|
MEETING MINUTES
Final Minutes for
February 18, 1998
Welcome / Opening Remarks
Chairman Pearson opened the Arizona Water Banking Authority
meeting. All members of the Authority were present except Tom
Griffin, Senator Pat Conner and Representative Gail Griffin.
Adoption of Minutes of January 21 Meeting
The January 21 meeting minutes were adopted as submitted.
Discussion of the 1998 Annual Plan of Operation
Mr. Henley discussed water deliveries for the month of January.
Approximately 15,000 af were recharged. Mr. Henley stated that he
anticipates another 15,000 af of water will be recharged in
February. There is a possibility that there could be a drop in CAP
in lieu deliveries for the months of February and March due to the
El Niño rainfall.
Mr. Henley stated that one requirement within the State agencies is
to put together a strategic plan. A draft of the plan put together
by the Arizona Water Banking Authority (AWBA) staff was provided.
The final version of the strategic plan is due April 1, 1998. The
AWBA staff will be working in conjunction with the ADWR staff
putting together the plan. The plan will include a Mission
Statement, a description of the AWBA, and a financial summary of the
Authority's efforts. Measurable performance goals must be included
in the plan package. Four goals have been submitted by the AWBA
staff: 1) recharging unused Colorado River water; 2) utilizing the
funds that are available; 3) keeping the Authority members content
and 4) drafting interstate agreements.
Ms. Kunasek gave an update of the status of the Innovations in
American Government application. The application has been completed
and sent to the John F. Kennedy School of Government at Harvard
University. The AWBA should be notified in the next few months
whether they have been chosen as finalist in the competition.
Ms. Kunasek gave an on-line presentation of The AWBA's web page,
which is now complete and available for public use. The web page
address is www.awba.state.az.us.
Discussion, public comment, and approval for staff to submit
comments on the Department of Interior's Proposed Rule on Interstate
Banking issued 12/31/97
Mr. Henley gave a brief discussion on the ongoing process of
drafting The AWBA's comments in response to the Bureau of
Reclamation's (BOR) proposed rule governing interstate water
banking. A 30-day extension to the comment period has been granted,
and the new comment deadline is 5:00 p.m. on April 3, 1998. To date,
there has been only one request for a public hearing to the BOR on
the regulation. It has been scheduled for February 23, 1998 in
Ontario, California. The Colorado River Board in California will
hold a meeting on March 11, 1998 to state their concerns. Mr. Henley
stated that he plans to attend both meetings. At this time no other
state has requested a hearing. Ms. Pearson stated that all seven
Basin states agree that the three Lower Basin states should take the
lead on these negotiations. Ms. Pearson stated that the Basin states
would write a letter to Bob Johnson of the Bureau of Reclamation
stating they would support a 30-day extension.
The AWBA, to date, has received about a half dozen letters with
revisions and comments ranging from minor to extensive. The comments
on the preamble are not available. ADWR's comments will be
significant on the preamble, as this is where it can set some policy
issues and intentions. The AWBA will be working on these issues with
ADWR. The comments should be available the week of February 23. Mr.
Henley encouraged the public to submit their comments to the AWBA.
Discussion of CAP/USBR Proposed Settlement
Grady Gammage, Jr., President of the CAWCD Board and Larry Dozier,
Deputy General Manager of the CAP, discussed the proposed settlement
of the lawsuit between the BOR and the CAWCD over repayment of the
costs of constructing the CAP. Mr. Gammage stated that there are
four parts to the settlement. 1) The financial component of the
settlement, wherein CAWCD would agree to a fixed annual payment
schedule, which would remain the same regardless of how much water
is used for municipal purposes and agricultural purposes; 2) the
United State's intention to reallocate large amounts of water to
Arizona's Indian tribes. This is the same offer that the Federal
Government made in 1995, which amounts to an additional 240,000 af.
This includes 65,000 af of unallocated M&I water. Mr. Gammage
stated that this issue has drawn most of the public comments; 3)
after the reallocation of additional water to the Indian tribes, any
unused water could be marketed by CAP annually; and 4) when
deliveries can begin to the Indian tribes. There would be no fixed M&I
charges for Indian water deliveries as it would be delivered at the
pumping cost only.
This agreement would allocate a large quantity of water to the
tribes and would reduce the CAWCD's repayment obligation to
approximately $1.7 billion. Mr. Gammage explained that the cities
are concerned about a block of unallocated CAP water (65,000 af)
that will be included in the Indian allocation.
Mr. Dozier stated that he felt that it was a favorable settlement
and that there is some certainty for the State in getting the water
allocation settled. Mr. Dozier discussed the potential impact of the
proposed settlement on the AWBA and concluded that overall, there
would be increased financial certainty for the AWBA. Mr. Dozier
expressed that CAP has the right to market excess water and sell it
to the AWBA. Mr. Dozier commented that this also focuses on the
Bank's role in Indian settlements. The Bank has some authority to
use credits earned by storing water for Indian settlements.
Mr. Henley commented that the AWBA is essentially a customer and
should be supportive of other customers of CAP. He felt that after a
settlement there would still be unused Colorado River water. Mr.
Henley also stated a settlement could remove the uncertainty over
CAP's ability to continue to to make the 4¢ tax available ot
the AWBA, which is a major source of revenue for the AWBA. Mr.
Henley stated that overall, the settlement is beneficial to the AWBA
as a customer, on a financial view.
Mr. Chase commented on one issue that has not been fully covered.
There is a lack of certainty as to what the Federal Government is
going to do with the water. There are no boundaries on how the water
is going to be used. Mr. Gammage stated that a meeting scheduled for
the afternoon of February 18 with the US Government will examine
this issue.
Ms. Pearson felt that Mr. Henley's observation with respect to the
AWBA are accurate and there is probably not a direct impact on the
Bank, but there are many issues with respect to having a fixed price
for CAP water and probably freeing up the 4¢ tax and committing
it to the Bank's revenue stream. Because the 65,000 af at this point
is proposed to move to the federal side of the ledger, it puts added
pressure on the Bank to firm up more supplies for municipal use.
Update on Study Commission Activities
Mr. Henley gave an overview of the Study Commission:
January 21- Benefits for Outside CAP Service Area subcommittee met.
At the subcommittee meeting Tom Carr, from Colorado River
Management, presented a concept on how to make water available to
the communities outside the CAP area in the future. Mr. Carr
identified an exchange, where communities along the River would have
the credits, and the credits would be available for exchange with
the CAP which will allow the CAP to pump groundwater. This would
allow the process to work within the existing contract system the
BOR has on the River.
January 22 - Interstate/Intrastate Water Banking and Marketing
subcommittee met. At the subcommittee meeting, representatives from
Nevada discussed their needs and willingness to participate in the
process.
January 28 - Indian Issues subcommittee met. A lot of good issues
and concerns were discussed through the interim report process. The
subcommittee is beginning to identify where the Bank and the Indians
can interface and how the Indian tribes could participate in
banking.
February 4 - Finance and Taxation subcommittee met. The group was
asked to review and evaluate the 4¢ tax. They will not be
making any recommendations to change the process of the 4¢ tax.
In March all four subcommittees are scheduled to meet. The
subcommittees will begin drafting legislation and putting together
the final recommendation for the report that is due to the Governor.
Interstate Discussions
Ms. Pearson updated the Authority on Interstate discussions. She
explained that California has not yet finalized the 4.4 Plan and
that the major obstacle is working out the details for Imperial
Irrigation District water transfers.
Call to the Public
Chairman Pearson adjourned the meeting at 11:05 a.m.
|
   |
