Resolution No. 5689

RESOLUTION NO. 5689 
 
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHANDLER, 
ARIZONA AUTHORIZING THE SALE OF EIGHTEEN PERCENT (18%) OF 
THE STORAGE CAPACITY THE NEW RIVER AND AGUA FRIA RIVER 
UNDERGROUND STORAGE PROJECT TO AVONDALE; AUTHORIZING 
THE LEASE OF EIGHT PERCENT (8%) OF THE STORAGE CAPACITY 
THE NEW RIVER AND AGUA FRIA RIVER UNDERGROUND STORAGE 
PROJECT FROM AVONDALE; APPROVING THE EXECUTION OF AN 
INTERGOVERNMENTAL AGREEMENT AND LEASE AGREEMENT TO 
EFFECTUATE THE STORAGE CAPACITY SALE AND LEASE BACK; AND 
AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTION 
NECESSARY OR PRUDENT IN FURTHERANCE OF THE STORAGE 
CAPACITY SALE AND LEASE BACK.   
 
 
 
WHEREAS, the cities of Chandler and Avondale are parties to and participants in the New River 
and Agua Fria River Underground Storage Project Intergovernmental Agreement dated August 
4, 2004, as amended July 23, 2008 (“NAUSP Agreement”), together with the City of Glendale, 
the City of Peoria, the Salt River Valley Water Users’ Association, and the Salt River Project 
Agricultural Improvement and Power District; and 
 
WHEREAS, under the terms of the NAUSP Agreement, Chandler’s water storage entitlement is 
twenty-two and eight tenths percent (22.8%) of the storage capacity of the New River and Agua 
Fria River Underground Storage Project (“NAUSP”); and 
 
WHEREAS, Chandler is committed to sustainable aquifer management and prioritizes aquifer 
replenishment in close proximity to the location of groundwater pumping; and  
 
WHEREAS, reducing NAUSP deliveries supports Chandler’s aquifer management goals and 
priorities; and  
 
WHEREAS, Chandler desires to sell, and Avondale desires to purchase, Chandler’s storage 
entitlement equal to eighteen percent (18.0%) of the storage capacity of the NAUSP for a 
purchase price of five million seven hundred fifty-three thousand two hundred thirty-seven 
dollars and thirteen cents ($5,753,237.13); and  
 
WHEREAS, the parties will execute the Intergovernmental Agreement for the Conveyance of 
Rights in the New River and Agua Fria River Underground Storage Project (“IGA”) to 
effectuate the sale; and 
 
WHEREAS, Avondale has agreed to lease back eight percent (8.0%) of the NAUSP storage 
capacity to Chandler for the period of July 1, 2023 through December 31, 2026 with an option to 
extend for an additional one-year period, providing Chandler with a total storage entitlement of 
twelve and eight tenths percent (12.8%) during the term of the Lease; and

WHEREAS, the parties will execute the Agreement for the Temporary Assignment of Declared 
Firm Lease Capacity in the New River and Agua Fria River Underground Storage Project (the 
“Lease”) to effectuate the lease back.  
                                                                                             
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chandler, 
Arizona, as follows: 
 
Section 1. Authorizes and directs the City to sell eighteen percent (18.0%) of the NAUSP 
storage capacity, currently owned by the City of Chandler, to the City of Avondale 
for the purchase price of $5,753,237.13 pursuant to the IGA that is approved in 
substantially the form attached hereto as Exhibit “A.” 
 
Section 2.    Authorizes and directs the City to lease eight percent (8%) of the NAUSP storage 
capacity from Avondale for the period of July 1, 2023 through December 31, 2026 
with an option to renew for an additional one-year period pursuant to the Lease that 
is approved in substantially the form attached hereto as Exhibit “B.” 
 
Section 3. Authorizes the City Manager or designee to do and to perform all acts necessary or 
prudent to effectuate the sale and lease back of the storage entitlement as agreed to 
in the IGA and the Lease.   
 
PASSED AND ADOPTED by the City Council this __________day of _______________, 
2023. 
 
ATTEST: 
 
___________________________ 
 
 
 
__________________________ 
CITY CLERK                   
 
 
 
 
MAYOR 
 
 
 
 
 
CERTIFICATION 
 
I HEREBY CERTIFY that the above and foregoing Resolution No. 5689 was duly passed and 
adopted by the City Council of the City of Chandler, Arizona, at a regular meeting held on the 
_____ day of _________________, 2023, and that a quorum was present thereat. 
 
 
 
 
 
 
 
____________________________ 
 
CITY CLERK  
 
 
 
 
 
APPROVED AS TO FORM 
 
 
_____________________________ 
CITY ATTORNEY