1. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan City of San Luis Water & Wastewater Improvements Yuma County, Arizona Presented to: Project Sponsor and Agency Stakeholders March 3, 2004

2. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Agenda  General Aspects  Environmental and Human Health Indicators  Environmental, Human Health and Sustainable Development Strategy  Technical Approach, Objectives and Funding Plan  Public Participation Strategy  Project Development Schedule

3. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan General Aspects  The City of San Luis is located in the southwest corner of Arizona, 20 miles south of Yuma. The community borders Mexico with San Luis Rio Colorado, Sonora, to the south and the State of Baja California del Norte to the west. Project Location

4. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan  Population served: 15,322  Growth rate (90-00): 363% YearPopulation 1980(add info) 199015,322 200218,345 Project Sponsor Profile: General Aspects  MHI: $26,250.00  Unemployment rate: 5.0%  4,142 water accounts  3,738 sewer accounts Water Service Number of Connections Residential3946 Commercial196 Sewer Service Number of Connections Residential3738 Commercial0

5. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan  The City of San Luis obtains water from groundwater wells located east of the City. Four (4) sites containing 8 wells supply water to the City’s distribution system, from which seven wells are currently active. State of Existing Water Supply, Storage, & Distribution System General Aspects Well SiteGroundwater Pumps Capacity (gpm) Distribution System Pumps Capacity (gpm) Backup DS Pumps Capacity (gpm) Storage Tanks Capacity (gal) Well Site 1 Well 1-1200-- Well 1-2205300 100,000 Well 1-3260400 Well Site 2 Well 2-1200225 2 @15,000 Well 2-2320400 125,000 Well Site 3 Well 3-1500780 300,000 Well 3-2500780 Well Site 4 Well 4-110001560780500,000 Total Capacity3185444528851,055,000

6. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan State of Existing Water Treatment, Storage, & Distribution System General Aspects  The City obtained a loan from the Department of Agriculture Rural Economic and Community development (RECD) for the construction of two (2) additional well sites and 2 MG storage.  The state requires a drinking water source adequacy minimum of 50 gpcpd (gallons per capita per day). For the city’s total population of 15,322 inhabitants, the minimum source capacity is 766,100 gpd; therefore, existing well and pump capacities appear to comply with state regulations.  The current water distribution system is composed of pipes ranging from 4-inch diameter to 12-inch diameter. The old distribution mains in the system are made of asbestos cement and the newer pipelines are polyvinylchloride (PVC). There are 5 PRV’s in system  Service Coverage = 99%

7. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan State of Existing Water Treatment, Storage, & Distribution System General Aspects Water System Deficiencies:  The groundwater source has significantly high levels of iron and manganese.  Iron and Manganese levels have caused deterioration of the distribution system and created conditions where service lines and meters are clogged and service is interrupted.  Undersized pipelines, old asbestos cement pipes and elevated pressures cause service problems.  Small water system serving Posada del Sol suspected to be high in lead.

8. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan l Iron/Manganese Treatment l Distribution System Improvements  Replace undersized and deteriorated existing pipelines  Replace existing asbestos cement (AC) pipelines  Install pressure release valve at 8 th Avenue  Replace meters Connect Posada del Sol trailer park to the system Proposed Water Systems Improvements General Aspects Total Estimated Cost – $5,049,100 From City’s Capital Improvement Plan

9. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Existing Water System Storage Tank @ 8 th Avenue Storage Tanks @ Juan Sanchez and Cesar Chavez Storage Tank @ 6 th Avenue

10. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan  The existing Wastewater Treatment Plant (WWTP) was built in 1982, the original design capacity of the plant was 750,000 gallons per day.  1995 - capacity upgrade to 1.5 mgd.  2003-2004 – capacity upgrade to 1.6 MGD is under construction.  Service Coverage = 100% of San Luis.  Town of Gadsden, located approximately 4 miles north of San Luis, will also be served by WWTP.  The present average daily flow rate is 1.2 mgd; therefore, the plant is currently operating at 80% of its total capacity.  The treatment plant is currently operating without a discharge permit, and without specified effluent quality standards. Negotiations with IBWC are on-going. State of Existing Wastewater Collection & Treatment General Aspects

11. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan State of Existing Wastewater Collection & Treatment General Aspects Wastewater System Deficiencies:  Existing demands with the addition of anticipated demands from the Town of Gadsden and new building permits currently issued, WWTP capacity will reach at least 85% capacity in next 12 months.  Existing pump stations are under capacity for existing flows.  Undersized collection lines exist.

12. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan WWTP Improvements Pump Station Improvements  Rehabilitate and expand pump station 300 A and related piping  New pump station at Juan Sanchez Blvd. and 10 th Avenue Collection System Improvements Proposed Wastewater Systems Improvements General Aspects Total Estimated Cost – $2,461,000 From City’s Capital Improvement Plan

13. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Existing Waster and Wastewater System Maps

14. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan During the compliance inspections of the City of San Luis water and wastewater systems, done by the ADEQ, no major deficiencies have been found in the operation and maintenance of the system. High levels of iron and manganese are not listed as violations, since ADEQ does not enforce secondary standards. Deficiencies that have been noted by ADEQ are: need to upgrade the wastewater treatment capacity, and the need for an aquifer protection permit. Environmental and Human Health Indicators Compliance with Environmental Norms & Regulations

15. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Environmental and Human Health Indicators  Water distribution in the area has been interrupted because of deteriorated infrastructure due to high levels of iron and manganese.  Long-term exposure to high levels of iron and manganese may cause public health risk.  ADEQ requires WW treatment capacity planning before a WWTP capacity reaches 85%.  Overflows and back-ups in sewer system infrastructure threaten the public health and environment. Installation of a retention device at 8 th Street and Juan Sanchez Blvd is a temporary solution to control flows to pump stations.

16. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan  Describe the impacts to the water system infrastructure due to high levels of iron and manganese in water supply. Provide maintenance records and service interruption logs.  Describe the human health effects of exposure to high levels of iron and manganese, asbestos and high levels of lead.  Describe enforceable regulations for line sizing and planning requirements from ADEQ or others. Environmental, Human Health and Sustainable Development Strategies Environmental and Human Health:

17. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Sustainable Development: Environmental, Human Health and Sustainable Development Strategies  Conduct Sustainable Development Workshops; Baseline Conditions report complete.  Facility Planning to include energy efficiency principles, present worth analysis of alternatives and evaluation of community affordability, as well as water usage assessment.  Develop O&M Plans, administrative improvements and comply with appropriate operator certification requirements.  Update the Water Conservation Plan and conduct public outreach activities to educate community on conservation.  Operator review at 30% design  Review need for industrial pre-treatment program.

18. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Priority 1 –  Iron and Manganese Treatment Priority 2 –  Address deficiencies in water and wastewater systems to provide safe and adequate service in accordance to applicable standards. Technical Approach,Objectives and Funding Plan Project Objectives

19. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Recommended Technical Approach Technical Approach,Objectives and Funding Plan PDAP Eligible Tasks  Facility Planning  Environmental Review and Clearance  Financial Analysis  Public Participation Program  Final Engineering Designs – TBD (up to 50% not to exceed $500K) Non-PDAP Eligible Tasks  Updated Water Conservation Plan  Rate Study  O&M Plans

20. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Recommended Technical Approach Technical Approach,Objectives and Funding Plan Request TA for Planning Phase Tasks of eligible components:  Facility Plan  Environmental Review and Clearance  Preliminary Financial Analysis  Preliminary Public Participation Program Documents to be prepared for consideration by potential funding sources.

21. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan  Water Infrastructure Finance Authority (WIFA)  DWSRF/CWSRF  Techncial Assistance Program (TAP)  Arizona Department of Housing (ADH)  Community Development Block Grant (CDBG)  North American Development Bank (NADB)  Border Environment Infrastructure Fund (BEIF)  Institutional Development Program (IDP)  Border Environment Cooperation Commission (BECC)  Project Development Assistance Program (PDAP) Identified Potential Funding Sources Technical Approach,Objectives and Funding Plan

22. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Project Sponsor Financial Potential Technical Approach,Objectives and Funding Plan Average Monthly Bill: Water$16.97 WW$12.25 Type200020012002 Total operating revenues$1,545,370$1,675,141$1,864,789 Total operating expenses*$1,425,116$1,676,843$1,984,091 Total non-operating revenues ($228,180)($215,480)($137,536) Net Income (Loss) ($107,926)($217,182)($256,838) *Includes Depreciation of $268,839; $173,494; and $257,454 respectively. City participated in the development of a Rate Study in 2003 which recommends rate increases through the year 2011.

23. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Institutional Capacity Building Technical Approach,Objectives and Funding Plan  The City staff have participated in institutional development training through NADB UMI and ADEQ training sources.  The City is currently participating in the development of a Regionalization Study.  The City has suggested a billing and collection study is needed.

24. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Institutional Capacity Building Technical Approach,Objectives and Funding Plan  Regulatory Compliance Issues  On-going Projects and Planning  Existing Planning  Project Development and Funds Management  Outsourcing  Operational Capacity  Management Capabilities  Governance  The Frank M. Tejeda Center may provide assistance by conducting an Institutional Capacity Needs Assessment with the City of San Luis. The Assessment reviews the following areas:

25. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan  Approval of reasonable growth rate.  Funding non-PDAP/BEIF eligible projects.  Rate Adjustments  Public Perception – Black Water  Easement/Land Acquisition Potential Obstacles Public Participation Strategy

26. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Public Participation Strategy Local Politics  A council of seven (7) members, including the mayor and vice mayor governs the City of San Luis.  Local organizations: Chamber of Commerce, San Luis ISD, Rotary Club, FRONTERA Socio-Economic Indicators  Approximately ¼ of the population lives below poverty  Approximately 50% of the population has less than high school education.  US census describes 5% unemployment; TX Workforce Commission, 2002 Labor Market Information denotes 27.3%.

27. City of San Luis, Arizona Rapid Assessment Process Project Strategic Plan Project Schedule