REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: PETER MARACCINI, PE, PhD, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Daleville Avenue Sewer Construction Project (Unincorporated Fresno County): 1. Adopt a finding of Categorical Exemption per staff determination pursuant to Class 1, Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines; 2. ***RESOLUTION - Authorizing the Director of Public Utilities, or designee(s), to prepare and submit grant applications, accept funds, and execute any financial assistance agreements and amendments with the California State Water Resources Control Board on behalf of the City of Fresno for the planning, design, and construction of the Daleville Avenue Sewer Construction Project. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines and adopt the resolution authorizing the Director of Public Utilities or Designee(s) to prepare and submit applications, accept funds, and execute the financial assistance agreements and any amendments thereto with the California State Water Resources Control Board (SWRCB) on behalf of the City of Fresno (City) for the planning, design, and construction of the Daleville Avenue Sewer Construction Project. EXECUTIVE SUMMARY The Daleville residential community, a small, Disadvantaged Community (DAC) outside City limits but within the City's Sphere of Influence, is currently served by aging residential septic systems that are currently or near the point of failing and contribute to elevated nitrate levels in nearby domestic wells. The community has been found eligible for grant or principal forgiveness funding under the Clean Water State Revolving Fund (CWSRF) Program for the planning, design, and construction of sewer infrastructure that will connect the community to the City's sewer collection system and remove the aging residential septic systems. The application process requires the adoption of this resolution that will authorize the Director of Public Utilities, or designee(s), to prepare and submit the necessary applications, accept funds, and execute the financial assistance agreements and any amendments thereto on behalf of the City (Project). BACKGROUND The SWRCB administers the CWSRF program, which provides funding for projects associated with water quality protection. On July 1, 2008, the SWRCB Board adopted Resolution No. 2008-0048 to assist in providing funding for DACs to address and remediate wastewater challenges, including failing septic systems that can lead to chemical and bacterial contamination of local groundwater supplies and degrade local aquatic environments. The Daleville residential community, located outside City limits and within the City's Sphere of Influence, is designated as a DAC. This area is loosely bounded by North, Central, Cherry, and East Avenues. The Daleville community is part of the South Fresno Community Alliance and is party to the Northpointe Settlement Agreement, in which the City committed to seeking appropriate state and/or federal funding to pay 100 percent of costs for the extensions and connections of City water and sewer services. Residents of the Daleville Community have stated a strong desire to abandon their septic systems and connect to the City's sewer collection system. Some of the residential septic tanks are reported as failing. All are likely contributing to high nitrate levels in the groundwater as substantiated by 77 percent of domestic wells sampled indicating nitrate levels above the Maximum Contamination Level (MCL) for drinking water. To address this condition, a new sewer main will be constructed on Daleville Avenue to tie the residential community into existing sewer mains on Cherry and Central Avenues. Thereafter, homes located on Central Avenue between Cherry and Mary Avenues, homes located on Daleville Avenue just east of Cherry Avenue, and homes located on Cherry Avenue between North and Central Avenues will be offered the opportunity to connect to the City's sewer collection system should they choose. If all property owners chose to participate, approximately 60 properties could connect to City's collection system. The CWSRF program will also provide funds for a contractor to remove residential septic systems and replumb sewer lines on each property. As onsite work is outside the purview of the City's responsibilities, the contractor's work will not be managed or supervised by the City. On March 24, 2021, Fresno County Local Agency Formation Commission (LAFCo) adopted Resolution No. OS-21-02, authorizing the City to provide new or extended collection system services to the Daleville residential community. An application was required because the Daleville residential community is located outside the City's jurisdictional boundaries but within its Sphere of Influence. The Project will be funded by the Board CWSRF program. As part of the application process, and prior to any potential award, the SWRCB requires that the governing body of the applicant submit a resolution that designates an authorized representative or their designee(s) to prepare and submit applications, accept funds, and execute the financial assistance agreements and any amendments thereto. A similar Resolution (2021-109) was previously approved by the City, but SWRCB requested minor changes before further consideration of the application package. The design and CEQA documentation are complete and require this administrative action to finalize the application. ENVIRONMENTAL FINDINGS Staff have performed an environmental assessment for the Project and have determined it is consistent with Categorical Exemption pursuant to Class I, set forth in the CEQA Guidelines Sections 15301(b). The Project consists of connecting approximately 84 homes to the City sewer system. The streets disturbed for the construction of the sewer main in Daleville Avenue or the laterals in Cherry Avenue as needed to serve existing properties are existing facilities and would be restored in kind to their current conditions. Further, the existing properties would need minor exterior alterations in plumbing, which would redirect their onsite sewer plumbing to the sewer laterals in the existing street. Lastly, the Project would not increase the capacity of the overall City of Fresno sewer system and would cause a negligible expansion of use. No modifications will be made downstream of the Project to increase capacity (i.e., through the replacement of sewer mains with larger diameter sewer mains). Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this Project. LOCAL PREFERENCE The local preference was not implemented because adoption of this resolution does not involve the bid or award of a construction or services agreement. FISCAL IMPACT There is no impact to the General Fund or other City debt service obligations. Attachments: Notice of Exemption Authorizing Resolution LAFCO Resolution No. OS-21-02 Vicinity Map