SCIF MOU

City of Glendale — Regular Meeting (2022-09-27)

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SCIF MOU 
 
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MEMORANDUM OF UNDERSTANDING TO SUPPORT THE 
PLANNING, DESIGN, PERMITTING, CONSTRUCTION, AND OPERATION 
OF THE SRP-CAP INTERCONNECTION FACILITY 
AMONG 
SALT RIVER VALLEY WATER USERS' ASSOCIATION, 
SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT, 
CENTRAL ARIZONA WATER CONSERVATION DISTRICT, 
AND PARTICIPATING ENTITIES 
 
June __, 2022 
 
1. 
PARTIES:  
 
This nonbinding memorandum of understanding (“MOU”) to support the planning, 
design, permitting, construction, and operation of the SRP-CAP Interconnection Facility 
(“SCIF”), is entered into by the Salt River Valley Water Users' Association (“Association”), 
Salt River Project Agricultural Improvement and Power District (“District”), Central 
Arizona Water Conservation District (“CAWCD”), and the entities listed as “Participating 
Entities” in Exhibit A.  The Association and District are referred to collectively as “SRP.”  
SRP, CAWCD, and the Participating Entities are referred to collectively as “Parties.” 
 
2. 
BACKGROUND AND PURPOSE: 
 
2.1. 
The CAWCD is responsible for the care, operation, maintenance, and replacement 
of the Central Arizona Project (“CAP”), including the water delivery works of the 
CAP (herein “CAP Canal”).  CAWCD also has certain groundwater replenishment 
authorities and responsibilities pursuant to A.R.S. §§ 48-3771, et. seq., commonly 
referred to as the Central Arizona Groundwater Replenishment District.  
 
2.2. 
SRP is responsible for the care, operation, and maintenance of the Salt River 
Federal Reclamation Project, including the SRP water delivery system and the 
CAP/SRP Interconnection Facility (“CSIF”) located adjacent to the Granite Reef 
Diversion Dam, which provides SRP and CAWCD the ability to transport water from 
the CAP Canal to the SRP water delivery system.

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2.3. 
SRP, in collaboration with CAWCD, has begun planning to design, permit, and 
construct the SCIF, which would connect the SRP water delivery system to the CAP 
Canal and provide the infrastructure to facilitate the transportation of water from 
the SRP water delivery system to the CAP Canal. 
 
2.4. 
The Parties are considering participating in the planning, design, permitting, 
construction, and operation of the SCIF and potentially obtaining capacity in the 
SCIF to assist in managing their water resources. 
 
2.5. 
The purpose of this MOU is to generally describe: (1) the phases the Parties believe 
will be necessary to plan, design, permit, and construct the SCIF and (2) the 
cooperative efforts and roles and responsibilities of the Parties in each of those 
phases.  As described below, included in those cooperative efforts is supporting 
the formation of steering committees to facilitate collaboration and timely 
decision making and developing cost share agreements to fund the necessary 
work to complete the planning, design, permitting, construction, and operation of 
the SCIF.  
 
3. 
TERM AND TERMINATION: 
 
3.1. 
This MOU shall become effective upon execution by the Parties and, unless 
terminated under Subparagraph 3.2, will remain in effect until the construction of 
the SCIF is complete. 
 
3.2. 
This MOU may be terminated upon mutual written agreement of the Parties. 
 
3.3. 
This MOU and the provisions of the MOU may only be modified upon mutual 
written agreement of the Parties. 
 
3.4. 
Any Participating Entity may terminate its participation in this MOU upon thirty 
(30) days written notice to the other Parties of its intention to do so.  
 
4. 
AUTHORIZED REPRESENTATIVES: 
 
Within thirty (30) days after execution of this MOU, each Party shall designate in writing 
to the other Parties an Authorized Representative and an alternate to administer this 
MOU on behalf of the designating Party.  Written notice of a change of an Authorized

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Representative or alternate shall be provided within thirty (30) days of such change.  The 
alternate shall act only in the absence of the Authorized Representative.  Neither the 
Authorized Representatives nor the alternates shall have authority to amend or modify 
this MOU, except as provided in Paragraph 7.  Agreements of the Authorized 
Representatives pursuant to this MOU shall be in writing and signed by them. 
 
5. 
DESCRIPTION OF PHASES FOR THE PLANNING, DESIGN, PERMITTING, AND 
CONSTRUCTION OF THE SCIF: 
 
5.1. 
PHASE ONE:  SELECTING A PREFERRED ALTERNATIVE 
 
SRP and CAWCD retained HDR Engineering, Inc. (“HDR”) to produce a preliminary 
design report, dated March 29, 2021, and additional supplemental analysis (“HDR 
Technical Reports”), wherein SRP and CAWCD developed conceptual design and 
cost estimates for several alternative configurations and alignments for the SCIF.  
The Parties shall review the SCIF HDR Technical Reports and select a preferred 
alternative for the configuration and alignment of the SCIF.  If after reviewing the 
HDR Technical Reports, the Parties determine that additional technical work is 
necessary to select a preferred alternative, SRP, CAWCD, and the Participating 
Entities interested in funding additional work shall negotiate and enter into a cost 
share agreement to fund additional technical work (herein “Phase One Cost Share 
Agreement”).  The Phase One Cost Share Agreement shall provide for the 
formation of a steering committee to direct the additional technical work.  Once 
the additional technical work is completed, the Parties shall select a preferred 
alternative for the configuration and alignment of the SCIF.  In the event the 
preferred alternative is identified through the additional technical work, the cost 
of the additional technical work shall be eligible for reimbursement during Phase 
Two.  SRP shall collaborate, as necessary, with the Bureau of Reclamation 
(“Reclamation”) to complete Phase One. 
 
5.2. 
PHASE TWO: DESIGN AND PERMITTING 
 
SRP, in collaboration with CAWCD, Reclamation and other federal agencies, shall 
complete all design and permitting work necessary for the construction of the 
preferred alternative selected in Phase One.  This work includes but is not limited 
to preparing design plans, obtaining necessary approvals of such design plans from 
Reclamation, and seeking environmental compliance and necessary permits under 
the National Environmental Policy Act, Endangered Species Act, Clean Water Act,

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and the National Historical Preservation Act.  SRP, CAWCD, and the Participating 
Entities interested in funding the design and permitting work shall negotiate and 
enter into an agreement to share the costs for the design and permitting work 
(including the technical work previously completed by HDR for the SCIF HDR 
Technical Reports and the additional technical work described in Paragraph 5.1, if 
applicable) (herein “Phase Two Cost Share Agreement”).  Participation in the 
Phase Two Cost Share Agreement is required for Participating Entities that wish to 
obtain capacity in the SCIF, unless approved by the Phase Two Cost Share 
Agreement participants.  The Phase Two Cost Share Agreement shall provide for 
the formation of a steering committee to facilitate collaboration, review of 
technical work, and decision-making related to the design and permitting of the 
SCIF.   Such decision making shall include determining the total capacity of the SCIF 
and relative shares of such capacity for the Parties that wish to obtain capacity in 
the SCIF.  SRP shall collaborate, as necessary, with Reclamation, United States 
Army Corps of Engineers (“USACE”), U.S. Fish and Wildlife Service (“FWS”), United 
States Forest Service (“USFS”), and other federal agencies (herein collectively 
“Federal Agencies”) for such environmental compliance and permitting.  SRP will 
also, as necessary, negotiate and enter into reimbursement agreements with the 
Federal Agencies to fund their review and approval of design and permitting work 
and issuance of permits, approvals, and permissions to construct and operate the 
SCIF.  Such reimbursement agreements shall account for the federal cost share in 
the event Reclamation desires federal capacity in the SCIF.  
 
5.3. 
PHASE THREE: CONSTRUCTION 
 
SRP, in collaboration with CAWCD and Reclamation, shall complete all activities to 
construct the preferred alternative designed and permitted in Phase Two.  SRP, 
CAWCD, and the Participating Entities that wish to obtain capacity in the SCIF shall 
negotiate and enter into an agreement to share the costs related to constructing 
the SCIF (herein “Phase Three Cost Share Agreement”).  The Phase Three Cost 
Share Agreement shall provide for the formation of a steering committee to 
facilitate collaboration and decision making in the construction process.  SRP shall 
collaborate and enter into reimbursement agreements, as necessary, with Federal 
Agencies to review and approve construction work.  Such reimbursement 
agreements shall account for the federal cost share in the event Reclamation 
desires federal capacity in the SCIF.

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5.4. 
PHASE FOUR: OPERATION 
 
SRP shall operate the SCIF, in collaboration with CAWCD, Reclamation and the 
Participating Entities that acquire capacity in the SCIF.  SRP, CAWCD, Reclamation, 
and the Participating Entities that acquire capacity in the SCIF shall negotiate and 
enter into an operating agreement outlining the procedures for how SRP will 
operate the SCIF (herein “Operating Agreement”). 
 
6. 
ROLES AND RESPONSIBILITIES: 
 
6.1. 
MUTUAL RESPONSIBILITIES: 
 
6.1.1. The appropriate Parties will work cooperatively to develop the cost share 
agreements described in Subparagraph 5.1 to 5.3 and the Operating 
Agreement described in Subparagraph 5.4. 
 
6.1.2. The appropriate Parties will work cooperatively to form and participate in 
the steering committees identified in Subparagraph 5.1 to 5.3 and will be 
further described in the cost share agreements.  
 
6.1.3. The appropriate Parties will support the planning, design, permitting, 
construction, and operation of the SCIF.  This support is expected to 
include funding for the planning, design, permitting, construction, and 
operation of the SCIF by some or all of the Parties to this MOU, as will be 
specified by the cost share agreements and operating agreement 
described in Paragraph 5.  The Parties will also provide to each other data 
and information relevant to the planning, design, permitting, construction, 
and operation of the SCIF.   
 
6.2. 
SRP & CAWCD RESPONSIBILITIES: 
 
6.2.1. SRP, in collaboration with CAWCD, shall be responsible for completing, 
managing, and directing all work associated with the planning, design, 
permitting, construction, and operation of the SCIF. 
 
6.2.2. SRP, in collaboration with CAWCD and Federal Agencies, shall be 
responsible for retaining, managing, and directing all consultants,

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contractors, or others, as needed, to complete work associated with the 
planning, design, permitting, construction, and operation of the SCIF. 
 
6.2.3. SRP, in collaboration with CAWCD, shall be responsible for collaborating 
and entering into reimbursement agreements with Federal Agencies to 
reimburse the Federal Agencies for costs incurred to review and approve 
design, permitting, and construction work and issue permits, approvals, 
and permissions to construct and operate the SCIF. 
 
6.2.4. SRP, in collaboration with CAWCD, will be the point of contact with 
Reclamation and other Federal Agencies on behalf of Parties and will lead 
communications with Reclamation and other Federal Agencies related to 
the planning, design, permitting, construction, and operation of the SCIF. 
 
6.2.5. SRP shall serve as chair of the steering committees described in Paragraph 
5 which will include communication and sharing relevant information 
regarding the planning, design, permitting, and construction of the SCIF 
with appropriate Parties.   
 
6.3. 
PARTICIPATING ENTITIES RESPONSIBILITIES: 
 
6.3.1. Appropriate Participating Entities will provide relevant data, information, 
opinions, and analyses related to the planning, design, permitting, 
construction, and operation of the SCIF as reasonably requested by SRP or 
CAWCD. 
 
6.3.2. Participating Entities will serve on the steering committees described in 
Paragraph 5 as appropriate to engage in collaboration and coordination 
with SRP and CAWCD to support the planning, design, permitting, 
construction, and operation of the SCIF, as will be further defined in the 
relevant cost share agreements.  
 
6.3.3. Participating Entities will coordinate and collaborate with SRP and CAWCD 
in efforts to communicate information related to the planning, design, 
permitting, construction, and operation of the SCIF with elected officials 
and other relevant stakeholders on the project.

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7. 
ADDITION AND WITHDRAWAL OF PARTICIPATING ENTITY: 
 
7.1. 
Any Participating Entity may voluntarily withdraw from this MOU by providing 
thirty (30) days written notice to the other Parties as provided in Paragraph 8. 
 
7.2. 
Additional Participating Entities may be added to this MOU by the written mutual 
agreement of the Parties’ Authorized Representatives. 
 
7.3. 
A Participating Entity may be a party to the cost share agreements described in 
Paragraph 5 which will include independent obligations including provisions for 
addition and withdrawal of parties to such agreements.   
 
8. 
ADDRESSES FOR COMMUNICATIONS: 
 
8.1. 
All notices and communications under this MOU shall be addressed to the 
contacts set forth in Exhibit B.  Electronic communication is acceptable for notices 
and communications under this MOU. In the event a Participating Entity is added 
to this MOU pursuant to Subparagraph 7.2, the Parties’ Authorized 
Representatives shall update Exhibit B accordingly and distribute the updated 
exhibit to the Parties.  
 
8.2. 
The Parties may change the address to which communications or copies are to be 
sent by giving written notice of such change of address to each Party. 
 
[signatures on the following pages]

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IN WITNESS WHEREOF, the Parties hereto have executed this MOU as of the dates set 
forth below. 
 
SALT RIVER PROJECT AGRICULTURAL 
IMPROVEMENT AND POWER DISTRICT 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:   
 
Approved as to Form: 
 
 
By:  _______________________________ 
Name:  Patrick Sigl 
Title:  Principal Managing Attorney, Water, Land and Environment  
Date:

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SALT RIVER VALLEY 
WATER USERS' ASSOCIATION 
 
 
By:  _______________________________ 
Name: 
Title:  
Date:   
 
Approved as to Form: 
 
 
By:  _______________________________ 
Name:  Patrick Sigl 
Title:  Principal Managing Attorney, Water, Land and Environment  
Date:

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CENTRAL ARIZONA WATER CONSERVATION DISTRICT 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF MESA 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF TEMPE 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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TOWN OF GILBERT 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF CHANDLER 
 
 
By:  _______________________________ 
Name:  John Knudson 
Title:  Director, Public Works & Utilities 
Date:   
 
Approved as to Form: 
 
 
By:  _______________________________ 
Name:  Jenny J. Winkler 
Title:  Assistant City Attorney  
Date:

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EPCOR 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF SCOTTSDALE 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF PEORIA 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF GLENDALE 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CAREFREE WATER COMPANY 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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WATER UTILITIES COMMUNITY FACILITIES DISTRICT APACHE JUNCTION 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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CITY OF PHOENIX 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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TOWN OF QUEEN CREEK 
 
 
By:  _______________________________ 
Name:   
Title:   
Date:

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EXHIBIT A 
PARTICIPATING ENTITIES 
 
City of Mesa 
 
Contact:  Brain Draper 
City of Tempe 
 
Contact:  Craig Caggiano 
Town of Gilbert 
 
Contact:  Lauren Hixson 
City of Chandler 
 
Contact:  Simone Kjolsrud 
EPCOR 
 
Contact:  Doug Dunham 
City of Scottsdale 
 
Contact:  Gretchen Baumgardner 
City of Peoria 
 
Contact:  Brett Fleck 
City of Glendale 
 
Contact:  Drew Swieczkowski 
Carefree Water Company 
 
Contact:  Greg Crossman 
Water Utilities Community Facilities District 
Apache Junction 
Contact:  Mike Loggins 
CAWCD 
 
Contact:  Ken Seasholes 
Contact:  Jason Sversvold 
City of Phoenix 
 
Contact:  Erin Andres 
Contact:  Darren Sversvold 
Town of Queen Creek 
 
Contact:  Paul Gardner 
Contact:  Doug Toy 
Contact:  Keith DeVore

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EXHIBIT B 
MAILING ADDRESS & EMAIL ADDRESS FOR COMMUNICATIONS 
 
SRP 
 
Mailing Address: 
Email Address: 
CAWCD 
 
Mailing Address: 
Email Address: 
City of Mesa 
 
Mailing Address: 
Email Address: 
City of Tempe 
 
Mailing Address: 
Email Address: 
Town of Gilbert 
 
Mailing Address: 
Email Address: 
City of Chandler 
 
Mailing Address: 
Email Address: 
EPCOR 
 
Mailing Address: 
Email Address: 
City of Scottsdale 
 
Mailing Address: 
Email Address: 
City of Peoria 
Mailing Address: 
c/o Water Services Department 
8401 W. Monroe St 
Peoria, AZ  85345 
Email Address: 
City of Glendale 
Mailing Address: 
Email Address: 
Carefree Water Company 
 
Mailing Address: 
P.O. Box 702 
Carefree, AZ  85377 
Email Address: 
Water Utilities Community Facilities District 
Apache Junction 
Mailing Address: 
Email Address: 
CAWCD 
 
Mailing Address: 
Email Address: 
City of Phoenix 
 
Mailing Address: 
Email Address:

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Town of Queen Creek 
Mailing Address: 
Email Address: