REPORT TO THE CITY COUNCIL June 4, 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 FFDA Properties, Limited Liability Company and Granville Homes, Incorporated an amount not to exceed $54,949.61 for the design and construction of an 8-inch diameter water main in Calaveras Street, from the existing 12-inch main located in Calaveras Street at the Broadway and Fulton Street alleyway, west to the 6-inch main in the H Street and Broadway Alleyway (Council District 3) ..Body RECOMMENDATION Staff recommends that the City Council approve an agreement to reimburse FFDA Properties, LLC and Granville Homes, Incorporated, $54,949.61 for the design and construction of an 8-inch water main within Tract 6015 frontage, replacing an inadequate 6-inch water main for the City of Fresno. EXECUTIVE SUMMARY FFDA Properties, LLC and Granville Homes, Inc. developed Vesting Tentative Tract Map No. 6015 located on the northeasterly corner of the intersection of Calaveras Street and Broadway. As part of the development, Granville was required to construct a 8-inch water main (including installation of City fire hydrants) in Calaveras Street to replace an existing 6-inch water main already located in there. In 2013, Granville constructed the required water main and it was accepted by the City on February 24, 2015. The attached reimbursement agreement will reimburse Granville Homes, Inc. $54,949.61 which is 100% of the cost to construct the replacement water main, plus 11.6% for cost of design and construction administration. BACKGROUND FFDA Properties, LLC Granville Homes, Inc. developed Vesting Tentative Tract Map No. 6015 located on the northeasterly corner of the intersection of Calaveras Street and Broadway. When the project was proposed in 2011, the Department of Public Utilities (DPU) determined that the existing 6-inch water main had outlived their life expectancy and that the existing water distribution system serving the project was not designed to serve the increase in densification. The existing water main 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 Calaveras Street to replace the existing 6-inch water main fronting the proposed project. Since there was an existing 6-inch water main available to serve the project, DPU received billing invoices and payment receipts, from the developer, for construction of the 8-inch water main (6-inch water mains no longer meet DPU minimum specifications and standards). It was determined that DPU would participate in 100% of the cost to construct the 8-inch water main, replacing the existing 6-inch mains and 11.6% of the cost for design and construction administration. In 2013, Granville constructed the replacement water main and it was accepted by the City on February 24, 2015. Staff now recommends that the City Council approve the reimbursement agreement to reimburse FFDA Properties, LLC and Granville Homes, Inc. $54,949.61. 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. ENVIRONMENTAL FINDINGS The approval of the Reimbursement Agreement is not a project for the purposes of CEQA, pursuant to CEQA guidelines Section 15378. LOCAL PREFERENCE Local preference was not considered because this is an administrative action and is not a competitive bid. FISCAL IMPACT The expenditure, which is citywide, will not have any impact to the General Fund. Appropriations for Vesting Tentative Tract Map No. 6015 are included in the Water Division's FY2015 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