Title
Intergovernmental Agreement with New Magma Irrigation & Drainage District for Groundwater Savings (Ordinance S-45517)
Description
Request to authorize the City Manager, or his designee, to execute an Intergovernmental Agreement between the City of Phoenix (Phoenix) and the New Magma Irrigation & Drainage District (NMIDD) to store portions of Phoenix's annual allocation of Colorado River water. This arrangement allows NMIDD to save groundwater and Phoenix to earn Long-Term Storage Credits; there is no cost to Phoenix and NMIDD will pay Phoenix up to $200,000 under the Agreement. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
Each year Phoenix stores a portion of its Colorado River allocation in underground storage facilities and groundwater savings facilities in order to earn long-term storage credits that can be recovered in the future when Phoenix supplies are reduced by shortage. NMIDD is located within the Phoenix Active Management Area and provides irrigation water to farms and other users within its service area. The district has been permitted as a Groundwater Savings Facility (GSF) by the Arizona Department of Water Resources and can accept Colorado River water deliveries from third-parties, such as Phoenix, to deliver to NMIDD customers. NMIDD's use of Colorado River water saves groundwater from being pumped; Phoenix receives a long-term storage credit for the groundwater thus saved. At a later time, Phoenix can recover its long-term storage credits using its own wells or any other well in the Phoenix Active Management Area.
While the amount of water stored is variable and will be determined on an annual basis by the Director of the Water Services Department (WSD), the maximum amount of Phoenix water to be delivered to NMIDD is 10,000 acre-feet/year. NMIDD will pay Phoenix $20/acre-foot for the water sent to the district. Separately, Phoenix pays for its Colorado River allocation pursuant to its subcontract with the Central Arizona Water Conservation District and the United States Bureau of Reclamation.
Contract Term
The term is for three years effective April 1, 2019, and ending March 31, 2022, with an option to extend for an additional three years, which may be exercised by the City Manager or his designee.
Financial Impact
The financial impact of this Agreement is a maximum of up to $200,000 to be received each year, based upon $20/acre-foot and 10,000 acre-feet/year maximum. Any funds received by the City from NMIDD will be credited to the Aquifer Storage Fund in WSD's Capital Improvement Program.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.