REPORT TO THE CITY COUNCIL September 24, 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 Baltara Enterprises, Limited Partnership an amount not to exceed $63,283 for the design and construction of an 8-inch diameter water main in Santa Fe Street, between Inyo Street and Mono Street and authorize the Director of Public Utilities or designee to sign on behalf of the City (Council District 3). ..Body RECOMMENDATION Staff recommends that the City Council approve an agreement to reimburse Baltara Enterprises, Limited Partnership, $63,283 for the design and construction of an 8-inch water main within Conditional Use Permit C-09-166 "Warehouse Row" frontage, replacing an inadequate 6-inch water main for the City of Fresno. EXECUTIVE SUMMARY Baltara Enterprises developed property located on the southwesterly corner of the intersection of Santa Fe Street and Inyo Street pursuant to Conditional Use Permit C-09-166. As part of the development, Baltara Enterprises was required to construct an 8-inch water main (including installation of City fire hydrants) in Santa Fe Street to replace an existing 6-inch water main. In 2015, Baltara Enterprises constructed the required water main and it was accepted by the City on August 4, 2015. The attached reimbursement agreement will reimburse Baltara Enterprises $63,283 which is 68% of the cost to construct the replacement water main, plus 11.6% for cost of design and construction administration. BACKGROUND Baltara Enterpises developed property, pursuant to Conditional Use Permit C-09-166, located on the southwesterly corner of the intersection of Santa Fe Street and Inyo Street. When the project was proposed in 2014, the Department of Public Utilities (DPU) determined that the existing 6-inch water main had outlived its life expectancy and was also inadequate to provide necessary fire flows to support the proposed development. Based upon this information, the developer was required to construct an 8-inch water main (including installation of City fire hydrants) in Santa Fe Street to replace the existing 6-inch water main fronting the proposed project (6-inch water mains no longer meet the City minimum specifications and standards). Since there was an existing 6-inch water main available to serve the project, it was determined that DPU would participate in 68% of the cost to construct the 8-inch water main replacing the existing 6-inch main plus 11.6% of the cost of construction for design and construction administration. In 2015, Baltara Enterprises constructed the replacement water main and it was accepted by the City on August 4, 2015. DPU has reviewed the billing invoices and payment receipts from the developer for construction of the 8-inch water main. Staff now recommends that the City Council approve the reimbursement agreement to reimburse Baltara Enterprises $63,283. 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 The approval of the reimbursement agreement is not a project for the purposes of CEQA, pursuant to CEQA guidelines Section 15378(b)(4), since it is a government fiscal activity which will not result in a significant physical impact on the environment. LOCAL PREFERENCE Local preference was not considered because this is an administrative action and is not a competitive bid. FISCAL IMPACT This project, which is located in Council District 3, will not have any impact to the General Fund. Appropriations for this expenditure are included in the Water Division's FY2016 Capital Improvement Program budget within the Water Enterprise Fund (40101). Funding for this expenditure was included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 26, 2015. Attachment: Reimbursement Agreement