CENTRAL ARIZONA PROJECTBoard of Directors

October 3, 2019 ­ 10:00 AM

JW Marriott Starr Pass Resort3800 W. Starr Pass Blvd.

Tucson, ArizonaTucson Ballroom, Salon E

This meeting will not be livestreamed, but will be recorded.The video will be posted to the CAP website.

TENTATIVE AGENDA*Times shown are approximate. Some items may take more or less time than scheduled, or the President 

may grant requests to hear items in an order other than shown. 

1. Pledge of Allegiance, Moment of Silence and Safety Minute ­Megdal 2. Guest Speaker ­ Chairman Ned Norris Jr., Tohono O'odham Nation (10:05)3. Consideration of Action to Approve Items on the Consent Agenda** (10:20)

  a. Minutes of the September 5, 2019 Regular Meeting ­ Megdal 

4. Consideration of Action to Approve Items Removed from the Consent Agenda 5. Reports of Committees and Possible Consideration of Committee Recommendations (10:40)

  a. Public Policy Committee ­ Cesare 

  i. Possible Consideration of Action on Policy Issues that Could Impact CAP 

  b. Finance, Audit and Power Committee ­ Goddard 

  c. CAGRD and Underground Storage Committee ­ Megdal 

6. Guest Speaker ­ David Godlewski, President, Southern Arizona Home Builders Association (10:55)7. Report on September 25, 2019 Arizona Water Banking Authority Meeting ­ Arboleda (11:10)8. Report on the Arizona Water Protection Fund Commission ­ Jacobs (11:15)9. Report on Colorado River Conditions (Water Supply: Reliability of the CAP Water Supply^) ­

Mahmoud (11:20)10. Discussion of Recovery Agreements With the Central Arizona, Hohokam, Maricopa­Stanfield, New 

Magma, and Queen Creek Irrigation and Drainage Districts Related to the Ag Pool Groundwater Infrastructure and Efficiency Program ­ Seasholes (11:35)

11. Report on Colorado River Salinity Control Program ­ Dent (12:05)12. Report on Legal Matters (Leadership & Public Trust: Relationships­Customers^) ­ Johnson (12:35)13. Directors' Report on Current Events (12:45)14. Future Agenda Items (1:00)15. President's Report on Current Events ­ Atkins (1:05)16. General Manager's Report on Current Events ­ Cooke (1:15)17. Public Comment (1:25)18. Consideration of Action to go into Executive Session of the Board for the following purposes:  (The discussions and minutes of the executive session shall be kept confidential. The executive 

session of the Board is not open to the public.)***

  a. Pursuant to A.R.S. §38­431.03.A.3 to obtain legal advice from the District's attorneys on any matter listed on the agenda 

19. Reconvene in Open Session 20. Consideration of Action Regarding Items Discussed in Executive Session 21. Adjourn 

CAP Board members are elected by the voters in Maricopa, Pima and Pinal Counties. Visit cap­az.com/board to learn more about the Board. Those interested in meeting with a Board member may contact the member directly to schedule an appointment. Space will be made available at CAP Headquarters.

* Please note that this tentative agenda may be changed prior to the scheduled meeting by modifying or deleting listed matters or adding new ones. Anyone interested in the final agenda for the meeting should contact the CAP office (623.869.2333) or consult CAP's website (www.cap­az.com) twenty­four (24) hours in advance of the meeting.

** Items listed in the Consent Agenda may be acted on by the Board without discussion. Any item listed on the Consent Agenda may be removed from the Consent Agenda and acted on separately by the Board.

*** The Executive Session is expected to last approximately one hour and will not be open to the public.^ Linkage to 2016 CAWCD Board of Directors Strategic Plan. 

CENTRAL ARIZONA WATER CONSERVATION DISTRICT REGULAR MEETING OF THE BOARD OF DIRECTORS

September 5, 2019

   The regular meeting of the Central Arizona Project ("CAWCD" or "CAP") Board of Directors was called to order by President Lisa Atkins on September 5, 2019, at 10:03 a.m. The meeting was held at Central Arizona Project Headquarters, located at 23636 North Seventh Street, Phoenix, Arizona, in the Board Room. Board Members present were President Lisa A. Atkins, Maricopa County; Secretary Sharon B. Megdal, Pima County; Alexandra Arboleda, Maricopa County; Jennifer Brown, Maricopa County; Karen Cesare, Pima County; Benjamin W. Graff, Maricopa County; Jim Hartdegen, Pinal County; Jim Holway, Maricopa County; Pat Jacobs, Pima County; Mark Lewis, Maricopa County; Jennifer Martin, Maricopa County; and April Pinger, Maricopa County (via teleconference). Board Members not present were: Vice President Terry Goddard, Maricopa County; Heather Macre, Maricopa County; and Mark Taylor, Pima County. Staff members present were Ted Cooke, General Manager; Suzanne Ticknor, Assistant General Manager, External Affairs and Water Policy; Robert Moody, Assistant General Manager, Operations and Maintenance; Jay Johnson, General Counsel; Bridget Schwartz-Manock, Director, Public Affairs; Brian Buzard, Director Centralized Maintenance and Reliability; Christopher Hall, Director, Finance & Administration; Darrin Francom, Director, Operations, Power and Engineering; Bonnie Stone, Director, Employee Services; Ken Seasholes, Manager, Resource Planning and Analysis; Laura Grignano, Manager, CAGRD; Patrick Dent, Manager, Water Control; Chuck Cullom, Manager, Colorado River Programs; Rich Weissinger, Manager, Information Technology; Greg Adams, Senior Attorney; Megan Casey, Public Affairs Management Analyst; and Jennifer Miller, Board Support Specialist. 

 

1.  PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE AND SAFETY MINUTE - PINGER 

   President Atkins led the Board Members and public in reciting the Pledge of Allegiance and observing a moment of silence, and Board Member Pinger gave a safety minute on emergency preparedness. 

 

2.  CONSIDERATION OF ACTION TO APPROVE ITEMS ON THE CONSENT AGENDA** 

   On a motion (Board Member Martin) and a second (Board Member Cesare), approved the minutes of the August 1, 2019 Regular Meeting; approved the award for the construction contract to Rummel Construction in the amount of $650,000 plus an additional $65,000 (10%) for contingencies (totaling $715,000), for construction of the Pool Red Rock Storm Damage Repair, and authorized the General Manager, or his designee, to execute the contract and administer the contingency; approved the award for the construction contract to Caliente Construction in the amount of $754,386 plus an additional $75,439 (10%) for contingencies (totaling $829,825), for construction of the Elevator Control System Upgrades Project Phase 2 at Mark Wilmer Pumping Plant, and authorized the

CAWCD Board Meeting September 5, 2019 Page 2

General Manager, or his designee, to execute the contract and administer the contingency; approved the award of a purchasing contract to World Wide Technologies Inc. for the CISCO Smartnet licenses/maintenance agreement and authorized the General Manager, or his designee, to execute the agreement for $910,442 plus $182,088 (20%) for contingencies (totaling $1,092,530); approved the award of a purchasing contract to Flanders Electric Incorporated for use in the replacement of Mark Wilmer Pumping Plant Unit 5 rotor poles, and authorized the General Manager or his designee to execute a contract for $418,323 plus $41,832 (10%) for contingencies (totaling $460,155); and approved the Agreements for Storage of Water at Hieroglyphics Mountain Recharge Project White Tank, Hieroglyphics Mountain Recharge Project Apache Junction, Superstition Mountains Recharge Project Apache Junction, and Agua Fria Recharge Project White Tank between CAWCD and Arizona Water Company. Motion passed.  

Voting yes: Lisa A. Atkins, Sharon B. Megdal, Alexandra Arboleda, Jennifer Brown, Karen Cesare, Benjamin W. Graff, Jim Hartdegen, Jim Holway, Pat Jacobs, Jennifer Martin, April Pinger

Not voting: Mark Lewis

 

3.  CONSIDERATION OF ACTION TO APPROVE ITEMS REMOVED FROM THE CONSENT AGENDA 

   None.  

4.  REPORTS OF COMMITTEES AND POSSIBLE CONSIDERATION OF COMMITTEE RECOMMENDATIONS 

 

4.a.  PUBLIC POLICY COMMITTEE - CESARE 

   Board Member Cesare noted that the Public Policy Committee did not meet in September, as the state Legislature is out of session and Congress is on recess. She shared upcoming agenda topics for the October 3 Committee meeting in Pima County.  

 

4.b.  FINANCE, AUDIT AND POWER COMMITTEE - ARBOLEDA 

   Board Member Arboleda gave an update on the August 15 meeting of the FAP Committee, including an internal audit update, capital budget and power acquisition. She noted the next FAP meeting will be on September 26 and shared upcoming agenda topics. 

 

4.c.  CAGRD AND UNDERGROUND STORAGE COMMITTEE - MEGDAL 

   Secretary Megdal gave an update on the August 15 CAGRD and Underground Storage Committee meeting, including an update on the financing for the GRIC/GRWS long term storage credit acquisition, a mid-plan review update on CAGRD water supplies and the replenishment reserve, a discussion on CAGRD enrollment requirements and an update on the Ag Pool Groundwater Infrastructure and Efficiency Program. She noted that the next CAGRD Committee meeting is on September 26 and shared upcoming agenda topics. 

 

4.c.i.  REPORT ON CAGRD MID-PLAN REVIEW PROCESS - GRIGNANO 

   Laura Grignano, CAGRD Manager, gave an update on the Mid-Plan Review process, which is a review of the 2015 CAGRD Plan of Operation. She explained that the purpose of the Mid-Plan Review is to provide a comprehensive look at mid-term trends in CAGRD operations and provide

CAWCD Board Meeting September 5, 2019 Page 3

transparency and accountability in CAGRD planning processes. She reviewed the scope and timeline for the Mid-Plan Review and noted that the draft document should be ready by the end of the year. She presented highlights of the presentations heard to date at the CAGRD Committee meetings.  

 

5.  REPORT ON IMPLEMENTATION OF CUSTOMER SERVICE TASK FORCE RECOMMENDATIONS - GRAFF/SCHWARTZ-MANOCK 

   Board Member Graff said that he is pleased with the progress made to date on the Customer Service Task Force recommendations and expressed appreciation to staff. Bridget Schwartz-Manock, Director of Public Affairs, reviewed the purpose and scope of the Task Force and the timeline of activities to date. She gave an update on the implementation of the six Task Force recommendations, including electronic blue cards, Committee summaries, board briefs, a policy on timely posting of documents, a 45-Day Look Ahead, Roundtable meetings and customer feedback forms. She noted that the action plans for all six are complete or nearly complete and will be monitored over the next year to evaluate the results. She also shared a new proposal to make a lunch option available to external attendees at Board meetings, in response to feedback received during the Action Planning Exercise during the Customer Service Task Force. Board Member Jacobs commented on additional lunch options that could be considered, and suggested that staff could present several options at Roundtable meetings for stakeholders to provide feedback on. Secretary Megdal commented the lunch plan is a great idea. Board Member Brown suggested blending recommendations for the Roundtable meetings and including stakeholder perspectives in Board briefs to include what is shared at Roundtable meetings. Board Member Cesare commented that good progress has been made and noted that a lot of relevant information is included on the CAP website. She also supports the lunch option. Board Member Holway commented that staff has done a good job with these recommendations, but there are bigger issues that are not being addressed and he would like to see future updates include an open conversation about those issues. 

 

6.  REPORT ON BOARD STRATEGIC PLAN - ATKINS 

   President Atkins gave an update on the Board Strategic Plan, noting that the current plan expires in December 2021. She explained that the process to build a new Strategic Plan for years 2022-2028 will include the full Board in a collaborative process. She noted that the work on the Strategic Plan will build on the work of the Task Forces over the past several years and discussions will include governance issues. President Atkins shared the timeline for the new Plan, which will begin in the last quarter of 2019 and continue through 2020, with the goal to finalize a new Plan in early 2021 to guide staff in the budgeting and working planning process in spring of 2021. She said the planning process will be a separate public process conducted by the Board in addition to regular Board and Committee meetings utilizing an outside consultant. 

 

7.  REPORT ON COLORADO RIVER - COOKE/CULLOM 

   Chuck Cullom, Colorado River Programs Manager, gave an update on the status of the reservoirs within the system and the projections for Lake Powell and Lake Mead elevations from the August 24-Month Study. He shared the El Nino Southern Oscillation outlook for precipitation over the next 90 days. He also shared projections for the winter season and how they may impact system conditions. Mr. Cullom also said that CAP will continue the existing compensated

CAWCD Board Meeting September 5, 2019 Page 4

conservation agreement with Metro Water in Tucson, but, due to Tier Zero conditions, which do not trigger mitigation under the Drought Contingency Plan (DCP), CAP does not intend to offer additional compensated conservation agreements in 2020. Mr. Cullom answered questions from Board Member Jacobs on flows from Lake Powell to Lake Mead. Ted Cooke, General Manager, gave an update on next steps after DCP relating to reconsultation of the 2007 Guidelines, noting that the Record of Decision for the 2007 Guidelines provide that the Secretary of the Interior shall initiate a formal review to evaluate the effectiveness of the Guidelines no later than December 31, 2020. He said that, after the evaluation, a discussion will follow on what will replace the 2007 Guidelines when they expire in 2026. He noted that the Guidelines were developed as a rulemaking process under National Environmental Policy Act (NEPA), and that CAP should expect that reconsultation will also require a NEPA rulemaking process. Mr. Cooke explained that he and Arizona Department of Water Resources (ADWR) Director Tom Buschatzke will initiate an informal process, to include meetings with the DCP Steering Committee delegates, to get input on what Arizona's positions are when the formal federal process begins.  

 

8.  REPORT ON WATER OPERATIONS - DENT 

   Patrick Dent, Water Control Manager, gave an update on 2019 water operations, including deliveries and Colorado River diversions and Lake Pleasant operations for the year to date. He also noted that several customers have requested to redirect their water for storage and there have been very few requests to turn back water. Mr. Dent presented information on DCP implementation for 2020 and the delivery supply projection for 2020. He also shared the elevation forecast for Lake Pleasant for 2020. In response to a question from Board Member Hartdegen, Mr. Dent reviewed the plans for the Salt River Siphon outage planned for fall of 2019.  

 

8.a.  REPORT ON AUGUST 21 ANNUAL WATER OPERATIONS BRIEFING 

   Mr. Dent reported on the August 21 Annual Water Operations Briefing, reviewing the information that was presented at the meeting. He noted that responses to the meeting were positive. 

 

9.  DISCUSSION AND CONSIDERATION OF ACTION TO APPROVE EXCESS WATER POLICY - SEASHOLES 

   Ken Seasholes, Resource Planning and Analysis Manager, briefly summarized the previous discussions on an Excess Water Policy for 2020-2024, noting that is was also reviewed at the August 21 Water Operations Briefing and no additional comments were provided. Several individuals submitted public testimony: Cynthia Campbell, City of Phoenix, read a letter into the record from Mayor Kate Gallego in opposition to the policy and expressing a preference that system conservation should be the first use of excess water when it is available. Board Member Jacobs asked what language Phoenix would like added to the policy. Ms. Campbell replied that they would like a specific recognition for using excess water for system conservation embedded into the policy, but did not have proposed language.

CAWCD Board Meeting September 5, 2019 Page 5

Spencer Kamps, Home Builders Association of Central Arizona, spoke in support of the policy and expressed appreciation for the opportunities for stakeholder participation in developing the policy. Dennis Rule, Southern Arizona Home Builders Association, submitted an electronic blue card in support of the policy and expressed appreciation for the Roundtable discussion on the policy. Following public testimony, Secretary Megdal clarified with General Counsel Jay Johnson that the Board would be able to revise the policy in the future, or take another action in the future. Board Member Arboleda inquired why system conservation is not included in the policy as an option. Mr. Seasholes explained that, if the firming pools created under the policy are not fully subscribed, any remaining excess water would be system conservation. Mr. Cooke added that, under the policy, the Board could decide not to create the firming pools and direct any excess water to be system conservation, even though it is not expressly stated in the policy. Board Member Martin commented that it would be good to articulate this in the policy since it is a recurring issue. Board Member Cesare commented that she supports the policy, which gives a clear and transparent process for the Board to make an annual decision. Board Member Jacobs expressed support for the policy. Board Member Holway commented that it may be good to include an introductory paragraph to capture the Board's philosophical perspective. Secretary Megdal said she wishes the letter from Phoenix had been sent to the Board earlier since the policy has been discussed at previous meetings, and said a specific suggested change from the City would have been helpful. In response to a question from Secretary Megdal, Mr. Seasholes clarified that the excess water policy does not impact the creation of intentionally created surplus (ICS). Mr. Seasholes also offered suggested language that could be added to the policy relating to system conservation. Secretary Megdal made a motion, seconded by Board Member Jacobs, to approve the staff proposal "Procedure for Distributing CAP Excess Water and Turn-back Water for the Period of 2020 through 2024." Board Member Holway offered a friendly amendment to the motion, seconded by Board Member Martin, to add "staff will work with the Board to develop a policy statement to accompany this procedure to make clear the Board's philosophy on its use." Secretary Megdal commented that specific language would be better, even if it means postponing the vote until next month. She rejected the friendly amendment based on that procedural reason. Board Member Cesare offered a friendly amendment to the motion, seconded by Board Member Brown, to add the following language to the policy: "B.6. Water that is not made available or utilized by either the statutory or supplemental firming pools will become system conservation water." She commented that this may add the clarity that stakeholders have requested. Secretary Megdal expressed willingness to accept the friendly amendment, but Board Member Jacobs (as the second to the original motion) rejected the proposed change, commenting that it was not needed. The friendly amendment was rejected.

CAWCD Board Meeting September 5, 2019 Page 6

On a motion (Secretary Megdal) and a second (Board Member Jacobs), approved the staff proposal "Procedure for Distributing CAP Excess Water and Turn-back Water for the Period of 2020 through 2024." Motion passed.  

Voting yes: Lisa A. Atkins, Sharon B. Megdal, Jennifer Brown, Karen Cesare, Benjamin W. Graff, Jim Hartdegen, Pat Jacobs, April Pinger

Voting no: Alexandra Arboleda, Jim Holway, Jennifer Martin

Not voting: Mark Lewis

 

10.  DISCUSSION AND CONSIDERATION OF ACTION TO APPROVE A 1-YEAR LEASE AGREEMENT BETWEEN CAWCD AND FORT MCDOWELL YAVAPAI NATION FOR CAGRD PURPOSES - GRIGNANO 

   Ms. Grignano presented key terms to execute a 1-year lease for 3,933 acre feet of CAP Indian priority water between CAWCD and Fort McDowell Yavapai Nation at a price of $56 per acre foot in 2020. She noted CAGRD will pay all OM&R and pumping energy charges associated with the delivery of the leased water. She said the agreement is being drafted, and due to the short time frame before October 1 water orders are due, staff requested the Board's approval of the agreement with terms substantially the same as presented. Ms. Grignano noted that the Fort McDowell Yavapai Nation and the Bureau of Reclamation will also need to approve the agreement. On a motion (Secretary Megdal) and a second (Board Member Jacobs), approved a 1-Year Lease Agreement between CAWCD and Fort McDowell Yavapai Nation with terms substantially the same as those outlined in the Board memo. Motion passed.  

Voting yes: Lisa A. Atkins, Sharon B. Megdal, Alexandra Arboleda, Jennifer Brown, Karen Cesare, Benjamin W. Graff, Jim Hartdegen, Pat Jacobs, Jennifer Martin, April Pinger

Not voting: Jim Holway, Mark Lewis

 

11.  DISCUSSION ON RECOVERY AGREEMENTS RELATED TO THE AG POOL GROUNDWATER INFRASTRUCTURE AND EFFICIENCY PROGRAM - SEASHOLES 

   Mr. Seasholes gave an update on recovery agreements related to the Ag Pool Groundwater Infrastructure and Efficiency Program (Program). He noted that a letter was sent to the Ak-Chin Community (Community) and a meeting has been set up to discuss the Community's concerns about water quality and explore opportunities that may be available to address those concerns. He noted those opportunities would be separate from the funds allocated to the Program. He also reported that productive conversations between the Community and the irrigation districts have also taken place. He reported that staff and President Atkins met with the Maricopa Stanfield Irrigation District Board related to the the Program, which was also productive. He shared that the Regional Conservation Partnership Program has released rules that will allow for federal grant applications to move forward for the Program. Mr. Seasholes noted that a term sheet for the recovery agreements is currently being reviewed by the parties. He said staff anticipates bringing the agreements forward at the October Board meeting.  

  

CAWCD Board Meeting September 5, 2019 Page 7

12.  REPORT ON LEGAL MATTERS - JOHNSON 

   Jay Johnson, General Counsel, gave an update on legal matters. He reported on the background and status of the Navajo vs. United States litigation, noting that the case may be appealed by the Navajo Nation or settlement talks may continue. He also reported on the status on the Peabody, et al vs. CAWCD litigation related to the Navajo Generating Station, noting that the case has been dismissed. Mr. Johnson reported on the background and status of the Waters of the United States Rule, noting that CAWCD will continue to closely monitor the issue.  

 

13.  DIRECTORS' REPORT ON CURRENT EVENTS 

   Secretary Megdal and Board Members Arboleda, Brown, Cesare, Graff, Holway, Jacobs, Martin and Pinger shared updates on recent CAP activities. 

 

14.  FUTURE AGENDA ITEMS 

   Board Member Holway requested a future agenda item for a discussion on other follow up related to Board and CAP relations with the larger community. Board Member Brown suggested that staff look into the possibility of disclosing to stakeholders before Roundtable meetings the format for the meeting, and whether a specific proposal will be shared or if the meeting will be more of a discussion to seek input prior to a defined proposal.  

 

15.  PRESIDENT'S REPORT ON CURRENT EVENTS - ATKINS 

   President Atkins gave an update on outreach activities by the Board for the year to date, a reminder on the 2020 schedule of meetings, the August 21 luncheon at the League of Cities and Towns Conference, the September 4 West Valley Cities and Towns Dinner and the schedule for upcoming meetings in September and October.  

 

16.  GENERAL MANAGER'S REPORT ON CURRENT EVENTS - COOKE 

   Mr. Cooke reported on an a construction contract for electro-mechanical relays at Twin Peaks and Sandario Pumping Plants that will be on the October consent agenda. He also reminded the Board that the 2020-2021 biennial budget will be considered at the November Board meeting. He also reported that the system conservation transaction he mentioned last month is not coming forward, but there remains a need to have a discussion on a policy regarding how to handle fixed O&M costs on system conservation and the effect on rates. Mr. Cooke also noted that the purpose of the Roundtable meetings is to have a forum to get input from stakeholders before the staff brings a specific proposal forward to the Board, and so the fundamental nature of the Roundtable meetings is to have a brainstorming discussion on a policy rather than a discussion on a specific proposal.  

 

17.  PUBLIC COMMENT 

   No additional public comment.  

18.  CONSIDERATION OF ACTION TO GO INTO EXECUTIVE SESSION OF THE BOARD FOR THE FOLLOWING PURPOSES: PURSUANT TO A.R.S. §38-431.03.A.3 TO OBTAIN LEGAL ADVICE FROM THE DISTRICT'S ATTORNEYS ON ANY MATTER LISTED ON THE AGENDA 

   None.  

 

CAWCD Board Meeting September 5, 2019 Page 8

19.  RECONVENE IN OPEN SESSION 

   None.  

20.  CONSIDERATION OF ACTION REGARDING ITEMS DISCUSSED IN EXECUTIVE SESSION 

   None.  

21.  ADJOURN 

   There being no further business to come before the Board, the meeting adjourned at 1:20 p.m. ___________________________ Sharon B. Megdal Board Secretary 

 

Lake Mead

Lake Powell

91%

80%

94%

90%

83%

55%, 13.37 MAF

40%, 10.27 MAF

1,220’

3,700’

Current Elevation 3,616’

Colorado River Water Supply ReportSystem Contents: 29.595 MAF9/22/19

Current Elevation 1,083’

Mid-Elevation Release 3,575’

Tier 0 DCP 1,090’

Reservoir Current Change MaximumLake Mead 10.27 - 0.02 25.90Lake Powell 13.37 - 0.31 24.30Flaming Gorge Reservoir 3.42 - 0.05 3.75Navajo Reservoir 1.40 - 0.08 1.70Blue Mesa Reservoir 0.75 - 0.04 0.83Fontenelle Reservoir 0.28 - 0.03 0.34Morrow Point Reservoir 0.11 0.00 0.12

Reservoir Capacities (MAF)

The current ENSO (El Niño Southern Oscillation)probabilistic forecast indicates a greater than50% probability of a neutral ENSO signal for Fall2019 through Spring 2020.

The three month outlook for precipitation forOctober 2019 through December 2019 showsthat the Upper Colorado River Basin (and most ofArizona) will experience above normalprecipitation. Temperatures for the next threemonths are forecasted to be above normal for allof the United States (with a greater probability ofabove normal temperatures in the Colorado RiverBasin).

90 Day Precipitation and Temperature Outlook

ENSO Outlook

2019 Southwest Monsoon Season (Non-Soon)

623-869-2333 | From Tucson 520-579-0046 | Fax 623-869-2332 | CentralArizonaProject.com

Agenda Number 10.

CONTACT: Ken Seasholes623-869-2476kseasholes@cap-az.com

Greg Adams623-869-2124gadams@cap-az.com

MEETING DATE: Thursday, October 3, 2019

AGENDA ITEM: Discussion of Recovery Agreements With the Central Arizona, Hohokam, Maricopa-Stanfield, New Magma, and Queen Creek Irrigation and Drainage Districts Related to the Ag Pool Groundwater Infrastructure and Efficiency Program - Seasholes

LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE:Water Supply: Implement Recovery Planning

PREVIOUS BOARD ACTION/ACTIVITY:01/03/2019 Board authorized commitment of up to $5,000,000 in ad valorem taxes for the CAP Ag Pool

Groundwater Infrastructure and Efficiency Program05/02/2019 Board Update on Funding for and Development of Pinal Groundwater and Efficiency Projects06/06/2019 Board Update on Ag Pool Groundwater Infrastructure and Efficiency Program06/15/2019 CAGRD & Underground Storage Committee Update on CAWCD Participation in CAP Ag Pool

Groundwater Infrastructure and Efficiency Program08/01/2019 Board Update on Recovery Agreements Related to Ag Pool

Groundwater Infrastructure and Efficiency Program08/15/2019 CAGRD & Underground Storage Committee Report on CAWCD Participation in CAP Ag Pool

Groundwater Infrastructure and Efficiency Program09/05/2019 Discussion on Recovery Agreements Related to the Ag Pool Groundwater Infrastructure and

Efficiency Program09/26/2019 CAGRD & Underground Storage Committee Report on CAWCD Participation in CAP Ag Pool

Groundwater Infrastructure and Efficiency Program

ISSUE SUMMARY/DESCRIPTION: CAP Staff have worked with five Pinal County irrigation districts to develop agreements that secure CAWCD recovery capacity, while also satisfying the $5 million commitment made by the Board to support groundwater infrastructure development as part of Arizona's implementation of DCP. The agreements with the Central Arizona, Hohokam, Maricopa-Stanfield, New Magma, and Queen Creek Irrigation and Drainage Districts each rely on a "CAP Delivery Substitution" concept in which the districts agree to a reduced future CAP supply in exchange for an up-front payment and compensation for additional pumping in a year in which recovery is required.

The primary terms of the agreements are identical: a 25-year recovery period beginning in 2027; up-front payment at a rate of $1 million per 2,500 AF/yr of recovery capacity; annual payment of $70/AF (escalated at 2.5%/yr) for each acre-foot recovered; and various terms related to permitting and reporting. However, there

are some differences among them: the agreements vary in amount of up-front payment and recovery volume; the Maricopa-Stanfield and Central Arizona agreements have restrictions related to wells discharging into the Santa Rosa Canal; and the Hohokam agreement is tailored to reflect the fact that the district does not operate wells.

The Hohokam agreement also identifies two sources of funding for the up-front payment--$600k from the $5M DCP commitment, and an additional $1 million to be disbursed from the $10 million Recovery Reserve established by the Board in April of 2018. Consistent with the commitments under DCP, the $5 million is distributed on the basis the CAP Ag Pool allocations, however storage by the Arizona Water Banking Authority in the Pinal AMA has been more uniformly distributed among CAIDD, MSIDD, and HIDD. The proposed additional funding for Hohokam is an opportunity to establish a more balanced recovery capacity (4,750 for CAIDD, 4,500 for MSIDD, and 4,000 for HIDD), and a total of 15,000 AF/yr of recovery capacity among all five districts.

The agreements are currently under review and consideration by the districts and their attorneys. The expectation is for each of the districts to consider approval at their October board meetings, and then for CAWCD Board to consider approval of each agreement at its November 7th meeting. For each approved agreement, the transfer of up-front funds could occur shortly thereafter.

ATTACHMENTS: None

623-869-2333 | From Tucson 520-579-0046 | Fax 623-869-2332 | CentralArizonaProject.com

Agenda Number 11.

CONTACT: Patrick Dent623-869-2581pdent@cap-az.com

MEETING DATE: Thursday, October 3, 2019

AGENDA ITEM: Report on Colorado River Salinity Control Program - Dent

LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE:2016 Board Strategic PlanWater Supply: Reliability of the Water Supply

PREVIOUS BOARD ACTION/ACTIVITY:None.

ISSUE SUMMARY/DESCRIPTION: The Colorado River Basin Salinity Control Program is an authorized activity of the 1974 Salinity Control Act. The objective of the Program is to reduce the concentration of total dissolved solids (TDS) in the Colorado River System and to comply with the water quality standard as required by the Clean Water Act.

Staff will give the attached presentation to inform the Board about the Program.

ATTACHMENTS: 1. Salinity Control Program Presentation

1

CAWCD BOARD

October 3, 2019

Tucson, AZ

Salinity in Central Arizona The CAP system imports approximately 1.2 million tons of salt (TDS) 

into central Arizona each year

Unlike costal cities or water uses that return salts to the Colorado River, salt is retained in the CAP service area –ultimately concentrating in regional aquifers ‐making salinity a long‐term water management issue for central Arizona

Economic damages due to the high TDS of Colorado River water used in central Arizona are currently occurring

The Salinity Control Program is a pollution prevention program that presently prevents 200,000 tons per year of salt from entering central Arizona via the Central Arizona Project

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Outline for Today Quick Overview

Why Salinity Problem

Impetus for the Program

Early History

Program Nuts and Bolts

Program Funding

Economic Damages

The Colorado River’s salinity concentration increases from about 50 mg/L to 800 mg/L as it flows from its headwaters to the lowest diversion in the United States

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Why is There a Salinity Issue in the Colorado River Basin?  

It’s the geology…

Paradox Basin (and Eagle) evaporites (300 mya) Mancos Shale (100 mya)

About 300 mya –formation of Pangea super continent

(paleogeographic map from Blakey and Ranney, 2008)

Four Corners

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300 mya – sea high stand

300 mya – sea low stand

Paradox Basin

Central Colorado Trough

(Paleogeographic map from Blakey and Ranney, 2008)

Four Corners

Four Corners

Roaring Fork River

Evaporite Diapir

Overlying Bedrock

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Standard (1975)

Established the numeric criteria.

Initiated a Plan of Implementation.

879  mg/L

747  mg/L

723  mg/L

About 100 mya –transgression of  Western Interior Seaway

Deposition of 1000’s of feet of salty marine shale

WesternInteriorSeaway

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Mancos Shale

Grand Valley, Colorado

ColoradoRiver Basin

MancosShale

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Early 1970’s

Salinity of the Colorado River was rising

Significant concerns by Mexico

Salinity Control Program History

Early 1970’s

Salinity Control Program Genesis

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Early 1970’s

Salinity of the Colorado River was rising

Significant concerns by Mexico

1972 Amendments:

Federal Water

Pollution 

Control Act

Salinity Control Program History

1973 – created the Colorado River Basin Salinity Control Forum (Forum) Conference on the Matter of the Pollution of the Interstate Waters of the Colorado River and its Tributaries (concluded in 1972)

1974 – passed the Colorado River Basin Salinity Control Act (Act) Title I and Title II

1975 – adopted salinity standards for the Colorado River

Salinity Control Program History

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Standard (1975)

Established the numeric criteria.

Initiated a Plan of Implementation.

879  mg/L

747  mg/L

723  mg/L

Who’s who?Colorado River Basin

Salinity Control 

Advisory Council

WorkGroup

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Science Support (USGS)

Non‐Point Source Activities

Lining and piping of canals and ditches (Reclamation)

On‐farm irrigation efficiency improvements (NRCS)

Rangeland improvements (BLM)

Point Source Activities

State NPDES administration pursuant to Forum’s policies (7 States and EPA)

Saline spring disposal (Paradox Valley Unit, Reclamation)

Plugging of saline wells (BLM)

Salinity Control Program Efforts

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ReclamationNRCS

BLM

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Paradox Valley Unit (PVU)

deep injection well

brine

shallow collection wells

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Salinity Damages• Increased salinity causes significant economic damage to M&I water delivery infrastructure

• Degrades plumbing and appliances in homes

• Increases costs for recycling and wastewater treatment

• Reduces agricultural crop productivity and increases water use for soil leaching purposes

Salinity Damages

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Quantified Salinity Damages by Sector

Agricultural58%

Residential

Commercial8%

Industrial2%

Utility3%

Groundwater5%

Recycled Water3%

$300M(2014)

$454M(2017)

$574M(2035)

Annually!

How Have We done?

Findings:

1.33 million of control

100+ mg/L better

Plan of Implementation

63,500 tons (3 years)

332,000 tons (2035)

Adopted by each state/ approved by EPA

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How Have We Done?

Salinity Control Program 2011

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How is the Program Funded  $ Act provides that because “most” of the salt comes from federally administered lands:

70% paid by federal government

30% paid as cost‐share by basin states through the Basin Funds 

However, Program participants also cost‐share in their projects

2019 Funding Levels

Reclamation  $8M (+O&M) NRCS  $12M 

Basin States Cost Share $10M BLM = $2M

Program Expenditures Total annual Program cost is 35M – to 40M dollars.

Since the Program was authorized in 1972 1.247 billion has been expended on Title II Program. Federal appropriations in the Reclamation and NRCS programs have been 894 million

The Basin States have contributed 353 million 300 million from the Lower Basin

53 million from the upper basin

State funds are generated from surcharges on CRSP and Parker/Davis and Hoover power.

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Current Program Issues Continued federal funding

Annual deficit in the Lower Basin Development Fund

Seismic issues with the Paradox Valley Unit

EIS nearly complete

Currently not operating

Forum currently working on the 2020 Triennial Review of the water quality standard

Summary Very unique and successful state/federal/water users partnership ‐ voluntary

1.3 million tons of annual salt load reduction

Downstream concentration is 90‐100 mg/L better

Several hundred million dollars in reduced annual damages

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www.ColoradoRiverSalinity.org

Colorado River Basin Salinity Control Program

Questions?