| ITEM #: 10. DATE: 07/01/2024 AI #:2103 |
 |
CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVE AMENDMENT TO MULTI-PARTY AGREEMENT FOR BRINE DISPOSAL |
| STAFF PRESENTER(S): | Barbara Chappell, Water Services Director |
SUMMARY
Amendment to the Multi-Party Agreement between Arizona Public Service Company (APS), the City of Goodyear, and the City of Buckeye to accept Municipal Brackish Water (Brine) into the Palo Verde Nuclear Generating Stations (PVGS) water reclamation supply system pipeline to incorporate additional work.
STRATEGIC PLAN ALIGNMENT
.png) |
.png) |
.png) |
RECOMMENDATION
Approve the second amendment to the agreement regarding collaborative efforts to accept the municipal brackish water into the water reclamation supply system pipeline. (Barbara Chappell, Water Services Director)
FISCAL IMPACT
Brine Management Project - Palo Verde Power Generating Station Improvements (61015) has a total budget of $15,500,000 and is included in the fiscal year 2025 budget. This amendment provides for certain construction work to be completed at a cost of $1,080,925. The City's current total commitment for the combined amended agreement will be $3,678,792. Funding for additional phases of the project will require future Council approval.
BACKGROUND AND PREVIOUS ACTIONS
On July 18, 2022, the city council approved a multi-party agreement between APS, Goodyear, and Buckeye for a Project that would allow Brackish Water (as defined in the Agreement) to be delivered to the Palo Verde Power Generating Station (“PVGS”) to be used as cooling water through the PVGS’ water reclamation supply system (WRSS) pipeline. After the July 18, 2022, Council meeting, APS received comments with requested changes from their owners, staff reviewed the proposed changes, and concluded that they did not modify the intent of the terms of the agreement as reflected in the Council Action Report presented to Council on July 18, 2022. Council approved the modifications to the Agreement on August 29, 2022.
Under the terms of the Agreement, the Project was to be conducted in phases. The first phase was for Design Development, and it included the design of infrastructure needed to support the continued delivery of excess blowdown water from the APS owned Redhawk Power Plant to PVGS. The second phase Agreement was to include the final system design, procurement of enhanced evaporation equipment, and the construction and installation of such equipment and the required infrastructure (pipelines and power supplies) to accommodate the initial flows of Brackish Water from Buckeye and Goodyear.
On March 4, 2024, Council approved the creation of CIP 61015 Palo Verde Power Generating Station Improvements and the first amendment to the Agreement incorporating the design and construction of the two tie-ins for the pipeline the city will be constructing, to the WRSS pipeline. The cost of this work is the sole responsibility of the city. The amendment also included additional design work and procurement of long lead time items that are needed for the Brine Project to become operational. The costs of this work is shared equally between Buckeye and the city.
Under the terms of the Agreement, the Project was to be conducted in phases. The first phase was for Design Development, and it included the design of infrastructure needed to support the continued delivery of excess blowdown water from the APS owned Redhawk Power Plant to PVGS. The second phase Agreement was to include the final system design, procurement of enhanced evaporation equipment, and the construction and installation of such equipment and the required infrastructure (pipelines and power supplies) to accommodate the initial flows of Brackish Water from Buckeye and Goodyear.
On March 4, 2024, Council approved the creation of CIP 61015 Palo Verde Power Generating Station Improvements and the first amendment to the Agreement incorporating the design and construction of the two tie-ins for the pipeline the city will be constructing, to the WRSS pipeline. The cost of this work is the sole responsibility of the city. The amendment also included additional design work and procurement of long lead time items that are needed for the Brine Project to become operational. The costs of this work is shared equally between Buckeye and the city.
STAFF ANALYSIS
This second amendment allows for the continued detailed design of long lead time procurement items and limited construction and piping installation activities for the Redhawk to Palo Verde pipeline, which is necessary to support the continued operation of Redhawk after the introduction of Brackish Water to the WRSS. The pipeline will be used to transport excess cooling tower blowdown water from Redhawk to Palo Verde for reuse in the Palo Verde cooling tower system.
Current work being performed at the Redhawk facility includes excavation in the area where we will need to excavate and install a pipeline for this project. The Agreement did not specifically identify the construction of the infrastructure needed to support the continued delivery of excess blowdown water from the APS owned Redhawk Power Plant to PVGS (the “Redhawk Project”), but the construction of this infrastructure is required before Goodyear and Buckeye will be able to deliver Brackish Water to the PVGS through the WRSS pipeline. This amendment will allow us to coordinate the work for both projects resulting in some cost savings in terms of the overall costs to Goodyear and Buckeye for design, procurement, and construction of the infrastructure that will allow both cities to deliver Brackish Water to the PVGS through the WRSS pipeline.
Current work being performed at the Redhawk facility includes excavation in the area where we will need to excavate and install a pipeline for this project. The Agreement did not specifically identify the construction of the infrastructure needed to support the continued delivery of excess blowdown water from the APS owned Redhawk Power Plant to PVGS (the “Redhawk Project”), but the construction of this infrastructure is required before Goodyear and Buckeye will be able to deliver Brackish Water to the PVGS through the WRSS pipeline. This amendment will allow us to coordinate the work for both projects resulting in some cost savings in terms of the overall costs to Goodyear and Buckeye for design, procurement, and construction of the infrastructure that will allow both cities to deliver Brackish Water to the PVGS through the WRSS pipeline.