| ITEM #: 6. DATE: 05/19/2025 AI #:2587 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AUTHORIZATION FOR ACQUISITIONS OF REAL AND PERSONAL PROPERTY INTERESTS NEEDED FOR CIP #60034 BRINE DISPOSAL PIPELINE IMPROVEMENTS PROJECT |
| STAFF PRESENTER(S): | Kimberly Romero, Real Estate Supervisor |
OTHER PRESENTER(S):
Jose Murillo, Utilities Engineer
SUMMARY
Approval of this item will provide the authorization necessary to proceed with the acquisition of the land rights necessary through the project corridor for the completion of Capital Improvement Project (CIP) #60034 - Brine Disposal Pipeline Improvements.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2025-2464 AUTHORIZING ACQUISITION OF REAL AND PERSONAL PROPERTY INTERESTS NEEDED FOR THE COMPLETION OF CONSTRUCTION OF THE BRINE DISPOSAL PIPELINE IMPROVEMENTS PROJECT . (Kimberly Romero, Real Estate Supervisor)
FISCAL IMPACT
CIP #60034 is included in the FY2025 budget in the amount of $14,180,800. The land component is expected to be $579,150 and will be used to pay compensation for (i) the land rights required for the project; (ii) payment for personal property improvements, including landscaping that may be impacted by the project; (iii) payment of costs to cure; and (iv) transaction-related costs such as title reports, appraisals, appraisal reviews, escrow closing costs, title insurance, and legal fees of outside counsel and litigation guarantee reports, if eminent domain is required.
BACKGROUND AND PREVIOUS ACTIONS
On June 22, 2020 (2020-6897), Council approved CIP #60034 – Brine Line Disposal Pipeline Improvement project in the adoption of Resolution No. 2020-2036 Determining and Adopting the Final Estimates of Proposed Revenues and Expenditures by the city of Goodyear for FY2021.
On July 18, 2022, (AI-988), Council approved a multi-party agreement between Arizona Public Service (APS), Goodyear, and Buckeye for a Project that would allow Brackish Water (as defined in the Agreement) to be delivered to the Palo Verde 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 (AI-1042).
In July 2022, Dibble Engineering was selected to provide Project Management services throughout the CIP #60034 – Brine Line Disposal Pipeline Improvement project.
On December 12, 2022 (AI-1224), Council approved the expenditure of funds up to $1,909,140 for the design of the CIP #60034 – Brine Line Disposal Pipeline Improvement Project #60034.
On March 4, 2024 (AI-1885), Council approved the creation of 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 CIP #60034 – Brine Line Disposal Pipeline Improvement project to become operational. The costs of this work are shared equally between Goodyear and the city of Buckeye.
In May 2024, Sunrise Engineering was selected to provide Design services for the CIP #60034 – Brine Line Disposal Pipeline Improvement project.
On June 10, 2024 (AI-2044), Council approved the agreement with BWCDD to accept brine and industrial cooling water on an intermittent basis.
On July 1, 2024 (AI-2103), 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.
On July 24, 2024, Goodyear posted an Invitation for Bid (IFB) solicitation for CIP Project #60034 – Brine Line Disposal Improvement Pipeline Project for construction services.
On August 27, 2024, the Brine Line Disposal Pipeline Improvement project IFB closed with 7 qualified submissions. The evaluation panel completed its process and selected Archer Western Construction.
On October 7, 2024 (AI-2221), Council authorized the expenditure of funds up to $12,245,000 for CIP #60034 – Brine Line Disposal Pipeline Improvement Project.
On March 3, 2025 (AI-2208), Council approved the Engineering, Procurement, and Construction Agreement with the city of Buckeye and APS.
On July 18, 2022, (AI-988), Council approved a multi-party agreement between Arizona Public Service (APS), Goodyear, and Buckeye for a Project that would allow Brackish Water (as defined in the Agreement) to be delivered to the Palo Verde 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 (AI-1042).
In July 2022, Dibble Engineering was selected to provide Project Management services throughout the CIP #60034 – Brine Line Disposal Pipeline Improvement project.
On December 12, 2022 (AI-1224), Council approved the expenditure of funds up to $1,909,140 for the design of the CIP #60034 – Brine Line Disposal Pipeline Improvement Project #60034.
On March 4, 2024 (AI-1885), Council approved the creation of 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 CIP #60034 – Brine Line Disposal Pipeline Improvement project to become operational. The costs of this work are shared equally between Goodyear and the city of Buckeye.
In May 2024, Sunrise Engineering was selected to provide Design services for the CIP #60034 – Brine Line Disposal Pipeline Improvement project.
On June 10, 2024 (AI-2044), Council approved the agreement with BWCDD to accept brine and industrial cooling water on an intermittent basis.
On July 1, 2024 (AI-2103), 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.
On July 24, 2024, Goodyear posted an Invitation for Bid (IFB) solicitation for CIP Project #60034 – Brine Line Disposal Improvement Pipeline Project for construction services.
On August 27, 2024, the Brine Line Disposal Pipeline Improvement project IFB closed with 7 qualified submissions. The evaluation panel completed its process and selected Archer Western Construction.
On October 7, 2024 (AI-2221), Council authorized the expenditure of funds up to $12,245,000 for CIP #60034 – Brine Line Disposal Pipeline Improvement Project.
On March 3, 2025 (AI-2208), Council approved the Engineering, Procurement, and Construction Agreement with the city of Buckeye and APS.
STAFF ANALYSIS
Council previously approved CIP #60034 – Brine Line Disposal Pipeline Improvement project and it is included in the City’s FY2025 CIP. The improvements to be constructed include two pipelines to convey water treatment byproduct (Brine) from City water treatment facilities to the WRSS Pipeline that delivers water to the PVGS, including plant piping modifications, pipe and appurtenance installation, trenchless pipe installation crossing Union Pacific Railroad, tie-in to WRSS Pipeline with metering, sampling, and boosting equipment, and auxiliary discharge locations to BWCDD Canal. The objective of the project is to improve treated effluent quality and have a positive impact on overall treatment capacity at the Goodyear Water Reclamation Facility.
Most of the project improvements will be installed within City right-of-way, City-owned property or property owned and controlled by entities and political subdivisions that the City either cannot or is not likely able to acquire through eminent domain. Certain project improvements will be located within 6 parcels and permanent easements are required.
Engineering Department staff and the design consultant team have worked diligently on a design that is cost-effective and minimizes the impact to affected property owners while still achieving the goals of the project as described above. Based on current 100% design plans, the City will acquire permanent easements over approximately 29,682 square feet. Although the square footage can increase or decrease as the plans for the project are further refined, Engineering staff does not anticipate any changes. Attached as Exhibit "A" to Resolution 2025-2464 are preliminary Legal Descriptions and depictions representative of the area where we will be acquiring real estate.
For the portions addressed under this resolution, construction of the Brine Line cannot commence until all the necessary real and personal property interests are acquired. The design plans are 100% complete. The legal descriptions for the required easements are being finalized, the plans are at a point where staff has identified the various real property interests required for the project. Obtaining council authorization allows staff to move forward with the acquisition of the necessary real and personal property rights from the impacted owners.
Accordingly, staff is recommending the Mayor and Council adopt Resolution 2025-2464 authorizing and directing City staff to acquire, by dedication, donation, purchase, or the exercise of the power of eminent domain, the real and personal property interests needed for the completion of the Brine Disposal Pipeline Improvements from the owners of the properties identified on Exhibit A. Resolution 2025-2464 is included as Attachment A.
Most of the project improvements will be installed within City right-of-way, City-owned property or property owned and controlled by entities and political subdivisions that the City either cannot or is not likely able to acquire through eminent domain. Certain project improvements will be located within 6 parcels and permanent easements are required.
Engineering Department staff and the design consultant team have worked diligently on a design that is cost-effective and minimizes the impact to affected property owners while still achieving the goals of the project as described above. Based on current 100% design plans, the City will acquire permanent easements over approximately 29,682 square feet. Although the square footage can increase or decrease as the plans for the project are further refined, Engineering staff does not anticipate any changes. Attached as Exhibit "A" to Resolution 2025-2464 are preliminary Legal Descriptions and depictions representative of the area where we will be acquiring real estate.
For the portions addressed under this resolution, construction of the Brine Line cannot commence until all the necessary real and personal property interests are acquired. The design plans are 100% complete. The legal descriptions for the required easements are being finalized, the plans are at a point where staff has identified the various real property interests required for the project. Obtaining council authorization allows staff to move forward with the acquisition of the necessary real and personal property rights from the impacted owners.
Accordingly, staff is recommending the Mayor and Council adopt Resolution 2025-2464 authorizing and directing City staff to acquire, by dedication, donation, purchase, or the exercise of the power of eminent domain, the real and personal property interests needed for the completion of the Brine Disposal Pipeline Improvements from the owners of the properties identified on Exhibit A. Resolution 2025-2464 is included as Attachment A.