REPORT TO THE CITY COUNCIL October 26, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Utilities Planning & Engineering BY: MATTHEW BULLIS, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title ***RESOLUTION - 33rd amendment to Annual Appropriation Resolution (AAR) No. 2017-165 to appropriate $861,600 for the installation of chemical feed equipment for water wells (Requires 5 affirmative votes) (Citywide) ..Body RECOMMENDATION Staff recommends that City Council adopt the 33rd Amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 to appropriate $861,600 for the installation of chemical feed equipment for water wells. EXECUTIVE SUMMARY The Southeast Surface Water Treatment Facility (SESWTF) is scheduled to commence delivering drinking water to customers in June 2018. Funding is needed for the purchase of chemical feed equipment and installation at water supply wells to support the startup of the SESWTF. Approval of the 33rd Amendment to the AAR No. 2017-165 will appropriate the funding to support the purchase of chemical feed equipment and installation by City staff. BACKGROUND The SESWTF is scheduled to commence delivering drinking water to customers in June 2018. The SESWTF will benefit residents in Southeast Fresno by providing clean drinking water from a reliable surface water supply and will reduce Fresno's dependence on groundwater use. The SESWTF is sized to handle most water demands in Southeast Fresno; however, during emergency plant shutdowns and peak demand, drinking water will continue to be supplied intermittently from local water supply wells. To support the startup of the SESWTF, staff will install chemical feed systems at designated well sites in order to maintain consistent water quality conditions in the water distribution system. The work will include the addition of pH/chlorine analyzers, chemical feed pumps, storage tanks and associated piping. Work will be completed by the City of Fresno's Water Division staff. Funding is needed for the purchase and installation of the equipment. ENVIRONMENTAL FINDINGS Pursuant to the definition provided in the California Environmental Quality Act (CEQA) Guidelines, Section 15378, the transfer of funds does not qualify as a "project" and are exempt from CEQA. LOCAL PREFERENCE Local preference was not considered because the requested action does not pertain to a bid or an award of a contract. FISCAL IMPACT The project will not impact the General Fund. The adoption of the attached AAR amendment resolution will appropriate sufficient funds in Fiscal Year 2018 for the award of the Requirement Contracts for purchase of materials, installation by City crews and staff support costs. Funds are available from retained earnings within the DBCP Recovery ($746,200), UGM Wellhead Treatment Area 501-S ($86,500) and UGM Wellhead Treatment Area 301-S ($28,900) funds. Attachment: 33rd Amendment to the Annual Appropriation Resolution No. 2017-165