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Large Water User Ordinance Update Presented by Joe Giudice, Water Resources Director Kathy Macdonald, Water Resources Advisor Responsible development through strategic water resource management Partnership with the business community to protect the long-term reliability of Mesa’s water supplies Building on success through partnership Mesa is building on the ordinance’s success. The proposed updates provide commerce and industry more flexibility to improve operations and use water efficiently, while protecting Mesa’s water supplies and supporting responsible development. 1 Building on a successful ordinance 2019 2024 Ongoing refinement One of Arizona’s first Ordinance updated to Lessons learned, benchmarking, large water user ordinances improve effectiveness best practices and customer feedback No new water-cooled data centers since 2021 A successful framework for managing large industrial water demand and supporting water efficiency and innovation 2 Goals for the next stage Responsible Support economic development through water stewardship and development strategic resource management. Flexibility Give the City and customers practical options to manage demand and adapt as conditions change. Reliable water Protect Mesa’s water portfolio and the long-term reliability of supplies service. The ordinance provides a framework for Mesa and industry to work together through the application process to assess long-term water Industry innovation resource sustainability and identify opportunities for water efficiency, on-site reuse and innovation. 3 Customer examples of water innovation investments Advanced cooling Plant-based water Cooling with Landscape and water treatment treatment outside air fixture efficiency Resin treatment reduces Natural treatment media Outside-air cooling when Desert-adapted plants, water demand and helps maintain water quality conditions allow reduces efficient irrigation and water- wastewater discharge. and reduces chemical use. water demand. saving fixtures reduce demand. 4 Demand ceiling and customer transition Standard Demand Ceiling (acre-feet) Current Ordinance Proposed Ordinance 330 AF 224 AF Residential and hospital exclusions. Add schools to the exclusions. All landscape meters remain covered. Transition for qualifying existing customers Qualifying customers retain a 330 AF ceiling. A Permit and Allowance are required before exceeding 330 AF. 5 Conservation and shortage safeguards Required conservation plan Submit with each Permit application and renewal. Implement approved efficiency, waste prevention and reuse measures. Update at least every five years during extended permit terms. Shortage and emergency safeguards Permits and Allowances remain subject to drought, shortage and system constraints to protect reliable water service for all customers. 8 A united voice for reliable water supplies Mesa and our business community can speak with a united voice to the Bureau of Reclamation about the importance of reliable water supplies to our residents, business operations, and economic future, while demonstrating our shared commitment to water efficiency and responsible growth. 9 Questions? Water Shortage Management Plan PROPOSED 2026 UPDATE City Council Study Session Joe Giudice | Water Resources Director Nicole Petker | Water Resources Advisor Lauren Whittaker| Deputy Director - Environmental Water Conservation Program Overview Commitment to Water Conservation Mesa Leading By Example Purpose of the Water Shortage Management Plan A clear, flexible framework to protect water service when water supplies or system capacity are under stress. PREPARE EARLY PROTECT ESSENTIAL RESPOND 1 2 SERVICE 3 PROPORTIONALLY Identify changes in supply, Prioritize drinking water, Match the reduction goal and demand, infrastructure and sanitation, fire protection, response to the actual cause, operations before conditions public health and long-term severity, duration and location become critical. supply reliability. of the shortage. It is the decision framework that helps Mesa choose the right response. Water Shortage Management Plan Update 1 Why update the Plan now? Lessons learned from prolonged drought and evolving water conditions point to the need for a more flexible, portfolio-based response. Plan to reflect Mesa today Drought is ongoing Flexible/Adaptable The update aligns with Council Mesa needs a framework that can Prior triggers were source-specific priorities, community expectations, handle changing regulations, supply and stage-linked. That worked for a and a more mature water portfolio. reductions and operational realities simpler drought framework. together. Flexible – Adaptive – Effective A more flexible, evaluative framework supports Mesa’s 100-year Assured Water Supply while allowing the City to respond to changing conditions. Water Shortage Management Plan Update 2 Guiding principles Water Shortage Management Plan Update 3 Water Shortage Triggers – A Shortage is not Always Drought ↓ § ↑ ! Prolonged Reduced supply Infrastructure Regulatory High demand Combined drought outage change conditions Canals, plants, power, Contractual Dry watersheds Less water available Heat and peak use Multiple pressures chemicals availability MAY RESULT IN A WATER SHORTAGE CONDITION 4 The proposed approach supports long-term reliability − = Inclusive by design: demand, renewable supply, reserve durability and future supply outlook are evaluated together. Evaluate reserve Determine Trigger shortage 1 2 3 response reliance reduction need Protects Mesa’s 100-year Assured Water Supply while preserving flexibility as conditions and supplies change. Water Shortage Management Plan Update DRAFT 3 5 Living A Desert Lifestyle Mesa does not wait for a shortage to manage water responsibly. Maintain Monitor & manage Optimize water use infrastructure water supply at City facilities & reduce loss Operate efficiently & Plan for efficient Coordinate & prevent waste growth continually improve Water Shortage Management Plan Update 6 Water Shortage Stages Four progressive stages. Actions reflect the shortage and local conditions. 1 2 3 4 WATER WATCH WATER ALERT WATER WARNING WATER EMERGENCY 0–10% 10–25% >25% As needed Awareness and Voluntary, targeted and Selected measures Emergency actions to voluntary efficiency mandatory options are mandatory protect essential services Water Shortage Management Plan Update 7 Flexible by design: Combine the right tools for the reduction goal Education, assistance Efficiency Restrictions, standards & incentives improvements & enforcement Use the combination that best fits the reduction goal, timing, customer impacts and available resources. Voluntary Phased / Focused Mandatory Water Shortage Management Plan Update DRAFT 10 9 Flexible demand-management toolbox: Examples of water-saving actions AMI leak alerts 4.0% Large landscape budgets 1.2% Outdoor watering days/frequency 4.3% High-use conservation plans 1.2% Winter overseeding restrictions 4.3% Cooling-tower efficiency 1.1% Utility water-loss reduction 2.0% Water-waste enforcement 1.0% High-use engagement/reviews 1.2% Overnight outdoor watering 1.1% Education / assistance Efficiency improvements Restrictions / standards 16 Water Shortage Management Plan Update Illustrative example: a 10% to 25% reduction goal Different actions can contribute to the same community goal. Phased / Focused • Large landscape reviews • High-use conservation plans • Cooling-tower optimization • Water-waste warnings Voluntary / Supportive Mandatory • Stage-specific 10%-25% • Water-waste enforcement communications • AMI leak guidance Community • Outdoor watering schedules • Overnight outdoor watering • High-use customer outreach reduction goal • Winter overseeding limits • Water Use It Wisely resources Water Shortage Management Plan Update 11 Public communication and input A clear public message is part of every shortage stage. The stage The scope The objective The actions The progress Which stage applies Where it applies and The water-use What is voluntary or Results and when and why. how long it may last. reduction target. required, and measures may effective dates. change. Public input helps confirm that the approach is understandable, practical and aligned with community expectations. Water Shortage Management Plan Update 12 Next steps Complete the framework, confirm 2027 conditions, then determine the appropriate shortage stage. Return to Council Ordinance adoption + updated Plan Early 2027 Continue monitoring Pending legal developments Shortage Stage Recommendation Finalize 2027 water order Current estimated reductions + supply conditions 27 A comprehensive, adaptable and measurable approach to water resilience. Questions?? 14