Item Report

Item Number: H.5.
CITY COUNCIL REPORT
SUBJECT: Resolution No. 2664 - Amendment No. 1 to the Agreement for the Sale and Purchase of
Wastewater Effluent
MEETING DATE: September 22, 2026
TO: Mayor and Council
FROM: Jamie McCracken, Utilities Director
REVIEWED: Reyes Medrano, Jr., City Manager
PURPOSE:
The Utilities Department is requesting adoption of Resolution No. 2664 approving Amendment No. 1 to the
Agreement for the Sale and Purchase of Wastewater Effluent among the City of Tolleson, Arizona, Arizona Public
Service Company and Salt River Project Agricultural Improvement and Power District, and authorizing the Mayor
to execute and deliver the Amendment.
BACKGROUND:
On June 30, 2000, the Mayor and Council adopted Resolution No. 846 approving the Agreement for the Sale
and Purchase of Wastewater Effluent. The Agreement was executed on November 13, 2000, and provides for
the City to sell surplus effluent from its wastewater treatment facility to Arizona Public Service Company and
Salt River Project Agricultural Improvement and Power District for use in electric power plant cooling.
The parties are negotiating the future of the Agreement. The City’s wastewater treatment facility currently
receives a substantial portion of its influent from third-party contributors, and the operational and contractual
matters associated with those contributors continue to change. Amendment No. 1 provides temporary terms
for calendar years 2026 and 2027 while the parties continue those discussions.
DISCUSSION:
Amendment No. 1 establishes a price of $275.00 per acre-foot for effluent sold and delivered under the
Agreement during calendar years 2026 and 2027. Arizona Public Service Company and Salt River Project
Agricultural Improvement and Power District will pay only for effluent actually sold and delivered by the City.
The temporary pricing expires automatically on December 31, 2027, unless the parties extend it by written
agreement.
The parties will continue good-faith discussions during 2026 and 2027 concerning a potential future
amendment to the City’s effluent delivery obligations. Amendment No. 1 does not change those obligations
unless the parties execute a subsequent written amendment. All provisions of the original Agreement that are
not expressly amended remain in full force and effect. If a conflict exists, Amendment No. 1 controls.
BUDGET IMPACT:

There is no expenditure associated with Amendment No. 1. The Amendment establishes revenue of $275.00
per acre-foot for effluent sold and delivered during calendar years 2026 and 2027. Total revenue will depend
on the volume of effluent the City sells and delivers during that period.
RECOMMENDATION:
Staff recommends adoption of Resolution No. 2664 approving Amendment No. 1 to the Agreement for the Sale
and Purchase of Wastewater Effluent and authorizing the Mayor to execute and deliver the Amendment.
ATTACHMENTS:
1. Res 2664 First Amendment the Sale and Purchase of Wastewater Effluent Agreement with APS and SRP -
Res 846 09 22 26