MEMORANDUM To: Arizona Water Banking Authority Members From: Kim Mitchell, Manager Subject: Amended 2010 Annual Plan of Operation Date: September 28, 2010 AUTHORITY MEMBERS Herbert R. Guenther, Chairman Maureen R. George, Vice-Chairman Tom Buschatzke, Secretary John Mawhinney Lisa Atkins EX OFFICIO MEMBERS Senator Steve Pierce Representative Kirk Adams As approved by the Authority at the September 15, 2010 meeting, the 2010 Annual Plan of Operation (Plan) has been amended to reflect changes made to the original Plan due to additional supplies that have been made available to the AWBA and to include an interstate water banking component. Attached to this memorandum are an Amended Table 2, replacement paragraphs that discuss these changes, and an Amended Table 4 and 5. These changes constitute the Amended 2010 Plan of Operation. Amended 9-15-10 The 2010 Annual Plan of Operation (Plan) has been amended to include additional supplies and water deliveries for interstate banking purposes. The following paragraphs have been changed and constitute the Amended 2010 Plan. Page 6, paragraph 6 I. Water Availability The AWBA had planned to deliver for storage a total of 153,600 acre-feet of water under the original 2010 Plan of Operation (Plan). In September, an additional 57,000 acre-feet of water became available to the AWBA. This is in addition to 8,862 acre-feet of water made available earlier in the year, which had been delivered to the Pinal and Tucson AMAs. The 2010 Plan was amended to include the 8,862 acre-feet of water previously delivered and the additional 57,000 acre-feet of water scheduled for delivery to the Phoenix and Tucson AMAs. Thus, the total deliveries scheduled under the 2010 Amended Plan are 219,462 acre-feet. Page 7, paragraph 3 III. Available Funds The AWBA requested $691,800 in shortage reparation funds from the Southern Nevada Water Authority (SNWA) to purchase water that had become available earlier in the year. These deliveries were not included in the original 2010 Plan, but were delivered based on the Commission’s direction to deliver water for this purpose, if additional water became available. There is approximately $4.1 million in Nevada Operating Fund monies to purchase water for interstate deliveries under the Amended 2010 Plan. This money is from funds previously disbursed to CAWCD and made available as a result of the 2009 reconciliation of interstate delivery costs. Page 7, paragraph 6 IV. Available Storage Facility Capacity AWBA staff conferred with facility operators to discuss the potential for storing additional supplies. These discussions concluded that by storing the additional 57,000 acre-feet of water that had become available, the AWBA will be utilizing all of its storage capacity currently available in the Phoenix and Tucson AMAs. Page 9, Table 2 Amended 9-15-10 Amended Table 2 Water Delivery Schedule (Acre-Feet) Calendar Year 2010 AWBA-Recharge Sites PHOENIX AMA : HIEROGLYPHIC MTN AGUA FRIA TONOPAH DESERT* TONOPAH Interstate Permitted Capacity (AF) Oct Nov Dec 0 0 0 0 0 0 9,000 0 0 0 9,000 0 2,500 0 9,000 2,500 2,500 0 3,148 2,500 0 0 0 0 0 0 0 0 0 0 2,285 0 0 0 2,285 0 0 0 1,343 0 0 0 1,142 0 15,338 0 14,895 0 0 0 11,285 0 11,285 0 12,843 2,500 6,790 2,500 5,000 0 79,345 5,000 89,345 0 0 7,055 0 7,055 91,400 5,000 8,131 15,338 14,895 0 11,285 11,285 15,343 9,290 96,400 0 500 2,100 0 364 3,100 0 0 1,000 0 0 500 11,400 1,136 2,000 0 2,460 2,000 0 2,000 1,400 0 2,175 1,000 0 2,365 400 11,400 11,000 16,800 39,200 2,500 2,600 3,464 1,000 500 14,536 4,460 3,400 3,175 2,765 39,200 428 0 1,709 0 0 0 0 0 565 0 3,854 0 0 0 0 0 438 0 2,920 0 0 0 7,043 0 500 0 2,733 0 0 0 6,524 0 471 0 3,777 0 0 0 3,613 0 419 0 1,484 0 0 0 5,244 0 0 349 0 211 0 0 6,025 0 0 0 0 3,000 0 0 5,700 0 0 0 0 1,500 0 0 3,000 0 0 500 0 1,289 0 2,703 3,851 0 0 151 0 2,000 0 0 0 2,297 0 0 0 0 0 0 1,030 0 1,602 0 492 0 715 0 161 0 0 0 0 0 0 0 0 0 AMA TOTAL 4,564 0 4,564 2,137 0 2,137 4,419 0 4,419 11,431 0 11,431 11,359 0 11,359 8,353 0 8,353 7,862 0 7,862 6,186 560 6,746 5,700 3,000 8,700 3,000 1,500 4,500 3,851 4,492 8,343 0 4,448 4,448 3,428 1,000 20,434 8,000 0 2,703 41,000 2,297 78,862 4,000 0 4,000 68,862 14,000 82,862 TOTAL INTRASTATE TOTAL INTERSTATE 5,364 0 4,720 0 14,032 0 15,168 0 22,954 0 24,691 0 23,257 0 20,722 560 21,445 3,000 17,685 1,500 19,869 6,992 9,555 6,948 199,462 19,000 TOTAL RECHARGE 5,364 4,720 14,032 15,168 22,954 24,691 23,257 21,282 24,445 19,185 26,861 16,503 218,462 GSF USF Sep RWCD NEW MAGMA QUEEN CREEK TONOPAH ID 35,000 150,000 105,000 54,000 28,000 15,000 TOTAL INTRASTATE TOTAL INTERSTATE AMA TOTAL Jan Feb Mar Apr May Jun Jul Aug 0 0 0 0 0 0 2,583 0 0 0 7,113 0 0 0 1,137 0 0 0 8,131 0 0 0 15,338 0 0 0 14,895 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,583 0 7,113 0 1,137 0 8,131 0 0 2,583 7,113 1,137 0 0 800 0 0 0 0 0 2,500 800 0 607 0 3,957 0 0 0 0 0 Total GSF PINAL AMA : CAIDD HOHOKAM MSIDD 110,000 55,000 120,000 AMA TOTAL GSF USF TUCSON AMA: AVRA VALLEY AVRA VALLEY Interstate LOWER SANTA CRUZ LSC Interstate CAVSARP CAVSARP Interstate SAVSARP SAVSARP Interstate CORTARO-MARANA ID KAI FARMS (Red Rock) 11,000 50,000 100,000 60,000 20,000 11,231 TOTAL INTRASTATE TOTAL INTERSTATE DIRECT DELIVERY (Non-Storage): Southside Replenishment Bank Southside Replenishment Obligation TOTAL DIRECT TOTAL DELIVERIES 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000 0 0 0 0 0 0 0 1,000 0 0 0 0 0 0 0 0 0 1,000 0 0 0 1,000 5,364 4,720 14,032 15,168 22,954 24,691 23,257 21,282 25,445 19,185 26,861 16,503 219,462 * Of the 33,000 acre-feet delivered to TDRP, 2,852 acre-feet were delivered in July. Amended 9-15-10 Page 11, paragraph 2 INTERSTATE WATER BANKING The original 2010 Plan did not include planned interstate deliveries. The Plan was amended to include 19,000 acre-feet of interstate deliveries: 5,000 acre-feet to the Phoenix AMA and 14,000 acre-feet to the Tucson AMA. The 19,000 acre-feet was determined based on an adjusted interstate rate provided by CAWCD in September, 2010 and the $4.1 million that became available as a result of the 2009 reconciliation at the end of April, 2010. Page 13 Table 4. Amended 2010 Water and Facility Rates CAWCD delivery rate to AWBA for water storage $133 per acre-foot Interstate rate $187 per acre-foot Groundwater Savings Facility operator cost share rate 1 2 Intrastate Phoenix and Pinal AMAs $33 per acre-foot Tucson AMA $15 per acre-foot Interstate $26 per acre-foot Underground Storage Facility rate paid by AWBA Agua Fria Recharge Project (CAWCD) Hieroglyphic Mtns. (CAWCD) 3 $8 per acre-foot 3 $8 per acre-foot Tonopah Desert Recharge Project (CAWCD) 3 West Maricopa Combine Avra Valley (CAWCD) $26 per acre-foot 4 $15 per acre-foot Lower Santa Cruz (CAWCD/Pima County) Pima Mine Road (CAWCD) 4 4 Clearwater Facility (Tucson Water – CAVSARP/SAVSARP) CAWCD rate to AWBA for Southside Replenishment Bank deliveries 1 2 $8 per acre-foot $15 per acre-foot $15 per acre-foot $14.30 per acre-foot $118 per acre-foot Estimated reconcilation rate provided by CAWCD, September 2010. This rate is paid directly to CAP by the GSF operators and is not available as revenue to the AWBA. The AWBA’s rate for delivery of in lieu water is thus reduced to $104/af for intrastate deliveries to the Phoenix and Pinal AMAs, $122/af to the Tucson AMA, and $161/af for interstate deliveries. 3 Additional capital charge of $15 per acre-foot for interstate storage. 4 Additional capital charge of $9 per acre-foot for interstate storage. Amended 9-15-10 Page 14 Table 5. Funding for Amended 2010 Annual Plan of Operation Funds Available ($) AWBA CAWCD Withdrawal Fees Phoenix AMA 1 Pinal AMA Tucson AMA - $1,700,000 $1,575,000 $450,000 Funds Utilized ($) AWBA CAWCD $1,700,000 $1,575,000 $450,000 Credits (AF) - 11,500 13,400 2,840 73,870 18,060 57,740 Four Cent Tax Phoenix AMA Pinal AMA 2,3 Tucson AMA $0 $0 $0 General Phoenix AMA Pinal AMA Tucson AMA $0 $110,643,000 $1,968,000 $12,750,000 $0 $0 $0 $10,920,000 $1,963,000 $9,160,000 - $0 $0 $0 - 0 0 0 - $691,800 $0 $500,000 $191,800 - 0 4,600 1,190 Other Gifts, Grants, Donations Shortage Reparations (NV): Phoenix AMA Pinal AMA Tucson AMA Interstate Banking- Nevada Operating Subaccount Phoenix AMA Pinal AMA Tucson AMA $691,800 $33,333,000 4 Total Funds Available $163,110,800 5 $4,008,000 $1,051,000 $0 $2,957,000 Total Funds Expended $30,467,800 4,600 0 12,880 Credits 200,680 1 Includes expenditure for 1,000 acre-feet of direct deliveries for establishing the Southside Replenishment Bank under the Gila River Indian Water Settlement Program. 2 Includes CAWCD’s capital charge recovery for costs of construction of state demonstration projects when facilities are used for interstate purposes and by entities that do not pay the 4¢ ad valorem tax. Revenue through 2009 is estimated to be $1,719,467. 3 Includes expenditure of $120,176 for the assignment of an estimated 812 acre-feet of credits to the AWBA from the Tohono O’odham Nation pursuant to §45-841.01. 4 Includes $18,000 in AWBA Operating Subaccount and $33,315,000 available from the Southern Nevada Water Authority if water becomes available for interstate storage. 5 Available pursuant to CAWCD’s 2009 reconciliation.