REPORT TO THE CITY COUNCIL December 17, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: MICHAEL CARBAJAL, Division Manager Department of Public Utilities - Water Division BY: GLENN A. KNAPP, PE, Professional Engineer Department of Public Utilities - Water Division SUBJECT ..Title Approve Drainage Facility Development Agreement No. 1770(D)-BQ-13 between the City of Fresno and the Fresno Metropolitan Flood Control District related to construction of the City of Fresno's Southeast Surface Water Treatment Facility (Citywide) ..Body RECOMMENDATIONS Staff recommends that City Council: 1. Approve Drainage Facility Development Agreement No. 1770(D)-BQ-13 between the City of Fresno and the Fresno Metropolitan Flood Control District related to construction of the City of Fresno's Southeast Surface Water Treatment Facility. 2. Authorize the Director of Public Utilities, or designee, to sign the Agreement on behalf of the City of Fresno. EXECUTIVE SUMMARY This Agreement identifies those development fees and conditions for construction of Fresno Metropolitan Flood Control District (District) Master Plan Facilities related to construction of the City of Fresno's (City's) Southeast Surface Water Treatment Facility (SESWTF). The District Ordinance Code requires the Developer (City) to pay an urban drainage fee calculated by the District prior to the issuance of a building permit. Approval of this Agreement will allow City to move forward with issuance of a building permit for project construction and provide conditions for reimbursement to City for project costs associated with construction of District Master Plan Facilities. BACKGROUND The District is responsible for implementing the Storm Drainage and Flood Control Master Plan (Master Plan) adopted, as appropriate, by District and the public agency issuing the entitlement for the Development for the Fresno County Stream Group area. Under the authority provided by the Ordinance or District Ordinance, District has required Developer (City) to construct in accordance with all District requirements certain storm drainage facilities described in the Master Plan and identified as "Creditable Facilities" within Exhibit 2 of the attached Agreement. The total Development Drainage Fee for the project is $254,000, with an initial Advance Payment Fee to District of $106,100 upon execution of Agreement. Actual project costs for construction of District Creditable Facilities up to the total Development Drainage Fee amount will be reimbursable to City by the District. Approval of this Agreement will enable issuance of a building permit by the District in maintaining the project schedule for construction of the SESWTF. The Agreement will substantially be in the draft form attached, subject to approval by the City Attorney's Office. ENVIRONMENTAL FINDINGS Approval of a Drainage Facility Development Agreement is not a "project" for the purposes of California Environmental Quality Act (CEQA), as it is a government fiscal activity, and does not involve commitment to any specific project which may result in a potentially significant physical impact on the environment as contemplated by CEQA Guidelines Section 15378(b). LOCAL PREFERENCE The local preference was not implemented because this is not a competitive bid award. FISCAL IMPACT There is no impact to the General Fund. Appropriations for this Agreement are included in Water Division's FY 2016 Capital Improvement Program adopted budget within the State Low Interest Loan SESWTF Fund (40188). The loan repayments 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: Fresno Metropolitan Flood Control District Drainage Facility Development Agreement (Draft)