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Peoria refers Rose Valley Water franchise to Nov. 3 ballot; company deposits $121,000 to cover election costs
Summary
The council voted 7-0 to adopt a resolution referring a 25-year franchise agreement with Rose Valley Water Company to the Nov. 3, 2026 general election and to appropriate funds deposited by the company (about $121,000) to pay election costs. Staff emphasized the city will not take over rates or ownership.
Peoria City Council voted unanimously April 21 to refer a proposed franchise agreement with Rose Valley Water Company to the Nov. 3, 2026 general election and to appropriate funds deposited by the utility to cover election expenses.
Ben Ganados, the city’s development agreement manager, told council the franchise would formalize Rose Valley’s right to operate within city rights-of-way and require a 2% franchise fee on gross receipts. “Rose Valley has deposited a little over $121,000” to cover estimated election costs, Ganados said.
Ganados described Rose Valley as a company formed in 1958 that was acquired by New River/Northwest Natural Water in 2023 and that it serves roughly 2,233 customers in central Peoria. The agreement presented for referral would set a 25-year term and require council consent for any transfer of the franchise and Arizona Corporation Commission approval for company-level changes.
Addressing misinformation circulated during a prior franchise election, Ganados said the city would not take over the utility or set its rates. “That wasn't true. Then it's definitely not true now,” Ganados said, and he added that the city has no authority to increase utility rates, which are set through the Arizona Corporation Commission process.
Council members asked whether Rose Valley serves other municipalities (Ganados said he was not aware of other municipal service areas), whether the 2% fee covers maintenance of infrastructure in the right-of-way (the company remains responsible for its lines), and what would happen if voters rejected the franchise (staff said the city would work with the company on an interim operating agreement and could return the franchise question to a future ballot).
The motion to adopt Resolution 2026-67 referring the franchise to the general election ballot and to approve the related budget appropriation passed 7-0. The ballot question will ask voters to approve the franchise agreement in November; if rejected, staff said the city would seek interim arrangements to maintain water service while resolving franchise status.
The council packet includes the proposed franchise agreement and referenced background information; staff said they would follow up with additional details if council members requested further clarification.
