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ITEM 31

City Council Memorandum Public Works & Utilities Memo No. UA24-037

Date:

November 9, 2023

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
John Knudson, Public Works and Utilities Director

From:

Simone Kjolsrud, Water Resources Manager

Subject:

Resolution No. 5753, Approving Amendment No. 2 to the New River and Agua Fria Underground Storage Project Intergovernmental Agreement; and Authorizing the Mayor to Sign the Agreement and all Related Documents on Behalf of the City

Proposed Motion:

Move City Council pass and adopt Resolution No. 5753, approving Amendment No. 2 to the New River and Agua Fria Underground Storage Project Intergovernmental Agreement; and authorizing the Mayor to sign the agreement and all related documents on behalf of the city.

Background:

In 2004, the City of Chandler partnered with Salt River Project (SRP) and several other cities in the construction of the New River Agua Fria Underground Storage Project (NAUSP), located in Glendale southwest of the Loop 101 Freeway and Glendale Avenue. Chandler's original storage entitlement was 22.8% of the total facility capacity.

In June 2023, City Council approved the sale of a portion of Chandler's storage entitlement to the City of Avondale. Instead of being recharged in Glendale, those physical water resources will now be recharged in Chandler at the Reclaimed Water Interconnect Facility currently under construction. The sale agreement with City of Avondale involved transferring 18% of Chandler's storage entitlement, but did not involve any transfer of long-term storage credits. NAUSP is utilized solely for aquifer replenishment to offset groundwater pumping that occurs in the same month and is not used for long-term storage. As a result of the sale, the Intergovernmental Agreement must be amended to reflect the revised storage entitlement amounts for each of the participants. City of Chandler's storage entitlement changes from 22.8% to 4.8%, and City of Avondale's storage entitlement changes from 10% to 28%.

Attachments

Resolution No. 5753

Exhibit A - Amendment No. 2