Title
Authorization to Enter into an Agreement with the Salt River Project Agricultural Improvement and Power District for Non-Residential Grass Removal Financial Incentives (Ordinance S-52777) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into an Agreement with the Salt River Project (SRP) Agricultural Improvement and Power District for non-residential grass removal financial incentives. Further request to authorize City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Further request to authorize an exception to Liability Provisions Pursuant to Phoenix City Code Section 42-20.
Report
Summary
In 2023, the City of Phoenix Water Services Department (WSD) launched an effort to conserve water through a program incentivizing residents to remove grass. These efforts have been assisted by utilizing a Water Infrastructure Finance Authority grant that is set to expire in June 2026. WSD is planning to continue the grass removal program and SRP has requested to combine efforts to conserve more water. SRP will provide matching funds, in the amount up to $500,000 (maximum of $100,000 per year), to the program for the City to distribute to non-residential Phoenix water customers throughout the term of this agreement, subject to an annual evaluation by SRP to confirm that the program is resulting in the anticipated water savings commensurate with expenditures.
Pursuant to Phoenix City Code Section 42-20, an exception is requested to Phoenix City Code Section 42-18 to allow for mutual limitation provision for a public entity.
Contract Term
The term will be for a five-year period starting July 1, 2026, and will run through June 30, 2031, if agreed to by the parties.
Financial Impact
The funds from SRP will reimburse WSD for expenses that have already been budgeted for Fiscal Year 2026-27. The reimbursement will be on non-residential grass removal projects once they are completed and SRP will reimburse WSD 50 percent of each completed project, up to $100,000. Annual reimbursements from SRP will not exceed $100,000 annually. Funding for this project is available in the Water Services Department's operating budget.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Water Services Department.