REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: KEVIN NORGAARD, PE, Assistant Director
Department of Public Utilities - Utilities Planning & Engineering
SARAH AGUILA, Project Manager
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Approve the First Amendment to the Utility Relocation, Adjustment, and/or Protection Agreement with CenturyLink Communications, LLC., to increase the contract amount by $102,955.79, for a total amended contract amount of $778,037.57. (Council District 3, 5, and Fresno County)
Body
RECOMMENDATIONS
Staff recommends that City Council approve the First Amendment to the Utility Relocation, Adjustment, and/or Protection Agreement (Agreement) with CenturyLink Communications, LLC., (Lumen), to increase the previously approved agreement amount by $102,955.79, from $675,081.78 to $778,037.57; and authorize the Director of Public Utilities, or designee, to sign the First Amendment on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU) recommends City Council approval of the First Amendment to the Agreement with Lumen for the increase in compensation needed to complete the relocation of the utilities. The additional amount is necessary to allow the North Avenue Sewer Trunk Main Realignment (Project) to move forward to the construction phase. The original contract was for the estimated reimbursement construction costs. This Amendment adjusts the contract amount to meet the actual costs incurred by Lumen to relocate their utilities.
On March 30, 2023, the City Council approved the Agreement with Lumen to provide utility relocation services for the Project for an estimated fee of $675,081.78. This First Amendment to the Agreement will increase Lumen’s contract amount to compensate for the actual design and construction costs incurred by the Lumen to relocate their facilities.
BACKGROUND
The existing sewer trunk main in North Avenue conveys an average of 11.5 million gallons of wastewater per day to the Fresno-Clovis Regional Wastewater Reclamation Facility. During a routine inspection of a nearby irrigation canal, the Fresno Irrigation District discovered a large sinkhole on their property. The sewer trunk main experienced a localized structural collapse on North Avenue between Maple Avenue and the BNSF and the Union Pacific Railroad. Upon inspection by the DPU Wastewater Management Division (WMD) it was discovered that the 57-inch diameter North Avenue sewer main suffered a structural failure due to the complete corrosion of the crown of the sewer trunk main from hydrogen sulfide gas emanating from the sewer flows. Due to the severe lack of structural integrity of the sewer main, it was determined that rehabilitation of the pipe was not an option, instead, the sewer trunk main would be replaced in a new alignment along North Avenue.
During the design of the sewer realignment a utility location request was submitted to Lumen requesting that they identify any utilities in the new pipe alignment. A conflicting utility was identified on paper but during the field exploration neither Lumen nor the City Consultant was unable to locate said utility. The design was completed by the City’s design consultant and construction started. During construction the contractor located two Lumen communication conduits in a previously unidentified alignment.
The City Project Team contacted Lumen to notify them of the utility conflicts. Lumen advised City staff that Lumen would be responsible for the design and relocation of the two conduits. A reimbursement agreement was executed between the City and Lumen. The reimbursement agreement was the Lumen standard Utility Relocation, Adjustment, and/or Protection Agreement which was approved as to form by the City Attorney’s Office and approved by Council on March 30, 2023. The Agreement acknowledged that the approved estimated project costs of $675,081.78 may be adjusted upon completion of work, with a final invoice based upon the actual cost for the work performed to be sent to the City. Upon completion of work, Lumen notified the City that the actual costs incurred for the work were $778,037.57.
The City Attorney’s Office has reviewed and approved as to form this First Amendment to the Agreement. Upon approval by the City Council, the First Amendment to the Agreement will be executed by the Director of Public Utilities, or designee.
ENVIRONMENTAL FINDINGS
The relocation of utilities as part of the North Avenue sewer trunk main realignment project, was determined to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15303 and 15303 adopted on November 4, 2021. This approval is to provide additional funding for the project which has already been completed. This approval does not propose any changes to the project. No further assessment is required.
LOCAL PREFERENCE
Local preference does not apply to this action because this is an amendment to an existing agreement.
FISCAL IMPACT
There is no impact to the General Fund. Funding for this Project is included in the Fiscal Year 2024 capital improvement budget within the Wastewater Management Division’s Sewer Enterprise Fund 4500-4501. The Project is located in Council District 3, 5, and County of Fresno.
Attachments:
Attachment 1 - First Amendment to the Agreement
Attachment 2 - Utility Relocation, Adjustment, and/or Protection Agreement