| AGENDA ITEM #: 12. DATE: 06/21/2021 AI #:304 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | EXPENDITURE APPROVAL FOR SRP WATER WHEELING FEES FOR CAP DELIVERIES |
| STAFF PRESENTER(S): | Gretchen Erwin, Water Resources and Sustainability Manager |
SUMMARY
The city of Goodyear has a Colorado River (CAP) allocation of 17,742 acre-feet per year. The new surface water treatment facility, while nearing completion, is not yet available to take the water directly. We are partnering with Roosevelt Irrigation District (RID) to take delivery of a portion of our Central Arizona Project (CAP) water and store it underground in the RID Groundwater Savings Facility (GSF). The water is transported or wheeled through the Salt River Valley Water Users' Association and the Salt River Project (SRP) Agricultural Improvement and Power District canals and incurs a wheeling fee. Storing water in the RID provides the city with flexibility to either: a) earn Long-Term Storage Credits (LTSC) which can be used to replenish groundwater pumped within the city, or b) be recovered from SRP wells and delivered to the Surface Water Treatment Plant. In FY2021, Goodyear will deliver approximately 10,872 acre-feet of CAP water for storage at the RID GSF and in FY2022 Goodyear will deliver approximately 9,200 acre-feet to the RID GSF and 2,700 acre-feet to the Surface Water Treatment Plant.
Recommendation
Approve the expenditure of $556,000 for FY2021 and $700,000 for FY2022 to pay wheeling fees to Salt River Valley Water Users' Association and the Salt River Project (SRP) Agricultural Improvement and Power District for the delivery of CAP water. (Gretchen Erwin, Water Resources & Sustainability Manager)
FISCAL IMPACT
Funding for the annual CAP water order and wheeling fees are included in the FY2021 Water operating budget in the amount of $3,548,400 and the FY2022 operating budget in the amount of $3,959,700. The expenditures for the CAP water order were previously approved by Council on 6/8/20 (for FY2021) and 5/24/21 (for FY2022). The current request expands that expenditure authorization to include costs associated with SRP wheeling CAP water. Total expenditures for these activities are within the existing budget.
BACKGROUND AND PREVIOUS ACTIONS
The city has a Municipal & Industrial subcontract with the U.S. Bureau of Reclamation for 10,742 acre-feet per year (AFY) of Colorado River water and a lease with the Gila River Indian Community for 7,000 AFY of Colorado River water. Currently, the city cannot take direct delivery of the water until the first phase of the Surface Water Treatment Plant is complete (December 2021) which will allow for approximately one-half of the water to be treated and directly delivered to Goodyear customers.
Historically, the city has stored water in a CAP-owned recharge facility earning LTSCs and recovered the LTSCs/water using wells within the city's service area.
On January 23, 2017, Council approved the agreement between the city of Goodyear and the Salt River Valley Water Users' Association and the Salt River Project Agricultural Improvement and Power District (collectively referred to as SRP) to deliver the city's CAP water allocation through their canal system to a point of receipt. This agreement resulted in the need for Goodyear to move ahead with the current Water Treatment and Raw Water Delivery project.
On September 23, 2019, Council approved two agreements with SRP: 1) allowing the city to store annually a specified volume of the city's CAP water in a Groundwater Savings Facility on the Salt River Reservoir District (SRRD) lands in return for LTSCs; and 2) allows the SRP to recover the credits using the Association's wells and deliver the stored CAP water to the city using the SRP canals.
On June 22, 2020, Council approved Amendment #1 to the agreement between the city of Goodyear and the Salt River Valley Water Users' Association and the Salt River Project (SRP) Agricultural Improvement and Power District to deliver the city's CAP water allocation through their canal system to a point of receipt. The amendment specifically addresses additional points of receipt, measurement, and fees for the CSIF and transportation through SRP canals relative to the RID GSF.
On June 22, 2020, Council approved Groundwater Savings Facility Agreement with Roosevelt Irrigation District which allows the city to store CAP water delivered through the SRP canals at the RID GSF where the RID pays the city $25 per acre-foot for the water.
Historically, the city has stored water in a CAP-owned recharge facility earning LTSCs and recovered the LTSCs/water using wells within the city's service area.
On January 23, 2017, Council approved the agreement between the city of Goodyear and the Salt River Valley Water Users' Association and the Salt River Project Agricultural Improvement and Power District (collectively referred to as SRP) to deliver the city's CAP water allocation through their canal system to a point of receipt. This agreement resulted in the need for Goodyear to move ahead with the current Water Treatment and Raw Water Delivery project.
On September 23, 2019, Council approved two agreements with SRP: 1) allowing the city to store annually a specified volume of the city's CAP water in a Groundwater Savings Facility on the Salt River Reservoir District (SRRD) lands in return for LTSCs; and 2) allows the SRP to recover the credits using the Association's wells and deliver the stored CAP water to the city using the SRP canals.
On June 22, 2020, Council approved Amendment #1 to the agreement between the city of Goodyear and the Salt River Valley Water Users' Association and the Salt River Project (SRP) Agricultural Improvement and Power District to deliver the city's CAP water allocation through their canal system to a point of receipt. The amendment specifically addresses additional points of receipt, measurement, and fees for the CSIF and transportation through SRP canals relative to the RID GSF.
On June 22, 2020, Council approved Groundwater Savings Facility Agreement with Roosevelt Irrigation District which allows the city to store CAP water delivered through the SRP canals at the RID GSF where the RID pays the city $25 per acre-foot for the water.
STAFF ANALYSIS
Storing water at a CAP-owned storage facility allows the city to earn LTSCs which can be recovered from city wells. Recovering LTSCs allows the city to meet its renewable water supply requirements as per our Designation of Assured Water Supplies; however, it does not add to the health of our local aquifer or add new wet water to the city. Storing water in the RID lands allows the city the flexibility to recover the LTSCs where they have been stored (our local aquifer) or allow the SRP to recover the LTSCs for the city. SRP can deliver the wet water to the city using their canals and the city's transmission line to the Surface Water Treatment Plant increasing the city's wet water supply.