***RESOLUCIÓN - Autorizar al Director de Servicios Públicos, o su Designado, para Ejecutar Acuerdos de Usuario de Agua Reciclada (Distritos de Consejales 1, 3 y 7) (Sujeto al Veto del Alcalde)

REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Director Department of Public Utilities BY: CHAD COLBY, Water/Wastewater Manager Department of Public Utilities – Water Division ANTHONY QUINN, Wastewater Reclamation Coordinator Department of Public Utilities – Water Division SUBJECT ..Title ***RESOLUTION – Authorizing the Director of Public Utilities, or Designee, to Execute Recycled Water User Agreements (Council Districts 1, 3, and 7) (Subject to Mayor’s Veto) ..Body RECOMMENDATION Staff recommends that the City Council approve the resolution authorizing the Director of Public Utilities, or designee, to execute recycled water user agreements on behalf of the City of Fresno (City). This action will enable the Department of Public Utilities (DPU) to more efficiently administer and implement the City’s Recycled Water Program in accordance with the requirements set forth in Chapter 6, Article 9 of the Fresno Municipal Code, by expressly granting the Director, or designee, authority to execute user agreements for each recycled water customer and site. EXECUTIVE SUMMARY The City regulates the delivery and use of recycled water through Chapter 6, Article 9 of the Fresno Municipal Code (RW Code). The RW Code grants the Director of Public Utilities authority to administer, implement, and enforce the rules and regulations for recycled water use and distribution, but it does not expressly grant the Director of Public Utilities authority to execute recycled water user agreements on behalf of the City. Approval of the proposed resolution will expressly grant the Director of Public Utilities, or designee, the authority to execute recycled water user agreements, which will streamline and expedite the process to connect new users and sites to the recycled water system. The City’s ongoing effort to expand the use of recycled water for approved non-potable purposes, as outlined in the City’s Recycled Water Ordinance and consistent with the Recycled Water Master Plan (RW Master Plan) is part of a broader strategy to enhance local water sustainability by maximizing the use of recycled water to reduce reliance on potable water supplies for non-potable uses. There are currently five recycled water user agreements that will be executed upon approval of the proposed resolution, and four are in progress and will be executed in the next one to two months. BACKGROUND The RW Master Plan was adopted by City Council in 2013 and the RW Code was originally adopted in 2014 and updated to support long term water resource planning and ensure compliance with all applicable State and local regulations, including Titles 17 and 22 of the California Code of Regulations and General Order WQ 2016-0068-DDW, as may be amended from time to time. Recycled water service is only allowed on properties with an executed user agreement, which includes the requirements of the City’s Recycled Water Rules and Regulations and applicable regulatory standards. DPU reviews all applications for conformance with the RW Master Plan, establishes site specific operational requirements, and requires that each property designates a Recycled Water Site Supervisor responsible for on site compliance. Eligibility for recycled water service is based on the service area identified in the RW Master Plan. The Director of Public Utilities is designated in the RW Code as the administrative authority for implementing the ordinance, enforcing regulations, and managing amendments, with legal oversight provided by the City Attorney, but the RW Code does not expressly grant the Director of Public Utilities the authority to execute recycled water user agreements on behalf of the City. The proposed resolution is intended to streamline administrative processes, delegate authority to execute user agreements, and enhance program efficiency as DPU continues to grow the City’s Recycled Water Program. There are currently five recycled water user agreements that will be executed upon approval of the proposed resolution: Fresno PARCS – MLK Magnet Core Park at 2520 S. West Creek Village Way Fresno DPW – MLK Center E. Church Ave Trail at E. Church and S. West Creek Village Way Fresno Unified School District (FUSD) – Columbia Elementary at 1025 S. Trinity Ave FUSD Gaston Elementary at 1100 E. Church Ave Caltrans – Freeway landscape connections at Inyo & 99, Fresno & 99, Amador& 99, Fruit & 180, and Divisadero & 41 There are four additional user agreement renewals in progress that will need to be executed by December 17, 2026: Quist Farms at 5500 W Jensen Ave Fresno Memorial Gardens at 175 S. Cornelia Ave Temple Beth Israel Cemetery at 1617 W. Belmont Ave State Center Community College District West Campus at 600 E. Church Ave The attached map shows the existing recycled water system, and current and future users. ENVIRONMENTAL FINDINGS On April 11, 2013, the City Council adopted Resolution 201345 certifying the Program Environmental Impact Report for the City of Fresno Recycled Water Master Plan (State Clearinghouse No. 2010051015) (RWMP PEIR) and approving the RW Master Plan. The RWMP PEIR evaluated recycled water supply alternatives, identified urban reuse opportunities within the Southwest, Northwest, Northeast, and Southeast quadrants, and analyzed the environmental effects associated with constructing and operating recycled water treatment, storage, and distribution facilities. The proposed action authorizing the Director of Public Utilities, or designee, to execute Recycled Water User Agreements is an administrative, implementationlevel activity within the scope of the previously assessed Recycled Water Program. Execution of individual user agreements does not expand the recycled water service area, authorize new facilities, modify the types of recycled water uses, or change the operational assumptions evaluated in the RWMP PEIR. All prospective users would connect to existing recycled water pipelines constructed as part of the RW Master Plan and evaluated in the RWMP PEIR. Consistent with CEQA Guidelines Sections 15162 and 15168, staff prepared the attached Environmental Assessment dated July 20, 2026, and determined that no subsequent or supplemental environmental review is required. Based upon the analysis reflected in the attached environmental assessment, the following findings are made to support the determination that no subsequent environmental review is required: No substantial changes are proposed to the Recycled Water Program or proposed uses that would require major revisions to the RWMP PEIR due to the involvement of significant new environmental effects or a substantial increase in the severity of previously identified impacts. The proposed action is administrative in nature and would authorize the Director of Public Utilities to execute Recycled Water User Agreements. It does not modify the Master Plan, expand the recycled water service area, authorize new treatment or distribution infrastructure, or change the types of recycled water uses evaluated in the RWMP PEIR. Prospective users would connect to an existing recycled water pipelines constructed as part of the Master Plan, and the uses authorized through the agreements would remain consistent with the service areas, user types, pipeline alignments, and demand assumptions previously evaluated in the RWMP PEIR. Accordingly, the proposed action would not result in new significant environmental effects or a substantial increase in the severity of previously identified significant effects. No substantial changes have occurred with respect to the circumstances under which the Recycled Water Program was undertaken. The environmental setting, program infrastructure, and operational framework remain consistent with RWMP PEIR assumptions. Projects within the Master Plan area have been implemented in phases and reviewed under CEQA, including the 2014 Tiered Initial Study/Mitigated Negative Declaration (IS/MND) for the Southwest Quadrant Distribution System and subsequent addenda approved in 2017, 2019, and 2021. For all addenda, staff determined that applicable mitigation measures remained sufficient and that no new significant impacts would occur. No new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the RWMP PEIR was certified, has been identified that would require additional environmental review under CEQA Guidelines Section 15162. The proposed action does not present new information showing that: The proposed action would result in one or more significant effects not previously analyzed in the RWMP PEIR or subsequent CEQA documents. The user agreements would implement recycled water uses within the service areas and categories of use previously assessed; Mitigation measures or alternatives previously found infeasible are now feasible and would substantially reduce one or more significant effects of the Recycled Water Program. No information associated with the proposed authorization has been identified demonstrating such change; Mitigation measures or alternatives which are considerably different from those analyzed in the RWMP PEIR would substantially reduce one or more significant effects of the Recycled Water Program. The proposed action is an implementation-level administrative action and does not introduce new environmental effects requiring different mitigation measures or alternatives. Based on this evaluation, the proposed activity remains within the scope of the 2013 RWMP PEIR and Tiered IS/MND, and no further environmental review is required. LOCAL PREFERENCE Local preference was not implemented because this item does not include the bid or award of a construction or services contract. FISCAL IMPACT The proposed resolution, authorizing the Director of Public Utilities or designee to execute recycled water user agreements, is an administrative action that does not introduce new costs or revenues to the City’s General Fund. Attachments: Resolution Environmental Assessment Recycled Water System and Users Map