David D. Ortega (left), Mayor of the City of Scottsdale and Barry Graham, Vice Mayor of the City of Scottsdale | https://www.scottsdaleaz.gov/council
David D. Ortega (left), Mayor of the City of Scottsdale and Barry Graham, Vice Mayor of the City of Scottsdale | https://www.scottsdaleaz.gov/council
The Scottsdale City Council has approved an intergovernmental agreement to address the water supply issues faced by residents in the Rio Verde Foothills area of Maricopa County. This decision was made during the council meeting on September 5.
The agreement is with the Rio Verde Foothills Standpipe District, which was established through Arizona Senate Bill 1432 in June. The city clarified that its own water resources would not be utilized for this purpose. Instead, the rate charged to the district will ensure that costs are fully recovered for Scottsdale residents who finance the city's water infrastructure and operations.
According to the terms of the agreement, the Rio Verde Foothills Standpipe District will secure a separate water supply, which Scottsdale will treat at one of its surface water treatment facilities. The treated water will then be available at the Pima Road Fill Station for haulers contracted by the district to serve up to 750 customers in Rio Verde Foothills, as specified by A.R.S. 9-500.40.
Scottsdale's contract is solely with the district, allowing it to make further arrangements necessary to distribute water to its customers. This arrangement is set to conclude on December 31, 2025.
Scottsdale Water operates as an enterprise fund, meaning all associated costs for obtaining, treating, testing, and delivering water are covered by system ratepayers—currently about 94,000 residential and business customers. The rates charged to Rio Verde Foothills Standpipe District aim to cover these costs while accounting for system losses and non-recoverable wastewater usage.
The proposed rate includes a capital recovery fee intended for upgrading Scottsdale's Pima Road fill station. These upgrades are crucial for operating safely and reliably at higher capacities required by additional contracted haulers from the district. It is estimated that about 85% of this station's capacity will be used by the district; thus, they will bear 85% of approximately $1.2 million in improvement costs via this fee.
Although improvements are necessary at the fill station, they won't hinder immediate availability of water once all requirements under this agreement are met; service could commence within seven days.
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