Title
Water Services Department Mutual Aid Agreement (Ordinance S-53077) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into a Mutual Aid Agreement, as well as any necessary amendments, setting out the elements of the Secure Water Arizona Program (“SWAP Agreement”) with numerous Colorado River/Central Arizona Project (“CR/CAP”) agencies and water users ("Parties"). The SWAP Agreement addresses water needs in Arizona created by future shortages on the Colorado River. Further request to authorize the City Controller to disburse all funds related to this item.
Additionally, request the City Council to grant an exception to Phoenix City Code 42-18 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise would be prohibited.
Report
Summary
The Colorado River Basin is in the midst of a prolonged climate shift that has driven reservoir storage on the Colorado River to historic lows. The United States Bureau of Reclamation (“Reclamation”) is expected to adopt new Post-2026 Colorado River Operating Guidelines (the “Post-2026 Guidelines”) that will likely take effect January 1, 2027. In addition, the federal “preferred alternative,” identified in the Post-2026 Guidelines, is a 10-year program of water cuts of up to three million acre feet annually to the Lower Basin States of Arizona, California and Nevada.
The need to address existing and potential water cuts has resulted in the City and other Arizona parties to collaborate in the development of the SWAP Agreement to establish a framework by which the Parties can work together to address their water needs through voluntary transactional arrangements.
The three primary functions of the SWAP Agreement are to:
- Create an emergency reserve of water to address CR/CAP water shortages that may be experienced by Arizona municipal water providers.
- Create a reduction offset program by which SWAP parties develop supplies to replace the 760,000 acre feet per annum shortage to CR/CAP water users.
- Encourage new and novel water transactions that may be used and/or expanded to address the water needs of the Parties and create resources for the emergency reserve and the offset program.
As Phoenix participates in SWAP discussions, any transactional agreements that are developed will be brought to Council for approval.
All participants with a stake in CR/CAP water shortages in Arizona may become SWAP members, including public and private municipal water providers, Native communities, water organizations, regulatory agencies, and Parties that hold CR/CAP entitlements.
SWAP will be administered by the Central Arizona Water Conservation District (CAWCD), with member Parties contributing to administration costs, and governed by a committee of SWAP members, including a representative from Phoenix.
Contract Term
The SWAP Agreement with CAWCD for administrative costs will have a term of up to 10 years, and the City Manager, or designee, is authorized to enter into two five-year extensions.
Financial Impact
The maximum expenditures for the SWAP Agreement to be paid to CAWCD to contribute toward the administrative costs for the initial term will not exceed $5,000,000. Funds are available from the Water Services Department budget.
Concurrence/Previous Council Action
Council directed staff to develop the SWAP program and enabling agreements at the City Council Policy Meeting held on April 28, 2026.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Water Services Department.