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Staff believes that this is the best and most economical option to complete this <br />important water system emergency/seismic response improvement work as outlined in <br />the Grant proposal. <br />ALTERNATIVES <br />1. Award the project to the lowest apparent bidder as bid, and approve as- <br />needed funding from the Distribution System Replacement Program to cover <br />the additional amount over the project budget. <br /> <br />FISCAL IMPACT <br />Funds for the general work of this project were approved and appropriated in the Fiscal <br />Year 2015/16 budget as Water Fund Capital Projects – Water System Seismic Update. <br />Seventy five percent of the project’s construction cost will be reimbursed by FEMA/Cal <br />OES through the FY2012 Pre-Disaster Mitigation Competitive Grant which was <br />accepted by the City Council on September 9, 2013. <br /> <br />The grant from FEMA has an available balance of approximately $800,000. If the <br />project is awarded to the low bidder, the City would have to contribute up to $487,000 in <br />additional funds. <br /> <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA as defined in the CEQA Guidelines, section <br />15378, because it has no potential for resulting in either a direct or foreseeable physical <br />change in the environment. <br /> <br /> <br />JAVIER SIERRA <br />ASSOCIATE ENGINEER <br /> <br />AARON AKNIN <br />ASSISTANT CITY MANAGER/COMMUNITY DEVELOPMENT DIRECTOR <br /> <br /> <br />MELISSA STEVENSON DIAZ <br />CITY MANAGER <br /> <br />6.1.H. - Page 3