Peoria leaders agreed to spend more than $104 million to secure additional water supplies, including enough water to provide 1.5 million gallons a day for the next century, in anticipation of federal cuts to Colorado River water.
By approving two contracts, the city will acquire 120 acres of a former underground water storage facility, plus two wells, a pump house, and pipes to move water to the Central Arizona Project canal, which spans 336 miles and supplies Colorado River water to major Arizona communities.
The city will also receive more than 173,000 acre-feet of formerly stored Central Arizona Project water, which will be tracked as long-term storage credits. An acre-foot is enough to supply three average homes for a year.
Deputy City Manager
Kevin Burke, in a memo ahead of the Sept. 15 council approval, said the move would both backfill a dwindling supply of Colorado River water and provide water to new Peoria customers.
City leaders unanimously approved the contracts, as one councilmember, Matt Bullock, said Peoria must continue working on water security as the city grows. Mayor Jason Beck called the acquisitions "a big deal."
Arizona's allocation from the Colorado River will soon fall by nearly 25% over the next two years. That would amount to about 760,000 acre-feet of water, according to the federal plan that’s meant to protect the drought-stricken Lake Mead and Lake Powell.
Peoria gets its water from various sources. The largest share, 44%, comes from the Central Arizona Project canal. Then, in descending order, the city also gets water from the Salt River Project canal, recycled water, long-term storage credits and groundwater.
The city's diverse water portfolio gives it greater flexibility and resilience as water conditions change, according to a previous city statement.
But officials are constantly preparing for the city's future, and Burke said in the memo that the two contracts are "a significant investment in water security."
Burke told the council the water the city is acquiring is Colorado River water previously taken out of the Central Arizona Project canal for storage. He acknowledged it came with a high price tag.
"A lot of water for a lot of money," Burke said, adding that water was not getting cheaper but the current contracts were for a good price.
Councilmember Jon Edwards asked whether Amkor Technology, the semiconductor packaging companybuilding a $12 billion plantin north Peoria, would get a share of the water. Burke explained that Peoria's agreement with Amkor was to provide reclaimed water, not drinking water.
The only way Amkor would get the water would be after people in Peoria flushing theirs, Burke said.
What water supplies did Peoria secure?
The two contracts are with Vidler Water Company, a private water resource business based in Nevada.
Through the first agreement, Peoria will acquire 120 acres in La Paz County in the Harquahala Valley irrigation non-expansion area west of Phoenix. In an irrigation non-expansion area, only land with an irrigation authority can be irrigated, according to the Arizona Department of Water Resources.
The site is a former underground water storage facility, and the purchase will include two wells, a pump house and pipes to withdraw and deliver water to the adjacent Central Arizona Project canal.
Under the second agreement, Peoria will purchase about 173,673 acre-feet of formerly stored Central Arizona Project water that will be transported from the canal and withdrawn at the Pyramid Peak Water Treatment facility in northwest Phoenix. There, the water will be treated and distributed to customers.
The transaction will occur in three parts, according to Burke. Within ten days of its approval, the city will transfer $1 million to Vidler as a good-faith deposit.
Upon closing of the transaction, scheduled for mid-October and contingent on whether infrastructure and paperwork are in order, the city will pay Vidler another $16 million. The payment at closing will secure the land, infrastructure and just over 30,000 acre-feet of water.
The city will then have one year to pay the remaining $87 million and acquire the remaining long-term storage credits.
Elena Santa Cruz covers the West Valley cities of Glendale, Surprise and Peoria. Reach her at elena.santacruz@arizonarepublic.com or follow her on X @ecsantacruz3.
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This article originally appeared on Arizona Republic: Peoria to spend $104M on water supplies ahead of federal cutbacks
