REPORT TO THE CITY COUNCIL
June 16, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
BY: MARTIN WENDELS, Project Manager
Department of Public Utilities
SUBJECT
Title
Actions Pertaining to the Kings River Pipeline Project (Bid File 3433), (District 5, Fresno County)
1. Approve an Agreement for Repair of County Roads along the alignment for the raw water pipeline from the Kings River to the Southeast Surface Water Treatment Facility
2. Approve an Addendum to the County Road Encroachment Permit along the alignment for the raw water pipeline from the Kings River to the Southeast Surface Water Treatment Facility
Body
RECOMMENDATIONS
Staff recommends the City Council approve the Agreement for Repair of County Roads and approve the Addendum to the County Road Encroachment Permit along the alignment for the raw water pipeline from the Kings River to the Southeast Surface Water Treatment Facility for the City of Fresno Kings River Pipeline Project, and finally authorize the Director of Public Utilities or designee to sign the County Agreement on behalf of the City.
EXECUTIVE SUMMARY
On February 26, 2015, the City Council adopted a five-year water utility rate plan to finance the construction of a five-year water capital plan totaling approximately $429 million. The five-year capital plan included the construction of the Kings River Pipeline (Project) to allow the City of Fresno (City) to more effectively use its existing Kings River water allocations by delivering water directly to the Southeast Surface Water Treatment Facility (Facility). A contract has been awarded to Garney Pacific Inc. in the amount of $45,583,750. The County requires an Agreement for Repair of County Roads where the new pipe is installed. Additionally, the County is requiring an Addendum to the County Road Encroachment Permit to ensure construction adheres to the proposed schedule.
BACKGROUND
On February 26, 2015, the City Council adopted a five-year water utility rate plan to finance the construction of a five-year water capital plan totaling approximately $429 million. The five-year capital plan included the construction of the Project. The Project is a 13-mile 72-inch diameter pipeline that will convey raw water for treatment from a diversion on the Fresno Canal No. 3 to the Facility. The diversion facility will be located near the intersection of Trimmer Springs Road and the Fresno Irrigation District Fresno Canal No. 3 about 3,800 feet downstream of the Fresno Canal No.3 headgates on the Kings River. The Facility is located at the northwest corner of the intersection of Armstrong Avenue and Olive Avenue.
ENVIRONMENTAL FINDINGS
An Environmental Impact Report (EIR) was adopted by the Council on June 12, 2014, for this Project. An analysis has been performed pursuant CEQA Guidelines §15162 to determine whether subsequent environmental review is required for the project. Based upon this analysis the following findings are made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the project which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case there are no changes to the project.
2. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case, the proposed pipeline alignment has not changed.
3. There is no new information, which was not known and could not have been known at the time of the previous Mitigated Negative Declaration that the project will have significant effect not discussed in the Mitigated Negative Declaration.
Furthermore, since an EIR was previously adopted for this Project, the considerations set forth in CEQA Guidelines §15162(a)(3)(C) and (D), related to the adequacy and feasibility of previously adopted mitigation measures, are not applicable. Based upon these findings, it has been determined that no further environmental documentation is required for this Project.
LOCAL PREFERENCE
Local preference was not implemented because the lowest local bidder exceeded the maximum allowable bid preference pursuant to FMC Sec 4-108.
FISCAL IMPACT
There is no impact to the General Fund. The award of this construction contract will be funded by the State Revolving Fund Low Interest Loan through the Board as part of the construction of the Project. This Project was included in the FY 2016 Capital Improvement Program five-year plan, but was originally scheduled to be bond funded and contract construction was planned to be awarded in FY 2017. The adoption of the attached AAR amendment resolution will create the State Revolving Fund Kings River Pipeline Loan Fund (40161) and appropriate the funds in FY 2016 for the award of the construction contract. The loan repayments for the low interest loan were included in the water rate model used to create the five-year utility rate plan that was adopted by the City Council on February 26, 2015.
Attachments:
Agreement For Repair of County Roads
Addendum: “Kings River Raw Water Pipeline from City of Fresno Southeast Surface Water Treatment Facility to Fresno Canal.”