REPORT TO THE CITY COUNCIL December 1, 2016 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division BY: PATRICIA DIEP, Supervising Engineering Technician Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Approval of the agreement for Repair of Fresno County Roads for Recycled Water Transmission Main, Southwest Quadrant, Project SW1D, SW1C2 and Pump Station (Bid File 3504) (Council District 3 and Fresno County) ..Body RECOMMENDATIONS Staff recommends the Council approve the agreement for Repair of Fresno County Roads and authorize the Director of Public Utilities or designee to sign the County Agreement on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division (Department) is seeking the approval of the agreement for Repair of Fresno County Roads and authorization of the Director of Public Utilities or designee to sign the County Agreement on behalf of the City. BACKGROUND In 2009, the State of California adopted a recycled water policy establishing a mandate to increase the use of recycled water in California by 200,000 acre-feet per year by 2020 and by an additional 300,000 acre-feet per year by 2030. The Recycled Water Master Plan prepared by the Department identifies opportunities to assist with compliance of this law by reducing groundwater pumping and replacing groundwater with recycled water for non-potable purposes (i.e. outdoor irrigation, dust control, fountains, etc.). The Division's long-term goal is to produce and deliver 25,000 acre-feet of recycled water to the City's service area to reduce groundwater over drafting. On April 11, 2013, the Council adopted the Recycled Water Master Plan and associated environmental documents. The Recycled Water Master Plan identified the alignments of the recycled water pipeline along County and City right of way. The County requires an agreement for Repair of County Roads between the City - DPU and County for all new pipes located in the County Right-of-Way. This agreement must be executed before the County will allow the construction to start. The agreement has been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines (CEQA) Section 15378 the approval of this agreement does not qualify as a "project" for the purpose of CEQA. LOCAL PREFERENCE Local preference was not implemented because this is an agreement with the County of Fresno. FISCAL IMPACT This project does not impact the General Fund. There will be construction costs estimated to be $17,000,000 when the project is bid and awarded later this fiscal year. This project is in District 3 and parts of Fresno County. Attachment: Agreement for Repair of County Roads