ITEM #: 6. DATE: 08/28/2023 AI #:1563 |
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CITY COUNCIL ACTION REPORT
SUBJECT: |
INTERGOVERNMENTAL AGREEMENT (IGA) BETWEEN STATE OF ARIZONA AND CITY OF GOODYEAR PROVIDING ARIZONA STATE PRISON COMPLEX AT PERRYVILLE WITH OPERATIONS, MAINTENANCE, AND CAPITAL IMPROVEMENTS |
STAFF PRESENTER(S): |
Barbara Chappell, Water Services Director |
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SUMMARY |
Consider an Intergovernmental Agreement (IGA) with State of Arizona for the operations, maintenance, and capital improvements at the grinder station for Perryville Prison. |
STRATEGIC PLAN ALIGNMENT |
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RECOMMENDATION |
Approve the Intergovernmental Agreement (IGA) between State of Arizona and City of Goodyear providing Arizona State Prison Complex at Perryville Prison with operations, maintenance, and capital improvements for their grinder station and authorizing associated budget amendments. (Barbara Chappell, Water Services Director) |
FISCAL IMPACT |
The capital improvements needed at the grinder station over the term of this Agreement are estimated to be $2,770,000 and will be paid for up front by the city. The State of Arizona Perryville Prison Complex will pay a monthly capital payment of $29,454.39 based on the estimated capital costs plus 5% interest. Upon completion of the grinder improvement project this fee will be recalculated based upon actual incurred costs. Once finalized the "Perryville Pre-Treatment Base Fee" shall be added our utility rate schedule. The estimated ongoing operations and maintenance costs of the current facility will be added to the regular monthly wastewater bill upon approval of this agreement. In anticipation of the costs to operate the second grinder this cost will be automatically increased on July 1, 2024. The Agreement calls for operational costs to be evaluated after 12-months of operations and that information to be used to develop a "Perryville Pre-Treatment Rate" which will be added to our utility rate schedule. Budget amendments to recognize the ongoing revenue will be processed upon approval of the IGA by both parties. A future council action will authorize the Grinder project and required expenditure budget amendments. All funding to be completed through the wastewater operations fund. Future modifications to the City's Utility Rate fees included in this agreement shall be completed in accordance with A.R.S. §9-511. |
BACKGROUND AND PREVIOUS ACTIONS |
On April 16, 1990, the city entered into an IGA with the State of Arizona for wastewater treatment service for Perryville Prison. The original term of the IGA was set to expire on May 2, 2020. In 2013, the Arizona Department of Transportation constructed, as a part of their Loop 303 project, a grinder station on the Perryville Prison’s property to remove large debris that was entering the city’s sewer system and causing blockages. The ground up debris was still conveyed to the wastewater plant for removal. The property and the equipment were conveyed to the city for operation and maintenance with no compensation. In 2017, the city purchased and installed an auger to remove the ground up debris at the station rather than conveying it through the sewer system to the wastewater plant. The city and the State of Arizona began meeting in August 2019 to review, discuss, and update the terms of the IGA. Specific terms require additional negotiation as they relate to wastewater pretreatment charges, and operations and maintenance responsibilities associated with pretreatment systems. Staff from the city and State continued to meet regularly to develop a new and updated IGA. On April 13, 2020, Council approved an amendment to this contract which provided two (2) six-month extensions to allow time for city and Perryville staff to discuss the terms of an ongoing relationship. This amendment expired on May 2, 2021. On April 12, 2021, Council approved an amendment to this contract which provided another two (2) six-month extensions to allow time for city and Perryville staff to discuss the terms of an ongoing relationship. This amendment expired on May 2, 2022. On May 2, 2022, Council approved an amendment to this contract which provided another 12-month extension to allow time for city and Perryville staff to discuss the terms of an ongoing relationship. This amendment expired on May 2, 2023. |
STAFF ANALYSIS |
During routine inspections and monitoring, staff have discovered that the grinder station is not sized adequately to treat all flows from the prison complex. There is a need to undergo a capital improvement project to expand the station to treat 100% of the flows at peak conditions. Water Services has been working with staff at the Arizona Department of Corrections, Rehabilitation, and Reentry on an Agreement to complete the necessary improvements and provide for ongoing operations and maintenance of the facility. The Prison Complex, like any other industrial user in the city’s service area, is responsible for compliance with the city’s pretreatment program and discharge permits issued by the city. While the city is entering into this IGA to operate and maintain the grinder station, the prison remains responsible for the quality of discharges entering the publicly owned treatment works. Through this IGA the prison complex will be billed monthly for the complete capital cost of the facility, operational cost of the facility and for normal wastewater operations as well. |
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