Title
Authorization to Enter into Intergovernmental Agreement with Metropolitan Domestic Water Improvement District for Storage, Recovery and Exchange of Colorado River Water (Ordinance S-44992)
Description
Request to authorize the City Manager, or his designee, to enter into an Intergovernmental Agreement (IGA) between the City of Phoenix and the Metropolitan Domestic Water Improvement District (Metro) for storage, recovery, and exchange of Colorado River water. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
Metro is a Tucson-area public water utility. The IGA authorizes Phoenix to store and recover up to 8,000 acre-feet annually of its Colorado River water at Metro's Avra Valley Recharge Project (AVRP). Since 2015, when a pilot project was commenced and later expanded, Phoenix has stored approximately 8,650 acre-feet of its unused annual Colorado River water allocation at AVRP. The current IGA terminates on Dec. 31, 2018.
Phoenix will pay Metro an Annual Water Storage Fee, starting at $32.95 per acre-foot in 2019, and escalating up to $38.41 per acre-foot in 2028. Separately, Phoenix pays for its Central Arizona Project (CAP) allocation of Colorado River water pursuant to its subcontract with the Central Arizona Water Conservation District and the United States.
Contract Term
The term of the IGA will begin on Jan. 1, 2019 for ten years and includes an option to extend for up to 10 years, which may be exercised by the City Manager or designee.
Financial Impact
The total cost to store the maximum amount of 8,000 acre-feet per year of Phoenix's CAP (Colorado River) water in AVRP from 2019 through 2028, is approximately $2,845,745, with an average annual expense of $284,575. Funding is available in the Water Services Department's Capital Improvement Program budget.
Concurrence/Previous Council Action
The original IGA was approved by City Council on Oct. 1, 2014, as a pilot program. The City Council further approved Ordinance S-42167 (Amendment 1) on Nov. 18, 2015, and Ordinance S-43199 (Amendment 2) on Dec. 14, 2016.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.