Title
Apply for Water Infrastructure Finance Authority - Water Conservation Grant Funding Opportunity: High Efficiency Toilet Replacement Downtown Facilities, High Efficiency Toilet Replacement Valley Wide, and MIOX Cooling Tower Retrofits (Ordinance S-50499)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for and if awarded accept and enter into an agreement for disbursement of Arizona State and Federal funding from the Water Infrastructure Finance Authority, beginning on or about May 2023 through Fiscal Year (FY) 2026-27 the Water Conservation Grant Fund (WIFA-WCGF) opportunity. Further request to authorize the City Treasurer to accept and the City Controller to disburse all funds related to this item. The total grant funds applied for will not exceed $8,225,648 and the City's local match will not exceed $2,056,413.
Report
Summary
The Water Services Department (WSD) submitted three grant applications to the Water Infrastructure Finance Authority for a Water Conservation Grant Fund award on behalf of the Public Works Department (PWD). The awards would be used as follows: 1) The grant for the Phoenix Valley Wide Plumbing Fixture Replacement Water Saving Initiative involves plumbing fixture replacements across eight City departments with work occurring at approximately 300 city buildings to replace and retrofit approximately 4,400 fixtures resulting in 82.9 acre feet in water savings per year, 2) the grant for the Downtown Plumbing Fixture Replacement Water Saving Initiative involves fixture replacements across a minimum of four downtown city buildings replacing approximately 1,100 bathroom fixtures resulting in 19.87 acre feet of water savings per year, 3) the grant for the Cooling Tower Water Savings Project involves installing upgrades to include a combination of MIOX and water softeners at four sites to improve the operational efficiency of seven cooling towers resulting in 40.19 acre feet of water savings.
These projects would fulfill components of the city's Drought Management Plan.
The grant programs would be phased in over the grant period of FY 2023-24 through FY 2026-27 with operations beginning as soon as possible. The deadline to utilize the WIFA-WCGF funds is Dec. 31, 2026.
The WIFA-WCGF submittal deadline was May 19, 2023. Due to the timing of the deadline put forth by WIFA, WSD on behalf of Public Works submitted applications prior to obtaining City Council approval. If City Council does not approve this retroactive request, the application will be withdrawn by WSD.
Financial Impact
The estimated total cost for the three water saving projects is approximately $8,225,648. The maximum WIFA award is $6,169,236. The required local match, if awarded, is 25 percent of the projects. If the maximum award is received, the minimum match is $2,056,413. Staff project a savings of nearly 143 acre-feet of water if all three grants are funded. The water savings is expected to be long term because the installed equipment is durable and will be maintained. The water savings is expected to offset the cost of match in the long term.
If awarded, the 25 percent match at $588,506 for the Downtown Facilities High Efficiency Toilet Replacements would be funded by using funding from approved plumbing work at PCH and 100 West.
If awarded, the 25 percent match at $720,996 for the Valley Wide High Efficiency Toilet Replacement would be funded using a Public Works existing funding source for water savings.
If awarded, the 25 percent match at $746,912 for the MIOX Cooling Tower Retrofits would be funded by using a Public Works funding source for energy saving initiatives.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Ginger Spencer, and the Public Works and Water Services departments.