REPORT TO THE CITY COUNCIL
June 28, 2018
FROM: MICHAEL CARBAJAL, Interim Assistant Director
Department of Public Utilities
SUBJECT
Title
Approve the First Amended and Restated Memorandum of Understanding Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the Temperance Flat Reservoir Project
Body
RECOMMENDATION
Staff recommends that City Council approve the First Amended and Restated Memorandum of Understanding (MOU) Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the Temperance Flat Reservoir (TFR) Project to conduct technical and financial feasibility studies for the TFR Project.
EXECUTIVE SUMMARY
The City of Fresno (City) is a party to the MOU Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the TFR Project. Parties to the MOU and other agencies interested in participating in the MOU activities have requested amendments to the MOU. The Administration recommends the City Council approve the First Amended and Restated MOU for continued participation in the technical and financial feasibility studies for the TFR Project.
BACKGROUND
On November 2, 2017, the City Council approved the MOU Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the TFR Project for interested water agencies to coordinate and cost share technical and financial studies in support of the TFR Project. Over the past several months following approval of the MOU, parties to the MOU and other agencies interested in participating in the MOU activities have requested amendments to the MOU. The MOU provides for amendments to the MOU by an affirmative vote of at least 75% of the of the MOU parties. The MOU parties affirmatively approved the First Amended and Restated MOU Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the TFR Project on April 13, 2018.
The substantive changes to the MOU are in the following sections:
4.3 Steering Committee: Voting on substantive matters will require a two-thirds vote of the Parties for approval.
5.3 Friant Water Authority (FWA) Administrative Costs: FWA will not charge for its staff and consultant costs with respect to administering the Amended MOU activities unless such costs exceed ($100,000 - unlikely) and only thereafter based on the submission of documented costs.
9.3 Withdrawal: The amendments would effectively cut off a Party’s liability for additional consultant costs once they serve notice of withdrawal.
10.4 Use of Consultants: The Parties will not be prohibited from engaging Stantec or other consultants retained in terms of providing individual consulting services to the Parties.
10.6 Amendments: Unless unanimously approved, future amendments to the Amended MOU would not be effective for 30 days to allow a dissenting Party to potentially withdraw.
Any agency may withdraw from the MOU at any time (subject only to consultant costs incurred as of the date of withdrawal). Participation in the MOU activities is voluntary and does not commit a party to investing in the TFR Project nor does it guarantee any right to participate in the TFR Project.
The First Amended and Restated MOU has been approved as to form by the City Attorney’s Office. The Administration recommends the City Council approve the First Amended and Restated MOU for continued participation in the technical and financial feasibility studies for the TFR Project.
ENVIRONMENTAL FINDINGS
Pursuant to CEQA Guidelines section 15378, entering amending the MOU is not a project for the purpose of CEQA.
LOCAL PREFERENCE
Local preference was not considered; as amending the MOU does not involve contracting for services or construction.
FISCAL IMPACT
There is no financial obligation for the General Fund for this MOU. The payment of the City’s proportionate share of the feasibility study costs will be paid by the Water Division Enterprise Fund.
Attachments:
First Amended and Restated MOU Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the TFR Project (Attachment 1)
November 2, 2017, Report to the City Council for MOU Regarding Coordination, Cooperation, and Cost Sharing on Preconstruction Activities Related to the TFR Project (Attachment 2)