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ITEM #: 1.
DATE: 09/21/2026

AI #:3450

 
CITY COUNCIL ACTION REPORT
 
SUBJECT: WATER SERVICES UPDATE
 
STAFF PRESENTER(S): Barbara Chappell, Water Services Director

SUMMARY

Staff will provide an update on several critical water management challenges and initiatives aimed at safeguarding long-term reliability, ensuring regulatory compliance, and adapting to evolving regional conditions. 

STRATEGIC PLAN ALIGNMENT

 

RECOMMENDATION

Council to receive an update on several critical water management challenges and initiatives and provide direction to staff. No action will be taken. (Barbara Chappell, Water Services Director)

FISCAL IMPACT

There is no fiscal impact related to this item. 

BACKGROUND AND PREVIOUS ACTIONS

The City of Goodyear (city) operates a water and sewer service system within a portion of the city’s jurisdictional area generally south of the Interstate 10 freeway extending south to the Pecos Road alignment. The city has a strong commitment to proactive water stewardship and resilient infrastructure planning. 
 
The city continues to navigate several critical water management challenges and initiatives aimed at safeguarding long-term reliability, ensuring regulatory compliance, and adapting to evolving regional conditions. Specifically, this report will address: (1) recent elevated Total Trihalomethanes (TTHM) levels in the city’s drinking water system; (2) the city’s preparation and readiness related to future Colorado River capacity; (3) progress in securing an updated Designation of Assured Water Supply (DAWS) for the city’s water system to meet future growth; and (4) an update on additional measures the city is taking to secure its water future for existing and future residents and businesses.     

STAFF ANALYSIS

Elevated Total Trihalomethanes (TTHM) Levels 
The city’s water system has recently experienced elevated levels of TTHM, which is a group of disinfection byproducts formed when chlorine reacts with naturally occurring organic material in source water. The city’s water system is comprised of both groundwater and surface water sources.  While groundwater sources typically show very low organics, surface water sources can experience increased levels of organic content due to the presence of algae, bacteria and aquatic plants in our lakes and canals. TTHMs are regulated by the United States Environmental Protection Agency’s Stage 2 Disinfection Byproducts Rule with a maximum contaminant level (MCL) of 80 parts per trillion running annual average (RAA). TTHMs are required to be tested quarterly, and regulations measure the RAA is across the current quarter and the previous three quarters.  
 
TTHMs include four species - chloroform, bromodichloromethane, dibromochloromethane, and bromoform. All are volatile and can be reduced through an aeration process.  Bromoform is the least volatile, therefore is more difficult to remove through aeration. Due to the typical organic content levels in the city’s surface water, aeration systems were installed at two of the city’s potable water storage tanks (reservoirs 13 and 23) when the city’s surface water treatment facility became operational in 2022. However, the city’s surface water source has recently seen higher levels of bromoform, making the city’s existing aeration and treatment systems less effective in mitigating TTHM levels. Other Valley water providers are experiencing similar conditions and similar elevated TTHM levels. 
 
The Water Services Department’s (Water Services) recent water test results showed TTHM exceedances of the MCL for the calculated RAA in the 2nd quarter of 2026 and the 3rd quarter of 2026. The 2026 2nd quarter RAA exceedance occurred at two sampling locations that had a calculated RAA of 81 parts per trillion at one sampling location and 84 parts per trillion at another sampling location. The 2026 3rd quarter RAA exceedance occurred at the same two sampling locations, which had a calculated RAA of 82 parts per trillion at one sampling location and 86 parts per trillion at the other sampling location. These exceedances in the 2nd and 3rd quarters of 2026 triggered two public notifications.   
 
Based on these results, the city developed a plan to correct the regulatory violations, which included both short-term and long-term measures.  In the short-term, Water Services has implemented operational changes including adjusting chlorine dosages, replacing aeration equipment, optimizing storage tank operations, and conducting targeted flushing. In addition, Water Services has purchased portable granular activated carbon (GAC) treatment vessels, which will be installed at two of the city’s potable water storage tanks (reservoirs 13 and 23) to provide additional TTHM removal capacity.  Water Services expects the GAC treatment vessels to be operational in October 2026.   
 
As a long-term mitigation measure, Water Services is modifying the scope of the expansion project for the city’s surface water treatment plant, which is currently under design. The expansion project will now incorporate full-scale GAC treatment and ultra-violet (UV) disinfection systems, which will significantly reduce TTHM formation potential and improve system resilience to variations in the city’s source water. 
 
Colorado River Capacity 
Long-term drought has drastically reduced the Colorado River system’s water storage and future availability. Both the Upper Basin (Colorado, New Mexico, Utah, and Wyoming) and Lower Basin (Arizona, California, and Nevada) states have a reliance on the Colorado River system. Historically, the Lower Basin States have worked collaboratively to protect this important resource.  
 
Over time, there have been a number of guidance documents and regulations that govern the management of the Colorado River system. The Bureau of Reclamation’s (BOR) 2007 Interim Guidelines provided guidance for managing the coordinated operations of Lake Mead and Lake Powell through 2026. The 2007 Interim Guidelines defined pool elevations that would determine water releases while upholding the Colorado River Compact, the 1922 agreement that divides the water of the Colorado River between the seven Upper and Lower Basin states. Subsequently the Colorado River Drought Contingency Plans (DCP) were adopted in 2019 to protect the Lower Colorado River System reservoirs and ensure a minimum power pool for Lake Powell. Under the DCP, Arizona voluntarily contributed over one million acre-feet (AF) of water between 2019 and 2021, but there was still a declaration in 2022 of the first shortage for Arizona totaling 320,000 AF per year. Arizona is currently under a 512,000 AF per year reduction, constituting a 30% decrease to the Central Arizona Project’s (CAP) normal water delivery supply. 
 
Due to the expiration of the 2007 Interim Guidelines, the BOR published a Draft Environmental Impact Statement (DEIS) on January 16, 2026. The DEIS evaluated seven post-2026 operational alternatives to model system performance under varying hydrologic conditions. The DEIS included potential Colorado River system reduction scenarios (between 7% and 44% based on priority) for the Lower Basin States. Surprisingly, the DEIS included no mandatory Colorado River system reductions for the Upper Basin States. The DEIS alternatives would result in CAP water delivery supply reductions of 32% to 98% with a preferred alternative that would reduce CAP deliveries by 77%.  
 
With no promise of a negotiated proposal between the seven Upper and Lower Basin states, in May 2026, the Lower Basin States published a proposal, which would have the Lower Basin states reduce their allocations by 1.25 million AF per year in 2027 and 2028. Under this proposal, the Lower Basin states would share the total reduction (Arizona 760,000 AF per year, California 440,000 AF per year, and Nevada 50,000 AF per year). The proposal also included a commitment to reconsult to establish plans for a post-2028 operating plan, and a commitment by the Lower Basin states to conserve an additional 700,000 AF per year. 
 
On July 31, 2026, the BOR published a Final Environmental Impact Statement (FEIS). Rather than establishing a rigid 20-year plan, the FEIS provides a flexible 10-year operational framework spanning 2027 through 2036. The primary objective of the FEIS is to protect critical federal infrastructure, specifically the Glen Canyon and Hoover dams, by maintaining Colorado River system reservoir elevations required for power generation and safe downstream releases. Further, the BOR chose a hybrid model to protect critical dam infrastructure and provide near-term certainty while avoiding long-standing legal disputes. The FEIS relies on two-year operating intervals that grant federal managers the broad discretion needed to make mid-year adjustments if Colorado River system reservoir elevations drop to critical thresholds.  
 
On August 21, 2026, the BOR released a final record of decision (ROD) essentially adopting the FEIS’ flexible 10-year operational framework and including the 2-year operating plan consistent with the Lower Basin states’ proposal. As part of the ROD, the BOR will continue to monitor the Colorado River system through the winter and may make mid-year adjustments as necessary to prevent Lake Powell water levels from falling below dead-pool.  
 
Although there is still a great deal of uncertainty with the future Colorado River system storage and water availability, it is certain that there will be less Colorado River water available for Arizona and for Goodyear.   
 
Like most other Arizona cities, Goodyear has been actively planning for many years for the anticipated decreases in Colorado River water availability. Although Goodyear has been in a near continual growth trajectory over the last two decades, the city’s available water resources have always exceeded the city’s demands. In calendar year 2025, Goodyear actual water demand was 14,162 AF.  In comparison, Goodyear’s 2025 water supplies totaled 23,742 AF. Goodyear’s excess water supplies are recharged and stored in underground aquifers for future use, ensuring that Goodyear’s appropriately manages its water supplies for current and future needs.   
 
As noted previously, Goodyear’s water resources are a combination of groundwater and surface water. Surface water resources are either treated and directly used for potable water use or are stored in underground aquifers for future use adding to the city’s accumulated long-term storage credits (LTSC). Groundwater resources are pumped from the ground and then treated and directly used for potable water use. However, groundwater may also remain underground for future use when sufficient surface water resources are not available.  Goodyear water resource supplies are summarized below: 
 
Goodyear Water Resources
 
CAP – Municipal and Industrial Subcontract 10,742 AF per year 
CAP – Gila River Indian Community Lease 7,000 AF per year 
Goodyear Reclaimed/Effluent Water Storage/Recharge 6,000 AF per year  
West Salt River Valley Groundwater 5,025 AF per year 
Rainbow Valley Sub-basin Groundwater 274 AF per year 
Goodyear Long-Term Storage Credits (LTSC) 105,444 AF 
 
Goodyear’s municipal water resource planning efforts are an investment in our future and provide us with the ability to be resilient to anticipated decreases in CAP water. To demonstrate this resilience, Water Services staff developed several scenarios to demonstrate how the city could meet current and future demands under different water resource allocations (Attachment A). These scenarios represent a possible way for Goodyear to meet growing demands with resources available under a 35% reduction and a 65% reduction in CAP supplies. 
 
Although these scenarios demonstrate our ability to meet current and future water demands, they require use of the city’s accumulated LTSC's. As the city’s accumulated LTSC's are not a renewable resource, the city will need to invest in alternative water strategies and water augmentation efforts to continue to meet the city’s growth needs over the next 10-20 years.  
 
Designation of Assured Water Supply (DAWS) Modification 
The Assured Water Supply Program operates within Arizona’s seven Active Management Areas (AMAs) and is managed by the Arizona Department of Water Resources (ADWR). The Program is designed to sustain the state’s economic health by preserving groundwater resources and promoting long-term water supply planning.  
 
Located in the Phoenix AMA, Goodyear’s municipal water system operates under a DAWS, which is required to demonstrate a 100-year supply of water for existing, committed and projected future water demands. The city’s DAWS only applies to the city’s municipal water service area, which is generally south of the Interstate 10 freeway extending south to the Pecos Road alignment. The city’s current DAWS, which was approved by ADWR in 2016, includes 18,622 AF per year of water sources, which is comprised of CAP water, LTSC's, groundwater, and reclaimed water. A detailed breakdown of the city’s current DAWS resources and quantities is included as Attachment B.   
 
An approved DAWS is valid for ten years, and the city’s current DAWS is set to expire in 2028. To support the city’s rapid growth, Water Services submitted an application for a DAWS modification in May 2024. In calendar year 2025, the city’s current actual and committed water demands totaled 17,499 AF, which was comprised of actual water service demands of 14,152 AF, plus unbuilt commitments of 3,347 AF. The city’s DAWS modification application included a request for 25,265 AF per year, which represents a 36% increase in water resources from the current DAWS. A detailed breakdown of the resources and quantities in the city’s DAWS modification application is included as Attachment C.  
 
Since the city submitted its DAWS modified application, ADWR has sent the city three requests for additional information or clarification, each of which the city has provided timely responses to. After a more than two-year process, there has been recent positive progress on the city’s application, as ADWR moved to publicly notice the city’s application on July 30, 2026, and August 6, 2026. After the second public notice, a waiting period of 15 days is required, which ended on August 21, 2026. No objections to the city’s application were filed.  
 
The city now anticipates that ADWR will issue a draft Final Decision and Order for the City’s modified designation very soon. The modified DAWS will establish the water portfolio to sufficiently support continued growth over the next ten years while also ensuring that the city’s existing customers’ water needs will continue to be met.  
 
As the city’s DAWS only applies to the portion of the city generally defined as south of the Interstate 10 freeway extending south to the Pecos Road alignment, the build out of the city’s municipal water system does not reflect the build out of the entire city.  However, for the city’s DAWS and its municipal water system planning boundaries, build out demand is anticipated to be 26,355 AF per year.   
 
Water Allocation Ordinance 
Goodyear has developed long-term plans and established citywide water strategies around storage, conservation and allocation. A key element of these strategies was the recent Council adoption of a Water Allocation Policy on May 19, 2025, primarily focused on managing large water users by establishing appropriate water allocations to support future development.    
 
Following adoption of the Water Allocation Policy, Water Services staff has worked to draft enabling ordinances for the Policy. The proposed water allocation ordinance changes were presented to Council at its June 15, 2026, Work Session meeting. At the meeting, Council asked Water Services staff to do additional coordination on the proposed changes with our development partners over the summer.   
  
Since the Work Session, Water Services staff have held three additional meetings with representatives of the development community. Staff noted their concerns with the draft ordinance and are currently making modifications in response to the feedback received. Water Services staff anticipate returning in the next few months with a recommendation for Council adoption of the water allocation ordinance. 

Attachments