REPORT TO THE CITY COUNCIL September 1, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Water Division SUBJECT ..Title Approve First Amendment to the Consultant Services Agreement with Blair, Church & Flynn Consulting Engineers, a California Corporation, in the amount of $999,996 to provide additional Design Phase Engineering Services and Construction Phase Engineering Services for the City of Fresno's Phase 2 Regional Transmission Mains (Council Districts 1, 3, 4, 5, and 7, County of Fresno). ..Body RECOMMENDATIONS Staff recommends that City Council: 1. Approve First Amendment to the Consultant Services Agreement with Blair, Church & Flynn Consulting Engineers, a California Corporation, in the amount of $999,996 to provide additional Design Phase Engineering Services and Construction Phase Engineering Services for the City of Fresno's Phase 2 Regional Transmission Mains. 2. Authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City. EXECUTIVE SUMMARY On June 11, 2015, the City Council approved an Agreement with Blair, Church & Flynn Consulting Engineers to provide Professional Engineering Consultant Services for the Final Design of the City of Fresno's Phase 2 Regional Transmission Mains. The Phase 2 Regional Transmission Mains will allow the City of Fresno (City) to distribute treated surface water from the Southeast Surface Water Treatment Facility (Facility) to the existing water distribution system. The First Amendment with Blair, Church & Flynn will modify the scope of work of the Agreement to include Construction Phase Services for all four Regional Transmission Main segments, and it will also modify the scope of work to include Design Phase Services for changes to the pipeline design for two of the segments. 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 Phase 2 Regional Transmission Mains that will convey water from the Facility to the existing water distribution system through a network of approximately 13 miles of 66 to 20 inch diameter pipelines that will be constructed by four separate construction contracts that will proceed concurrently. Design of the first segment of the Phase 2 Regional Transmission Mains Segment A1 is complete, the bidding process was finalized, and the City Council awarded the construction contract to Mountain Cascade, Inc. on July 14, 2016. The First Amendment with Blair, Church & Flynn will modify the scope of work of the Agreement to include Construction Phase Services for all four segments, and it will also modify the scope of work to include Design Phase Services for a change in pipeline alignment for one of the segments. City staff has negotiated a fee in the amount of $999,996 to provide the Design and Construction Phase Services. On January 7, 2016, the City Council authorized the Director of Public Utilities to accept and execute a $63,100,000 State Revolving Fund (SRF) Low-Interest Loan through the State Water Resources Control Board (Board) for construction of the Phase 2 Regional Transmission Mains. The SRF low-interest loan will fully finance the construction of the Phase 2 Regional Transmission Mains. ENVIRONMENTAL FINDINGS The approval of the amendment to the Agreement is not a project for the purposes of the California Environmental Quality Act ("CEQA"), pursuant to CEQA guidelines Section 15378. LOCAL PREFERENCE Local preference was not implemented because this is an amendment of an existing contract. FISCAL IMPACT There is no impact to the General Fund. The award of this construction contract will be funded by the SRF Low Interest Loan through the Board as part of the construction of the Phase 2 Regional Transmission Mains. Appropriations are included in Water Division's Fiscal Year 2017 Capital Improvement Program adopted budget within the State Low Interest Loan Regional Transmission Mains Fund (40162). 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. Attachment: First Amendment to Professional Engineering Consultant Services Agreement