File #: 19-1461   
Type: Ordinance-S Status: Adopted
Meeting Body: City Council Formal Meeting
On agenda: 6/5/2019 Final action: 6/5/2019
Title: Add Additional Parties to Drought Contingency Plan Intergovernmental Agreements with: Pinal County Irrigation Districts; Arizona Water Banking Authority; and Various Entities and Central Arizona Water Conservation District (Ordinance S-45747)
District: Citywide, Out of City
Related files: 19-0363
Title
Add Additional Parties to Drought Contingency Plan Intergovernmental Agreements with: Pinal County Irrigation Districts; Arizona Water Banking Authority; and Various Entities and Central Arizona Water Conservation District (Ordinance S-45747)

Description
Request to authorize the City Manager, or his designee, to enter into four Intergovernmental Agreements and one Agreement with: Pinal County irrigation districts to store Colorado River water; various entities to exchange long-term water storage credits; and various entities for water deliveries during the implementation of the Lower Basin Colorado River Drought Contingency Plan. Further request to authorize the City Treasurer to accept all funds related to these items.

Report
Summary
At its Formal Meeting on Feb. 20, 2019, Council adopted Ordinance S-45412, which authorized the City Manager, or his designee, to enter into several agreements related to the Lower Basin Colorado River Drought Contingency Plan (LBCRDCP) and for the City Treasurer to accept all funds related to those items. Those agreements included: one or more Intergovernmental Agreements (IGAs) with Pinal County irrigation districts to store Colorado River water; an IGA with the Arizona Water Banking Authority to exchange long-term water storage credits; and a Mitigation Agreement between various entities and the Central Arizona Water Conservation District for water deliveries. A copy of the Council Report included with the Feb. 20, 2019 agenda item is attached for reference (Attachment A).

Since the original Council approval, the parties to the agreements requested that the United States Bureau of Reclamation and the Arizona Department of Water Resources be included as parties in one or more of the agreements. In addition, because private companies were included in the exchange agreement with the Arizona Water Banking Authority, the form of agreement cannot be an IGA. These changes do not impact the obligations and benefits of the respective agreements to the City as authorized by Council in February. In the interests of all concerned for implementation of the LBCRDCP, staff has no objection to these modifications. The agreements are entitled as follows:

An Agreement Among the United States of America Represented by the Secretary of the Interior Acting Through the Regional Director of the Lower Colorado Region of the Bureau of Reclamation, the Arizona Department of Water Resources, the Arizona Water Banking Authority, the Central Arizona Water Conservation District, the Gila River Indian Community, City of Chandler, Town of Gilbert, City of Glendale, City of Mesa, City of Phoenix, City of Scottsdale and City of Tempe for the Mitigation of Reductions to Non-Indian Agriculture Priority Central Arizona Project Water Under the LBCRDCP.
LBCRDCP Implementation Plan - IGA for Water Storage Between City of Phoenix, Central Arizona Irrigation and Drainage District, and the Arizona Department of Water Resources.
LBCRDCP Implementation Plan - IGA for Water Storage between City of Phoenix, Maricopa Stanfield Irrigation and Drainage District, and the Arizona Department of Water Resources.
LBCRDCP Implementation Plan - IGA for Water Storage between City of Phoenix, Hohokam Irrigation and Drainage District, and the Arizona Department of Water Resources.
LBCRDCP Implementation Plan - Agreement to exchange long-term storage credits between Arizona Water Banking Authority and City of Avondale; City of Chandler; City of Goodyear; City of Peoria; City of Phoenix; City of Scottsdale; City of Tucson; Freeport Minerals Corporation; and EPCOR Water Arizona, Inc.

Staff recommends approval of these five agreements.

Contract Term
The IGAs with the Pinal County irrigation districts will be effective upon execution and through Dec. 31, 2022. The Agreement with the Arizona Water Banking Authority will be effective upon execution and through Dec. 31, 2026. The IGA between various entities and the Central Arizona Water Conservation District will be effective upon execution and through Dec. 31, 2026.

Financial Impact
There is no cost to the City for these agreements.

Concurrence/Previous Council Action
The City Council approved IGAs with Pinal County Irrigation Districts; with Arizona Water Banking Authority; and between various entities and Central Arizona Water Conservation District (Ordinance S-45412) on Feb. 20, 2019.

Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.