Title
Authorization to Enter into a Memorandum of Understanding with New Venture Fund and the Bonneville Environmental Foundation for Implementation of the Cooling Water Conservation Project (Ordinance S-48597)
Description
Request to authorize the City Manager, or his designee, to enter into a non-binding Memorandum of Understanding (MOU) with the New Venture Fund's BlueCommons project and the Bonneville Environmental Foundation's Business for Water Stewardship program for implementation of the cooling water conservation project. This project aligns with the Commercial Cooling Tower Program recommendation in the Recommended Water Conservation Measures of the City of Phoenix Water Conservation Ad-Hoc Committee Final Report.
There is no funding required for the City's participation in the Memorandum of Understanding.
Report
Summary
In 2019, the Phoenix City Council established the Water Conservation Ad Hoc Committee (Committee) to make recommendations concerning potential water conservation programs. One of the recommended programs in the Committee's Final Report is the Cooling Tower Program, in which the City would "develop a targeted outreach program to educate commercial and industrial customers" about Phoenix's successful, large scale water conservation demonstration project at the Sky Harbor International Airport that involved implementation of relatively simple improvements to its wet cooling system. In addition, the report suggested that the program "could ultimately include [a] revolving loan program funded by businesses."
In 2021, the City communicated with New Venture Fund's BlueCommons project (BlueCommons) and Bonneville Environmental Foundation's Business for Water Stewardship (BWS) program to gauge interest in collaboratively developing a targeted outreach and funding mechanism for the Cooling Tower Program through a non-profit entity that operates a rotating loan program to fund water conservation, or Blue Bank. The City, BlueCommons and BWS (Parties) have since drafted a non-binding MOU outlining each party's role in developing the Blue Bank. The City's role is limited to identifying potentially eligible customers and sharing this information with BlueCommons, reviewing cooling tower project designs, monitoring plans, verifying and reporting water savings, and promoting the program to customers and other municipalities.
Procurement Information
In accordance with City of Phoenix Administrative Regulation 3.10, procurement did not occur since the City is not procuring goods and services for any consideration. Its participation will come at no cost to the City.
Contract Term
The MOU will be effective as of the date of execution of the MOU and will remain in effect during the period of implementation and repayment of the initial projects outlined in accordance with the MOU. Following completion and repayment of the first project, and periodically thereafter, the Parties will confer to discuss any needed changes to staffing and/or other commitments under this MOU and will make recommendations to the Parties, including renewal of the term of the MOU to cover subsequent phases of projects.
Financial Impact
There are no funds required for this MOU. The City will dedicate an existing .50 Water Services Department full-time employee to fulfill the activities outlined in the MOU.
Concurrence/Previous Council Action
The City Council approved the Water Conservation Ad Hoc Committee Final Report on Dec. 10, 2019.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.