Peoria staff propose permit system for large water users, citing demand risks and permit enforcement

Peoria staff on Nov. 19 presented a draft ordinance that would require city-issued permits for new or expanding commercial, industrial and institutional customers expected to use large amounts of water and would require selected water‑intensive industries to adopt best management practices.

The proposal, presented at a study session by Deputy City Manager Kevin Burke, Water Services Director David (Dave) Burks and Water Resources Manager Brett Fleck, would screen applicants by projected water use and require a permit when an applicant’s projected average daily use exceeds 50,000 gallons or the applicant’s maximum use on any single day would exceed 100,000 gallons. Fleck told councilmembers, “If an applicant … is proposing to use more than 50,000 gallons per day or their maximum use on any 1 day would exceed a hundred thousand gallons, then they need to apply for a permit.”

Why this matters: staff said a very small number of customers use a large share of city demand. Fleck reported the city has roughly 63,000 accounts; about 39 existing customers would qualify as large water users (roughly 0.06% of accounts) yet account for about 20% of total city demand. The ordinance is intended to reduce planning uncertainty, protect Peoria’s ability to deliver water to existing customers and align large water uses with the city’s General Plan and Integrated Water Utility Master Plan.

Key proposal elements: applicants would supply projected water use and operational details; uses above 100,000 gallons per day would receive additional city review — including evaluation of committed supply, infrastructure impacts and third‑party economic studies — before a permit is issued. The draft would also require selected “water‑intensive” industries to adopt best management practices even when they fall below the large‑user threshold. Fleck listed examples of water‑intensive uses under additional scrutiny: car washes, cooling towers for data centers or cold storage, commercial lodging and long‑term care facilities, and exposed water features larger than one‑quarter acre.

Enforcement measures in the draft ordinance include written compliance notices and orders, administrative hearings before a city‑appointed hearing officer and an appeal route to council. Violations could be prosecuted as a class 1 misdemeanor and carry fines of up to $1,000 per day per violation; the city would also reserve the right to limit or suspend water service tied to a permit. Burke framed the policy rationale succinctly: “Peoria has enough water to use but never enough water to waste.”

Staff cited local precedent and peer city practice: the concept traces to Peoria’s Principles of Sound Water Management (policy 6, land‑use water management) and peer programs in Chandler, Mesa and Gilbert; Phoenix adopted a large‑user ordinance in 2024. Peoria’s draft leans toward a threshold‑based permit structure (rather than an allotment formula) and would use a permit model similar to how the Arizona Department of Environmental Quality issues water‑quality permits.

Next steps: staff asked council for feedback and public input. Fleck said the city set up an email for public comment: wateruserfeedback@pureaz.gov. No ordinance vote was taken at the Nov. 19 study session; staff said they will return with a drafted ordinance and implementation materials if council supports proceeding.

Ending: Councilmembers asked clarifying questions about denial authority and mitigation measures; Councilor Patena asked whether the city could deny a permit for a manufacturer needing more than 100,000 gallons per day and staff replied it is possible if mitigation, recycling or best practices do not sufficiently reduce net demand. Staff emphasized the ordinance’s goal is not to block economic development but to give the city advance notice and tools to ensure the General Plan can be implemented.