Amended City Council Regular


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  ITEM 6.       
Meeting Date: 06/11/2019  
Submitted For: Craig Johnson
Department: Water Services  

Subject
AUTHORIZATION TO APPROVE EXPENDITURE OF FUNDS FOR THE COSTS ASSOCIATED WITH PARTIAL OWNERSHIP IN THE SUB-REGIONAL OPERATING GROUP
Presented by: Craig Johnson, P.E., Director, Water Services
Purpose and Recommended Action
This is a request for City Council to approve expenditure authority by the City Manager for the costs associated with partial ownership in the Sub-Regional Operating Group (SROG) in an amount not to exceed $6,165,489 for Fiscal Year 2019-20.
Background
One of Water Services' primary functions is to safely transport and treat wastewater from Glendale residential and commercial sewer customers. This service is accomplished with 707 miles of sewer lines, the 99th Avenue sewer interceptor, two Wastewater Reclamation Facilities, and the 91st Avenue Wastewater Treatment Plant (WWTP), a regional facility operated by the City of Phoenix.
 
On September 25, 1979, Council authorized Glendale to enter into a partnership of cities to form the Sub-Regional Operating Group (SROG) to treat wastewater at the facility.  The five cities (Glendale, Tempe, Phoenix, Mesa, and Scottsdale) share ownership in the 91st Avenue WWTP.  In another related agreement, Glendale share’s in the ownership of the 99th Avenue Interceptor sewer transmission line. The Interceptor transports sewage from the Glendale to the 91st Avenue WWTP.  Glendale owns a 6.5 percent share in 91st Avenue WWTP and 59.8 percent in the 99th Avenue Interceptor. The annual operating and capital improvement costs are allocated based on the Glendale’s capacity ownership and usage requirements. 
Analysis
The City has entered into long-term inter-governmental agreements for the transport and treatment of the City’s wastewater. Rates and fees are approved by the SROG Committee that includes representatives from the five cities. Actual costs are settled against monthly payments after the end of the fiscal year. The financial statements are audited by independent auditors.
Previous Related Council Action
On June 12, 2018, Council approved expenditure of funds for wastewater transportation and treatment services from SROG in an amount not to exceed $6,219,000 for FY2018-19.
 
On May 23, 2017, Council approved expenditure of funds for wastewater transportation and treatment services from SROG in an amount not to exceed $4,828,000 for FY2017-18.
 
On May 24, 2016, Council approved expenditure of funds for wastewater transportation and treatment services from SROG in an amount not to exceed $5,766,000 for FY2016-17.
Community Benefit/Public Involvement
Partnership in SROG provides necessary wastewater transportation and treatment services and provides effluent to the Palo Verde nuclear generating facility. In addition, participation assists with meeting or exceeding mandatory regulatory requirements in the continual safe treatment of wastewater.

Fiscal Impact
Fiscal Year: FY2019-20
Fiscal Year Amount Requested: $6,165,489
Budgeted Y/N?: Yes
Account: Multiple
Transfer Required? Y/N: No
If Yes, what account will be used?:
Budget and Financial Impacts:
Funding is available in the FY2019-20 Water Services Department operating and capital budgets contingent upon Council approval of the budget.

$3,718,489    60302735-521230, SROG (91st Ave WWTP)
$2,300,000    60304527-CIPWW63010-550100, 91st Avenue Construction
$72,000         60304527-CIPWW63003-550100, 99th Ave Interceptor Line
$75,000         60302737-540380, Wastewater Collections

    

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