REPORT TO THE CITY COUNCIL July 16, 2015 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division CRAIG L. HANSEN, Supervising Real Estate Agent Public Works Department, Real Estate Services Section BY: CATHY RODRIGUEZ, Senior Real Estate Agent Public Works Department, Real Estate Services Section SUBJECT ..Title Actions pertaining to the acquisition of 4.75 acres of property owned by JSJ Enterprises, LLC a California Limited Liability Company: 1. Approve the acquisition of 4.75 acres of property owned by JSJ Enterprises, LLC a California Limited Liability Company, in the amount of $620,800.00 (APN 449-110-13) for the construction of a booster pump station on the north side of West Belmont Avenue west of North Marks Avenue (Located in Fresno County west of Council District 3). 2. Authorize the Public Works Director, or designee, to sign all documents necessary to complete the transaction. ..Body RECOMMENDATION Approve the acquisition of 4.75 acres on the north side of West Belmont Avenue and west of North Marks Avenue on property currently owned by JSJ Enterprises, LLC, a California Limited Liability Company in the appraised amount of $620,800.00 for the construction of a booster pump station for tertiary treated recycled water and to authorize the Public Works Director, or designee, to sign all documents necessary to complete the transaction. EXECUTIVE SUMMARY The acquisition of the 4.75 acres parcel is necessary to construct a booster pump station on the north side of West Belmont west of North Marks Avenue. This project will convey tertiary treated recycled water from the Fresno-Clovis Regional Water Reclamation Facility (RWRF) for state approved urban non-potable reuse, groundwater recharge, and agricultural reuse. The recycled water is needed to meet the state mandated use of recycled water to offset potable water use in the City. The use of recycled water will also enhance the sustainability and reliability of the water supply. The $620,800 value of the acquisition of 4.75 acres of vacant industrial land was established by Real Property Analysts, James G. Palmer MAI. Staff engaged the property owners on May 15, 2015 and presented the First Written Offer, which was accepted by the Owner at the appraised value of $620,800.00. BACKGROUND In 2009, the State of California adopted a recycled water policy establishing a mandate to increase the use of recycled water in California by 200,000 acre-feet per year by 2020 and by an additional 300,000 acre-feet per year by 2030. On September 14, 2014 the Governor of California signed into law three bills that are collectively referred to as the Sustainable Groundwater Management Act (the Act). The Act recognizes that excessive groundwater extraction can cause overdraft, failed wells, deteriorated water quality, environmental damage, and irreversible land subsidence - all of which require corrective action. The Recycled Water Master Plan prepared by the Department of Public Utilities Wastewater Management Division (Division) identifies opportunities to assist with compliance of this law by reducing groundwater pumping and replacing groundwater with recycled water for non-potable purposes (outdoor irrigation, dust control, fountains, etc.). The Division's long-term goal is to produce and deliver 25,000 acre-feet of recycled water to the City's service area to reduce groundwater over drafting. On April 11, 2013, the City Council adopted the Recycled Water Master Plan and associated environmental documents. On June 27, 2013, the City Council approved a design contract for the RWDS, Southwest Quadrant starting at the Fresno/Clovis Regional Wastewater Reclamation Facility. This project will convey tertiary treated recycled water from the RWRF for state approved urban non-potable reuse, groundwater recharge, and agricultural reuse. The recycled water is needed to meet the state mandated use of recycled water to offset potable water use in the City. The use of recycled water will also enhance the sustainability and reliability of the water supply. ENVIRONMENTAL FINDINGS Council adopted environmental findings related to this project on December 18, 2014. The project will not have a significant impact on the environment and that the filing of a mitigated negative declaration is appropriate in accordance with the provisions of CEQA Guidelines section 15178(b) (1) and 2. LOCAL PREFERENCE This item does not implicate local preference. FISCAL IMPACT This project will have no impact to the General Fund. The project is identified in the five-year Capital Improvement Plan. The funds for this project are available in the 2016 Sewer Enterprise fund 40501. The construction project for the pump station is anticipated to cost $ 4,347,885 and the cost for the entire Southwest Recycled water distribution system will be approximately $ 52,475,050. Attachments: APN Vicinity Map Recycled Water Distribution System