Title
Agreement to Share Costs for the Feasibility Study of Proposed Salt River Project-Central Arizona Project Interconnect Facility Among Cost-Share Partners and Salt River Project Agricultural Improvement and Power District Doing Business as Salt River Project (Ordinance S-49859)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with the Salt River Project Agricultural Improvement and Power District and others (Parties) to share the costs of a technical review of a proposed Salt River Project-Central Arizona Project (SRP-CAP) Interconnect Facility. Further request to authorize the City Controller to disburse all funds related to this item. Phoenix's share of the technical review costs will not exceed $139,510.
Report
Summary
The Bureau of Reclamation (BOR) is conducting a technical review to consider the size and placement of the SRP-CAP Interconnect Facility (SCIF) to allow for the transport of water from the Salt River Project (SRP) system directly to the Central Arizona Project (CAP) canal. The SCIF would provide opportunities to physically transport water from the Salt and Verde rivers to new locations, opening new options for exchange, storage, and other water management tools providing greater flexibility within Phoenix's water portfolio.
SRP estimates the non-federal portion of the technical review could cost as much as $1,142,352 to evaluate the size of the SCIF, the cost of construction, the need for an additional interconnect facility that would transport water from the SRP system to the CAP system, local interest in using such an interconnect facility, and investigation of the environmental impact. SRP has asked Phoenix and other interested parties to share the non-federal costs of the technical review. Because of Phoenix's interest in owning capacity in the interconnect facility to optimize the use of its water resources, Phoenix would contribute up to $139,510 to the costs of the technical review. There are approximately 11 other entities participating in the cost share agreement, including, but not limited to the cities of Apache Junction, Chandler, Glendale, Mesa, Peoria, Scottsdale, and the towns of Carefree, Gilbert, and Queen Creek.
Contract Term
The Agreement terminates when the technical review is completed or BOR otherwise terminates the technical review. The parties expect that the feasibility study will be completed in approximately ten years.
Financial Impact
The total cost of the agreement will not exceed $1,142,352 with Phoenix's cost being no greater than $139,510. Funding for this agreement is available from the Colorado River Resiliency Fund, a part of the Water Services Department's Capital Improvement Budget.
Location
Adjacent to Granite Reef Dam
Council District: Outside of City
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.