ITEM #: 4. DATE: 09/27/2021 AI #:454 |
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CITY COUNCIL ACTION REPORT
SUBJECT: |
APPROVE AN AGREEMENT WITH BUCKEYE WATER CONSERVATION AND DRAINAGE DISTRICT (BWCDD) FOR IMPROVEMENTS AND DISCHARGE TO THE CANAL AND RELATED BUDGET TRANSFERS |
STAFF PRESENTER(S): |
Barbara Chappell, Deputy Public Works Director |
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SUMMARY |
The proposed Agreement with Buckeye Water Conservation and Drainage District (BWCDD) will allow 6 million gallons per day (MGD) of effluent be discharged in the BWCDD canal from the Goodyear Water Reclamation Facility (GWRF) and provides for payment of canal improvements needed to receive 6 MGD of flow. |
Recommendation |
Approve the Agreement with the Buckeye Water Conservation and Drainage District for improvements and discharge into the canal and related budget transfers. (Barbara Chappell, Deputy Public Works Director) |
FISCAL IMPACT |
This Agreement will allow us to discharge up to 6 MGD of effluent for the cost of canal improvements not to exceed $375,000. Wastewater operating funds in the amount of $250,000 are available in the BWCDD Canal Lining CIP Project (60076), based on the estimate we received from BWCDD last year. Since then, costs have escalated in the industry resulting in the new quote of $375,000. There are savings in the Rainbow Valley Lift Station Generator Replacement CIP project (60068) as the original scope assumed a larger generator would be needed at this location. This request includes a budget transfer of $125,000 from the Rainbow Valley Lift Station Generator project to the BWCDD Canal Lining project. |
BACKGROUND AND PREVIOUS ACTIONS |
Class A+ effluent from the Goodyear Water Reclamation Facility (the “GWRF”) is typically pumped north from the plant to the Soil Aquifer Treatment (SAT) facility site at the northwest corner of Yuma Road and Estrella Parkway where it is recharged for Long-Term Storage Credits. Due to operational issues, there are times when a portion of the effluent is discharged to the Gila River. To that end, the city entered into agreements with BWCDD to discharge effluent into its canals to add operational flexibility:
- On June 24, 2019, Council approved the original agreement with a term of one year with the option of five one-year renewals and provided for up to 1 MGD discharge.
- On June 22, 2020, Council approved the First Amendment that provided a one-year extension.
- On May 24, 2021, Council approved the Second Amendment that provided for up to 2 MGD discharge and a one-year extension.
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STAFF ANALYSIS |
As growth occurs, the production of effluent at the GWRF increases. Under its current permit, up to 6 MGD of effluent can be produced at the GWRF. Although it is the city’s strategy to recharge all effluent in the SAT to earn Long Term Storage Credits to support the city’s Designation of Assured Water Supply, the city needs to have the ability to discharge the increased amounts of effluent that will be produced by the GWRF to alternative discharge locations when the effluent cannot be delivered to the SAT site or the Gila River. Although BWCDD is willing to accept increased amounts of effluent into its canals, modifications to the canals need to be made before the canals can accept discharges in excess of the 2 MGD currently permitted. BWCDD has agreed to undertake the modifications of its canals and accept the increased flows in exchange for the city’s agreement to pay for the modifications. The cost of the modifications is $375,000. The following is a summary of the major terms of the agreement:
- This agreement will become effective as of the date it is approved by the Board of Directors of BWCDD and executed on behalf of BWCDD and after it is approved by the Goodyear City Council and executed by the Goodyear City Manager.
- This agreement will be in effect until December 31, 2026 unless terminated earlier pursuant to the terms in the agreement.
- This agreement will replace the existing Second Amendment that was approved by Council on May 24, 2021.
- BWCDD is required to construct the improvements to the canal(s) needed for the canal to accept up to 6 MGD of effluent from the city and to have the improvements completed by December 31, 2021.
- The city is required to pay BWCDD for the cost of the improvements within 15 days of the date the agreement is executed, which costs have been capped at $374,971.
- Until the improvements are completed, the city will continue to have the right to discharge up to 2 MGD of effluent into the canals.
- Following the completion of the improvements, the city will have a right to discharge up to 6 MGD of effluent into the canals.
- Because of the city’s expenditure, the agreement is intended to ensure the city has the right to discharge up to 6 MGD of effluent into the canals for at least 5 years. The agreement includes provisions for the return of the city’s capital expenditure on a prorated basis if BWCDD terminates the agreement before December 31, 2026, if the city terminates the agreement before December 31, 2026 because of a breach on the part of BWCDD, or if the city fails to get a full 5 years because the improvements are not completed by December 31, 2021.
- This agreement also includes the same sorts of requirements as are in the current agreement regarding the discharge of effluent into the BWCDD canals, including requirements for the discharges (i.e. Class A+ effluent), metering requirements, cessation of deliveries during the dry-up period, etc.
This agreement will ultimately provide a discharge source where all of the flows from the GWRF that are currently permitted can be discharged in case of operational issues that prevent us from routing the effluent to the SAT site or the Gila River. |
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