Title
Large Water User Ordinance (Ordinance G-7237)
Description
Request City Council to adopt the Sustainable Desert City Development Policy-Large Water User Ordinance that places additional water conservation requirements on new large water use developments in the City. Large water user developments are those that are projected to use more than 250,000 gallons of water per day.
Report
Summary
The history of City of Phoenix is built on water management and conservation. From the canals of ancient Hohokam societies through the Salt River Project, to the construction of the Central Arizona Project, human's ability to thrive in the desert has always depended first and foremost on our ability to use the limited water resources available with care. For this reason, the City and Central Arizona more broadly, have elected to develop on a backbone of renewable surface water resources rather than a finite resource of groundwater, unlike many other communities in the American West.
It is not sustainable to revert to groundwater supplies; therefore, the City has taken great care to protect surface water in the region. In 2014, the Council authorized the Colorado River Resiliency fund, improving local watershed resiliency and providing for underground water storage. Water supply is only one side of the equation. Due to the foresight of current and previous civic leaders, the City has made significant progress in demand management and conservation. In 1980, the State of Arizona passed the Groundwater Management Act, becoming the first state to regulate groundwater and mandate water conservation measures at that scale. Because of these measures and other efforts, per-person water use has fallen by more than 30 percent over the last 30 years. However, hydrologic conditions in the Colorado River, which currently comprise approximately 40 percent of the water delivered to residents, is currently experiencing significant reduction in flow. Therefore, the City can no longer depend on receiving its full allocation from the Colorado River.
For this reason, in June 2023 City Council Adopted the "Sustainable Desert City Development Policy-Water" (Resolution 22129). This resolution had four components:
- Section 1: Conservation Measures for New Development.
- Section 2: Conservation and Restrictions on New Large Water Users.
- Section 3: Annexations outside the current Water Department Service Area.
- Section 4: Applicability and implementation.
Section 2 outlined a proposed "Large Water User Ordinance," which would place additional requirements on new large water users projected to use more than 250,000 gallons per day. Staff has continued to meet with multi-departmental, inter-disciplinary teams to evaluate the Ordinance and met with stakeholders to refine the proposed ordinance. The basic tenets of the Ordinance are the same as the approved concept in the Resolution, but staff has added other provisions to implement and enforce the Ordinance (Attachment A). Specifically, the Ordinance requires:
For new large water users projected to use more than 250,000 gallons per day, users must submit a Water Conservation Plan that is approved by the Water Department.
For new large water users projected to use more than 500,000 gallons per day, in addition to requirements listed above, users must also:
- Meet at least 30 percent of their consumptive water demand with recycled or conserved water;
- Fit within the City's existing Water Resource Portfolio; and
- Economic benefit analysis can be considered when evaluating the 30 percent requirement.
Financial Impact
This item has no expected financial impact.
Concurrence/Previous Council Action
- The Transportation, Infrastructure and Planning Subcommittee received an update on Supply Shortages in the Colorado River on June 15, 2022;
- The Transportation, Infrastructure and Planning Subcommittee received an update on Proposed Water Conservation Measures for New Development on Jan. 18, 2023;
- City Council adopted Resolution 22129, the Sustainable Desert City Development Policy, which outlined this ordinance on June 13, 2023; and
- The Transportation, Infrastructure and Planning Subcommittee unanimously approved the Sustainable Desert City Development - Water Ordinance on Feb. 21, 2024.
Public Outreach
On Dec. 5, 2023, staff held a meeting to discuss and receive feedback on the proposed Ordinance and invited 20 stakeholders in the field of business development and water conservation. Staff also asked for any comments or concerns to be shared with staff by the middle of January 2024. We received one comment but no objections. In general, the stakeholders understood that this Ordinance will impact a small group of large water users and that the City needs to be good stewards of water for existing and future residents and businesses.
Department
Responsible Department
This item is submitted by Deputy City Managers Alan Stephenson and Ginger Spencer, and the Planning and Development and Water Services departments.