Discussion and possible action to adopt an irrigation water delivery services operating agreement between the Peoria Water Users Association and the City of Peoria.

Peoria Water Users Association (PWUA) is an irrigation association located in downtown Peoria delivering Salt River Project (SRP) water to members located approximately between Peoria Avenue on the north, Monroe Avenue on the south, 85th Avenue on the West and Grand Avenue on the East.  This agreement would allow PWUA to use of City rights-of-way (ROW) and easements for the distribution pipes associated with delivering irrigation water to members.  

In 2008, the Peoria voters approved a franchise agreement between PWUA and the City of Peoria for use of City ROW's and easements to deliver SRP water to its members for flood irrigation purposes.  That agreement expired in September of 2023.  The two parties have been discussing possible options since then.  This agreement allows for use of ROW's and easements between now and November of 2026 which is the next possible date for a franchise election.  City staff is exploring other options besides a franchise agreement due to the cost of an elections relative to the very small number of members and size of the district.  

As part of this agreement, PWUA must pay 5% of gross revenues to the City for use of the ROW's and all associated sales tax on water sales.