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HomeMy WebLinkAboutFresno Irrigation District - Enterprise Canal at Fancher Creek - 2007REPORT TO THE CITY COUNCIL September 18, 2007 FROM: RENE A. RAMIREZ, Directorj (/1 Department of Public Utilities ��"" BY: LON M. MARTIN, Assistant Director I_, NA. Department of Public Utilities SUBJECT: COST SHARE AGREEMENT WITH FRESNO IRRIGATION DISTRICT FOR CONSTRUCTION OF IMPROVEMENTS TO ENTERPRISE CANAL KEY RESULT AREA Resource Management RECOMMENDATION Authorize the Director of Public Utilities to sign cost sharing agreement with Fresno Irrigation District (FID) for construction of improvements to the Enterprise Canal Flume at Fancher Creek Crossing. EXECUTIVE SUMMARY The Enterprise Canal is an FID -owned facility that serves to deliver water for purposes of irrigation, recharge, and municipal use at Surface Water Treatment Facilities (SWTF's) for the cities of Fresno and Clovis, and to convey winter stormwater flows. The Canal crosses over Fancher Creek in a concrete flume, constructed in the early 1900's, that is now in need of replacement. Due to increased maintenance and operational changes resulting from expanded use of the canal for purposes other than irrigation, FID is asking the cities of Fresno and Clovis, the County of Fresno and the Fresno Metropolitan Flood Control District to join them in sharing the cost of constructing a new flume. FID has obtained a $300,000 grant to be used to offset a portion of the estimated cost. Remaining costs are to be shared by the participating agencies. The City's share of cost for replacing the flume is estimated at $176,566 with provision for up to an additional $17,656 (10%) should construction bids exceed estimates. In addition, the agreement includes a provision for constructing a temporary bypass around the proposed construction site. The purpose of the bypass is to allow continued delivery of water to the SWTF's of Fresno and Clovis during construction of the new flume. The additional cost of the bypass is estimated at $85,000 and is to be shared by Fresno and Clovis. Under the proposed agreement, the City's share of cost for the bypass will not exceed $60,000 bringing the City's total estimated project cost to $254,222 ($176,566 + $17,656 + $60,000). KEY OBJECTIVE BALANCE Ensuring completion of necessary improvements to the Enterprise Canal will meet the City's Key Objective Balance. Financial management is met as costs associated with SWTF downtime are reduced. Customer service is enhanced through increased water supply reliability, while employee satisfaction is created through knowledge that their efforts will produce greater water supply reliability. Presented to City CgUKH Date 9114107 Disposition o= &"d N REPORT TO THE CITY COUNCIL Approve Enterprise Canal Cost Share Agreement with FID September 18, 2007 Page 2 BACKGROUND The Enterprise Canal is an FID -owned facility that conveys water for irrigation and recharge, and provides flood protection through diversion and conveyance of flood water during storm events. In 2004, use of the canal was expanded to include near -year around deliveries of water to SWTF's constructed by the cities of Fresno and Clovis. Prior to use of the canal for municipal purposes, a study was completed to assess flow capacity and the potential for contamination. The study identified specific operational and infrastructure improvements necessary to maintain canal integrity and improve water reliability. One identified improvement was replacement of the Enterprise Canal Flume at Fancher Creek. The flume is a concrete structure, constructed in the early 1900's, that allows water in the Enterprise Canal to pass over Fancher Creek. Due to the significance of the Enterprise Canal in assuring delivery of water to the SWTF, the City of Fresno, on November 15, 2004, entered into an agreement with FID to share the cost of necessary canal improvements. The agreement identifies replacement of the Fancher Creek Flume as essential. However, due to the high costs involved, the need to thoroughly investigate various design considerations and the need to allow time for the agencies to address budgetary considerations, the agreement provides that flume replacement and other specified large projects, be phased in over a five year period. FID is now ready to proceed with flume replacement and has prepared preliminary designs with total project costs estimated at $928,050. FID has also obtained a federal grant to be applied to the project resulting in a net project cost of $668,050. Under the proposed agreement, net project costs for flume replacement will be shared by the cities of Fresno and Clovis, FID, the County of Fresno and the Fresno Metropolitan Flood Control District in the following amounts: AGENCY PERCENTAGE COST Fresno Irrigation District 31.91% $213,188 City of Fresno 26.43% $176,566 Fresno Metropolitan Flood Control District 20.61% $137,698 City of Clovis 14.31% $95,598 County of Fresno 6.74% $45,000 Total 100% $668,050 The agreement also includes provision for constructing a temporary bypass around the construction site to allow continued deliveries of water to the SWTF of Fresno and Clovis during construction. The cost for constructing the bypass is estimated at $85,000 and is to be shared by Fresno and Clovis with Fresno's share not to exceed $60,000. Completion of the bypass will avoid the loss of two months of delivery to the City's SWTF. The agreement has been approved as to form by the City Attorney's Office. FISCAL IMPACT Under the proposed agreement, the City's share of net project cost is $176,566 with the provision of up to an additional $17,656 (10%) should construction bids exceed estimates. An additional amount up to $60,000 will be paid for construction of the temporary bypass. Funding for the project is available from an account encumbered in fiscal year 2004-2005 (WC00039) for Enterprise Canal improvement projects identified in the City's November 15, 2004 agreement with FID. Attachment . a CIN OF FRESNO City Clerk's Otllce (Original) Enterprise Canal at Faucher Creek Improvements Construction Agreement This Agreement is entered into on this day of 2007, by and between the Fresno Irrigation District ("DISTRICT") and the City of Fresno ("CITY"). RECITALS WHEREAS, the DISTRICT is a California Irrigation District organized pursuant to the provisions of Division 11 of the California Water Code and has specific authority thereunder to engage in water delivery and groundwater enhancement programs including the development of facilities therefore; and WHEREAS, CITY is a municipal corporation organized and existing under the laws of the State of California; and WHEREAS, the DISTRICT owns and operates the Enterprise Canal which crosses over Fancher Creek at a location north and east of Ashlan and Academy Avenues, as shown in Exhibit 1, via a concrete flume structure that was constructed in the early 1900s; and WHEREAS, the structure at this location is in need of replacement to protect the reliability of water deliveries through the Enterprise Canal for downstream irrigation, recharge and surface water treatment plant demands; and WHEREAS, the Enterprise Canal at Fancher Creek Improvements ("Improvements") were identified as "Essential' in the Enterprise Canal Improvements Agreements (dated November 15, 2004, as between DISTRICT and CITY) between the DISTRICT and the cities of Fresno and Clovis separately; and WHEREAS, the Improvements at this location are also needed for the safe and efficient control and diversion of stormwater in accordance with Army Corps of Engineers masterplan for routing of stormwaters from the eastside streams, which calls for diversion of all stormwater from the Enterprise Canal into Fancher Creek; and -1- WHEREAS, the DISTRICT, the CITY, the CITY OF CLOVIS, and the FRESNO METROPOLITAN FLOOD CONTROL DISTRICT have applied for a water right from the State of California for the diversion and beneficial use of the water from these eastside streams; and WHEREAS, the Improvements will include replacement of the existing concrete flume over Faucher Creek, construction of a new control structure, and construction of diversion facilities to control stormwater; and WHEREAS, the DISTRICT applied for, and has received a grant from the United States Bureau of Reclamation ("USBR") to assist with said Improvements; and WHEREAS, time is of the essence as the DISTRICT has until September 2008 to expend the grant funds from the United States Bureau of Reclamation for said Improvements; and WHEREAS, DISTRICT, CITY, CITY OF CLOVIS, COUNTY OF FRESNO, and FRESNO METROPOLITAN FLOOD CONTROL DISTRICT have agreed to an initial cost sharing formula for the Improvements shown in Exhibit 2; and WHEREAS, CITY is willing to reimburse DISTRICT for the CITY's proportionate share, as indicated in Exhibit 2, of the costs incurred to complete the Improvements; and WHEREAS, the CITY, CITY OF CLOVIS, COUNTY OF FRESNO, FRESNO METROPOLITAN FLOOD CONTROL DISTRICT, and DISTRICT are signatory to "AGREEMENT FOR THE USE OF FRESNO IRRIGATION DISTRICT'S CANALS FOR THE DISPOSAL OF STORM WATERS", which requires the signatories to participate fmancially in the maintenance, alteration, repair, operation or use of the DISTRICT's canals which is solely caused by the discharge of storm waters into the canals; and WHEREAS, the DISTRICT plans to enter into a similar agreement with the CITY OF CLOVIS, COUNTY OF FRESNO, and FRESNO METROPOLITAN FLOOD CONTROL DISTRICT separately, for the design and construction of said Improvements; and -2- WHEREAS, DISTRICT, CITY, and CITY OF CLOVIS have agreed to the design and construction of temporary facilities ("Bypass") to divert water around the Flume structure for the purpose of maintaining normal delivery of water during construction of said Improvements; and WHEREAS, CITY is willing to reimburse DISTRICT for the CITY's proportionate share of the costs incurred for the design and construction of said Bypass up to a maximum as indicated in Exhibit 3; and WHEREAS, the DISTRICT plans to enter into a similar agreement with the CITY OF CLOVIS separately, for reimbursement of Clovis' share of the costs incurred for design and construction of said Bypass as indicated in Exhibit 3. NOW THEREFORE BE IT RESOLVED, that based upon the covenants and representations contained herein, the DISTRICT and CITY agree as follows: 1. It is necessary to replace the Enterprise Canal Flume Crossing over Fancher Creek, and incorporate diversion improvements to Fancher Creek pursuant to the Army Corps of Engineers master plan for routing of stormwaters. 2. DISTRICT, in its sole discretion, shall either directly perform or contract for the design and construction of said Improvements and Bypass. 3. DISTRICT shall apply the grant money received from the USBR towards reducing the overall cost of said Improvements excepting said Bypass. Applied grant money shall be used to reduce each Party's total cost share for said Improvements. 4. As provided in paragraph 7 below, CITY agrees to pay the DISTRICT its proportionate share of the costs incurred for construction of said Improvements as identified in Exhibit 2 and up to its maximum share of costs incurred for the construction of the Bypass as identified in Exhibit 3. 5. The total cost identified in Exhibit 2 is an estimate. The CITY agrees to pay DISTRICT for CITY's share of actual costs incurred by DISTRICT for construction of the Improvements. If construction bids for the project exceed 110% of the "Total Project 3- Cost Less Grant Money" shown in Exhibit 2, the DISTRICT agrees to meet with the CITY and other contributing agencies, prior to award of bid, to discuss needed project design changes or additional funding. In no instance shall the CITY's share of actual costs exceed 110% of that identified in Exhibit 2 (i.e., $194,222) without the CITY's prior written approval. The DISTRICT agrees to notify CITY prior to the time when actual costs exceed the estimate. 6. The total cost identified in Exhibit 3 is a maximum estimate. The CITY agrees to pay for CITY'S proportionate share of actual costs incurred by DISTRICT in accomplishment of work identified in Exhibit 3, but in no instance shall the amount paid by the CITY exceed the amount of $60,000 identified in Exhibit 3 as its maximum share of the costs. 7. CITY shall make payment for reimbursement of the costs identified above within thirty (30) days of receipt of an invoice from the DISTRICT. The DISTRICT shall not submit any invoice to CITY before September 1, 2007. 8. DISTRICT invoices shall include a description of work performed, status of work, an accounting of costs incorporated into invoice and an estimate of the remaining costs to be incurred to complete the work. 9. The terms of this Agreement shall only apply to this specific project for the construction of the Improvements and related design and construction of the Bypass. 10. General Provisions. A. All communication and notices required by this Agreement shall be provided as follows: To the DISTRICT: Laurence Kimura Assistant General Manager Fresno Irrigation District 2907 South Maple Avenue Fresno, CA 93725-2218 "a To the CITY: Lon Martin Assistant Director of Public Utilities City of Fresno 2600 Fresno Street, Room 3065 Fresno, CA 93721 B. This Agreement shall be binding upon and shall inure to the benefit of any successors or assigns of the Parties. C. Neither the CITY nor the DISTRICT shall assign, delegate or transfer their rights and duties in this Agreement without the written consent of the other Party. D. CITY and DISTRICT agree to mediate any dispute under this agreement before commencing litigation in a court of law under the laws of the State of California. The Parties shall mutually agree to a mediator. E. This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall only be in California. Notwithstanding any other provision of law, any action brought to interpret or enforce this Agreement, or any of the terms or conditions hereof, shall only be brought in the California Superior Court of Fresno County, California. The CITY and DISTRICT hereby expressly waive any right to remove any action to a county other than Fresno County as permitted pursuant to Section 394 of the California Code of Civil Procedure. F. This Agreement and each of the exhibits referred to herein, which are incorporated by reference, represent the entire understanding of the DISTRICT and the CITY as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except by writing signed by the DISTRICT and the CITY. -5- G. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void and so far as it is in conflict with said law that the remainder of the agreement shall remain in full force and effect. H. In the event either Party commences any litigation for the enforcement of this Agreement, the prevailing, as determined by the court or arbitrator, Party shall be entitled to recover its attorney's fees and court costs included in the action brought thereon. I. Each signatory to this Agreement represents that it is authorized to enter into this Agreement and bind the Party to which its signature represents. J. Section headings are provided for organizational purposes only and do not in any manner affect the scope or intent of the provisions thereunder. aO In witness whereof, the parties have executed this Agreement on this day and year first above written. FRESNO IRRIGATION DISTRICT: By: Gary . mato Gene anager APPROVED AS TO FORM: OBy: 4C", Daniel M. Debley General Counsel -7- CITY OF FRESNO: a Municipal Corporation By: R e A irez, Dir for Department of Public tilities ATTEST: REBECCA E. KLISCH City Clerk y� By:SwAot l7f . L Deputy 9/2Wo7 APPROVED AS TO FORM: James C. Sanchez City Attorney By: Nap6y A. AlgV Date Senior Deputy Enterprise at Fancher Creek Improvement Project Estimated Total Project Cost = $928,050 Grant Amount to be Applied to Total Project Cost = $260,000 Total Project Cost Less Grant Money = $668,050 AGENCY PERCENTAGE SHARE OF COST Fresno Irrigation District 31.91% $213,188 City of Fresno 26.43% $176,566 Fresno Metropolitan Flood Control District 20.61% $137,698 City of Clovis 14.31% $95,598 County of Fresno 6.74% $45,000 Total 100% 1 $6682050 EXHIBIT 3 Enterprise at Fancher Creek Construction of Temporary Bypass Maximum Estimated Cost for Construction of Temporary Bypass = $85,000