SUBJECT: Council to ratify the application submitted to ADWR of a Remedial Groundwater Utilization Plan

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1 AGENDA ITEM # DATE: January 11, 2009 COAC NUMBER: CITY OF GOODYEAR CITY COUNCIL ACTION FORM SUBJECT: Council to ratify the application submitted to ADWR of a Remedial Groundwater Utilization Plan consistent with the Groundwater Management Act STAFF PRESENTER: David C. Iwanski COMPANY CONTACT: RECOMMENDATION Council ratify the application submitted to the Arizona Department of Water Resources of a Remedial Groundwater Utilization Plan consistent with the Groundwater Management Act prior to January 1, 2010 EXECUTIVE SUMMARY In order for the City to utilize remedial groundwater from the PGA North and PGA South Superfund sites and included in our water portfolio for determination of current and future Designations of Assured Water Supply, the Arizona Administrative Code Rule requires submittal of an application to the Director of the Arizona Department of Water Resources for approval of a Plan to utilize remedial groundwater in a manner consistent with the Groundwater Management Act. COMMUNITY BENEFIT Remediated groundwater is not subject to any replenishment obligation or withdrawal fees making the use of this water where possible a lower cost alternative for the City than other non-potable sources. Along with the cost savings, using remediated groundwater for non-potable purposes will conserve the City s water supply. DISCUSSION Federal and state law permits the City to use remediated groundwater from Superfund and Water Quality Assurance Revolving Fund (WQARF) sites for non-potable purposes pursuant to the terms and conditions of the Consent Decrees and water delivery agreements with Crane Co. and the Goodyear Tire & Rubber Company. Such uses include landscape irrigation, dust control, compaction, construction water, industrial cooling and power generation. In order for this water supply to be calculated into Goodyear s current and future Designations of Assured Water Supply, the City is required to submit a formal application to the Director of ADWR for approval. FISCAL IMPACT The processing fee payable to ADWR is $ and has been identified in the Public Works & Water Resources FY Operations and Maintenance budget.

2 CITY OF GOODYEAR APPLICATION TO THE DIRECTOR OF THE ARIZONA DEPARTMENT OF WATER RESOURCES REMEDIAL GROUNDWATER UTILIZATION PLAN CONSISTENT WITH THE MANAGEMENT GOAL STATUTORY REQUIREMENT: Under the provisions of Title 12 of the Arizona Administrative Code, Rule (Exhibit A), the City is submitting this application and Remedial Groundwater Utilization Plan to the Arizona Department of Water Resources for the express purpose of withdrawing remedial groundwater from within its Municipal Service Area, these withdrawals being excluded when determining compliance with management goals and objectives as determined by the Director. R (B) states that A municipal provider that is using remedial groundwater or that has agreed in a consent decree or other document approved by ADEQ or the EPA to use remedial groundwater may apply to the Director for a determination that the municipal provider s use of the remedial groundwater is consistent with the management goal of the active management area by submitting an application on a form provided by the Director with the information required in subsection (D) of this Section before January 1, This Goodyear application constitutes a formal request consistent with requisite statutory requirements. HISTORY: Phoenix-Goodyear Airport (PGA) Superfund The Phoenix-Goodyear Airport Superfund Site (PGA Site) is located primarily in Goodyear, Arizona, with a relatively small portion extending into the City of Avondale. The PGA Site covers approximately 35 square miles that includes residential, recreational, commercial, industrial, and agricultural land uses. In 1981, The Arizona Department of Health Services ( ADHS ) discovered that groundwater in the PGA Site was contaminated with solvents such as trichloroethylene ( TCE ) and heavy metals such as chromium. Over the next couple of years, the United States Environmental Protection and Agency ( EPA ) and ADHS performed additional sampling of wells and discovered that at least 18 municipal, private, and agricultural wells were contaminated with volatile organic compounds. On September 8, 1983, EPA added the PGA Site (originally listed as the Litchfield Airport Superfund Site ) to the National Priorities List. Shortly thereafter, EPA began a remedial investigation to characterize the extent of contamination and identify potential sources. In 1989, EPA issued a final Remedial Investigation and Feasibility Study that

3 reported extremely high levels of hazardous substances and contaminants in surface and subsurface soils and groundwater. Contamination was detected in both the shallow aquifer (Subunit A) and the deeper aquifer (Subunits B&C). The deeper aquifer serves as a regional drinking water supply. The primary contaminants of concern ( COCs ) include TCE, perchloroethylene ( PCE ), 1,1-Dichloroethylene, chloroform, carbon tetrachloride, methyl ethyl ketone (MEK), acetone, chromium, cadmium, aluminum, and perchlorate. Most of the COCs exceeded ADHS health-based cleanup levels. In 1989, EPA also issued a Record of Decision ( ROD ) that required a three-phase groundwater and soil remedy for the PGA Site. The final remedy required remediation of the soil contamination at the facility using soil vapor extraction and groundwater restoration using appropriate pump and treat technology to achieve EPA s maximum contaminant levels ( MCLs ) at all points of the aquifer. A groundwater divide near the Phoenix-Goodyear Airport, approximately along Yuma Road, splits the PGA Site into a northern portion (PGA-North) and a southern portion (PGA-South). PGA-South consists of the Phoenix-Goodyear Airport, the Loral Defense Systems property located at 1300 S. Litchfield Road, and any and all areas with groundwater contamination in excess of PGA Site clean-up standards related to and emanating from those properties. PGA-North consists of the former Unidynamics facility and property located at 102 S. Litchfield Road, and all areas with groundwater contamination in excess of the PGA Site clean-up standards related to and emanating from the Unidynamics property. PGA-South In 1943, the United States Navy established the Litchfield Naval Air Facility (NAF) in Goodyear, Arizona. The NAF was operated as an Auxiliary Acceptance Unit that accepted modified aircraft from the Goodyear Aircraft plant located adjacent to the airport. The Goodyear Aircraft plant was closed from In 1949, Goodyear Aerospace Corporation, Arizona Division, reopened the Goodyear Aircraft facility. That plant was later sold to Loral Defense Systems, which evolved into the current Lockheed Martin Corporation. In 1968, the Navy sold the airfield to the City of Phoenix, which named it the Phoenix-Litchfield Airport. In 1986, the airport was renamed to the Phoenix-Goodyear Airport. The Navy and Goodyear Aerospace Corporation used the Phoenix-Goodyear Airport and the Goodyear Aircraft Plant for the activation, maintenance, and preservation of military aircraft and the manufacturing of electronics and products for defense and aerospace applications. These activities generated wastes including solvents, chromate sludge, acids, process waste waters, and domestic sewage. These wastes were discharged to an on-site drainage channel and three on-site sludge ponds. In 1991, Goodyear Tire, as the leading potentially responsible party ( PRP ) entered into a consent decree with EPA for the remediation of PGA-South. The consent decree required (1) cleanup of metal contaminated soils, (2) cleanup of VOC contaminated soils,

4 and (3) cleanup of contaminated groundwater in both the upper and lower portions of the aquifer. Goodyear Tire has completed the removal of the metal contaminated soils, removing approximately 4,000 cubic yards of chromium contaminated soils. Using soil vapor extraction, Goodyear Tire has removed approximately 2,300 pounds of VOCs from the soils to date. The soil cleanup remedy is almost complete, and EPA anticipates that Goodyear Tire will soon request EPA and ADEQ approve the closure of the final soil remedy. The groundwater remedy, which consists of 3 groundwater remediation systems, has mostly succeeded in preventing off-property migration of the contaminant plume. 3,300 pounds of VOCs have been removed from approximately 2.2 billion gallons of groundwater pumped from the contaminated aquifer. EPA reports that an estimated 75% of the total VOC mass in the groundwater has been removed. PGA-North In 1963, UMC Industries, Inc., which eventually changed its name to Unidynamics, ( Unidynamics ) began manufacturing and testing components for weapons programs at a facility at 102 South Litchfield Road in Goodyear, Arizona. Unidynamics formed Unidynamics/Phoenix Inc. ( UPI ) in 1970 and transferred ownership of the facility and its operations to UPI. UPI continued the weapons engineering and manufacturing until In 1985, Crane Companies ( Crane ) through its subsidiary Crane Acquisition Corp, acquired Unidynamics for $192,258,000, making Unidynamics a wholly owned subsidiary and UPI an indirect subsidiary. In 1993, Crane sold certain assets of UPI to Pacific Scientific Co., but retained ownership of the facility. In 1994, Crane ceased all manufacturing operations at the facility. The manufacturing and engineering activities at the Unidynamics facility involved the handling, discharge, and disposal of TCE, which was used as a degreasing solvent; perchlorate, which is a component of rocket fuel, and other hazardous substances. From at least 1963 through 1979, these wastes were disposed on-site in a number of dry wells, unlined oxidation ponds, and sedimentation basins. Some of the wastes, such as TCE, were reportedly sprayed directly onto the ground for weed control and dust suppression. As a result of these waste handling and disposal practices, these hazardous substances leached through the surface, contaminating the soil and groundwater. Shortly after listing the PGA Site, EPA identified UPI as a potentially responsible party for PGA-North. Crane, as UPI s successor, is now the leading PRP for PGA-North. From 1990 to 2003, EPA issued a number of Unilateral Administrative Orders ( UAOs ) requiring Crane to perform investigative and remedial action at PGA-North, including the implementation of the different phases of the final remedy required by the ROD. In 2006, Crane entered into a partial consent decree with EPA, in which Crane agreed to complete the remedy required by the ROD. The partial consent decree also required Crane to perform a Brownfields Inventory, Assessment, and Remediation Supplemental Environmental project ( SEP ) within the City of Goodyear that cost no less than $1 million in eligible SEP costs. That same year, Crane also paid the City of Goodyear

5 $1.95 million for the replacement of two wells (COG-2 and COG-10) that were abandoned from impacts from the PGA-North plume. To date, Crane has removed approximately 10,000 pounds of TCE for the soil. Crane has also performed asbestos removal from the buildings on the former Unidynamics facility. Demolition of the buildings is expected to be completed by the end of The groundwater remedy implement by Crane, which presently consists of 7 extraction wells and 6 re-injection wells located near the Unidynamics facility and three individual extraction wells (EA-05, SunCor 33A, and EA-06) located north and northeast of the Unidynamics facility, has removed approximately 26,000 pounds of TCE from the contaminated aquifer. The treated groundwater is currently reinjected, used for irrigation, and discharged into the Roosevelt Irrigation Canal. Crane has recently proposed adding three new extraction wells to the north and east of the current wells to increase plume capture. Reinjection and beneficial use of the treated groundwater from these new wells is being considered. Western Avenue Water Quality Assurance Revolving Fund (WQARF) Site. The Western Avenue Plume Site presently occupies an area bounded by Hill Drive to the North, Third Street to the east, State Route 85 to the south, and the Phoenix-Goodyear Airport to the west. In 1993, PCE was detected in wells up-gradient from the PGA-South Site. The Arizona Department of Environmental Quality ( ADEQ ) installed two monitoring wells and performed soil sampling in the area to characterize the plume and investigate the potential source of the contamination. Unable to locate either the source of the PCE, ADEQ placed the Western Avenue Plume Site on the Water Quality Assurance Revolving Fund ( WQARF ) registry in ADEQ has since installed 6 more monitoring wells and uses the 8 monitoring wells, PCE along with City of Goodyear Well-1, to monitor and characterize the plume boundaries. The concentration of PCE appears to remain mostly below the 5.0 µg/l MCL; however, sampling events have produced concentrations above this limit. ADEQ has also performed additional soil sampling in the area but has not yet located the source of the PCE contamination or identified any potentially responsible parties. ADEQ recently proposed remedial objectives for the Western Avenue Plume Site that call for the protection of future irrigation and municipal groundwater supply and the recharge capacity of the impacted aquifer, as well as the provision of alternative water sources for as long as the need for water exists and contamination limits access to the groundwater supplies. ADEQ accepted comments on the proposed remedial objectives and will incorporate the final remedial objectives into the final remedial investigation report.

6 COMPLIANCE REQUIREMENT: R (D) states that An applicant shall provide the following with an application submitted under subsection (B) of this Section: 1. A document evidencing ADEQ s or EPA s approval of the municipal provider s withdrawal and use of remedial groundwater, such as a remedial action place, record of decision, or consent decree; SEE EXHIBIT B- Consent Decree for PGA South SEE EXHIBIT C- Consent Decree for PGA North SEE EXHIBIT D- Bulk Water Delivery Agreement between the City and the Goodyear Tire & Rubber Company SEE EXHIBIT E- Draft Access and Delivery Agreement between the City and Crane Co. 2. The volume of remedial groundwater that will be withdrawn and used annually by the municipal provider and the purpose for which remedial groundwater will be used; SEE EXHIBIT F volume and capacity projections for PGA South withdrawals SEE EXHIBIT G volume and capacity projections for PGA North withdrawals 3. The time period during which the remedial groundwater will be used by the municipal provider; a. The City plans on using remedial groundwater from PGA South for years, which is the estimated time for clean up of the plume to reach non-detect levels for all contaminates subject to Consent Decree provisions and applicable federal and state law. b. The City plans on using remedial groundwater from PGA North for years, which is the estimated time for clean up of the plume to reach non-detect levels for all contaminates subject to Consent Decree provisions and applicable federal and state law. c. The City also has a pending Reclaimed Ordinance which identifies remedial groundwater as one of the source supplies and incentives to utilize same. 4. A reference to the annual authorized volume provided in the document submitted pursuant to subsection (D)(1) of this Section or, if the document submitted pursuant to subsection (D)(1) does not specify the annual

7 authorized volume for the project, the annual authorized volume claimed by the municipal provider and a written justification for that volume; a. The City anticipates minimal deliveries to occur initially for remedial groundwater from PGA South, and specifically for irrigation purposes at the Goodyear Spring Training Facility; however, increased volumes over time will reach the maximum production and use for continued irrigation, dust control, construction, compaction, industrial cooling, energy production and ultimately for potential use in the potable system. b. The City anticipates minimal deliveries to occur initially for remedial groundwater from PGA North, and specifically for irrigation purposes at the Community Park north of Thomas Road; however, increased volumes over time will reach the maximum production and use for continued irrigation, dust control, construction, compaction, industrial cooling, energy production and ultimately for potential use in the potable system. 5. If the approved remedial action project is currently operating, the volume of remedial groundwater withdrawn pursuant to the project for each year before the year in which the application is filed; No previous use of remedial groundwater under Rule has been reported. The current projects reinjection into sub-unit C of the aquifer and deliver to irrigation districts pursuant to applicable provisions. 6. The designated provider or certificate to which the remedial groundwater will be pledged; City of Goodyear Arizona Service Area Right No If the municipal provider is requesting an increase in the annual authorized volume of the project pursuant to subsection (C) of this Section, evidence that the increase is necessary to further the purpose of the remedial action project and that the increase is not in violation of the consent decree or other documentation approved by ADEQ or the EPA for this project. Pursuant to the response in paragraph 4 above, the City will utilize remedial water in all ways consistent with the consent decree or other documentation approved by ADEQ or the EPA for these projects. When direct beneficial use/reuse is appropriate the City will delivery this

8 groundwater, if injection/reinjection is necessary for clean up related activities, including but not limited to creation of hydro-geologic barriers to mitigate contaminated plume migration, the City expressly agrees to forego direct beneficial use/reuse based upon ADEQ and the EPA approved work plans. Superfund clean-up activities will have priority over remedial groundwater deliveries. 8. The name and telephone number of a person the Department may contact regarding this application; David C. Iwanski, Water Resources Manager (office) (cell) diwanski@goodyearaz.gov 9. Any other information reasonably required to assist the Director in making the determination under subsection (F) of this Section. a. The City agrees to limit its remedial groundwater withdrawals to less than 7,500 acre-feet between the effective date of this application and 2025; b. The City agrees to limit its remedial groundwater withdrawals to less than 15,000 acre-feet between 2025 and 2050; and, c. The City agrees to limit its remedial groundwater withdrawals to less than 20,000 acre-feet between 2050 and EXHIBITS: The following exhibits are attached to this application and Remedial Groundwater Utilization Plan and are incorporated into same: Exhibit A- Rule language for Title 12, Rule Exhibit B- Consent Decree for PGA South Exhibit C- Consent Decree for PGA North Exhibit D- Bulk Water Delivery Agreement between the City and the GT&R Company Exhibit E- Draft Access and Water Delivery Agreement between the City and Crane Co. Exhibit F- Extraction Wells and Main Treatment Facility volume and capacity figures for PGA South Exhibit G- Extraction Wells and Main Treatment Facility volume and capacity figures for PGA North