REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Interim Director Department of Public Utilities BY: JESUS A. GONZALEZ, PE, Public Utilities Manager Department of Public Utilities - Utilities Planning & Engineering ROBERT A. DIAZ, Supervising Engineering Technician Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the reimbursement for water main construction related to the Fresno Unified School District Alternative Education and Campus and Administrative Office (Council District 5): 1. RESOLUTION - Considering Mitigated Negative Declaration SCH No. 2018101040 and adopting findings pursuant to CEQA Guidelines section 15162 2. Infrastructure reimbursement Agreement with Fresno Unified School District, to authorize reimbursement for the construction of a 16-inch diameter replacement water main in East Ventura Avenue from South Tenth Street west across the project frontage; a 16-inch diameter water main in East Ventura Avenue between South Ninth Street and South Cedar Avenue; and an 8-inch diameter water main in South Tenth Street between East Ventura Avenue and East Lane Avenue, in the amount of $770,655. ..Body RECOMMENDATION Staff recommends that City Council: 1. Approve a Resolution of the Council of the City of Fresno considering Mitigated Negative Declaration SCH No. 2018101040 and adopting findings pursuant to CEQA Guidelines section 15162; and 2. Approve an Infrastructure Reimbursement Agreement (Agreement) with the Fresno Unified School District (District), to authorize reimbursement for the construction of a 16-inch diameter replacement water main in East Ventura Avenue from South Tenth Street west across the project frontage; a 16-inch diameter water main in East Ventura Avenue between South Ninth Street and South Cedar Avenue; and an 8-inch diameter water main in South Tenth Street between East Ventura Avenue and East Lane Avenue, in the amount of $770,655; and 3. Authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The District is constructing a new Alternative Education Campus and Administrative Office located at 3920 East Ventura Avenue (Project). It was determined the existing water mains to serve the Project are inadequate necessitating their replacements. Staff recommends that the City reimburse the District the $770,655 cost for the construction of the water mains, including services and fire hydrant. BACKGROUND The District as a matter of meeting its growing needs is constructing the Project. A requirement of the Project is to upgrade the undersized and aging water mains for continued reliable service. The existing water mains in East Ventura Avenue and South Tenth Street were identified as the nearest for serving the Project, however, having been constructed in 1934 and 1951 and being of insufficient capacity were deemed inadequate for the intended use. Thus, it is necessary to replace the existing mains with 8-inch diameter and 16-inch diameter water mains. The City provided comments to the District's Draft Mitigated Negative Declaration. Among the comments were requirements that the District replace the inadequate portions of water mains in Ventura Avenue and Tenth Street along with their related fire hydrants and water services. The requirements provided that one hundred percent (100%) of the cost for the construction of the water mains (including fire hydrants) be reimbursed through progress payments under a separate reimbursement agreement. The proposed agreement will authorize reimbursement to the District for the cost for all water improvements including approximately 1,592-linear feet of 16-inch diameter water main, 1,362-linear feet of 8-inch diameter water main, 13 water services ranging from 1-inch to 6-inch in diameter, 1 fire hydrant, and cost of traffic control and permanent trench resurfacing costs. The City has determined that the Reimbursement Amount for construction of the water main is $770,655. ENVIRONMENTAL FINDINGS On October 2, 2019, Fresno Unified School District, as lead agency, adopted a Mitigated Negative Declaration for the Alternative Education Campus and Administrative Office Project, SCH No. 2018101040 (Ventura Alternative Campus MND) which contemplated replacement of inadequate sized water mains and materials with 8-inch and 12-inch diameter water mains. Following the District's adoption of the Ventura Alternative Campus MND, the City modified its requirements to require construction of 8-inch and 16-inch diameter water mains. Pursuant to CEQA Guidelines Section 15096, the City, as Responsible Agency, has considered the prior MND approved by FUSD and has completed an analysis pursuant to CEQA Guidelines Section 15162 to determine if a subsequent EIR or MND is required. As a result of this analysis, staff has concluded the following: None of the conditions described in Section 15162 of the CEQA Guidelines calling for preparation of a subsequent EIR or Mitigated Negative Declaration have occurred; 1. The Infrastructure Reimbursement Agreement between Fresno Unified School District and the City of Fresno does not propose changes to the Ventura Alternative Campus MND, and is instead an approval that implements a portion of that project; a. There is no substantial evidence in the record that the Infrastructure Reimbursement Agreement between Fresno Unified School District and the City of Fresno may have additional significant effects on the environment that were not identified in the Ventura Alternative Campus MND, and that all applicable mitigation measures of the prior MND have been applied to the project; b. In addition, pursuant to Public Resources Code, Section 21157.6(b)(1), Council finds that no substantial changes have occurred with respect to the circumstances under which the prior MND was adopted; and, that no new information, which was not known and could not have been known at the time that the prior MND, has become available. Accordingly, a subsequent EIR or MND is not required. LOCAL PREFERENCE Local preference was not implemented as this item does not involve the bid or award of a construction or services contract. FISCAL IMPACT There is no impact to the General Fund. This Project is located in Council District 5. Funding for this Project is included in the Fiscal Year 2022 Capital Improvement Project Budget within the Water Enterprise Fund (40101). Attachments: Attachment 1 - Resolution Attachment 2 - Ventura Alt Ed Mitigated Negative Declaration Attachment 3 - Infrastructure Reimbursement Agreement Attachment 4 - Vicinity Map