CAGRD is required by law to submit a plan of operation to the Director of ADWR every ten years. This 2004 CAGRD Plan of Operation ("Plan") must be submitted to the Director by January 1, 2005. The Plan describes the activities that CAGRD proposes to undertake in the Phoenix, Pinal and Tucson Active Management Areas ("AMAs") over the next one-hundred years based on continued membership enrollment through 2015.
Through December 31, 2003, CAGRD had enrolled the water service areas of nineteen municipal water providers as Member Service Areas. In addition more than 550 subdivisions, representing almost 125,000 homes, have been enrolled as Member Lands of the CAGRD. Through 2003, CAGRD had incurred a total of more than 56,000 acre-feet of groundwater replenishment obligations. CAGRD is currently in full compliance with all of its statutory and contractual requirements.
Based on the CAWCD study entitled "Outlook 2003," CAGRD estimates that new Member Land enrollment through 2015 will proceed at a rate of about 18,500 housing units per year. This rate results in a total Member Land enrollment of about 342,000 units by the end of 2015. In addition, service areas that are already enrolled as Member Service Areas will also continue to grow. CAGRD estimates that its total annual replenishment obligation for current members and those that are projected to enroll through 2015 will reach about 227,000 acre-feet by 2035 (projected build-out).
In 2003, CAGRD performed an analysis of various types of water supplies that could be acquired for use in meeting its replenishment obligations. Based on conservative assumptions, CAGRD identified an annual total of more than 900,000 acre-feet of supplies that could potentially be acquired by CAGRD. With this information, CAGRD developed a plan to acquire a diverse portfolio of water supplies consisting of CAP water (Excess, M&I subcontract and Indian leases), effluent, Colorado River water and imported groundwater. The portfolio will consist of both short-term and long-term water supplies and will be sufficient to satisfy CAGRD's projected obligations of 227,000 acre-feet per year. The water supply acquisition plan calls for building the portfolio over a period of about twenty-three years at a total estimated cost of just over $260 million.
As a result of legislation adopted in 2003, CAGRD is required to establish and maintain a replenishment reserve of long-term storage credits in the Phoenix, Pinal and Tucson AMAs. The target volume for these reserves totals about 1.55 million acre-feet. CAGRD will develop these replenishment reserves over the next 45 years using a combination of excess CAP water (53%), existing long-term storage credits (42%) and water from the portfolio described above (5%).
To implement this Plan of Operation, CAGRD will rely heavily on CAP facilities. The Plan calls for transportation of up to 105,000 acre-feet of non-project water through the CAP aqueduct system. This volume is consistent with the "Policy for Use of Excess Canal Capacity" adopted by the CAWCD Board of Directors in December 2002. CAGRD will also need to use storage capacity in recharge facilities to meet its replenishment obligations. CAGRD analyzed the recharge capacity that could be available to CAGRD in existing and planned recharge facilities developed by CAWCD and others. The analysis showed that sufficient storage capacity is available to meet replenishment and reserve storage requirements for the next twenty years. In addition, with the development of new storage facilities planned in the future, sufficient capacity will remain available for use by CAGRD to meet its storage requirements for the next 100 years.
Statutes require that all of CAGRD's costs be paid by its members. Statutes also provide CAGRD with the authority and responsibility to establish and collect all fees, assessments and taxes necessary to meet its statutory obligations. CAGRD's Board of Directors has adopted policies for establishing its fees and rates on an annual basis, thus providing CAGRD with flexibility as economic and operational conditions change. Therefore, all mechanisms are in place to ensure that CAGRD will always be able to meet its statutory obligations using funds collected exclusively from its members.
In conclusion, this Plan of Operation shows that CAGRD has the capability and the authority to meet all of its statutory obligations over the next one-hundred years for current members and new members that will enroll through 2015.