REPORT TO THE CITY COUNCIL April 28, 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 Award a consultant agreement in the amount of $2,466,445 and a contingency of $120,000 with AECOM Technical Services, Inc. for the design of the Northeast Quadrant Recycled Water Transmission Main (Council District 2 and 6) ..Body RECOMMENDATION Staff recommends the City Council approve the consultant services agreement with AECOM Technical Services, Inc in the amount of $2,466,445 and a contingency of $120,000. EXECUTIVE SUMMARY The Department of Public Utilities (DPU), Wastewater Management Division is seeking to award the professional consultant services agreement with AECOM Technical Services, Inc in the amount of $2,466,445 and a contingency of $120,000 for the design of the Northeast Quadrant of the Recycled Water Distribution System. 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 (Plan) prepared by the Department of Public Utilities' Wastewater Management Division 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 City Council adopted the Plan which was prepared by Carollo Engineers and associated environmental documents. The Plan defines and evaluates many possible alternatives for increasing usage and distribution of recycled water. It also defines a plan for installation of a recycled water distribution system throughout the City. One piece of the Plan is the identification of recycled water customers in the Northeast Quadrant. This customer information has been used to determine the potential recycled water distribution layout which consist of approximately 14.4 miles of pipeline ranging from 30-inches to 12-inches in diameter. The design contract to AECOM will develop construction documents, bid support, and support during construction. The majority of the proposed pipeline alignments in the Northeast Quadrant will be located in the City of Fresno right-of-way. This phase of the recycled water distribution will move recycled water from Cooper River plant into the urban area. Following Fresno Municipal Code Chapter 4 Article 1 and Administrative Order 6-19, the Department of Public Utilities notified in excess of 100 consulting firms requesting a project proposal. The Department received three proposals. The five person review panel selected AECOM for the best value and qualified firm to perform the necessary engineering services. A consultant services agreement has been negotiated in the amount of $2,466,445 and $120,000 contingency. The City Attorney has reviewed the contract and approved it as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines (CEQA) Guidelines Section 15378 the award of these contracts does not qualify as a "project" and therefore exempt from the CEQA requirements. LOCAL PREFERENCE Local preference was implemented; AECOM Technical Services, Inc. is a local business. FISCAL IMPACT This project has no impact to the General Fund and is located in Council District 2 and 6. This project is identified in the Wastewater Management Division five year capital improvement plans and current rate structure. Funds in the amount of $2,836,800 for the project are budgeted in the 2016 Sewer Enterprise Fund No. 40501. Attachments: Fiscal Impact Statement Consultant Agreement Vicinity Map Review Panel Report