legally binding effect on later activities.
The City will use Self Help Enterprises to perform the task of the planning study, which includes preparation of financial, technical, and environmental packages including 90 percent design plans, construction specifications, project cost estimates, environmental review that will address the Community’s water quality and wastewater deficiencies, and preparation of an application for construction funding. SHE will also conduct community outreach, and information gathering such as, median household income, and other demographic information related to the Community. The Project includes a Preliminary Engineering Report which consists of design and environmental review. The Project is essentially a feasibility study to determine project viability and continuity for construction. These activities, involved in the Project, are not expected to trigger new environmental concerns since they involve data collection and document preparation.
Thus, the entirety of the Project is exempt under Sections 15306/Class 6 and 15262 of the CEQA Guidelines.
Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this Project.
LOCAL PREFERENCE
The local preference was not implemented because adoption of this resolution does not involve the bid or award of a construction or services agreement.
FISCAL IMPACT
There is no impact to the General Fund or other City debt service obligations. No matching funds are required under this financial assistance agreement. Should the grants be awarded, the funds will be accounted for in a separate fund within the Enterprise Fund to be designated specifically for this project.
Attachments:
Environmental Assessment Sewer
Notice of Exemption Sewer
Authorizing Resolution Sewer
LAFCo Resolution No. OS-23-02
Resolution 2024-033
Vicinity Map Sewer