HomeMy WebLinkAboutResolution 2010-113 agreement for tucson area reliability for central arizona water conservation districtMARANA RESOLUTION N0.2010-113
RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE
AN AGREEMENT FOR TUCSON AREA RELIABILITY AMONG THE CENTRAL ARIZONA
WATER CONSERVATION DISTRICT, THE CITY OF TUCSON, FLOWING WELLS
IRRIGATION DISTRICT, METROPOLITAN DOMESTIC WATER IlVIPROVEMENT DISTRICT,
THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY
WHEREAS the Marana Utilities Department has a Municipal and Industrial Central Arizona
Subcontract for the delivery of surface water by the Central Arizona Water Conservation District
(CAWCD) utilizing the Central Arizona Project canal; and
WHEREAS the Town endeavors to take its surface water at the Lower Santa Cruz Recharge
Facility; and
WHEREAS, the Town has partnered the City of Tucson, Flowing Wells Irrigation District,
Metropolitan Domestic Water Improvement District, the Town of Marana and the Town of Oro
Valley to develop a reliability solution with mutually beneficial to all parties of the agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
SECTION 1. The Agreement for Tucson Area Reliability Among the Central Arizona Water
Conservation District, The City of Tucson, Flowing Wells Irrigation District, Metropolitan Domestic
Water Improvement District, the Town of Marana and the Town of Oro Valley attached as Exhibit A
to this resolution and incorporated here by this reference is hereby approved, and the Mayor is hereby
authorized to execute it for and on behalf of the Town of Marana.
SECTION 2. The various Town officers and employees are authorized and directed to
perform all acts necessary or desirable to give effect to this resolution.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 7~' day of December 2010.
Mayor E Honea
APPROVED AS TO FORM:
'. -~ -,
Fxank Cassidy, Town A rney
.,
AGREEMENT FOR TUCSON AREA RELIABILITY
AMONG
THE CENTRAL ARIZONA WATER CONSERVATION DISTRICT,
THE CITY OF TUCSON, FLOWING WELLS IRRIGATION DISTRICT,
METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT,
THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY
This Agreement is made this 4 day of January 2011 2-4}4 among the Central
Arizona Water Conservation District, the City of Tucson, Flowing Wells Irrigation
District, Metropolitan Domestic Water Improvement District, the Town of Marana and
the Town of Oro Valley.
RECITALS
A. On April 15, 1986, the United States, CAWCD, the City of Tucson and a
number of Phoenix -area entities executed the Plan 6 Funding Agreement. The concept of
a Tucson -area CAP reliability feature derives from the Plan 6 Funding Agreement.
Article 8.a of the Plan 6 Funding Agreement provides:
"The first priority for available Federal funds shall be for construction of the
Aqueduct facilities through Tucson Phase B, exclusive of terminal storage.
Terminal storage, if approved by the Secretary, shall be constructed after
completion of the Tucson Phase B aqueduct and shall be phased with construction
of New Waddell Dam, Cliff Dam and modification of Stewart Mountain and
Roosevelt Dams, as set forth in Exhibit "A "; Provided, however, That in applying
the principles and Guidelines (or such successors as may be applicable) to the
planning for Terminal Storage, the United States agrees to consider all factors
relating to the reliability of the Aqueduct south of the Phoenix area. Before
concluding its analysis, the United States shall consult with CAWCD and Tucson
to determine the acceptability of the United States' plan to provide the reasonable
reliability (as defined in Subarticle 3.p).
B. Subarticle 3.p of the Plan 6 Funding Agreement defines "Terminal
Storage" as "surface storage facilities or an alternative to surface storage facilities, in the
Tucson area, which, if approved by the Secretary, will provide as reasonably reliable a
supply of municipal and industrial (M &I) water for the water users in the Tucson area as
is provided for other major Central Arizona Project M &I water subcontractors."
C. To fulfill its commitment under the Plan 6 Funding Agreement, the United
States, acting through the Bureau of Reclamation, initiated the Tucson Area System
Reliability Investigation (TASRI) in 1987 to determine the difference in CAP water
delivery reliability between the Tucson and Phoenix metropolitan areas and to evaluate
alternative methods for reducing or eliminating that difference. Throughout the 1990s,
Exhibit 1 to Resolution 21674
1 City of Tucson Contract Number 17094
Reclamation conducted an extensive public process to discuss and obtain input on the
project. That process led to publication of a draft environmental impact statement in
1995 and a final EIS in 1998.
D. In the 1998 final EIS, Reclamation concluded that the only significant
difference in CAP water delivery reliability between the Phoenix and Tucson areas
results from planned maintenance outages. Specifically, Reclamation determined that
providing a 30 -day backup supply to meet low flow winter demands would afford Tucson
area CAP M &I subcontractors reliability equivalent to that of Phoenix area CAP M &I
subcontractors.
E. Reclamation determined the volume of this 30 -day backup supply for each
of the Water Providers (the "Reliability Volume ").
F. At present, the Water Providers intend to make use of their CAP
entitlements through underground storage and recovery rather than direct delivery to
water treatment plants, and to maximize their use of CAP water and other renewable
water supplies at Tucson area recharge facilities.
G. The City of Tucson, Flowing Wells Irrigation District, Metropolitan
Domestic Water Improvement District, the Town of Marana and the Town of Oro Valley
believe CAP reliability can be achieved through underground storage, or other reliability
alternatives for a possible water treatment plant, and desire to enter into this Agreement
with CAWCD to insure the reliability of their CAP deliveries through underground
storage.
H. In 1998, the Arizona legislature added Article 6 to Chapter 3.1 of Title 45,
Arizona Revised Statutes, authorizing the development of underground storage projects
known as "State demonstration projects ". The stated purposes of this Article 6, as set
forth in A.R.S. § 45- 891.01, are:
Ill. To protect the general economy and welfare of this state and its
citizens by wise resource management of the water of the central
Arizona project.
2. To store for future needs or use for replenishment purposes the
central Arizona project water not now utilized by central Arizona
project subcontractors.
3. To provide an additional source of water for times of serious water
shortage due to a substantial reduction in the supply of central
Arizona project water available for delivery to central Arizona
project subcontractors or a prolonged interruption of deliveries of
central Arizona project water."
I. The Lower Santa Cruz Recharge Project is a state demonstration project
constructed pursuant to A.R.S. 45- 891.01 et sec . CAWCD owns and operates the Lower
Santa Cruz Recharge Project.
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J. The City of Tucson and CAWCD partnered in the development of the
Pima Mine Road Recharge Project pursuant to the Pima Mine Road Recharge Project
Intergovernmental Agreement, dated May 18, 2000, ( "PMRRP IGA ") and each owns
50% of the storage capacity of the facility. CAWCD's 50% share of the Pima Mine Road
Recharge Project is a state demonstration project constructed pursuant to A.R.S. 45-
891.01 et sec . CAWCD operates the Pima Mine Road Recharge Project. CAWCD and
the City of Tucson are currently negotiating an amendment to the PMRRP IGA.
K. The parties to this Agreement intend to solve the Terminal
Storage/Reliability issue without the expenditure of additional federal funds.
L. If the CAP M &I subcontract entitlements of the Water Providers change
in the future, the parties agree to meet and consult on whether this Agreement should be
amended to reflect the new entitlements.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are acknowledged, and intending to be legally bound, the parties hereby agree as
follows.
ARTICLE 1
DEFINITIONS
1.1 "ADWR" means the Arizona Department of Water Resources.
1.2 "Agreement" means this Agreement for Tucson Area Reliability among the
Central Arizona Water Conservation District, the City of Tucson, Flowing Wells
Irrigation District, Metropolitan Domestic Water Improvement District, the Town of
Marana and the Town of Oro Valley.
1.3 "CAWCD" means the Central Arizona Water Conservation District.
1.4 "CAVSARP" means the Central Avra Valley Storage and Recovery Project,
which is owned and operated by the City of Tucson.
1.5 "LSCRP" means the Lower Santa Cruz Recharge Project, which is owned and
operated by CAWCD.
1.6 "Northwest Providers" means Flowing Wells Irrigation District, Metropolitan
Domestic Water Improvement District, the Town of Marana and the Town of Oro Valley.
1.7 " PMRRP" means the Pima Mine Road Recharge Project, which is owned by
CAWCD and the City of Tucson and operated by CAWCD.
1.8 "Reclamation" means the United States Bureau of Reclamation.
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1.9 "Reliability Volume" means the volume of the 30 -day backup supply necessary to
meet the reliability needs of each of the Water Providers, as determined by Reclamation.
The Reliability Volume for each of the Water Providers is: the City of Tucson — 11,665
af; Flowing Wells Irrigation District — 231 af, Metropolitan Domestic Water
Improvement District — 1,089 af, Spanish Trail Water Company — 246 af; the Town of
Marana — 124 af, the Town of Oro Valley — 834 af; Vail Water Company — 150 af.
1.10 "SAVSARP" means the Southern Avra Valley Storage and Recovery Project,
which is owned and operated by the City of Tucson.
1.11 "Water Providers" means the City of Tucson, Flowing Wells Irrigation District,
Metropolitan Domestic Water Improvement District, Spanish Trail Water Company, the
Town of Marana, the Town of Oro Valley and Vail Water Company.
1.12 "Water Storage Permit" is as defined in Arizona Revised Statutes § 45-
802.01(24).
ARTICLE 2
RESPONSIBILITY OF NORTHWEST PROVIDERS —
ANNUAL COORDINATION BETWEEN
CAWCD AND NORTHWEST PROVIDERS
2.1 At present, the Northwest Providers intend to make use of their CAP entitlements
through underground storage and recovery rather than direct delivery to water treatment
plants. The Northwest Providers are responsible for securing access to sufficient storage
capacity at underground storage facilities to provide for storage of their CAP entitlements
over a twelve -month period. The Northwest Providers shall obtain and maintain Water
Storage Permits from ADWR authorizing them to store water at such underground
storage facilities.
2.2 No later than November 1 St of each year during the term of this Agreement,
CAWCD and the Northwest Providers shall meet and confer regarding the availability of
storage capacity for the Northwest Providers during the following year and the delivery
of the Northwest Providers' CAP entitlements to such storage facilities during the
following year.
ARTICLE 3
RESERVATION OF LSCRP STORAGE CAPACITY
FOR NORTHEWEST PROVIDERS
3.1 During the annual consultation pursuant to Article 2.2, if CAWCD and the
Northwest Providers determine that the Northwest Providers' CAP water delivery
schedules for the following year cannot be filled due to a CAP planned maintenance
outage and the scheduled volume cannot be moved to another month for storage at the
LSCRP or another storage facility available and acceptable to the Northwest Providers,
then CAWCD shall reserve 2,278 of of storage capacity in the LSCRP for the benefit of
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the Northwest Providers. This 2,278 of of reserved LSCRP storage capacity is allocated
among the Northwest Providers as follows: Flowing Wells Irrigation District — 231 af,
Metropolitan Domestic Water Improvement District — 1,089 af, the Town of Marana —
124 af, and the Town of Oro Valley — 834 a£ Provided, however, CAWCD is obligated
to reserve storage capacity pursuant to this Article only if both of the following
conditions have been satisfied: (i) the Northwest Providers have coordinated with
CAWCD in accordance with Article 2.2 above, and (ii) the Northwest Providers have met
their responsibility under Article 2.1 above. CAWCD will manage the reserved storage
capacity and may utilize such capacity for other purposes if it is not needed in any year
for reliability.
3.2 Each Northwest Provider shall obtain and maintain a Water Storage Permit from
ADWR authorizing it to store water at the LSCRP.
3.3 Each Northwest Provider shall be responsible for paying all water delivery and
storage costs associated with its use of the LSCRP storage capacity reserved pursuant to
Article 3.1 above.
ARTICLE 4
RESPONSIBILITY OF TUCSON —
ANNUAL COORDINATION BETWEEN
CAWCD AND TUCSON
4.1 The City of Tucson intends to make use of its CAP entitlement through
underground storage and recovery rather than direct delivery to a water treatment plant.
The City of Tucson has developed two underground storage facilities: CAVSARP and
SAVSARP, and owns 50% of the storage capacity in the PMRRP. The City of Tucson is
responsible for utilizing the storage capacity it owns at these underground storage
facilities to provide for use of its CAP entitlement over a twelve -month period.
4.2 No later than November 1 St of each year during the term of this Agreement,
CAWCD and the City of Tucson shall meet and confer regarding the availability of
storage capacity for the City of Tucson at CAVSARP, SAVSARP and the PMRRP
during the following year and the delivery of the City of Tucson's CAP entitlement to
such storage facilities during the following year. In addition, CAWCD and the City of
Tucson will coordinate underground storage activities at CAVSARP, SAVSARP and
PMRRP to maximize the amount of CAP water that may be stored at all regional
facilities each year by developing a rolling five -year cooperative underground storage
plan.
ARTICLE 5
RESERVATION OF CAWCD PMRRP STORAGE CAPACITY
FOR TUCSON
5.1 In any year in which the City of Tucson schedules more than 132,526 of of its
CAP subcontract entitlement for delivery, CAWCD shall reserve CAWCD storage
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capacity in the PMRRP to meet the reliability needs of the City of Tucson. The volume
of PMRRP storage capacity reserved shall be equal to the difference between the volume
of Tucson's subcontract entitlement scheduled for delivery in that year and 132,526 af,
not to exceed 6,000 a£ CAWCD will manage the reserved storage capacity and may
utilize such capacity for other purposes if it is not needed in any year for reliability.
CAWCD and the City of Tucson will address any remaining reliability needs through
conjunctive management of CAVSARP, SAVSARP and PMRRP. Provided, however,
CAWCD is obligated to reserve storage capacity pursuant to this Article for the City of
Tucson only if both of the following conditions have been satisfied: (i) the City of
Tucson has coordinated with CAWCD in accordance with Article 4.2 above; (ii) the City
of Tucson has met its responsibility under Article 4.1 above.
5.2 The City of Tucson shall be responsible for paying all water delivery and storage
costs associated with its use of CAWCD storage capacity at the PMRRP reserved
pursuant to Article 5.1 above.
ARTICLE 6
RESERVATION OF CAWCD PMRRP STORAGE CAPACITY
FOR VAIL WATER AND SPANISH TRAIL
6.1 If CAWCD determines that Vail Water Company's and Spanish Trail Water
Company's CAP water delivery schedules for the following year cannot be filled due to a
CAP planned maintenance outage and the scheduled volumes cannot be moved to another
month for storage at another storage facility available to those entities, then CAWCD
shall reserve up to a total of 396 of of CAWCD storage capacity in the PMRRP for the
benefit of Vail Water Company and Spanish Trail Water Company. CAWCD will
manage the reserved storage capacity and may utilize such capacity for other purposes if
it is not needed in any year for reliability. Provided, however, CAWCD is obligated to
reserve storage capacity pursuant to this Article for Spanish Trail Water Company and
Vail Water Company only if. (i) Vail Water Company and Spanish Trail Water Company
have obtained a Water Storage Permit from ADWR authorizing them to store water at the
PMRRP; and (ii) Vail Water Company and Spanish Trail Water Company have secured
access to sufficient storage capacity at underground storage facilities to provide for
storage of their CAP entitlements over a twelve -month period.
6.2 Vail Water Company and Spanish Trail Water Company shall be responsible for
paying all water delivery and storage costs associated with their use of CAWCD storage
capacity at the PMRRP reserved pursuant to Article 6.1 above.
ARTICLE 7
CAWCD DEDICATION OF FUNDS FOR FIRMING
IN THE TUCSON AMA
CAWCD agrees to dedicate $ 6.0 million to be used for firming the CAP M &I
entitlements of water providers in the Tucson AMA, increasing the available
underground storage capacity in the Tucson AMA, or other purposes consistent with
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accommodating the reduction in available state demonstration storage capacity at the
LSCRP and the PMRRP resulting from the reservation of storage capacity at such
facilities pursuant to this Agreement.
ARTICLE 8
INSURING RELIABILITY FOR
DIRECT DELIVERIES OF CAP ENTITLEMENT
In the event a Northwest Provider constructs a water treatment plant that uses
CAP water directly from the CAP aqueduct within twenty years of the execution of this
Agreement, then CAWCD will continue delivery of water to such treatment plant during
any planned maintenance outage. This continued delivery would be accomplished
through the use of CAP canal storage, by -pass pumps, or other reliable means or
methods, as determined by CAWCD.
ARTICLE 9
SATISFACTION OF UNITED STATES'
AND CAWCD'S
COMMITMENTS IN THE PLAN 6 FUNDING AGREEMENT
The Water Providers hereby recognize that this Agreement fully satisfies any
obligation or commitment of the United States or CAWCD for insuring the reliability of
deliveries of Tucson area CAP entitlements arising out of the Plan 6 Funding Agreement.
Further, the Water Providers hereby release the United States from any obligation to
insure the reliability of deliveries of Tucson area CAP entitlements that may be construed
to arise out of the Plan 6 Funding Agreement.
ARTICLE 10
UNITED STATES, VAIL WATER COMPANY AND
SPANISH TRAIL WATER COMPANY AS EXPRESS
THIRD -PARTY BENEFICIARIES
10.1 The United States is an express third -party beneficiary of the provisions of Article
9 of this Agreement.
10.2 Vail Water Company and Spanish Trail Water Company are express third -party
beneficiaries of the provisions of Article 6 of this Agreement.
ARTICLE 11
GENERAL PROVISIONS
11.1 Additional Documentation Each party agrees to execute and record any
additional documentation that the other may reasonably require to effectuate the intents
and purposes of this Agreement.
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11.2 Entire Agreement This Agreement constitutes the entire agreement between the
parties and no understandings or obligations not expressly set forth in this Agreement are
binding upon the parties.
11.3 Amendments This Agreement may be modified, amended or revoked only by the
express written agreement of the parties hereto.
11.4 Interpretation This Agreement is governed by and must be construed and
interpreted in accordance with and in reference to the laws of the State of Arizona,
without regard to its conflict of laws provisions. Any action to resolve any dispute
regarding this Agreement shall be taken in a state court of competent jurisdiction located
in Maricopa County, Arizona.
11.5 Waiver No delay in exercising any right or remedy shall constitute a waiver
unless such right or remedy is waived in writing signed by the waiving parry. The waiver
by either party of a breach of any term, covenant, or condition in this Agreement shall not
be deemed a waiver of any other term, covenant, or condition of this Agreement.
11.6 Rules, Regulations, and Amendment or Successor Statutes All references in this
Agreement to the Arizona Revised Statutes include all rules and regulations promulgated
by the Arizona Department of Water Resources under such statutes and all amendment
statutes and successor statutes, rules, and regulations to such statutes, rules, and
regulations.
11.7 Severability Any determination by any court of competent jurisdiction that any
provision of this Agreement is invalid or unenforceable does not affect the validity or
enforceability of any other provision of this Agreement.
11.8 Captions All captions, titles, or headings in this Agreement are used for the
purpose of reference and convenience only and do not limit, modify, or otherwise affect
any of the provisions of this Agreement.
11.9 Term. The term of this Agreement between each Water Provider and CAWCD
shall be commensurate with the term of each Water Provider's CAP Subcontract with
CAWCD and the Secretary of the Interior.
11.10 Notices Except as otherwise required by law, any notice given in connection
with this Agreement must be in writing and must be given by personal delivery,
overnight delivery, facsimile, or United States certified or registered mail. Any such
notice must be addressed to the appropriate party at the following address (or at any other
address as a party may hereafter designate by written notice given as required by this
paragraph):
CAWCD:
For delivery use: Central Arizona Water Conservation District
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c/o General Manager
23636 N. 7 th Street
Phoenix, AZ 85024
For U.S. Mail use: Central Arizona Water Conservation District
c/o General Manager
P.O Box 43020
Phoenix, AZ 85080 -3020
The City of Tucson:
For delivery and
For U.S. Mail use: City of Tucson Water Department
Water Director
310 West Alameda
P.O. Box 27210
Tucson, Arizona, 85726 -7210
Flowing Wells Irrigation District:
For delivery and
For U.S. Mail use: Flowing Wells Irrigation District
c/o President
3901 N. Fairview Ave.
Tucson, Arizona 85705
Metropolitan Domestic Water Improvement District:
For delivery and
for U.S. Mail use: Metropolitan Domestic Water Improvement District
c/o General Manager
6265 North La Canada Drive
Tucson, Arizona 85704
The Town of Marana:
For delivery and
for U.S. Mail use: Town of Marana
c/o Utilities Department Director
Attn: Ms. Dorothy O'Brien
5100 W. Ina Road
Tucson, Arizona 85743
Fax No.: 520 - 382 -2590
With a copy to: Town Attorney
Attn: Mr. Frank Cassidy
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11555 W. Civic Center Dr.
Marana, Arizona 85653
Fax No.: 520- 382 -1945
The Town of Oro Valley:
For delivery and
for U.S. Mail use: The Town of Oro Valley
c/o Water Utility Director
11000 N. La Canada Dr.
Oro Valley, AZ 85737
c/o Town Attorney
11000 N. La Canada Dr.
Oro Valley, AZ 85737
Notice is deemed to have been given on the date on which notice is personally delivered,
delivered to an overnight delivery service, transmitted by facsimile or mailed. Notice is
deemed to have been received on the date on which the notice is actually received or
delivery is refused.
11.11 A.R.S. 38 -511. This Agreement is subject to the provisions of A.R.S. 38 -511.
11.12 Effective Date. This Agreement shall be effective upon full execution on behalf
of the governing board /councils of CAWCD, the City of Tucson, Flowing Wells
Irrigation District, Metropolitan Domestic Water Improvement District, the Town of
Marana and the Town of Oro Valley.
11.13 Duplicate originals and counterparts. This Agreement may be executed in one or
more counterparts, each of which shall constitute an original, and all of which, when
taken together, shall constitute one and the same instrument. This Agreement also may be
executed in duplicate originals, each of which shall constitute an original Agreement.
IN WITNESS WHEREOF, the parties to this Agreement have executed this
Agreement as of the date first set forth above.
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CENTRAL ARIZONWATER CONSERVATION
DISTRICT k
By:
Its: pre, 'dent .
ATTEST:
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THE CITY OF TUCSON
By:
Its: /Manager January 4, 2 011
ATTEST:
9
City Clerk January 4, 2011
APPROVED S O FORM:
c y Attorney
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FLOWING WELLS IRRIGATION DISTRICT
By:
David Crockett
Its: — Superintendent
ATTEST: ,
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METROPOLITAN DOMESTIC WATER
IMPROVEMENT DIST CT
By: t� l
Its: [,�C, r cat 1Ux atc, -c�
ATTEST
14
a
THE TOWN OF MARANA
B y :
Mayor Eli Honea
ATTEST:
el . Bronson, Town Clerk
APPROVED AS TO FORM:
Frank Cassidy, Tp Attorney
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THE TOWN OF ORO VALLEY
By:
r. atish I. Hirem th, Mayor
ATTEST:
ulie K. Bower, Town Clerk
APPROVED AS TO FORM:
Tobin Rosen, Town A
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