| | | | | | | | CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION | Agenda Item: 15C. |
| Date Prepared: 10/24/2023 | Council Meeting Date: 11/14/2023 |
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| | | | | | | | | TO: | Mike Faust, City Manager
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| | | | | | | | THROUGH:
| Kevin Burke, Deputy City Manager |
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| | | | | | | | | FROM:
| David Burks, Water Services Director
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| | | | | | | | SUBJECT:
| Intergovernmental Agreement Amendment, New River and Agua Fria Underground Storage Project I, Salt River Project and Municipal Facility Owners, Update Facility Ownership Shares, Glendale, Arizona |
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| | | | | | | | Purpose:
Discussion and possible action to approve Amendment No. 2 to the New River and Agua Fria Underground Storage Project Intergovernmental Agreement Among Salt River Valley Water Users’ Association, Salt River Agricultural Improvement and Power District and the Municipal Corporations of Avondale, Chandler, Peoria, and Glendale to revise Exhibit C reflecting conveyance of 18 percent of the City of Chandler’s Storage Entitlement to the City of Avondale. |
| | | | | | | | Summary:
The NAUSP IGA (“IGA”) is being amended to reflect the conveyance of 18% of the City of Chandler’s (“Chandler”) Storage Entitlement (“Entitlement”) to the City of Avondale (“Avondale”). The IGA may not be modified or amended
unless in writing and signed by the Parties. Therefore, as a Party to the NAUSP IGA, Peoria must take action to approve Amendment No. 2.
New River and Agua Fria Underground Storage Project is a groundwater recharge facility located south of the City of Peoria, just west of State Farm Stadium in Glendale. Peoria holds a 20% Entitlement in NAUSP that it utilizes to store reclaimed water and water from the Salt and Verde Rivers underground for later recovery using wells.
In May 2023, both the Chandler and Avondale City Council took action for the respective sale and purchase of 18% of Chandler’s Entitlement to Avondale for approximately $5.7 million dollars. Amendment No. 2 memorializes this transfer by revising Exhibit C (a table of the Entitlements of the five Parties) to reduce Chandler’s Entitlement to 4.8% and increase Avondale’s Entitlement to 28%. The transfer does not affect Peoria’s Entitlement. |
| | | | | | | | Previous Actions/Background:
On April 15, 2008, Peoria City Council approved Amendment No. 1 of the NAUSP IGA, adding Peoria as a participant and documenting its 20% Entitlement. |
| | | | | | | | Staff Recommendation:
Staff recommends approval of Amendment No. 2 to the NAUSP IGA. |
| | | | | | | | Fiscal Analysis:
No fiscal impact. |
| | | | | | | | Contact Name and Number:
David Burks, Water Services Director, (623) 773-7181 |
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