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
PETER MARACCINI, PE, PHD, Licensed Engineer Manager
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Approve the Water System Consolidation Agreement between Three Palms Mobile Home Park, LLC and the City of Fresno for a water connection to serve Three Palms MH Park and authorize the Director of Public Utilities to sign the Agreement on behalf of the City of Fresno. (Council District 3)
Body
RECOMMENDATION
Staff Recommends that City Council approve the Water System Consolidation Agreement between Three Palms MH Park, LLC, and the City of Fresno, and authorize the Director of Public Utilities to execute the Agreement on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The Three Palms Mobile Home Park (Three Palms MHP) was issued a compliance order from the California State Water Resources Control Board (SWRCB) for exceeding the 1,2,3-Trichloropropane (1,2,3-TCP) maximum contaminant level (MCL) in its private groundwater well. To comply with the order, Three Palms MHP desires to connect to the City of Freno’s (City’s) drinking water distribution system. The cost to connect is eligible for 100 percent grant funding under the SWRCB’s Drinking Water State Revolving Fund (DWSRF) program. On January 2, 2024, the City executed a Drinking Water Construction Grant Agreement (Grant Agreement) with the SWRCB to fund 100 percent of the work. Prior to commencing the work, the SWRCB requires that Three Palms MHP, LLC, the owners of Three Palms MHP, enter into a Water System Consolidation Agreement with the City.
BACKGROUND
The SWRCB administers the DWSRF program, which finances infrastructure improvements to mitigate drinking water risks and support the human right to water. The DWSRF’s Intended Use Plan prioritizes disadvantaged communities (DAC) that require assistance to solve their drinking water problems, and it also identifies financing programs available to provide the assistance.
The Three Palms MHP community, located within Council District 3, qualifies as a DAC per SWRCB Division of Financial Assistance criteria. The community of approximately 300 residents is located between North Golden State Boulevard and the State Route 99, north of West McKinley Avenue and south of West Clinton Avenue. The community is currently served by a single, private well and is not connected to the City’s drinking water distribution system.
In March 2018, Three Palms MHP was issued a compliance order by the SWRCB for exceeding the 1,2,3-TCP MCL in the domestic well water. Concentrations of 1,2,3-TCP in domestic well water samples collected between February 2018 and November 2020 have been 9 to 24 times greater than the MCL allowed in drinking water, representing a persistent health risk to Three Palms MHP residents.
To comply with the SWRCB order and mitigate the health risk to Three Palms MHP residents, the City initiated the process of applying to the SWRCB DWSRF program to fund the consolidation of the Three Palms MHP with the City’s water system.
On April 28, 2021, the City Council approved Resolution 2021-110 authorizing the Department of Public Utilities (DPU) to submit a financial assistance agreement application to the SWRCB for a water connection to Three Palms MHP. DPU subsequently submitted a grant application for $344,696 in financial assistance.
Resolution No. 2021-110 also authorized the DPU Director or designee(s) to represent the City in carrying out the City's responsibilities under the financing agreements, including certifying disbursement requests on behalf of the City and complying with applicable state and federal laws.
On June 8, 2023, City Council adopted Resolution No. 2023-174 authorizing the DPU Director or designee(s) to accept funds and execute the financial assistance agreement and any amendments thereto with the California State Water Resources Control Board on behalf of the City of Fresno for a water connection to serve Three Palms MHP.
On January 2, 2024, the City executed a Grant Agreement with the SWRCB and was awarded $396,461 in grant funding for the project. The Grant Agreement requires that the City enter into a Water System Consolidation Agreement with the legal owner of the Three Palms MHP water system, Three Palms MH Park, LLC., under certain terms specified in the agreement (Attachment Water System Consolidation Agreement). The next step for the project is the approval of the Water System Consolidation Agreement on behalf of the City.
The purpose of the Water System Consolidation Agreement is to (1) transmit the requirements of the Grant Agreement between the SWRCB and the City to Three Palms MH Park, LLC., (2) define the responsibilities for onsite and offsite work between the City and Three Palms MH Park, LLC to complete the terms of the Grant Agreement, (3) transmit any provisions, such as indemnification and insurance requirements the City may have for Three Palms MH Park, LLC. over the course of the construction activities, and (4) set forth the terms and responsibilities for Three Palms MH Park, LLC. as a City water system customer.
The City Attorney’s Office has reviewed the Water System Consolidation Agreement and approved as to form.
ENVIRONMENTAL FINDINGS
Staff has performed an environmental assessment for the Three Palms MHP Water System Consolidation Project and has determined it is consistent with Categorical Exemption pursuant to Class I, set forth in the California Environmental Quality Act (CEQA) Guidelines Sections 15301(b) & (d) (Existing Facilities), which exempts the repair and maintenance of existing facilities that involves negligible or no expansion of an existing use. The project involves the consolidation of the Three Palms MHP’s water system accomplished through minor alterations to its existing water distribution system and the City’s existing infrastructure. These minor alterations represent a negligible expansion in use of the impacted facilities. Furthermore, none of the exceptions to Categorical Exemptions set for in the CEQA Guidelines Section 15300.2 apply to this project. This finding was formally adopted by the Council on June 8, 2023, and a Notice of Exemption was subsequently filed with the Fresno County Clerk on June 16, 2023.
The proposed action is approval of a Water System Consolidation Agreement between Three Palms MH Park, LLC., and the City of Fresno. The purpose of the Water System Consolidation Agreement is to (1) transmit the requirements of the Grant Agreement between the SWRCB and the City of Fresno to Three Palms MH Park, LLC., (2) define the responsibilities for onsite and offsite work between the City of Fresno and Three Palms MH Park, LLC., to complete the terms of the Grant Agreement, (3) transmit any provisions, such as indemnification and insurance requirements, the City may have for Three Palms MH Park, LLC., over the course of the construction activities, and (4) set forth the terms and responsibilities for Three Palms MH Park, LLC., as a City of Fresno water system customer. In this way, this agreement is necessary to implement the consolidation project. No further assessment pursuant to CEQA is required at this time.
LOCAL PREFERENCE
Local preference was not implemented because this action does not include a bid or an award of a construction or services contract.
FISCAL IMPACT
This project has no impact on the General Fund. No matching funds are required under this financial assistance agreement. The project is located in Council District 3.
Attachments:
Water System Consolidation Agreement
Resolution 2021-110
Resolution 2023-174
Notice of Exemption
Vicinity Map