REPORT TO THE CITY COUNCIL
March 26, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
BY: ROBERT A. DIAZ, Senior Engineering Technician
Department of Public Utilities - Water Division
SUBJECT
Title
Approve an agreement to reimburse FFDA Properties, Limited Liability Company and Granville Homes, Incorporated an amount not to exceed $67,772.15 for the design and construction of an 8-inch diameter water main in San Joaquin Street to 'L' Street, then north in 'L' Street connecting to the existing 8-inch main in E. Divisadero Street (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve an agreement to reimburse FFDA Properties, LLC and Granville Homes, Incorporated, $67,772.15 for the design and construction of an 8-inch water main within Tract 5594 frontage, replacing inadequate 6-inch water mains for the City of Fresno.
EXECUTIVE SUMMARY
FFDA Properties, LLC and Granville Homes, Inc. developed Vesting Tentative Tract Map No. 5994 located on the northeasterly corner of the intersection of San Joaquin Street and 'L' Street. As part of the development, Granville was required to construct an 8-inch water main (including installation of City fire hydrants) in San Joaquin Street, 'L' Street and Park Street to replace an existing 6-inch water main already located in those streets. In 2013, Granville constructed the required water main and it was accepted by the City on February 24, 2015. The attached reimbursement agreement will reimburse Granville Homes, Inc. $67,772.15 which is 100% of the cost to construct the replacement water main, plus 11.6% for cost of design and construction administration.
BACKGROUND
FFDA Properties, LLC Granville Homes, Inc. developed Vesting Tentative Tract Map No. 5994 located on the northeasterly corner of the intersection of San Joaquin Street and 'L' Street. When the project was proposed in 2011, the Department of Public Utilities ("DPU") determined that the existing 6-inch water mains had outlived their life expectancy and that the existing water distribution system serving the project was not designed to serve the increase in densification. The existing water main was also inadequate to provide necessary fire flows to support the proposed development. Based upon this information, the developer was required to construct 8-inch water mains (including installation of City fire hydrants) in San Joaquin Street, 'L' Street and Park Street to replace the existing 6-inch water mains fronting the proposed project.
Since there were existing 6-inch water mains available to serve the project, DPU received billing invoices and payment receipts from the developer for construction of the 8-inch water main (6-inch water mains no longer meet DPU minimum specifications and standards). It was determined that DPU would participate in 100% of the cost to construct the 8-inch water main, replacing the existing 6-inch mains and 11.6% of the cost for design and construction administration.
In 2013, Granville constructed the replacement water main and it was accepted by the City on February 24, 2015. Staff now recommends that the City Council approve the reimbursement agreement to reimburse FFDA Properties, LLC and Granville Homes, Inc. $67,772.15. The reimbursement agreement has been reviewed by the City Attorney's Office and approved as to form. Following Council approval, the agreement will be signed by the Director of Public Utilities, or his designee.
ENVIRONMENTAL FINDINGS
This approval is not a project for the purposes of CEQA, pursuant to CEQA guidelines Section 15378.
LOCAL PREFERENCE
Local preference was not considered because this is an administrative action and is not a competitive bid.
FISCAL IMPACT
Approval of the reimbursement agreement will not impact the General Fund. Funds for the project were included in the FY 2015 Water Enterprise Fund (40101). No additional funding is required for this project.
Attachment: Reimbursement Agreement