REPORT TO THE CITY COUNCIL FROM: GREGORY A. BARFIELD, M.A., Director Department of transportation BY: KRISTOPHER GREY, Projects Administrator Department of Transportation SUBJECT ..Title Actions pertaining to a State and Local Fiscal Recovery Funds Grant Agreement between the City of Fresno and Central California Land Trust: 1. Adopt Environment Assessment No. P24-945, dated July 25, 2024, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15301/Class 1 and Section 15302/Class 2. 2. Approve an agreement with Pacific Gas and Electric Company (PG&E) in the amount of $194,704.11 for construction services to implement an electrical service extension to the Department of Transportation/Fresno Area Express (FAX) bus facility located at 2223 G Street and authorize the Director of Transportation or designee to execute all required documents. 3. ***RESOLUTION - Adopt a resolution authorizing an exception to the formal bidding procedures and award a Sole Source Agreement with Pacific Gas and Electric Company (PG&E) for the extension of electrical service to the FAX facility within the Municipal Service Center (Subject to Mayor's Veto). ..Body RECOMMENDATION Staff recommends that City Council: 1. Adopt Environment Assessment No. P24-945, dated July 25, 2024, a determination that the proposed project qualifies for categorical exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15301/Class 1 and Section 15302/Class 2. 2. Approve an agreement with Pacific Gas and Electric Company (PG&E) in the amount of $194,704.11 for construction services to implement an electrical service extension to the Department of Transportation/Fresno Area Express (FAX) bus facility located at 2223 G Street and authorize the Director of Transportation or designee to execute all required documents. 3. ***RESOLUTION - Adopt a resolution authorizing an exception to the formal bidding procedures and award a Sole Source Agreement with Pacific Gas and Electric Company (PG&E) for the extension of electrical service to the FAX facility within the Municipal Service Center (Subject to Mayor's Veto). EXECUTIVE SUMMARY FAX seeks to enter into an agreement with Pacific Gas and Electric Company (PG&E) in the amount of $194,704.11 for construction services to implement an electrical service extension to the Department of Transportation/Fresno Area Express (FAX) bus facility located at 2223 G Street. This service extension is necessary to provide the power needed to operate newly installed equipment and the new annex building located in FAX's main yard. The existing service to this facility has reached its maximum capacity and cannot support these upgrades on its own. This agreement covers payment to PG&E for extending an existing power circuit located at approximately El Dorado and G Streets north along G Street where it will then enter the FAX corner of the Municipal Service Center (MSC) complex. The new service connection will ultimately terminate in a new switchgear location in the renovated employee parking lot as a part of FAX's ongoing Facility Improvement Project. BACKGROUND FAX seeks to enter into an agreement with PG&E in the amount of $194,704.11 to provide an extension of electrical service to the FAX portion of the MSC that will supply power for FAX's new bus washing, vacuuming, and lighting equipment as well as the new annex building which have all been installed as a part of the Facility Improvement Project. The existing electrical service to FAX does not have any capacity left on it for these mission-critical upgrades. PG&E has consistently confirmed this with FAX throughout the design process, which has driven the decision to extend a new service to meet FAX's power needs. PG&E will therefore be extending an existing circuit from El Dorado and G Street north along G Street where it will then enter the FAX corner of the MSC. This extended circuit will provide the capacity needed to energize the installed upgrades. This project will supply a set of three new and upgraded power poles on FAX's site to replace three existing poles. Aside from the area containing the three poles which will merge the existing service lines with the new ones, the work contained in this contract along G Street will be underground. PG&E will supply the labor and materials to extend the circuit up to and including the final pole. FAX's remaining obligations will be to provide the trenching and conduit necessary to make the final connection between the last pole and the new switchgear. As an additional benefit, this circuit extension will also allow for the power necessary to energize the new 911 Call Center being developed at the southeast corner of the MSC. PG&E requires full payment up front to reserve a space on their construction calendar. The current timeline for construction based on Council approval of this agreement results in anticipated energization in March 2025. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental assessment of the project and determined that it falls within the Categorical Exemptions set forth in CEQA Guidelines, Section 15301/ Class 1 (Minor alteration to existing facilities), which exempts the repair and maintenance of existing facilities that involves negligible or no expansion of an existing use, and Section 15302/Class 2 (Replacement or reconstruction of existing structures and facilities), which exempts the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity. The proposed project is consistent with Class 1 and Class 2 exemptions because the project proposes improvements to existing public facilities extending an existing circuit from El Dorado and G Street north along G Street where it will then enter the FAX corner of the MSC. This extended circuit will provide the capacity needed to energize the installed upgrades. This project will supply a set of three new and upgraded power poles on FAX's site to replace three existing poles. Aside from the area containing the three poles which will merge the existing service lines with the new ones, the work contained in this contract along G Street will be underground. These proposed improvements do not constitute an expansion of the existing use and will have substantially the same purpose. Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the proposed project and none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not implemented as PG&E is the sole utility provider for the region. FISCAL IMPACT There is no impact to the General Fund from this action. Expenses from this agreement shall be funded by FAX enterprise funds. Sufficient appropriations were included and are available in the FAX FY2025 budget. Attachments: Environmental Assessment No. P24-945 Sole Source Resolution PG&E - FAX Agreement