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ITEM #: 11.
DATE: 08/30/2021

AI #:425
CITY COUNCIL ACTION REPORT
 
SUBJECT: MEMORANDUM OF UNDERSTANDING TO SUPPORT THE BARTLETT DAM MODIFICATION FEASIBILITY STUDY AMONG VARIOUS PARTICIPATING ENTITIES, SALT RIVER VALLEY WATER USERS' ASSOCIATION, AND SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT
 
STAFF PRESENTER(S): Javier Setovich, Public Works Director and Gretchen Erwin, Water Resources and Sustainability Manager

SUMMARY

The purpose of this non-binding Memorandum of Understanding (MOU) is to describe the cooperative efforts, roles, and responsibilities of the Parties related to supporting United States Department of the Interior's Bureau of Reclamation ("Reclamation") in completing the Bartlett Dam Modification Feasibility Study as recommended in the Draft Appraisal Report. Included in those cooperative efforts is the formation and participation in a steering committee and development of the following agreements:  (1) a cost-share agreement among the Participating Entities and SRP; and (2) the development of a cost-share agreement among SRP and Reclamation.

Recommendation

Authorize the City Manager or her designee to take any and all actions to execute the MOU. (Javier Setovich, Public Works Director and Gretchen Erwin, Water Resources and Sustainability Manager)

FISCAL IMPACT

The MOU does not obligate the city to any expenditures at this time. Annual financial support will be requested in the future from all Participating Entities and SRP to support the feasibility study over a four-year period. The amount will be determined during the negotiation of the cost-share agreement which will be included in future budget processes for consideration within the water enterprise fund. Participation is non-binding and parties may drop from the study at will.  

BACKGROUND AND PREVIOUS ACTIONS

Reclamation, in partnership with SRP, conducted an appraisal level investigation called the Verde Reservoirs Sediment Mitigation Study to evaluate options to restore capacity lost in SRP's Verde River reservoirs due to sediment accumulation, which impacts critical water supplies for central Arizona. Reclamation issued a draft report entitled "Verde Reservoirs Sediment Mitigation Study Appraisal Report" in May 2021 ("Draft Appraisal Report") recommending that Reclamation initiate a feasibility study.

Two options were identified in the draft appraisal study to raise Bartlett Dam allowing for new storage of Verde River water which could be available to Participating Entities. This water may be used off SRP project lands and could be available to Goodyear as an additional renewable water supply. The city has the infrastructure in place to take delivery of the new water due to our partnership and previous agreements with SRP.

The feasibility study is to determine the technical, environmental, economic, and financial feasibility of implementing one of two Bartlett Dam modification alternatives to enable central Arizona to adapt water management to changing climate conditions ("Bartlett Dam Modification Feasibility Study").

STAFF ANALYSIS

Verde River water could be a new source of water for growth and an important component to the city's water supply portfolio. Verde River water is considered a "renewable" supply and therefore does not require replenishment. This would lessen the city's dependence on groundwater and future dependence on the Central Arizona Groundwater Replenishment District.

Previous agreements with SRP for wheeling our Central Arizona Project (CAP) water through canals and the city's construction of the pumping plant, transmission line, and water treatment facility would facilitate the use of the water.

The supply would be permanent. It is not a termed lease.

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