2014 CENTRAL ARIZONA PROJECT (CAP) WATER ORDER TOTALING 8,171.1 ACRE-FEET RECOMMENDATION: 1. APPROVE A TOTAL WATER ORDER OF 8,171.1 ACRE-FEET FROM THE CENTRAL ARIZONA PROJECT (CAP) FOR CALENDAR YEAR 2014. 2. ADOPT RESOLUTION 13-1571 AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY TO IMPLEMENT THE SALE OF 4,275 ACRE-FEET OF LONG TERM STORAGE CREDITS (LTSC) TO THE CITY OF EL MIRAGE. PURPOSE: Recommendation 1: The purpose of this action is to authorize purchase of renewable water supplies within the City’s water portfolio for use in calendar year 2014. Central Arizona Project (CAP) water is the single largest renewable water supply within the City’s water portfolio. Any CAP water ordered for 2014 would help to offset use of other water supplies, avoiding their depletion. The City has budgeted $600,000 for purchase of CAP water for calendar year 2014. Council approval is required for the order of 3,896.1 acre-feet of water. CAP Subcontractors, like the City, must order CAP water by October 1 of the year prior to use. Recommendation 2: The City does not currently order its full annual entitlement of Central Arizona Project (CAP) water supplies. The City holds a subcontract with the Federal government and the Central Arizona Water Conservation District (CAWCD) for an annual allocation of 10,742 AF. The City is currently required to pay $20 per acre-foot (AF) (1 acre-foot = 325,851 gallons) of its CAP subcontract water. Therefore, the City is required to pay a total of $214,840 per year towards the federal debt service of the CAP canal. The City of El Mirage is in need of long term storage credits and is willing to purchase 4,275 acre-feet of long term storage credits from the City and is willing to pay a rate equal to $187 per acre-foot, totaling $799,425. This charge is $33 per acre-foot higher than the current CAP water commodity cost per acre-foot rate. The monies received from El Mirage would allow the City to purchase an equal amount of CAP water during the calendar year 2014 thus replenishing that amount of long term storage credits sold to El Mirage. Therefore, the City’s long term storage credit account balance will not be impacted. However, the City Water Enterprise Fund will receive net revenue of $141,075. (Mark Holmes, Water Resources Manager)

Resolution Passed Introduced September 10, 2013

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