| ITEM #: 9. DATE: 03/03/2025 AI #:2208 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AGREEMENT FOR ENGINEERING, PROCUREMENT, AND CONSTRUCTION - BRINE DISPOSAL |
| STAFF PRESENTER(S): | Barbara Chappell, Water Services Director |
SUMMARY
Request approval of an Agreement for Engineering, Procurement, and Construction between Arizona Public Service Company (APS), the city of Goodyear (City), and the city of Buckeye (Buckeye) - Brine Disposal.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Approve the Engineering, Procurement, and Construction Agreement with the city of Buckeye and Arizona Public Service (APS) and approve authorization and direction to take actions and execute the documents necessary to carry out the intent of the agreement. (Barbara Chappell, Water Services Director)
FISCAL IMPACT
This agreement, included as Attachment A, provides for certain construction work to be completed at a cost of $9,223,200. The cost of this work is contemplated in the Brine Management Project - Palo Verde Power Generating Station Improvements - CIP 61015 (Project), which was approved on March 4, 2024, with a budget of $15,500,000.
Project Budget:
Project Budget:
| Agreement | Date | Agreement Cost | Revised Total Agreement Cost |
| Original Agreement | 07/18/2022 | $1,650,000 | $1,000,000 |
| Amendment #1 | 03/04/2024 | $2,597,867 | $3,650,000 |
| Amendment #2 | 07/01/2024 | $1,100,000 | $4,750,000 |
| Second Agreement | 02/10/2024 | $9,223,200 | $13,973,200 |
BACKGROUND AND PREVIOUS ACTIONS
On July 18, 2022, the City Council approved a Multi-Party Agreement between the City, APS, and Buckeye for a project that would allow Brackish Water 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. Based on additional comments received from and changes requested by APS, City staff requested modifications to the Agreement, which were approved by Council on August 29, 2022.
Under the terms of the Agreement, the Project was to be conducted in phases. The first phase was 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 of the Project was to include the final system design, procurement of enhanced evaporation equipment, and the construction and installation of equipment and infrastructure (pipelines and power supplies) to accommodate the initial flows of Brackish Water from the City and Buckeye.
On March 4, 2024, Council approved the creation of capital improvement project CIP 61015 Palo Verde Power Generating Station Improvements and Amendment #1 to the Agreement incorporating the design and construction of the two tie-ins to the WRSS pipeline the city will be constructing. 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 are shared equally between Buckeye and the city.
On July 1, 2024, Council approved the Amendment #2 that allowed for the continuation of design, purchase of long lead items, and advancement of construction of portions of 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.
Under the terms of the Agreement, the Project was to be conducted in phases. The first phase was 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 of the Project was to include the final system design, procurement of enhanced evaporation equipment, and the construction and installation of equipment and infrastructure (pipelines and power supplies) to accommodate the initial flows of Brackish Water from the City and Buckeye.
On March 4, 2024, Council approved the creation of capital improvement project CIP 61015 Palo Verde Power Generating Station Improvements and Amendment #1 to the Agreement incorporating the design and construction of the two tie-ins to the WRSS pipeline the city will be constructing. 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 are shared equally between Buckeye and the city.
On July 1, 2024, Council approved the Amendment #2 that allowed for the continuation of design, purchase of long lead items, and advancement of construction of portions of 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.
STAFF ANALYSIS
This new agreement allows for the procurement and construction of the final items necessary at the PVGS and for the Redhawk facility to support its continued operation after the introduction of Brackish Water to the WRSS.
An additional Agreement for the ongoing operation and maintenance costs for sending the city’s brine to PVGS will be brought before Council for action later this year.
An additional Agreement for the ongoing operation and maintenance costs for sending the city’s brine to PVGS will be brought before Council for action later this year.