REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: KEVIN NORGAARD, PE, Assistant Director Department of Public Utilities - Utilities Planning & Engineering PETER MARACCINI, PE, PhD, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title ***RESOLUTION - Authorizing the Department of Public Utilities Director 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 water and sewer infrastructure to serve the Community of Britten Avenue. (Subject to Mayor's Veto) (Unincorporated Fresno County) ..Body RECOMMENDATIONS Staff recommends the City Council adopt a resolution to authorize 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 State Water Resources Control Board (SWRCB) on behalf of the City for the planning, design, and construction of water and sewer infrastructure to serve the community of Britten Avenue. EXECUTIVE SUMMARY The community of Britten Avenue (Community), a small, Disadvantaged Community (DAC) outside the City's Sphere of Influence (SOI), is currently served by residential wells and septic systems. Water quality samples from homes in the Community contained contaminants exceeding the regulatory limits for safe drinking water. The Community desires to connect to the City's drinking water and sewer systems. The City received approval from the Fresno Local Area Formation Commission (LAFCo) to extend services to the Community. The cost for the extension of services is eligible for full funding under the SWRCB Drinking Water State Revolving Fund (DWSRF) program and the Clean Water State Revolving Fund (CWSRF) program. The Department of Public Utilities (DPU) intends to submit applications to the SWRCB to fund the projects. 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. BACKGROUND The Community of Britten Avenue is located east of South Cherry Avenue, between Central Avenue and American Avenue. The Community is part of the South Fresno Community Alliance and is party to the Northpointe Settlement Agreement. 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. The Community is identified as a DAC per SWRCB Division of Financial Assistance Criteria. As such, the water improvements are eligible for 100 percent grant funding through the SWRCB DWSRF program, and the sewer improvements are eligible for 100 percent grant funding through the CWSRF program. The DPU intends to apply for both DWSRF and CWSRF funding to fund the installation of the water and sewer extensions to serve the Community. Water quality samples collected from the taps of three homes in the Community contained nitrate and/or uranium levels meeting or exceeding the maximum contaminant level (MCL) for drinking water. The source for the nitrate is likely residential septic tanks and fertilizer runoff from neighboring agricultural areas, whereas the uranium originates from natural deposits in the groundwater aquifer. The extension of water services would provide the Community with a clean drinking water source and the extension of sewer services would allow the Community to abandon use of the residential septic systems that are contributing to the high nitrate levels in the groundwater. The Community is located outside the City's SOI and is not currently eligible for annexation. Per California Government Code section 56133(c), LAFCo has the authority to authorize a city or special district to provide new or extended services outside of its jurisdictional boundaries and outside its SOI to respond to an existing or impending threat to the health or safety of the public or residents of the affected territory. On June 6, 2023, LAFCo approved Resolution OS-23-02 authorizing the City to extend sanitary sewer and domestic water services to the Community. Prior to the Community connecting to the City's water and sewer distribution services, the Community will enter into an Extra-territorial Agreement with the City. As part of the application process, and prior to any potential award, the SWRBC 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. ENVIRONMENTAL FINDINGS By the definition of the California Environmental Quality Act (CEQA) Guidelines Section 15378, this action is not a "Project" for the purposes of CEQA. LOCAL PREFERENCE Local preference was not implemented because this action does not include a bid or an award of a construction or services contract. FISCAL IMPACT This Project has no impact on the General Fund. No matching funds are required under this financial assistance agreement. Attachments: Attachment 1 - Resolution Attachment 2 - LAFCo Resolution OS-23-02 Attachment 3 - Vicinity Map