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7.
City Council Work Session
Meeting Date:
03/27/2018
From:
Brad Hill, Water Services Director
Department:
Water Services
Co-Submitter:
Sterling Solomon, City Attorney

TITLE:

Consideration and possible revision regarding the authority to enter into Reclaimed Water Agreements

DESIRED OUTCOME:

Discussion and possible direction to move to a future Council Agenda for the possible revision to City Code regarding approval of new Reclaimed Water Agreements

EXECUTIVE SUMMARY:

In July 2002, City Council adopted Ordinance No. 2002-07 that amended Title 7 of the City of Flagstaff Water and Wastewater Code in numerous ways.  The Ordinance created three (3) new types of reclaimed water-related agreements between the City and end users; Reclaimed Water Agreements, Reimbursement Agreements, and Conversion Agreements.   Additionally, the Ordinance established who had the authority to enter into each agreement and updated City Code language to be in compliance with a recent change in State law.  In February 2001, the Arizona Department of Environmental Quality (ADEQ) updated their Reclaimed Water Rules.  Among the many changes was the creation of a Reclaimed Water General Permit (Type 3) that is held by the City as the permittee.  The change in law also created a requirement for a City to maintain a contractual agreement with each reclaimed water end user (aka Reclaimed Water Agreement).  The City was issued its first Reclaimed Water Permit from ADEQ on June 5, 2002, with the permittee as the Utilities Director.

Councilmember Putzova presented a Future Agenda Item Request on November 7, 2017, which received the requisite support of Council to advance the item on the Working Calendar.  At this point, Staff is seeking further direction from the Council.

INFORMATION:

In July 2002, City Council adopted Ordinance No. 2002-07 that among other things created three (3) new types of reclaimed water-related agreements between the City and end users; Reclaimed Water Agreements, Reimbursement Agreements, and Conversion Agreements.   City Code states the following:

Reclaimed Water Agreements:  A written agreement between the reclaimed water reuser and the Department for connection to an existing public reclaimed water pipeline, approved and executed in the name of the Department by the Utilities Director.

Reimbursement Agreement for Reclaimed Water: A written agreement between the reclaimed water reuser and the City for reimbursement of the reuser's costs incurred in providing for the extension of, and connection to, a public reclaimed water pipeline, approved by the City Council and executed in the name of the City by the Mayor. 

Conversion Agreement for Reclaimed Water: A written agreement between the City and the reclaimed water reuser for reimbursement of the City's costs incurred in converting the reuser's potable water system to a reclaimed water system, by the extension of, and connection to, a public reclaimed water pipeline, approved by the City Council and executed in the name of the City by the Mayor.

How other selected City's who have reclaimed water distribution systems manage their authority for entering into Reclaimed Water Agreements:

Town of Gilbert:  City Council approves standard form agreement and the Public Works Director authorized to execute Reclaimed Water Use Agreements

City of Peoria:  Utilities Director authorized to execute Reclaimed Water Service Agreements under the supervision of the City Attorney

City of Scottsdale:  City Council approves all initial agreements connected to their Reclaimed Water Distribution System that provides reclaimed water to specific golf courses in north Scottsdale.  They do not have typical end users of reclaimed water.