FINAL MEETING MINUTES

AUTHORITY MEMBERS
Rita P. Pearson, Chairman
Tom Griffin, Vice-Chairman
Bill Chase, Secretary
Grady Gammage, Jr.
Richard S. Walden

EX OFFICIO MEMBERS
Senator Pat Conner
Rep. Gail Griffin

Welcome / Opening Remarks

Chairman Pearson opened the Arizona Water Banking Authority (AWBA) meeting. All members of the Authority were present except Representative Gail Griffin.

Adoption of Minutes of August 19 Minutes

The August 19 minutes were adopted as submitted.

Discussion of the 1998 Annual Plan of Operation and Staff Activities

Tim Henley, Manager of the AWBA, discussed operation of the AWBA and monthly water deliveries for August. Mr. Henley explained that August deliveries were low (around 27,800 af) and reiterated his comments from last month's meeting that a combination of wet weather and CAP pool water issues make it unlikely that the AWBA will meet its recharge goals for 1998. At this time the AWBA has recharged about 140,000 af of water. The AWBA will probably recharge a total of 250,000 acre feet of water in 1998.

Other Issues

Kim Kunasek of the AWBA described the progress of the CAWCD/USBR lawsuit. The first phase of the trial (contract interpretation) is complete, and both parties are awaiting disposition of this first phase before the trial proceeds to the next phase. Judge Carroll is working on the ruling at this time, and an order should be forthcoming soon.

The Upper Santa Cruz Water Users Groups completed its feasibility study in August. The USCWUG was formed to explore the feasibility of augmenting existing groundwater supplies with CAP water in the Sahuarita-Green Valley area. The USCWUG consists of representatives of water users, government agencies, and other stakeholders in the area. The project generally identified alternatives and costs for delivering CAP water to potential users. The group conducted preliminary investigations, performed route studies and conceptual designs, performed preliminary design of optimal alternatives, performed financial feasibility analyses of optimal routes, and prepared the final report. It is available if anyone would like to review it.

Mr. Henley stated that by the end of September, the CAP requires their customers to submit their water requirements to them. Those requests will be discussed with the AWBA to determine how much capacity will be available to the AWBA. This process will begin in October.

Approval of the Draft Tucson Facilities Plan

Mr. Henley stated that some changes from last month's meeting include expanded comments on the ranking of certain facilities based on the degree to which they can achieve the AWBA's goals. Another chart contains refined criteria for ranking each facility and the goals the facility can achieve as either excellent, good, minimal, or not likely.

Mr. Henley explained that certain funds can only be used for certain purposes, which builds in an institutional limit on recharge spending in Tucson. Based on the direct facilities and some of the cost to recharge in Tucson, the total comes to approximately $60.00 per acre-foot. With the four-cent tax, the AWBA could probably recharge approximately 20,000 af annually for drought protection. The four-cent tax is used to firm the M&I subcontractors supplies for the Tucson area. Mr. Henley also explained that Tucson needs about 700,000 - 750,000 af (30,000 - 35,000 af stored annually for the next 20 years) of water to protect against shortages on the Colorado River for the next 100 years. Because the four-cent tax is not sufficient to meet this need, the AWBA will need to spend general fund monies in the Tucson AMA.

The withdrawal fees are to help meet the water management goals of the area as defined by the Arizona Department of Water Resources. General funds can also be utilized to assist in Indian settlements.

Tom Griffin, Vice-Chairman, believes the AWBA should consider earmarking the general fund monies in the future. Mr. Griffin is concerned that without direction regarding proportion of funds that may be used for specific purposes, some potential recipients of general fund monies could be shortchanged. Mr. Henley responded that the Study Commission has examined this use indirectly and will make recommendations encompassing this concept in its report to the Legislature in November.

Mr. Henley also mentioned that the AWBA will need to consider different ways of approaching groundwater savings facilities in Tucson to meet its goals.

Mark Myers, member of the Study Commission stated that he is pleased with the changes that the AWBA has made to the facility plan.

The Authority members adopted the Tucson AMA Facility Plan as presented. Mr. Henley stated that the Facility Plan will be available on the AWBA webpage.

Presentation by Vidler Water Company

Dorothy Timian-Palmer, Chief Operating Officer of Vidler Water Company, made a short presentation. Ms. Palmer explained that Vidler has a pilot project permit to store up to 10,000 af of water over two years at its MBT Ranch site and is currently in the process of obtaining a full-scale permit to store 20,000 af annually. Vidler would like the AWBA staff to begin negotiations to store water at MBT Ranch as soon as possible. Vidler will be recharging water as early as October 1998. They anticipate recharging 10 af of water per day.

Mr. Henley commented that the AWBA does not have a storage permit for MBT Ranch at this time. The AWBA will submit a permit application and begin working on a draft agreement shortly. The AWBA staff has concerns about the cost.

Grady Gammage, Jr., Authority member, asked how Vidler Water Company would rate under the AWBA's storage site criteria. Mr. Henley stated that for shortage protection it would possibly be good, as it could provide some drought protection. From a groundwater management standpoint, it would not be rated high, as MBT Ranch is not in an AMA. From an Indian settlement standpoint it would not be rated high, as Indian settlements are generally better if they are closer to the reservations. On an interstate storage standpoint it would be rated excellent, depending on opportunities to recover the water.

Chairman Pearson asked the AWBA staff to prepare a policy paper detailing the implications of storing water outside the AMA and storing water with privately owned companies and addressing recovery issues.

Update on Study Commission Activities

Herb Dishlip updated the AWBA on upcoming activities of the Study Commission. Mr. Dishlip explained that the full report from the Study Commission will be forthcoming in November 1998, and the AWBA intends to recommend legislation to give the AWBA additional powers and duties.

Update on Interstate Discussions

Federal Rule Governing Interstate Water Banking

As of this date, the federal rule governing interstate water banking has not yet been released.

“California 4.4 Plan”

The financial component of the deal between the San Diego County Water Authority and the Imperial Irrigation District has been finalized. The agreement allows water saved through farm irrigation conservation techniques to be transferred through the MWD canal to San Diego County. This will help California get close to its 4.4 maf allocation, which is has been exceeding by almost 800,000 af annually.

Call to the Public

The next meetings are scheduled for October 21 and November 18. The meeting was adjourned at 11:00 a.m.