| AGENDA ITEM #: 11. DATE: 06/21/2021 AI #:305 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVE THE EXPENDITURE UP TO $1,300,000 FOR LEASE OF THE SITE 21 REVERSE OSMOSIS TREATMENT UNITS AND RELATED BUDGET TRANSFER |
| STAFF PRESENTER(S): | Barbara Chappell, Deputy Public Works Director |
SUMMARY
Request City Council approval of the expenditure of FY2022 funds for the leasing of two (2) reverse osmosis mobile trailers for raw water treatment at the Site 21 water production facility.
Recommendation
Approve the expenditure of FY2022 funds in the amount of $1,300,000 to lease and provide operational support of two (2) reverse osmosis mobile trailers at the Site 21 facility and related budget transfer. (Barbara Chappell, Deputy Public Works Director)
FISCAL IMPACT
The FY2022 Water Operating Fund includes an unappropriated fund balance estimated at $6.5 million. The operating budget does not have this requested expenditure to fund the lease agreement. The water quality issues to be addressed were not known at the time of budget preparation and thus were not included in the adopted FY2022 water operations budget. We are requesting to transfer $1,300,000 from the unappropriated water fund balance to the Water operating budget.
BACKGROUND AND PREVIOUS ACTIONS
Per City of Goodyear Resolution 08-1255, all expenditures of budgeted funds in excess of $500,000 must obtain Council approval.
Currently there are arsenic treatment processes at Site 21 that receive raw water flows from Adaman Wells 1, 2 and 3. This treatment process has been sufficient in the past to meet or exceed water quality standards. The need to provide additional treatment at Site 21 was not known until spring 2021. During planned preventative maintenance tasks, Adaman Wells 1 and 2 were rehabilitated to standard operating conditions. When the wells were attempted to be brought back online, and prior to the raw water being pumped to Site 21 for treatment, it was discovered through additional testing and analysis, the water quality would not meet EPA, ADEQ, and MCES standards for nitrates. Additional efforts were made at the wells to improve the conditions, but those efforts did not improve the well raw water concentrations or quality. Water Production began working on a solution immediately, and through research of available temporary equipment supply companies, Suez WTS Services USA, Inc. was selected to provide additional reverse osmosis treatment. In order to get the additional treatment at Site 21, a one year lease agreement was reviewed and approved by Legal, Procurement, and Risk Management. Current FY2021 operating funds are being used to pay for the lease through June 30, 2021.
Currently there are arsenic treatment processes at Site 21 that receive raw water flows from Adaman Wells 1, 2 and 3. This treatment process has been sufficient in the past to meet or exceed water quality standards. The need to provide additional treatment at Site 21 was not known until spring 2021. During planned preventative maintenance tasks, Adaman Wells 1 and 2 were rehabilitated to standard operating conditions. When the wells were attempted to be brought back online, and prior to the raw water being pumped to Site 21 for treatment, it was discovered through additional testing and analysis, the water quality would not meet EPA, ADEQ, and MCES standards for nitrates. Additional efforts were made at the wells to improve the conditions, but those efforts did not improve the well raw water concentrations or quality. Water Production began working on a solution immediately, and through research of available temporary equipment supply companies, Suez WTS Services USA, Inc. was selected to provide additional reverse osmosis treatment. In order to get the additional treatment at Site 21, a one year lease agreement was reviewed and approved by Legal, Procurement, and Risk Management. Current FY2021 operating funds are being used to pay for the lease through June 30, 2021.
STAFF ANALYSIS
Adaman Wells 1 and 2 are critical to the water supply and not having these wells in operation will impact the ability of the city to adequately supply potable water to residents and customers. The temporary reverse osmosis treatment equipment to be installed at the Site 21 facility is the best option to treat the varying raw water quality of both Adaman wells. The lease agreement and installation of the treatment equipment will allow Public Works to produce potable water that meets all EPA, ADEQ, and MCES guidelines as well as maintaining an adequate supply, especially during the upcoming peak summer demand months. Staff is currently working on a permanent solution for the Site 21 facility and the related Adaman wells. A long-term solution will be determined that will allow for the removal of the temporary equipment. A permanent treatment option will address the changing raw water quality concentrations of the Adaman wells.