Title
Authorization to Enter into a Cost Share Agreement with Water Providers to Support development of a Regional Advanced Water Purification Facility (Ordinance S-51183)
Description
Request to authorize the City Manager, or his designee, to enter into a Cost Share Agreement with other Arizona water providers to retain professional services necessary to support development of a Regional Advanced Water Purification Facility. This Cost Share Agreement serves as a mechanism to allow for reimbursement to Phoenix by partners party to the Cost Share Agreement for the Advanced Water Purification Feasibility Study and establishes a billing schedule for future projects. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
The City of Phoenix has an established history of far-sighted water resource management and planning. The result of that foresight is an abundant and resilient water portfolio that has been the basis of the extraordinary growth and economic development that the City has enjoyed over the past 100 years.
Water resource management, including support and compliance with Arizona’s innovative groundwater laws, has led to a reduction of the City’s gallons per capita per day water consumption rate and to its ability to serve a significantly greater population today with less water than it used thirty years ago. Advanced water planning and the investment in water resources allows the City to rely on a resilient portfolio of water resources, including Salt River Project water, Central Arizona Project water, leased Indian water, water captured by Modified Roosevelt Dam, and water stored underground.
Recognizing that it is time to continue the City’s legacy of long-range water resource management and planning, City staff recommends taking initial steps toward use of the most significant, reliable, and unused water supplies readily available in the State-unused and uncommitted wastewater. Water purification technology has now advanced to allow wastewater to be treated for safe direct use.
The Cost Share Agreement (CSA) would allow other Arizona water providers to become party to developing a Regional Advanced Water Purification Facility (AWPF). Professional consultant services are anticipated to include, but are not limited to: 1) Advanced Water Purification Permitting Strategy, Source Water Characterization, and Pilot/Demonstration Facility Planning; 2) 91st Avenue Advanced Water Purification Facility Feasibility Study; and Package and 3) Hydraulic and Water Quality Modeling and Interconnect Evaluation. The services include, but are not limited to; holding progress meetings and workshops as needed to complete the work, attending other project related progress meetings as needed, actively coordinating and communicating with City staff for all related activities, coordination with other City departments, municipalities, regulators, or other jurisdictions, preparing a draft report for review, presenting the recommendations made in the draft report, preparing a final report, preparing a final executive summary and assisting with the City's public outreach effort as needed. The services may also explore potential governance options for a regional facility and examine water management tools and arrangements that could extend the benefits of a regional plant to the maximum extent possible throughout the region and State.
Contract Term
The CSA will become effective upon its execution by Phoenix and at least one other water provider. This CSA will terminate upon the earliest of the following occurrences:
- Phoenix determines that it will not pursue the AWPF further and provides 30-days’ notice of that determination to the other parties;
- All parties other than Phoenix have withdrawn or been removed from the CSA;
- The Steering Committee unanimously votes to terminate the CSA; or
- A governance or subsequent agreement for the AWPF is executed, which in its terms, terminates the CSA.
Financial Impact
This CSA serves as a mechanism to allow for reimbursement by partners party to Phoenix for the services identified in the Advanced Water Purification Feasibility Study and establishes a billing schedule for future projects.
Concurrence/Previous Council Action
- City Council approved Ordinance S-49561, the Memorandum of Understanding with Municipal Water Providers to Support a Regional Advanced Water Purification Facility Study on April 5, 2023.
- City Council will review Ordinance S-51146, Advanced Water Purification Feasibility Study on August 26, 2024.
Location
Citywide
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.