7.
City Council Work Session
- Meeting Date:
- 05/27/2014
- Co-Submitter:
- Brad Hill, Utilities Director
- From:
- Erin Young, Water Resources Manager
- Department:
- Utilities
Co-Submitter:
TITLE:
Discussion on Continued Funding Towards the Western Navajo Pipeline (WNP) & the North Central Arizona Water Supply Feasibility Study (NCAWSFS)
DESIRED OUTCOME:
Seek City Council discussion and direction on the following policy question: Should the City of Flagstaff continue to fund our portion of the NCAWSFS to complete the 30% pipeline design of WNP absent a Navajo-Hopi Water Rights Settlement?
Funding Options:
1. Flagstaff tell CPWAC that our funding is on on-hold until Federal funding for feasibility studies returns as we do not think it is prudent to commit additional funds to actively pursue this water supply option at this time. We will then fund WNP to 30% pipeline design.
2. Flagstaff tell CPWAC that we will only fund the FY15 budget amount of $30,000 and let the USBR conduct work activities for only this amount.
3. Flagstaff tell CPWAC that we will commit to completing the 30% pipeline design, but commit to pay $190,470 in FY 15 only if ALL other Parties commit to pay.
4. Other?
Funding Options:
1. Flagstaff tell CPWAC that our funding is on on-hold until Federal funding for feasibility studies returns as we do not think it is prudent to commit additional funds to actively pursue this water supply option at this time. We will then fund WNP to 30% pipeline design.
2. Flagstaff tell CPWAC that we will only fund the FY15 budget amount of $30,000 and let the USBR conduct work activities for only this amount.
3. Flagstaff tell CPWAC that we will commit to completing the 30% pipeline design, but commit to pay $190,470 in FY 15 only if ALL other Parties commit to pay.
4. Other?
INFORMATION:
Background:
1. Council approved a cost-share agreement between U.S. Bureau Reclamation (USBR) and other stakeholders (County, ADWR & Page) on August 23, 2011, to participate and provide funds and in-kind services for the NCAWSFS. The Navajo and Hopi executed separate agreements with USBR.
2. Cost-share proportion is Federal 41% Non-Federal 59%.
3. City has financially contributed 76% of all of the non-federal money towards the overall Feasibility Study to date, which makes up 35% of the required non-Federal 59% cost share requirement (Red Gap $1.66M and WNP = $30,000).
4. Staff’s strategy for a future water supply has always been to keep Flagstaff’s options open as long as possible to better ensure access to limited water resources. Current options are either the Western Navajo Pipeline or Red Gap Ranch.
Advantages of 30% pipeline design:
1. USBR recommends completion of the 30% pipeline design because it is necessary in determining cost estimates for the pipeline construction, EIS and Economic Study.
2. The 30% pipeline design completion report will have a long-term shelf life. However, should partners or volume of delivery change in the future, 30% pipeline design will have to be redone.
3. It will bode well for the project if partners are close or exceed 59% cost share at 30% design. When partners meet or exceed their cost share, this demonstrates the need and desire for the project and helps to further promote continuation of the project.
Issues:
1. There is no Federal funding for Feasibility Study from FY13 through FY16.
2. USBR Rural Water Supply Program funding authority will terminate in FY16 unless law gets changed.
3. It is expensive to complete the 30% pipeline design, all partners are wrestling with this – Cost to complete is $1.95M (non-federal parties cost-share).
Outstanding issues specific to the City of Flagstaff:
1. Flagstaff’s share of the $1.95M is $824,588. Only $30K is budgeted in FY15.
2. Flagstaff has no Colorado River Water Rights, so it is difficult to consider contributing to completing the 30% pipeline design without access to a water supply.
3. Flagstaff has no authority to pump Colorado River water from Lake Powell which is located in the Upper Basin for use in the Lower Basin. This authority could occur thru a Navajo/Hopi Water Rights Settlement in concurrence with the 7-Basin States and Congressional approval.
1. Council approved a cost-share agreement between U.S. Bureau Reclamation (USBR) and other stakeholders (County, ADWR & Page) on August 23, 2011, to participate and provide funds and in-kind services for the NCAWSFS. The Navajo and Hopi executed separate agreements with USBR.
2. Cost-share proportion is Federal 41% Non-Federal 59%.
3. City has financially contributed 76% of all of the non-federal money towards the overall Feasibility Study to date, which makes up 35% of the required non-Federal 59% cost share requirement (Red Gap $1.66M and WNP = $30,000).
4. Staff’s strategy for a future water supply has always been to keep Flagstaff’s options open as long as possible to better ensure access to limited water resources. Current options are either the Western Navajo Pipeline or Red Gap Ranch.
Advantages of 30% pipeline design:
1. USBR recommends completion of the 30% pipeline design because it is necessary in determining cost estimates for the pipeline construction, EIS and Economic Study.
2. The 30% pipeline design completion report will have a long-term shelf life. However, should partners or volume of delivery change in the future, 30% pipeline design will have to be redone.
3. It will bode well for the project if partners are close or exceed 59% cost share at 30% design. When partners meet or exceed their cost share, this demonstrates the need and desire for the project and helps to further promote continuation of the project.
Issues:
1. There is no Federal funding for Feasibility Study from FY13 through FY16.
2. USBR Rural Water Supply Program funding authority will terminate in FY16 unless law gets changed.
3. It is expensive to complete the 30% pipeline design, all partners are wrestling with this – Cost to complete is $1.95M (non-federal parties cost-share).
Outstanding issues specific to the City of Flagstaff:
1. Flagstaff’s share of the $1.95M is $824,588. Only $30K is budgeted in FY15.
2. Flagstaff has no Colorado River Water Rights, so it is difficult to consider contributing to completing the 30% pipeline design without access to a water supply.
3. Flagstaff has no authority to pump Colorado River water from Lake Powell which is located in the Upper Basin for use in the Lower Basin. This authority could occur thru a Navajo/Hopi Water Rights Settlement in concurrence with the 7-Basin States and Congressional approval.