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ITEM 36

City Council Memorandum Public Works & Utilities Memo No. CP25-017

Date:

September 12, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
John Knudson, Public Works and Utilities Director

From:

Sandra Story, Engineering Project Manager

Subject:

Resolution No. 5833 Authorizing a Grant Application for, and Acceptance of Grant Funds from, the Community Grants Program Administered by the U.S. Environmental Protection Agency (EPA) in the Amount of $3,000,000

Proposed Motion:

Move City Council pass and adopt Resolution No. 5833 authorizing a grant application for, and acceptance of grant funds from, the Community Grants Program Administered by the U.S. EPA in the amount of $3,000,000.

Background:

In October 2021, the city executed a reclaimed water agreement with Intel Corporation for additional reclaimed water supply. As part of this agreement, it is necessary for the city to convey additional volumes of reclaimed water from the Airport Water Reclamation Facility (AWRF), located at 905 E. Queen Creek Road, to the Ocotillo Water Reclamation Facility (OWRF), located at 3333 S. Old Price Road, for delivery to Intel’s campus. New infrastructure necessary for this conveyance includes additional reclaimed water pipe on both the AWRF and OWRF sites, new pipeline within the city’s rights of way, additional pumping systems at the AWRF site, and the addition of two aquifer storage and recovery (ASR) wells to recharge and recover water.

The Public Works & Utilities Department is seeking authorization to submit a grant application to the EPA through its Community Grants Program for funds to be used toward the ASR project. The EPA is designated as the federal agency that will award and administer funds for water infrastructure projects identified as Congressionally Directed Spending and Community Project Funding as part of the Federal Fiscal Year (FY) 2023 Consolidated Appropriations Act. With the support of Representative Greg Stanton and Senator Kyrsten Sinema, this project has been identified as eligible under the Congressionally Directed Spending category.

ASR wells support the reclaimed water distribution system by storing excess effluent in the upper aquifer when the reclaimed water system demands are low. ASR wells are equipped with specialized pumping systems that are capable of recovering this stored effluent from the aquifer when system demands are high, delivering to reclaimed water customers.

Considering the cost of the ASR project is anticipated to exceed $13.5 million, staff recommends pursuing the maximum grant amount of $3,000,000.

Financial Implications:

The grant amount is up to $3,000,000 and requires a cost share of $750,000 (per the FY 2024 Community Grants Program Final Implementation Guidance document). Matching funds will be covered through the Capital Improvement Program.

Attachments

Resolution No. 5833

EPA Grant Application