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