10.
City Council Work Session
- Meeting Date:
- 09/23/2025
- From:
- Lee Williams, Water Services Division Director
- Department:
- Water Services
Co-Submitter:
TITLE:
Discussion of Amended Agreement regarding reclaimed water for Pine Canyon
DESIRED OUTCOME:
Informational only - This is an opportunity to give details on the amended Reclaimed Water Agreement with Pine Canyon Golf LLC to provide transparency to City Council and the public.
Executive Summary:
Pine Canyon Golf LLC is a current reclaimed water customer and wishes to amend their current Reclaimed Water Agreement ("Agreement") for several purposes:
1. To make clerical corrections to parcels listed in the current Agreement
3. Pine Canyon Golf LLC will reduce their annual allotment from 360,000,000 million gallons per year to 253,000,000 million gallons per year; a nearly 30% reduction to their allotment to accomplish this expansion. This has the potential to free up capacity within the reclaimed water system.
4. Make the start date of the Agreement to the date that the amendment is executed for the standard five-year term.
1. To make clerical corrections to parcels listed in the current Agreement
- County Assessor Parcel number listed is corrected
- Latitude and longitude listed are corrected
2. Extend their private distribution system to the parcel adjacent to the existing use parcel to expand use of their already allotted water for a new amenity. As the Agreement is tied to a specific parcel, an amendment is needed to convey the water to any additional parcels not identified in the current Agreement.
3. Pine Canyon Golf LLC will reduce their annual allotment from 360,000,000 million gallons per year to 253,000,000 million gallons per year; a nearly 30% reduction to their allotment to accomplish this expansion. This has the potential to free up capacity within the reclaimed water system.
4. Make the start date of the Agreement to the date that the amendment is executed for the standard five-year term.
Information:
Applicable City Code
- City Code:
- 7-02-001-0026 I. The Director shall approve, execute and enforce reclaimed water agreements, for the purpose of expanding the reclaimed water program to all residential and nonresidential reusers located adjacent to existing public reclaimed water pipelines.
- 7-03-001-0014 E. No person shall: d. Irrigate golf courses with potable water.
- Council-adopted 2014 Water Policies:
- Section C3 Reclaimed Water Agreements
- Policy C3.1 The Utilities Division shall require each user to have a direct delivered Reclaimed Water Agreement which may be modified from time to time by mutual agreement of the parties. These Agreements should contain at a minimum: user name, address, place of use, point of delivery, delivery schedule (i.e., maximum peak day, maximum monthly and annual volume), price, termination date, and other applicable information and contract terms as appropriate. Reclaimed water will be considered and allocated on a first come, first serve basis, but entering a Reclaimed Water Agreement shall remain solely within the City’s discretion. Any proposed modifications to the terms of an existing Reclaimed Water Agreement (e.g., change of intended use, place of use, delivery schedule or other modifications) will require the applicant to obtain a new Reclaimed Water Agreement which may be entered into or denied within the City’s sole discretion. (See Flagstaff City Code, Section 7-02-001-0023)
- Section C4 Reclaimed System Capacity
- Policy C4.2 Reclaimed Water System Capacity Allocation Program: The Utilities Division shall track and monitor existing and proposed peak day and average annual reclaimed water deliveries in order to prevent exceeding the City’s ability to meet contracted for demands. When system capacity has been approached or there are supply limitations for any reason, the Utilities Director will stop issuing any new Reclaimed Water Agreements until such time that additional reclaimed water supplies are available. In the event of a reclaimed water shortage, the shortfall will be spread equitably across all reclaimed water customers.
- Section C7 Uses, Allocation and Priority
- Policy C7.1 The Utilities Division should continue to recommend updates to policies and ordinances that encourage the Direct Reuse of reclaimed water where appropriate and consistent with State and Federal laws.
- Policy C7.2 Golf courses, other large turf areas (e.g., schools, parks, etc.) and amenity lakes shall use Direct Reuse of reclaimed water.
- Policy C7.3 The priority uses or future allocations of reclaimed water are:
- a. Renewal of Reclaimed Water Agreements with Existing Users. First priority shall be given to those users that already have a valid Reclaimed Water Agreement for the delivery of reclaimed water. If requested by such existing user, the Utilities Division shall renew a Reclaimed Water Agreement provided that all applicable financial and legal requirements of City, State and Federal laws have been met. These Agreements shall be binding upon any successors and assigns who acquire the property that is benefitted by the Reclaimed Water Agreement and shall not be transferred or assigned without the City’s written consent, which shall not be unreasonably withheld.
- b. Water Conservation. Conserve potable water through the Direct Reuse of reclaimed water by converting existing uses of potable water to reclaimed water, where allowed by State Law.
- c. Public Benefit. The Direct or Indirect Reuse of reclaimed water should be encouraged as a significant water management tool to sustain or promote economic vitality, augment the City’s water supply (e.g., Groundwater Recharge and Recovery), and support contracted for deliveries for riparian habitat, wetlands or ponds.
- Section C3 Reclaimed Water Agreements
- Participated in City’s Reclaimed Water Rebate Incentive Program in ~2002
- Pine Canyon, as “Lone Tree Investment, LLC”, participated in the City’s reclaimed water rebate incentive program. Reclaim customers received annual rebates of 10% of the cost incurred by them to convert their systems to reclaimed water and/or to extend reclaimed waterlines to their sites. The rebates offered a low cost method of financing reclaimed water extensions. Lone Tree Investment, LLC paid for the extension of a 16-inch reclaimed water line along Lone Tree and the extension of a 12-inch reclaimed water line across the Pine Canyon development to the future regional park boundary. Lone Tree Investment, LLC received 10 payments of $107,495.19 from about 2002-2011