Title
Water Services Department Six-Year Capital Improvement Program for Fiscal Years 2024-29
Description
This report provides the Transportation, Infrastructure, and Planning Subcommittee with information on the Water Services Department’s proposed Fiscal Years (FY) 2024-29 Six-Year Water and Wastewater Capital Improvement Program.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
The Water and Wastewater Capital Improvement Programs (CIP) provide for the infrastructure needed to supply high quality water and safely remove and treat wastewater; ensure adequate water and sewer capacity for future growth; enhance community sustainability through protection of the environment; ensure operational resiliency of the City's water and wastewater utilities; and provide for a sustainable and resilient supply of water now and into the future. The City’s water and wastewater utilities are financed through water and wastewater enterprise funds. Revenue is generated from sale of metered water, fees for services performed, sale of treated wastewater, bonds for capital projects, and development-related fees.
Payment for the water and wastewater CIPs generally comprise more than half of the budget of the City's Water and Wastewater utilities. Because of this, the CIP is one the most significant drivers of the rates needed to maintain financially viable municipal water and wastewater utilities.
The approved FY 2023-24 and proposed FY 2024-25 through 2028-29 CIP budgets were carefully crafted to ensure safe, clean, reliable water deliveries to approximately 1.7 million people over 540 square miles, as well as safe removal and treatment of wastewater for close to 2.5 million people in metropolitan Phoenix. Projects are prioritized through a rigorous process designed to ensure the Water Services Department is building and/or replacing the right infrastructure at the right time and to ensure the most effective use of revenues.
Water CIP
The approved FY 2023-24 and proposed FY 2024-25 through 2028-29 Water CIP totals $2.84 billion. The approved FY 2023-24 and proposed FY 2024-25 through 2028-29 projects are listed by Fiscal Year (Attachment A).
The approved and proposed CIP includes, but is not limited to, the following key programs: $896.4 million for water pipelines; $250.3 million for booster stations; $227.9 million for storage; $672.5 million for water treatment plants, which includes $54.6 million for power redundancy; and $178.2 million for energy, technology, facilities, etc. It also includes $502.2 million for drought resiliency efforts to protect Phoenix water customers during Colorado River shortages.
Over the next year, some major water capital projects under construction include rehabilitation of aging infrastructure at the Deer Valley Water Treatment Plant and the 24th Street Water Treatment Plant, replacement and rehabilitation of aging water pipelines, replacement of aging booster pump stations, rehabilitating water storage facilities and continuing construction at new groundwater well facilities.
Wastewater CIP
The approved FY 2023-24 and proposed FY 2024-25 through 2028-29 Wastewater CIP totals $2.06 billion. The approved FY 2023-24 and proposed FY 2024-25 through 2028-2029 projects are listed by Fiscal Year (Attachment B).
The Wastewater CIP includes, but is not limited to, $975.0 million for wastewater treatment plants, $144.8 million for lift stations, $754.2 million for sewer pipeline, $13.3 million for odor control projects; and $173.4 million for energy, technology, facilities, and other projects.
Within the overall Wastewater CIP, a total of $159.2 million has been programmed for the Sub-Regional Operating Group interceptors and regional sewer capacity improvements. These improvements are required to ensure that sufficient capacity exists to convey flows to the treatment plants while meeting regulatory requirements.
Over the next year, capital funds will be expended on extensive rehabilitation of aging infrastructure at numerous facilities, including the Cave Creek Wastewater Reclamation Plant, 91st Avenue and 23rd Avenue Wastewater Treatment Plants, lift stations and odor control facilities. Construction will also occur on sewer pipe infrastructure to rehabilitate aging lines. In some locations, lines will be replaced with new larger sewers to allow for additional flows due to growth or infill. Safety is also a priority. Modifications are planned for treatment plants and lift stations to improve operational safety, hinder vandalism, and deter cyber-attacks. Additionally, design and construction projects are ongoing in northwest Phoenix to support growth in the area. A new lift station will be commissioned and over the next year, construction will begin on a sewer line and force main in the northwest valley.
The water and wastewater capital projects outlined will ensure reliable infrastructure performance and maintain compliance with environmental regulations. Staff are committed to monitor system need, seek efficiency savings where possible, and make program adjustments as necessary to ensure program costs are reasonable and fiscally responsible.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.