REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Director Department of Public Utilities BY: DEJAN PAVIC, PE, Licensed Engineer Manager Department of Public Utilities - Utilities Planning & Engineering Division DENISE SORIA, PE, MSCE, Licensed Professional Engineer Department of Public Utilities - Utilities Planning & Engineering Division SUBJECT ..Title Approve the Water Infrastructure Reimbursement Agreement for Transmission Grid Main between the City of Fresno and State Center Community College District (District) located at S. Willow Avenue south of E. Jensen Avenue for District reimbursement of eligible construction costs for a total reimbursement amount of $1,426,051.44 as part of the First Responders Campus Project (County) ..Body RECOMMENDATIONS Staff recommends that the City Council approve the Water Infrastructure Reimbursement Agreement for Transmission Grid Main in South Willow Avenue South of East Jensen Avenue (Reimbursement Agreement) to the State Center Community College District (District or SCCCD) and authorize reimbursement to the District in the amount of $1,426,051.44 for the completed construction of the 16-inch public water transmission grid main and associated improvements as part of the First Responders Campus Project; and authorize the City Manager, or designee to sign and execute all related documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY On December 2, 2022, the City and District entered into an Extraterritorial Service and Offsite Infrastructure Agreement (Extraterritorial Agreement) for water services and off-site water infrastructure improvements at the First Responders Campus Site located at Assessor's Parcel Number 316-071-23T (Project). The Project Improvements included construction of a 16-inch diameter water main in South Willow Avenue (including installation of public fire hydrants) from East North Avenue north to the existing 14-inch diameter water main terminating approximately 930 feet south of East Jensen Avenue. The District constructed the required water mains, and they were accepted by the City on February 7, 2025. The Reimbursement Amount for Improvements total is $1,426,051.44. This Reimbursement Agreement is necessary to fulfill the City's obligations under the executed Extraterritorial Agreement and authorizes payment of $1,426,051.44 to the District. BACKGROUND The Project is within the City's sphere of influence, but currently outside the City's municipal corporate limits. On December 2, 2022, the City and District entered into an Extraterritorial Agreement for water services and off-site water infrastructure improvements at the Project. The Project included construction of a 16-inch diameter water main in South Willow Avenue (including installation of public fire hydrants) from East North Avenue north to the existing 14-inch diameter water main terminating approximately 930 feet south of East Jensen Avenue. Section A.1.b of the Extraterritorial Agreement states that the costs for constructing the 16-inch water main in South Willow Avenue north of the District's property (approximately 3,000 feet) will be eligible for direct cost reimbursement by a separate agreement. The reimbursement amount will be based on true costs supported by documentation and as approved by the Director of Public Utilities or designee. Construction of the 16-inch water main in South Willow Avenue is now complete and DPU needs to reimburse the District for constructing said public water transmission grid main (approximately 3,000 linear feet) and appurtenances. The proposed Reimbursement Agreement will authorize payment to the District for the actual construction costs of constructing approximately 3,000 linear feet of a 16-inch diameter public water main and related appurtenances. DPU conducted a thorough review of all invoices and supporting materials to confirm eligible expenses. The City determined that the eligible Reimbursement Amount for construction of the Project is $1,426,051.44. The City Attorney and Risk Management Division have reviewed and approved the Reimbursement Agreement. ENVIRONMENTAL FINDINGS The District, as Lead Agency, prepared an Environmental Impact Report (EIR) for the First Responders Campus Project (the "First Responders Campus Project EIR"), identified by SCH No. 2020039018. The District certified the EIR on November 2, 2021, through the adoption of Resolution 2021.33. The First Responders Campus Project EIR analyzed the construction and operation of the First Responders Campus Project, including but not limited to the impact on sewer and water services, including that portion of the Project consisting of installation of water and sewer mains and connection to the City's municipal services. On December 1, 2022, through Resolution No. 2022-272, the City Council, as a responsible agency, adopted an addendum to the First Responders Campus Project EIR as well as findings pursuant to CEQA Guidelines Sections 15091, 15093, and 15096 relevant to the City's reliance on an EIR prepared by the agency for the project. Along with the addendum and findings, the City approved an extraterritorial agreement which included water main described above as part of the overall project to extend water services. This approval is a component of the water main extension contemplated by the extraterritorial agreement approved on December 1, 2022. As such, this approval implements a component of a project that was already assessed by the First Responders Campus Project EIR and the addendum An analysis has been performed pursuant to CEQA Guidelines Section 151612, to determine whether subsequent environmental review is required for this approval. Based upon this analysis, the following findings are made to support the determination that no subsequent environmental review is required: 1. No substantial changes are proposed in the Project which will require major revisions of the EIR or addendum due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The Project was completed within the scope of work and the footprint in the EIR. 2. No substantial changes occurred with respect to the circumstances under which the Project was undertaken which will require major revisions to the EIR or addendum due to the involvement of new, significant environmental effects or substantial increase in the severity of previously identified significant effects. As noted above, the Project was completed within the scope of work and the footprint of the approved EIR. 3. There is no new information, which was not known and count not have been known at the time of the previous EIR or addendum showing that: a. The Project will have one or more significant effects not discussed in the previous EIR; b. Significant effects previously examined will be substantially more severe than shown in the previous EIR; c. Mitigation measures or alternatives previously found to be not feasible are now feasible and would substantially reduce one or more significant effects of the Project. Based upon these findings, it has been determined that no further environmental documentation is required for this approval. LOCAL PREFERENCE Local preference policy 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. Funding for this Project is included in the Fiscal Year 2026 Water Enterprise Fund (40101). Attachments: Extraterritorial Service and Offsite Infrastructure Agreement Water Infrastructure Reimbursement Agreement Location Map Vicinity Map