AWBA: Meeting Minutes

FINAL MEETING MINUTES

March 18, 1998
Arizona Department of Water Resources
Arizona Water Banking Authority

Welcome / Opening Remarks: Chairman Pearson opened the Arizona Water Banking Authority meeting. All members of the Authority were present except Grady Gammage, Jr., Senator Pat Conner and Representative Gail Griffin.

Adoption of Minutes of February 18 Meeting: The February 18 meeting minutes were adopted as submitted.

Discussion of the 1998 Annual Plan of Operation and staff activities: Mr. Henley discussed water deliveries for the month of February. Approximately 10,000 af was recharged. Mr. Henley stated that he had anticipated another 15,000 af of water to be recharged in February but there was a significant drop in orders due to the heavy rainfall. For the month of March it is anticipated that 32,000 af will be recharged.

The CAWCD Board has decided to proceed with the lawsuit filed by the USBR over CAP repayment but currently will continue to work towards a negotiated settlement. The Water Banking staff (AWBA) has been involved in the discussions to try to help facilitate a settlement.

The AWBA is in the process of developing an agreement with the CAWCD for the Pima Mine Road Underground Storage Facility. The AWBA will also draft a new agreement with the CAWCD for the Avra Valley facility.

Presentation by Vidler Water Company on MBT Ranch: The Vidler Water Company (Vidler) has purchased a ranch in the Harquahala Valley area in La Paz County. Vidler intends to use the ranch to develop a recharge facility for a direct recharge project. Vidler has applied to the ADWR for a recharge permit. The permit is currently in the public comment phase.

If the AWBA is to participate in the project with Vidler the AWBA would need to go through the bidding process according to the Procurement Code. In order to amend the 1998 Plan of Operation to include this project, the AWBA must hold a public meeting in conjunction with La Paz County Board of Supervisors. The project will be permitted as a "pilot program" which Vidler Water Co. Anticipates will provide the data necessary to eventually operate as a full-blown project.

Greg Bushner of HydroSystems, Inc. gave an overview of Vidler's underground storage facility currently under construction. Mr. Bushner described the water storage techniques and the monitoring equipment. The cost of water storage at the Vidler facility is still being determined. Vidler Water Co. expects political subdivisions within and outside Arizona to store water at the facility.

AWBA approval of submission of comments to the Secretary of the Interior: Mr. Henley discussed the draft comments to the proposed rule governing interstate water banking. The AWBA and the ADWR comments on the proposed rule are almost complete and will be ready for submission by the deadline. There will be another USBR hearing on March 27 in Ontario, California, which Mr. Henley will attend. Herb Dishlip (ADWR), and Mike Pearce, Chief Counsel for the ADWR, will also attend the hearing.

Mr. Henley stated that there are still two main areas of concerns with respect to the proposed rule: the definition of "authorized entity" and the details of the Interstate Storage Agreement that will govern interstate banking.

Ms. Pearson added that conversation between USBR representatives and interested parties, such as the AWBA, about the proposed changes during the public comment period is not possible.

Gerry Edwards of the Southern Nevada Water Authority stated that Nevada endorses about 98% of what is currently in the AWBA and ADWR comments to the proposed rule.

The Authority moved for submission of the comments to the USBR and all members approved.

Update on Study Commission Activities: Herb Dishlip gave an overview of the Study Commission. The Study Commission subcommittees continue to be very active with the following meetings already held:

February 25, 1998
Interstate/Intrastate Water Banking and Marketing subcommittee: The issues on interstate regulations were discussed.
Indian Issues subcommittee: The subcommittee discussed the opportunity to store water on Indian land. Mr. Dishlip stated that he will be attending a meeting on March 4 of the Southern Arizona River Water Rights Settlement group.

March 4, 1998
Finance and Taxation subcommittee: The subcommittee discussed the four-cent tax and in lieu tax requested to be levied for interstate banking.

March 18, 1998
Benefits Outside CAP Service Area subcommittee: The issues to be discussed are the role the AWBA for communities outside CAP area and the Grand Canyon Village proposal.

Interstate Discussions: Ms. Pearson updated the Authority on Interstate discussions. She commented that there have not been any recent seven Basin State meetings. Ms. Pearson briefly discussed the effort by the U.S. Congress to authorize restoration of the Salton Sea in southern California. At a hearing before a congressional committee in Washington, D.C., Chris Harris of the ADWR testified about the ADWR's concerns over certain provisions of the proposed bill, especially California's ability to accomplish restoration while staying within or close to its 4.4 million acre foot allotments of water.