Item Report

Item Number: I.1.
CITY COUNCIL REPORT
SUBJECT: Second Amendment to Intergovernmental Agreement with the City of Phoenix for
Water Services
MEETING DATE: September 22, 2026
TO: Mayor and Council
FROM: Jamie McCracken, Utilities Director
REVIEWED: Reyes Medrano, Jr., City Manager
PURPOSE:
To request City Council adoption of Resolution No. 2662 approving the Second Amendment to the
Intergovernmental Agreement between the City of Tolleson and the City of Phoenix for water services.
BACKGROUND:
The City of Tolleson and the City of Phoenix entered into an Intergovernmental Agreement in 2020 for Phoenix
to divert, treat, and transport Tolleson’s entitlement water and to provide backup emergency water service.
The original agreement established Points of Delivery at 83rd Avenue and Interstate 10 and at 67th Avenue and
Buckeye Road. The agreement was subsequently amended in 2024 to revise provisions related to wholesale
water costs.
The proposed Second Amendment was initiated to establish a third interconnect between the Tolleson and
Phoenix water systems near 91st Avenue and Buckeye Road. The proposed location is identified on the
accompanying site map.
DISCUSSION:
The additional interconnect will provide Tolleson access to approximately 2.16 million gallons per day of its
existing Salt River Project water allotment. The additional connection is intended to provide greater system
redundancy, improve pressure balancing within the City’s water distribution system, and enhance the City’s
ability to serve existing and future customers.
The Second Amendment formally adds the 91st Avenue and Buckeye Road location as a third Point of Delivery.
Tolleson will be responsible for funding, designing, permitting, and constructing the new interconnect. Tolleson
will also procure, at its expense, a third-party consultant to provide plan review, construction oversight, and
technical assistance on behalf of Phoenix for the new connection.
The Amendment also establishes maximum flow rates for the three Points of Delivery, including a maximum
flow of 1,500 gallons per minute specifically at the new 91st Avenue connection.
Additionally, Tolleson will install the equipment necessary to allow Phoenix to remotely control the connection
points through the Supervisory Control and Data Acquisition (SCADA) system. The Amendment also addresses
backflow prevention, acceptable water sources, and the annual delivery limit applicable to Tolleson’s

entitlement water.
The proposed Amendment has been reviewed by the City’s Legal, Utilities, and Engineering teams, and
comments and requested revisions have been incorporated.
BUDGET IMPACT:
The Second Amendment does not establish a specific total project cost. Under the Amendment, the City of
Tolleson is responsible for the costs associated with the design, permitting, and construction of the new 91st
Avenue interconnect, as well as the cost of the third-party consultant providing services on behalf of Phoenix
and the required SCADA improvements.
RECOMMENDATION:
Staff recommends that the Mayor and City Council adopt Resolution No. 2662, approving the Second
Amendment to the Intergovernmental Agreement between the City of Tolleson and the City of Phoenix for
water services and authorizing the City Manager to execute and deliver said Amendment.
ATTACHMENTS:
1. Res 2662 Second Amendment to City of Phoenix IGA for Water Services - Entitlement and Emergency
Water 09 22 26