Peoria study session flags $90M water acquisition and outlines long‑term water purification plan
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Summary
Council heard a detailed water briefing: Peoria uses about 20,000 acre‑feet/year of Colorado River water, staff flagged a potential purchase of long‑term storage credits and described early work on advanced water purification (AWP), with a multi‑decade cost estimate that staff put near $1 billion for full scale deployment.
Water supply and water‑security measures formed a major portion of the study session.
Staff told the council Peoria holds about 34,000 acre‑feet of Colorado River allocation and used roughly 20,000 acre‑feet last year; the city stores a significant portion underground (estimates cited in the session suggested about six years of underground storage at current usage rates). Staff said recent federal and interstate work on Colorado River operations (the Bureau of Reclamation draft EIS) could cut municipal allocations under some scenarios. One Bureau DEIS scenario cited by staff would reduce Peoria’s allocation by about 57% (roughly 19,000 acre‑feet), a change staff called material for operations.
To build redundancy and reduce exposure, staff described options including acquisition of raw water and long‑term storage credits. Staff said the city has been offered 173,000 acre‑feet of long‑term storage credits (which staff presented as a 100‑year assured supply equivalent, effectively spreading availability across a century). Finance and water staff characterized the offer as an opportunity because it is controllable, shovel‑ready in contrast to the earlier Verde Dam alternative (which staff said rose to an estimated $100 million while decreasing yield), and comes with a six‑month due‑diligence window for testing, permitting and rate studies.
Utilities staff also outlined reclaimed‑water infrastructure projects (Reclaim Projects 2 and 3) to connect local reclaimed systems and reduce dependence on CAP canal irrigation water, plus well‑drilling and meter‑replacement programs. That work, the presenters said, supports near‑term reliability.
Looking further ahead, staff described advanced water purification (AWP) as a long‑term strategy to convert reclaimed water into drinking water. A feasibility study completed for the city estimated a full AWP system across the local footprint could cost on the order of $1 billion and take more than a decade to deploy; Phase 1 for design, permitting and pilot testing was budgeted at about $11.1 million across four years in the CIP. Staff stressed that AWP planning includes pilot proof‑of‑concept, treatment of emerging contaminants (PFAS) and brine handling and will require public outreach and staged, incremental work.
Council members asked detailed follow‑up questions about how much of an acquisition would be used for growth versus redundancy; staff answered that roughly half the proposed purchase was intended to provide redundancy for existing users and half for growth. Council discussion also probed how reclaimed water cycles through large industrial users (for example, Amcor) and the net return of reclaimed water to the city’s treatment system.
Ending: Staff scheduled multiple water study sessions to present portfolio options, the purchase agreement, and additional analyses before any purchase or binding action.
