Title
Agreement for Delivery, Treatment, and Wheeling of EPCOR’s Colorado Water to EPCOR through City of Phoenix Infrastructure to an EPCOR Interconnect (Ordinance S-44075)
Description
Request to authorize the City Manager, or his designee, to execute an Agreement between the City of Phoenix and EPCOR for treatment and delivery of EPCOR's Colorado River water through Phoenix's existing water infrastructure and distribution system to an interconnection with EPCOR's water distribution system near the Town of Paradise Valley.
Report
Summary
EPCOR has access to Colorado River water for its service area in the Town of Paradise Valley, but the company cannot take direct delivery of this water due to a lack of delivery infrastructure between the Central Arizona Project aqueduct and EPCOR's water service area. This agreement will allow Phoenix to treat and transport up to 5,000 acre-feet of water annually to EPCOR. Treated water will be delivered to an interconnect facility near where Phoenix’s city limits meet EPCOR’s water service area in Town of Paradise Valley. EPCOR will be responsible for installing and maintaining all infrastructure associated with the interconnection at the company's own expense. EPCOR will pay Phoenix all related transportation and treatment costs.
Contract Term
This agreement will be effective for 20 years from the date of first water delivery, with an option to extend the term up to five additional years, which may be exercised by the City Manager or his designee.
Financial Impact
There is no net financial impact to Phoenix. EPCOR will purchase its own Colorado River allocation and pay Phoenix the actual treatment and delivery costs. EPCOR will also pay all costs associated with construction and operation of the interconnection facility.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.