CENTRAL ARIZONA PROJECT CAGRD and Underground Storage Committee April 18, :30 PM

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1 CENTRAL ARIZONA PROJECT CAGRD and Underground Storage Committee April 18, :30 PM Central Arizona Project N. 7th Street Phoenix, Arizona Board Room TENTATIVE AGENDA* Times shown are approximate. Some items may take more or less time than scheduled, or the President may grant requests to hear items in an order other than shown. 1. Consideration of Action to Approve the Minutes of the March 21, 2019 CAGRD and Underground Storage Committee Megdal (12:30) 2. Discussion and Consideration of Action to Recommend that the Board Approve a Preliminary CAGRD Rate Schedule for 2019/2020 through 2023/2024, Including Collection of Annual Membership Dues (Finance: Maintaining CAP's Financial Health^) Given (12:45) 3. Discussion and Consideration of Action to Recommend that the Board Approve a Preliminary Underground Water Storage Rate Schedule (Finance: Maintaining CAP's Financial Health^) Given (1:05) 4. Report on 2018 and First Quarter 2019 Member Land and Member Service Area Enrollment and Activation Activity (Replenishment: CAGRD Management and Oversight^) Fox (1:25) 5. Discussion on Financing Options for Water Acquisition Approved by the Board between CAWCD, Gila River Indian Community and Gila River Water Storage LLC Dunlap (1:35) 6. Discussion and Possible Consideration of Action to Recommend that the Board Approve Standard Form CAGRD Member Land Enrollment Documents for New Member Lands that Contain Category 2 Lands Grignano (2 00) 7. Future Agenda Items (2:15) 8. Public Comment (2:20) 9. Adjourn (2:25) * ^ Please note that this tentative agenda may be changed prior to the scheduled meeting by modifying or deleting listed matters or adding new ones. Anyone interested in the final agenda for the meeting should contact the CAP office ( ) or consult CAP's website ( az.com) twenty four (24) hours in advance of the meeting. Linkage to 2016 CAWCD Board of Directors Strategic Plan.

2 CENTRAL ARIZONA WATER CONSERVATION DISTRICT CAGRD and Underground Storage Committee March 21, 2019 A meeting of the Central Arizona Groundwater Replenishment District (CAGRD) and Underground Storage Committee ( Committee ) was called to order by Chairperson Megdal on March 21, 2019, at 12:32 PM. The meeting was held at Central Arizona Project Headquarters, located at North Seventh Street, Phoenix, Arizona, in the Board Room. Board Members present were Chair Sharon B. Megdal, Pima County; Karen Cesare, Pima County; Jim Hartdegen, Pinal County; and Pat Jacobs, Pima County. Board Members not present were Jennifer Martin, Maricopa County; Heather Macre, Maricopa County.Staff members present were Jay Johnson, General Counsel; Bridget Schwartz- Manock, Director, Public Affairs; Suzanne Ticknor, Director, Water Policy; Laura Grignano, Manager, CAGRD; Gary Given, Supervisor, Business Financial Planning, Tim Gorey, Senior Hydrogeologist, Water Transmission; Megan Casey, Public Affairs Management Analyst; Jennifer Miller, Board Support Specialist; and Nelle Carlsmith, CAGRD Specialist. 1. CONSIDERATION OF ACTION TO APPROVE THE MINUTES OF THE FEBRUARY 21, 2019 CAGRD AND UNDERGROUND STORAGE COMMITTEE - MEGDAL On a motion (Board Member Pat Jacobs) and a second (Board Member Karen Cesare), the Board approved the minutes of the February 21, 2019 meeting. Motion passed. Voting yes: Sharon B. Megdal, Karen Cesare, Jim Hartdegen, Pat Jacobs 2. DISCUSSION ON CAGRD ACTIVATION FEE SCHEDULE (2020/ /2024) - GRIGNANO/GIVEN Ms. Grignano, CAGRD, gave a brief introduction on the evolution of the funding methodology for CAGRD s Infrastructure & Water Rights Fund (I&WR Fund), CAGRD s primary funding source for water supplies and infrastructure. Mr. Given, Business Financial Planning, then provided an overview of CAGRD Revenue Streams with a focus on the I&WR Fund and explained the methodology used in 2013 to calculate the Activation Fee schedule for 2014/ /2020. Using that same methodology, Mr. Given provided the Committee with a recommendation to set the 2020/ /2024 Activation Fee schedule and showed that, with the exception of the Minimum Activation Fee, Activation Fees would increase 9% annually in all three AMAs. Staff also recommended that the Minimum Activation Fee be increased 4% annually, the same percentage increase as currently proposed for Enrollment Fees in the same time period. Historically, the Minimum Activation Fee and Enrollment Fee have been linked. Spencer Kamps, representing the Home Builders Association of Central Arizona, thanked staff for briefing the Association on the issue of the Activation Fees, and commended the work of staff on the history of the "catch up, keep up funding concept. He acknowledged the

3 CAGRD and Underground Storage Committee March 21, 2019 Page 2 importance of keeping the CAGRD financially sound, and spoke in support of staff s recommendation to raise Activation Fees, however, he did ask that the Enrollment Fee, a fee typically paid by the Development community, also increase by the same percentage. Cheryl Lombard, representing Valley Partnership and the Development Community, appreciated having the discussion regarding Activation Fees, and expressed the desire for similar discussions on all of the fees. She questioned why the Enrollment Fee should be raised the same percentage as Activation Fees. Staff stated that they would consider the discussion by stakeholders and the Committee when posting the preliminary rate schedule on April 4th which would be followed by a Rate Briefing on April 11th where there would be time for further discussion on Activation and Enrollment Fees. 3. REPORT AND DISCUSSION ON CAGRD MID-PLAN REVIEW: REPLENISHMENT CAPACITY AVAILABLE TO CAGRD - GRIGNANO/GOREY Mr. Gorey, Water Transmission, presented to the Committee a mid-plan review including the description of the storage facilities available to the CAGRD in the Phoenix, Pinal, and Tucson Active Management Areas (AMAs) and the current available storage capacity for the remainder of the Plan of Operation. The mid-plan review indicated that although there have been minor changes in a portion of the replenishment capacity available to CAGRD over the first five years of the Plan of Operation, more than sufficient capacity exists to meet the replenishment needs of current and future obligation out to REPORT ON MARCH 19, 2019 PRESENTATION TO HOUSE COMMITTEE ON NATURAL RESOURCES, ENERGY AND WATER - MEGDAL CAP appeared before the House Committee on Natural Resources, Energy and Water on March 19, Board Members Sharon Megdal, Karen Cesare, and General Manager Ted Cooke shared updates on recent CAP activities as well as CAWCD s responsibilities under CAGRD. 5. FUTURE AGENDA ITEMS Future Agenda Items include: Collection of CAGRD Annual Membership Dues During Tax year , Action to approve Preliminary CAGRD Rate Schedule for 2019/2020 through 2023/2024, Action to approve Preliminary Underground Water Storage 2019/2020 through 2023/2024, Report on 2018 and First Quarter 2019 Member Land and Member Service Area Enrollment and Activation Activity, Discussion on Financing Options for Water Acquisition Approved by the Board between CAWCD, Gila River Indian Community and Gila River Water Storage LLC, Discussion to Approve Standard Form CAGRD Member Land Enrollment Documents for New Member Lands that Contain Category 2 Lands. 6. PUBLIC COMMENT No additional public comment.

4 CAGRD and Underground Storage Committee March 21, 2019 Page 3 7. ADJOURN There being no further business to come before the Committee, the meeting adjourned at 02:01 PM. Sharon B. Megdal Chair

5 Agenda Number 2. CONTACT: Gary Given Doug Dunlap MEETING DATE: Thursday, April 18, 2019 AGENDA ITEM: RECOMMENDATION: Discussion and Consideration of Action to Recommend that the Board Approve a Preliminary CAGRD Rate Schedule for 2019/2020 through 2023/2024, Including Collection of Annual Membership Dues (Finance: Maintaining CAP's Financial Health^) - Given Staff recommends that the Committee recommend that the Board approve the attached Preliminary CAGRD Rate Schedule for 2019/20 through 2023/24 including the collection of Annual Membership Dues. FISCAL IMPLICATIONS: Yes Impact on Budget: Major changes for 2019 are higher CAGRD Phoenix AMA replenishment revenues associated with the GRIC/GRWS water supply acquisitions, and otherwise mostly lower replenishment costs associated with lower CAP capital charges. Additional spending authority requested: None Impact on Reserves: The Infrastructure & Water Rights (I&WR) rate will be flat throughout the rate period and for 2019 there will be no impact on I&WR reserves.the rates for 2019 are impacted by the GRIC/GRWS agreements, changes in CAP rates, and use of different water supplies for replenishment. Impact on Rates: The rates for 2019 are impacted by the GRIC/GRWS agreements, changes in CAP rates, and use of different water supplies for replenishment. LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: CAWCD's replenishment authorities set forth in Title 48, Chapter 22, Article 4, Arizona Revised Statutes (A.R.S et seq.) CAWCD Board of Directors Strategic Plan: Replenishment: Long-term Role of CAGRD PREVIOUS BOARD ACTION/ACTIVITY: April 11, 2019 March 21, 2019 A Stakeholder Rate Briefing was held on the 2019/ /24 Preliminary CAGRD Assessment Rate Schedule Staff discussed the Activation Fee schedule with the CAGRD Committee February 27, 2019 Staff reviewed with homebuilder representatives the proposed 2020/ /24 Activation Fee Schedule From Tucson Fax CentralArizonaProject.com

6 ISSUE SUMMARY/DESCRIPTION: As provided in the CAGRD Assessment Rate Setting Policy (Policy), in 2018 staff prepared and the Board subsequently approved a CAGRD rate schedule that identified firm rates for 2018/19, provisional rates for 2019/20 and advisory rates for 2020/21 through 2023/24. The rate schedule was prepared based on existing policies, updated obligation projections and assumptions derived from the CAGRD Plan of Operation. Staff has evaluated the CAGRD 2019/20 provisional rates and advisory rates and has determined even though this is an off-year for rate setting, due to major changes in conditions, the rate schedule needed to be revised. Major changes include Arizona s Implementation Plan in support of the Drought Contingency Plan (DCP), water shortages starting in 2021, changes in CAP s rates, updated activation fees, and changes in use of supplies included in rates due to excess water not being available to CAGRD starting in More specifically, after discussions with homebuilder and developer representatives, staff is proposing, for 2020/ /24, a 9%/yr increase Activation fees and a 7%/yr increase for the Minimum Activation fee and Enrollment fee. The CAGRD acquisition of the GRIC/GRWS water supplies will primarily increase replenishment rates in the Phoenix AMA and to a smaller extent in the Tucson AMA. To soften the GRIC/GRWS increase the costs were phased into the replenishment rates, for the most part, over three years, resulting in a cumulative increase by the third year of about 12% to 13%. Other changes, such as a declared water shortage further increase CAGRD replenishment rates. The CAGRD rate schedule assumes water shortages starts in 2021 with a DCP Tier T1 shortage, followed by a 2022 Tier T1, and a Tier T2a for The attached published Proposed CAGRD Assessment Rate Schedule excludes any application of CAP rate stabilization funds to soften increases in Fixed OM&R rates, which results in significant increases in replenishment rates at the start a water shortage. Also attached is a CAGRD Assessment Rate Schedule for planning purposes, which includes applying CAP rate stabilization funds over the first few years of shortage, thus smoothing out the replenishment rate increases. CAGRD s rates are influence by CAP s rates. CAP s rates are changing for several reasons. In Capital Charges are lower due to CAP applying some property taxes toward federal debt repayment. CAP s energy rate is increasing due to current market conditions. During a water shortage, CAP s Fixed OM&R rates increase. These CAP rate changes impact the CAGRD Water Replenishment and Replenishment Reserve rates. The DCP starts in 2020 and results in no excess water being available to CAGRD for 2020 forward. This results in contract replenishment ending in This also means CAGRD must meet its replenishment requirements through different water supplies starting in 2020 (2019/20 rates). Starting with the 2019/20 rates, the GRIC/GRWS supplies primarily impact the Phoenix AMA replenishment rates. The CAP Pinal AMA credits dedicated to CAGRD are used for Pinal AMA replenishment and transfer to CAGRD at the current year CAP water rate. The Pima AMA replenishment rates are primarily dependent on prior Pima AMA credit purchase agreements, which are a function of CAP s water rates, though are at a lower costs than the GRIC/GRWS water supplies. The Administrative and Infrastructure and Water Right rate components have no changes from the rate schedule approve last year. There are also no changes in the previously approved schedule for the Annual Membership Dues.

7 Stakeholder Feedback Meetings were held with home builders and developers. Both indicated support for the rates as proposed. SUGGESTED MOTION: I move that the CAGRD & Underground Storage Committee recommend that the Board of Directors approve the CAGRD Preliminary Rate Schedule for 2019/20 through 2023/24 including the collection of Annual Membership Dues. ATTACHMENTS: 1. Presentation (Preliminary CAGRD Rates) 2. Preliminary CAGRD thru Water Rate Schedule - Base Case

8 CAGRD & Underground Storage Committee Preliminary CAGRD Assessment Rate Schedule 2019/ /24 Gary Given, Business Financial Planning Supervisor April 18, 2019 Paid with appl. to enroll Paid prior to sale of home Enrollment Fees MSAs ($5,000) MLs ($284/unit) Activation Fees MSAs & MLs ($640 $820/unit) Repl. Reserve Fees MSAs & MLs ($180 $206/AF) CAGRD Revenue Streams 2018/19 Rates and Fees ADMIN. WATER & REPL. Used to pay the administrative costs of CAGRD (including salaries, benefits, overhead, equipment, special services, implementation of CAGRD conservation program) Used to pay the annual cost of water and replenishment to meet annual replenishment obligations Paid annually based on excess groundwater use Rates (MSAs & MLs) Admin ($40/AF) Water & Repl. ($192 $221/AF) Infr.& Water Rts ($353/AF) Repl. Reserve ($90 $103/AF) INFR. & WATER RIGHTS Used to pay the cost to acquire rights to water and develop infrastructure necessary for CAGRD to perform its replenishment obligations To be paid annually regardless of gw use Membership Dues REPL. MSAs ($76.53/AF) RESERVE MLs ($15.35 $24.54/lot) Rates CAGRD & Underground MSA = Member Service Area ML = Member Land Storage Committee 04/18/19 Used to pay the cost of establishing and maintaining a replenishment reserve of longterm storage credits 2 1

9 CAGRD Changes for 2019 Biennial Rate Setting (2018 comprehensive rate setting year) 2019 Off year for rate setting; Normally no changes to rates Changes impacting CAGRD for 2019 Review of to Activation Fees Impact of Drought Contingency Plan (DCP) & Colorado River Shortage Impact of CAGRD/GRIC/GRWS Agreements Impact of changes in CAP s Capital Charges Impact of changing energy market conditions Rates CAGRD & Underground Storage Committee 04/18/19 3 CAGRD Activation Fee Changes for 2020/ /24 Board in 2013 approved Activation Fee Schedule for 2014/ /20 Staff committed to review & discuss 2020/ /24 Activation Fee Schedule by Spring of Staff discussed proposed Activation Fees with homebuilder representatives on Staff presented proposed Activation Fees at the CAGRD & Underground Storage Committee on Staff presented Preliminary CAGRD Assessment Rate Schedule 2019/ /24 at Stakeholder Rate Briefing Rates CAGRD & Underground Storage Committee 04/18/19 4 2

10 Key Activation Fee Concepts CAGRD historical acquisition cost form the basis of the Activation Fee Inter period Equity: Newly activating members pay an Activation Fee at least equal the costs of CAGRD water acquisitions paid by existing members, and catch up with members who have already activated and paid for water rights acquisition. Collect upfront water acquisition costs through upfront Activation Fees as opposed to I&WR rates Rates CAGRD & Underground Storage Committee 04/18/ Updated CAGRD Historical Costs for Determining Activation Fee Target Updated CAGRD Activation Fee Target Acre-feet $/af ($000) CAP M&I Allocations 8,311 $448 $3,727 NIA (@ 40% availability) 1/ 7,274 $4,955 $36,043 WMAT (@ 40% availability) 2/ 1,000 $6,314 $6,314 Liberty 5,000 $1,223 $6,113 Total 21,585 $2,418 $52,197 Unit Cost (from above) $2,418 I&WR rate for 3 years $1,059 Activation Fee Target ($/af) $3,477 Activation Fee Target Rounded ($/af) $3,500 1/ 18,185 af X.4 = 7,274 af 2/ 2,500 af X.4 = 1,000 af Rates CAGRD & Underground Storage Committee 04/18/19 6 3

11 Recommended Activation Fee Schedule Activation Fee Basis $3,500/acre-foot Phoenix Pinal Pinal Tucson Phoenix Pinal AMA Pinal Tucson AMA AMA Pre- AMA Post- AMA AMA Pre-2007 AMA AMA Acre-feet/unit 0.4 Min* Min* Activation Fee target $1,400 Min* $1,400 $1,050 $1,400 Min* $1,400 $1,050 Activation Fee Schedule ($/unit) Percent Change (%) 2013/ n.a n.a n.a n.a 2014/ % 20% 33% 28% Previously 2015/ % 20% 35% 28% Approved Fee 2016/ % 0% 31% 25% Schedule 2017/ % 0% 33% 28% 2018/ % 0% 34% 25% 2019/20 1, , % 0% 32% 27% 2020/21 1, , % 7% 9% 9% Recommended 2021/22 1, , % 7% 9% 9% Fee Schedule 2022/23 1, ,400 1,050 9% 7% 9% 9% 2023/24 1, ,520 1,140 9% 7% 9% 9% * The minimum Activation Fee is for pre-2007 Pinal AMA and pre-tipping point MSAs Rates CAGRD & Underground Storage Committee 04/18/19 7 Changes & Resulting Impacts on 2020/ /24 Assessment Rate Schedule Based on prior meetings the 2020/ /24 Activation Fees increase at 9%/yr & Enrollment Fees and minimum Activation Fees increase at 7%/yr Water Shortages & DCP increase CAP s Fixed OM&R rate and correspondingly CAGRD s Water Replenishment & Replenishment Reserve rates (replenishment rates). CAGRD/GRIC/GRWS Agreements increases Phoenix AMA and to a smaller extent Tucson AMA replenishment rates. Lower CAP Capital Charges lower CAGRD s 2019/ /21 replenishment rates. Higher CAP energy rates increase CAGRD replenishment rates in all AMAs Rates CAGRD & Underground Storage Committee 04/18/19 8 4

12 Assumptions: 2019/ /24 Assessment Rate Schedule Water shortage starts in 2021 (T1) followed by 2022 (T1), 2023 (T2a), and 2024 (T2a). No excess water is available starting in 2020; No contract replenishment for 2020 forward. Published Assessment Rate Schedule excludes application of CAP rate stabilization funds. Published Assessment Rate Schedule for Illustration purposes includes staff s proposed application of CAP rate stabilization funds Rates CAGRD & Underground Storage Committee 04/18/19 9 CAGRD Rates (Excludes Application of Rate Stabilization Funds) Firm Firm Advisory 2017/ / / / / / /24 Phoenix Active Management Area Water & Replenishment Component $ 214 $ 192 $ 235 $ 323 $ 334 $ 339 $ 344 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 704 $ 675 $ 721 $ 831 $ 869 $ 895 $ 905 Pinal Active Management Area Water & Replenishment Component $ 204 $ 204 $ 203 $ 253 $ 265 $ 280 $ 290 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 701 $ 694 $ 696 $ 770 $ 784 $ 802 $ 814 Tucson Active Management Area Water & Replenishment Component $ 238 $ 221 $ 242 $ 267 $ 276 $ 282 $ 286 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 758 $ 717 $ 738 $ 764 $ 769 $ 773 $ Rates CAGRD & Underground Storage Committee 04/18/

13 CAGRD Rates (Includes Staff Proposed Application of Rate Stabilization Funds) For Illustration & Planning Firm Firm Advisory 2017/ / / / / / /24 Phoenix Active Management Area Water & Replenishment Component $ 214 $ 192 $ 235 $ 308 $ 328 $ 334 $ 344 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 704 $ 675 $ 721 $ 809 $ 860 $ 888 $ 905 Pinal Active Management Area Water & Replenishment Component $ 204 $ 204 $ 203 $ 238 $ 259 $ 275 $ 290 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 701 $ 694 $ 696 $ 748 $ 775 $ 795 $ 814 Tucson Active Management Area Water & Replenishment Component $ 238 $ 221 $ 242 $ 261 $ 273 $ 279 $ 285 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 758 $ 717 $ 738 $ 757 $ 766 $ 769 $ Rates CAGRD & Underground Storage Committee 04/18/19 11 CAGRD Rates (cont d) Firm Firm Advisory 2017/ / / / / / /24 Contract Replenishment Tax - Scottsdale Cost of Water $ 195 $ 205 $ 199 n.a. n.a. n.a. n.a. Cost of Transportation n.a. n.a. n.a. n.a. Cost of Replenishment n.a. n.a. n.a. n.a. Administrative Component n.a. n.a. n.a. n.a. Total Tax Rate ($/AF) $ 231 $ 245 $ 240 n.a. n.a. n.a. n.a. Fees ($/Lot) Enrollment Fee - Commercial Subdivisions $ 700 $ 924 $ 1,094 $ 1,184 $ 1,285 $ 1,397 $ 1,512 Enrollment Fee $ 284 $ 284 $ 284 $ 304 $ 325 $ 347 $ 372 Activation Fee - Minimum $ 282 $ 282 $ 282 $ 302 $ 323 $ 345 $ 370 Activation Fee - Phoenix AMA $ 610 $ 820 $ 1,080 $ 1,180 $ 1,290 $ 1,400 $ 1,520 Activation Fee - Pinal Post-2007 $ 610 $ 820 $ 1,080 $ 1,180 $ 1,290 $ 1,400 $ 1,520 Activation Fee - Tucson AMA $ 510 $ 640 $ 810 $ 880 $ 960 $ 1,050 $ 1,140 Annual Membership Dues ML - Phoenix AMA ($/Lot) $ $ $ $ $ $ $ ML - Pinal Active Management Area ($/Lot) $ $ $ $ $ $ $ ML - Tucson Active Management Area ($/Lot) $ $ $ $ $ $ $ MSA ($/AF) $ $ $ $ $ $ $ Rates CAGRD & Underground Storage Committee 04/18/

14 Questions? 7

15 CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT PRELIMINARY 2019/ /2024 RATE SCHEDULE BASE CASE: SHORTAGE STARTS IN 2021 April 11, 2019 CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT ASSESSMENT RATES Units = $/acre-foot Firm Firm Advisory Excludes any rate stabilization 2017/ / / / / / /24 Phoenix Active Management Area Water & Replenishment Component 1 $ 214 $ 192 $ 235 $ 323 $ 334 $ 339 $ 344 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 704 $ 675 $ 721 $ 831 $ 869 $ 895 $ 905 Pinal Active Management Area Water & Replenishment Component 1 $ 204 $ 204 $ 203 $ 253 $ 265 $ 280 $ 290 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 701 $ 694 $ 696 $ 770 $ 784 $ 802 $ 814 Tucson Active Management Area Water & Replenishment Component 1 $ 238 $ 221 $ 242 $ 267 $ 276 $ 282 $ 286 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 758 $ 717 $ 738 $ 764 $ 769 $ 773 $ 775 Contract Replenishment Tax - Scottsdale 5 Cost of Water $ 195 $ 205 $ 199 n.a. n.a. n.a. n.a. Cost of Transportation n.a. n.a. n.a. n.a. Cost of Replenishment n.a. n.a. n.a. n.a. Administrative Component n.a. n.a. n.a. n.a. Total Tax Rate ($/AF) $ 231 $ 245 $ 240 n.a. n.a. n.a. n.a. ENROLLMENT & ACTIVATION FEES Units = $/Unit Enrollment Fee - Commercial Subdivisions 6 $ 700 $ 924 $ 1,094 $ 1,184 $ 1,285 $ 1,397 $ 1,512 Enrollment Fee 7 $ 284 $ 284 $ 284 $ 304 $ 325 $ 347 $ 372 Activation Fee - Minimum 8 $ 282 $ 282 $ 282 $ 302 $ 323 $ 345 $ 370 Activation Fee - Phoenix AMA 8 $ 610 $ 820 $ 1,080 $ 1,180 $ 1,290 $ 1,400 $ 1,520 Activation Fee - Pinal Post $ 610 $ 820 $ 1,080 $ 1,180 $ 1,290 $ 1,400 $ 1,520 Activation Fee - Tucson AMA 8 $ 510 $ 640 $ 810 $ 880 $ 960 $ 1,050 $ 1,140 ANNUAL MEMBERSHIP DUES Member Land Annual Membership Dues ($/Lot) 9 Phoenix Active Management Area $ $ $ $ $ $ $ Pinal Active Management Area $ $ $ $ $ $ $ Tucson Active Management Area $ $ $ $ $ $ $ Member Service Area Annual Membership Dues ($/AF) 9 $ $ $ $ $ $ $ Page 1 of 4

16 CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT PRELIMINARY 2019/ /2024 RATE SCHEDULE BASE CASE: SHORTAGE STARTS IN 2021 April 11, 2019 NOTES: 1) The Water & Replenishment Component covers the projected annual costs of satisfying replenishment obligations, including the purchase of long term storage credits (LTSC) and the purchase and replenishment of water and effluent. For the Phoenix Active Management Area (AMA), replenishment is planned to be accomplished at direct underground storage facilities (USFs) and groundwater savings facilities (GSFs). For the Pinal AMA, replenishment is planned to be accomplished by purchase of credits from CAWCD. For the Tucson AMA, replenishment is planned to be accomplished at USFs. 2) The Administrative Component covers CAGRD administrative costs except labor related costs associated with the acquisition of infrastructure and water rights. A $2/AF has been added to this component to fund the Board's CAGRD conservation program. 3) The Infrastructure & Water Rights Component covers the cost to develop additional water supplies and the cost to construct additional infrastructure as the need arises. 4) The Replenishment Reserve Charge covers costs associated with establishing a replenishment reserve of LTSCs as provided in ARS Sections and ) The components of the Contract Replenishment Tax Scottsdale reflect the provisions in the Water Availability Status Contract to Replenish Groundwater between CAWCD and Scottsdale. 6) Enrollment Fees for Commercial Subdivisions are established per the November 5, 2015 CAP Board Amended Enrollment Fee and Activation Fee Policy. Enrollment Fees for Commercial Subdivisions are phased in over a two year period and starting in the 2018/2019 fiscal year forward are equal to the Member Land Enrollment Fee plus the Tucson AMA Activation Fee. If a Commercial Subdivision enrolls with more than 50, then the Commercial Subdivision Enrollment Fee applies on the first 50 parcels, and only the Member Land Enrollment Fee applies to the number of parcels over 50. 7) The Enrollment Fee is collected pursuant to the CAGRD Enrollment Fee and Activation Fee Policy adopted by the Board on May 1, A $2 per housing unit is included in the Enrollment Fee to help fund CAGRD's conservation program. 8) The Activation Fees are in accordance with the Preliminary 2014/ /20 CAGRD Activation fee schedule adopted by the Board on November 7, ) The Annual Membership Dues for Member Lands and Member Service Areas are pursuant to ARS Sections A.8. and as well as the Policy on Collection of CAGRD Annual Membership Dues adopted by the Board on April 7, ASSUMPTIONS: Annual Membership Dues (AMDs) are set at the maximum allowed by state statutes for all years, except for FY 2019/2020, which were softened by 15% to provide a smooth transition Water Replenishment & Replenishment Reserve rates are highly dependent on CAWCD rates Includes GRIC/GRWS/CAGRD Agreement, which has a significant impact on previous Water Replenishment Rate in the Phoenix AMA Page 2 of 4

17 CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT PRELIMINARY 2019/ /2024 RATE SCHEDULE BASE CASE: SHORTAGE STARTS IN 2021 April 11, 2019 CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT ASSESSMENT RATES Units = $/acre-foot 2020/ /23 Include proposed Rate Stabilization Firm Firm Advisory reduction for illustration purposes only 2017/ / / / / / /24 Phoenix Active Management Area Water & Replenishment Component 1 $ 214 $ 192 $ 235 $ 308 $ 328 $ 334 $ 344 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 704 $ 675 $ 721 $ 809 $ 860 $ 888 $ 905 For illustration purposes only Pinal Active Management Area Water & Replenishment Component 1 $ 204 $ 204 $ 203 $ 238 $ 259 $ 275 $ 290 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 701 $ 694 $ 696 $ 748 $ 775 $ 795 $ 814 Tucson Active Management Area Water & Replenishment Component 1 $ 238 $ 221 $ 242 $ 261 $ 273 $ 279 $ 285 Administrative Component Infrastructure & Water Rights Component Replenishment Reserve Charge Total Assessment Rate ($/AF) $ 758 $ 717 $ 738 $ 757 $ 766 $ 769 $ 774 Contract Replenishment Tax - Scottsdale 5 Cost of Water $ 195 $ 205 $ 199 n.a. n.a. n.a. n.a. Cost of Transportation n.a. n.a. n.a. n.a. Cost of Replenishment n.a. n.a. n.a. n.a. Administrative Component n.a. n.a. n.a. n.a. Total Tax Rate ($/AF) $ 231 $ 245 $ 240 n.a. n.a. n.a. n.a. ENROLLMENT & ACTIVATION FEES Units = $/Unit Enrollment Fee - Commercial Subdivisions 6 $ 700 $ 924 $ 1,094 $ 1,184 $ 1,285 $ 1,397 $ 1,512 Enrollment Fee 7 $ 284 $ 284 $ 284 $ 304 $ 325 $ 347 $ 372 Activation Fee - Minimum 8 $ 282 $ 282 $ 282 $ 302 $ 323 $ 345 $ 370 Activation Fee - Phoenix AMA 8 $ 610 $ 820 $ 1,080 $ 1,180 $ 1,290 $ 1,400 $ 1,520 Activation Fee - Pinal Post $ 610 $ 820 $ 1,080 $ 1,180 $ 1,290 $ 1,400 $ 1,520 Activation Fee - Tucson AMA 8 $ 510 $ 640 $ 810 $ 880 $ 960 $ 1,050 $ 1,140 ANNUAL MEMBERSHIP DUES Member Land Annual Membership Dues ($/Lot) 9 Phoenix Active Management Area $ $ $ $ $ $ $ Pinal Active Management Area $ $ $ $ $ $ $ Tucson Active Management Area $ $ $ $ $ $ $ Member Service Area Annual Membership Dues ($/AF) 9 $ $ $ $ $ $ $ Page 3 of 4

18 CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT PRELIMINARY 2019/ /2024 RATE SCHEDULE BASE CASE: SHORTAGE STARTS IN 2021 April 11, 2019 NOTES: 1) The Water & Replenishment Component covers the projected annual costs of satisfying replenishment obligations, including the purchase of long term storage credits (LTSC) and the purchase and replenishment of water and effluent. For the Phoenix Active Management Area (AMA), replenishment is planned to be accomplished at direct underground storage facilities (USFs) and groundwater savings facilities (GSFs). For the Pinal AMA, replenishment is planned to be accomplished by purchase of credits from CAWCD. For the Tucson AMA, replenishment is planned to be accomplished at USFs. 2) The Administrative Component covers CAGRD administrative costs except labor related costs associated with the acquisition of infrastructure and water rights. A $2/AF has been added to this component to fund the Board's CAGRD conservation program. 3) The Infrastructure & Water Rights Component covers the cost to develop additional water supplies and the cost to construct additional infrastructure as the need arises. 4) The Replenishment Reserve Charge covers costs associated with establishing a replenishment reserve of LTSCs as provided in ARS Sections and ) The components of the Contract Replenishment Tax Scottsdale reflect the provisions in the Water Availability Status Contract to Replenish Groundwater between CAWCD and Scottsdale. 6) Enrollment Fees for Commercial Subdivisions are established per the November 5, 2015 CAP Board Amended Enrollment Fee and Activation Fee Policy. Enrollment Fees for Commercial Subdivisions are phased in over a two year period and starting in the 2018/2019 fiscal year forward are equal to the Member Land Enrollment Fee plus the Tucson AMA Activation Fee. If a Commercial Subdivision enrolls with more than 50, then the Commercial Subdivision Enrollment Fee applies on the first 50 parcels, and only the Member Land Enrollment Fee applies to the number of parcels over 50. 7) The Enrollment Fee is collected pursuant to the CAGRD Enrollment Fee and Activation Fee Policy adopted by the Board on May 1, A $2 per housing unit is included in the Enrollment Fee to help fund CAGRD's conservation program. 8) The Activation Fees are in accordance with the Preliminary 2014/ /20 CAGRD Activation fee schedule adopted by the Board on November 7, ) The Annual Membership Dues for Member Lands and Member Service Areas are pursuant to ARS Sections A.8. and as well as the Policy on Collection of CAGRD Annual Membership Dues adopted by the Board on April 7, ASSUMPTIONS: Annual Membership Dues (AMDs) are set at the maximum allowed by state statutes for all years, except for FY 2019/2020, which were softened by 15% to provide a smooth transition Water Replenishment & Replenishment Reserve rates are highly dependent on CAWCD rates Includes GRIC/GRWS/CAGRD Agreement, which has a significant impact on previous Water Replenishment Rate in the Phoenix AMA Page 4 of 4

19 Agenda Number 3. CONTACT: Gary Given Doug Dunlap MEETING DATE: Thursday, April 18, 2019 AGENDA ITEM: RECOMMENDATION: Discussion and Consideration of Action to Recommend that the Board Approve a Preliminary Underground Water Storage Rate Schedule (Finance: Maintaining CAP's Financial Health^) - Given Staff recommends that the Committee recommend that the Board take action to approve the attached Preliminary Underground Water Storage O&M and Underground Water Storage Capital Charge rates. FISCAL IMPLICATIONS: Yes Impact on Budget: Rates will be used in preparation of the 2020/21 budget Additional spending authority requested: None Impact on Reserves: N/A Impact on Rates: N/A LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: 2016 CAWCD Strategic Plan Finance: Maintaining CAP's Financial Health PREVIOUS BOARD ACTION/ACTIVITY: June 7, The Board approved the Final Rate Schedule April 11, 2019 Staff held a Stakeholder Briefing on preliminary rates ISSUE SUMMARY/DESCRIPTION: The Underground Water Storage O&M and Underground Water Storage Capital Charge rates are included as part of the General Fund Water Rate Schedule. CAGRD and Underground Storage Committee has purview over these rates, reviews these rates and makes a recommendation on approval of these rates to the Board. Underground Water Storage O&M The Underground Water Storage rates are set based on a multi-year look ahead at costs and water volumes. The Phoenix AMA Underground Water Storage O&M rates slowly trend up over time from $13/af in 2019 to From Tucson Fax CentralArizonaProject.com

20 $15/af by 2024, as the trend of lower storage volumes in the Phoenix AMA continues. TDRP has been closed since the end of The Tucson AMA Underground Water Storage O&M rate remains flat at $15/af as storage volumes and expenses remain steady. There is no change in the proposed Underground Water Storage rate schedule from the Board approved rates in Underground Water Storage Capital Charges An Underground Water Storage capital charge is paid by all direct recharge customers except AWBA for M&I firming, the CAGRD, municipal providers within the CAP service area and co-owners of CAWCD Underground Water Storage facilities using no more than their share of capacity. The proposed Underground Water Storage Capital Charge is $15 per acre-foot for the Phoenix AMA and $9 per acre-foot for the Tucson AMA for the entire rate-setting period. There is no change in the proposed Underground Water Storage Capital Charge schedule from the Board approved rates in The Underground Water Storage rates will remain a section of the CAP Water Rate Schedule, which is attached. The CAGRD & Underground Storage Committee is only reviewing the Underground Water Storage rate portion of the Water Rate Schedule and being asked to make a corresponding recommendation to the CAP Board. SUGGESTED MOTION: I move that the CAGRD & Underground Storage Committee recommend that the Board of Directors adopt the Preliminary Underground Water Storage O&M and Underground Water Storage Capital Charge Rate Schedule for 2020 through ATTACHMENTS: 1. Presentation (Preliminary Underground Water Storage Rates)

21 CAGRD & Underground Storage Committee Preliminary Underground Water Storage Rates Gary Given, Business Financial Planning Supervisor April 18, 2019 Underground Water Storage Rates Assumptions Lower volumes in Phoenix AMA due to lower availability of excess water and the continued closure of Tonopah Desert Recharge Project Operational costs remain fairly consistent Firm Firm Advisory Advisory Advisory Advisory Underground Water Storage O&M Rates ($/af) Phoenix AMA $13 $13 $13 $14 $14 $15 Tucson AMA $15 $15 $15 $15 $15 $15 Underground Water Storage Capital Charge ($/af) Phoenix AMA $15 $15 $15 $15 $15 $15 Tucson AMA $ 9 $ 9 $ 9 $ 9 $ 9 $ Rates CAGRD & Underground & Water Storage Committee 04/18/19 2 1

22 Agenda Number 4. CONTACT: Jessica Fox Laura Grignano MEETING DATE: Thursday, April 18, 2019 AGENDA ITEM: Report on 2018 and First Quarter 2019 Member Land and Member Service Area Enrollment and Activation Activity (Replenishment: CAGRD Management and Oversight^) - Fox LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: Replenishment: CAGRD Management and Oversight PREVIOUS BOARD ACTION/ACTIVITY: None. ISSUE SUMMARY/DESCRIPTION: In keeping with the CAWCD Board Strategic Plan, and at the request of the Committee, this presentation will review the CAGRD enrollment and activation activity in 2018, as well as the first quarter of Staff will highlight the recent increase experienced in member land enrollment, and will compare those activities to the short- and long-term history of enrollment, as well as the projected enrollment detailed in the Plan of Operation. Staff will continue to provide updates on these activities to the Committee and Board via the attached handout on a quarterly basis. ATTACHMENTS: 1. Report on 2018 and Q CAGRD ML and MSA Enrollment Activation Activity 2. QuarterlyOperationalActivitiesHandout From Tucson Fax CentralArizonaProject.com

23 Report on 2018 and First Quarter 2019 Member Land and Member Service Area Enrollment and Activation Activity April 18, 2019 Jessica Fox Sr. Policy Analyst Member Land Enrollment 9,000 Lots 8,000 7,000 6,000 5,000 4,000 Phoenix West Phoenix East Pinal Tucson 3,000 2,000 1,000 0 West Phoenix AMA East Phoenix AMA Pinal AMA Tucson AMA 1

24 Member Land Enrollment 70,000 Total Enrolled Lots, ,000 50,000 Lots 40,000 30,000 20,000 10,000 0 Lots Enrolled Lots by AMA, ,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Member Land Enrollment Compared to Plan Projection 14,000 12,000 Phoenix West Phoenix East 10,000 Pinal Lots 8,000 Tucson 6,000 4,000 2,000 0 West Phoenix AMA East Phoenix AMA Pinal AMA Tucson AMA Plan Projection 2

25 Activation Units 16,000 14,000 12,000 Housing Units 10,000 8,000 6,000 4,000 2,000 - Member Service Areas (Cross-hatched) Member Lands (Solid) Enrollment & Activations through December 31, 2018 Phoenix 2018 Phoenix AMA Pinal AMA Tucson AMA Total Enrollment (ML Lots) 8, ,223 Pinal Tucson Activation (ML & MSA Lots) 10, ,049 13,840 No new MSAs enrolled in 2018 De-enrollment Activity 5 subdivisions representing 188 lots de-enrolled in

26 Enrollment & Activations through March 31, 2019 Phoenix Q Phoenix AMA Pinal AMA Tucson AMA Total Enrollment (ML Lots) 2, ,441 Pinal Tucson Activation (ML & MSA Lots) 2, ,287 Questions 8 4

27 2018 Update Figure 1: Member Land Enrollment Compared to Plan Figure 2: Activation Units 16,000 14,000 Phoenix West Phoenix East 16,000 14,000 Housing Units 12,000 10,000 8,000 6,000 Pinal Tucson Housing Units 12,000 10,000 8,000 6,000 4,000 4,000 2,000 2, West Phoenix AMA East Phoenix AMA Pinal AMA Tucson AMA Plan Projection Member Service Areas (Cross-hatched) Member Lands (Solid) Table 1: 2018 Enrollment Units AMA ML Lots Projected Demand (AF/year) West Phoenix 6,019 3,984 East Phoenix 2,016 1,072 Pinal Tucson TOTAL 8,223 5,159 Table 2: 2018 Activation Units AMA ML Lots MSA Lots Total Lots Phoenix 6,101 4,149 10,250 Pinal Tucson 480 2,569 3,049 TOTAL 6,820 7,020 13,840 CAGRD Enrollment & Activation Activity Update April 18, 2019

28 Denotes ML with Category II Parcels CAGRD Enrollment & Activation Activity Update April 18, 2019

29 2018 Enrollment An individual subdivision enrolls as a Member Land (ML) of CAGRD when: (1) its owner executes and records an irrevocable declaration of covenants, conditions and restrictions ( ML Declaration ) running with the land that includes the land in CAGRD and subjects it to the replenishment assessment; and (2) the owner and the municipal provider that will supply water to the subdivision execute and record an agreement ( ML Agreement ) under which the water provider agrees to submit the water delivery information necessary to calculate the replenishment assessment for each parcel of land annually to CAGRD. Individual parcels within a CAGRD ML are categorized as Category 1 MLs or Category 2 MLs. Category 2 MLs are those parcels that are part of a golf course and that choose not to participate in CAGRD s replenishment reserve program. Category 1 MLs are all ML parcels that do not qualify as Category 2 MLs. Figure 1 illustrates the recent history of CAGRD member land enrollment from 2010 through Table 1 provides a breakdown by AMA of member land enrollment activity in The majority of ML enrollment in 2018 occurred in the Phoenix AMA and was comprised of 31 subdivisions with 8,035 lots with a total projected obligation of 5,056 AF/year. The West Valley encompassed 73% of new membership (6,019 lots) with a projected annual obligation of 3,984 AF/year associated with the new enrollment. The East Valley encompassed 25% of new membership (2,016 lots) with a projected annual obligation of 1,072 AF/year. One subdivision, with 151 lots and a projected demand of 64 AF/year, enrolled in the Pinal AMA. This was the first new enrollment from the Pinal AMA in seven years. Additionally, one subdivision, with 37 lots and a projected demand of 39 AF/year, enrolled in the Tucson AMA in Two of the Member Land subdivisions that enrolled in 2018 included Category II golf course parcels. Each of the MLs is part of an 18 hole golf course located in the West Valley of the Phoenix AMA, where one will be served by Buckeye and the other will be served by EPCOR. No new Member Service Areas (MSA) enrolled in CAGRD also saw some de-enrollment activity in Five Phoenix AMA subdivisions representing 188 lots de-enrolled from CAGRD membership. Portions of these areas were subsequently re-platted and re-enrolled Activation The Arizona Department of Real Estate issues a public report allowing the sale of lots within subdivisions. Prior to this report being issued for subdivisions within CAGRD MLs and MSAs, an Activation Fee must be paid to CAGRD per residential unit offered for sale. Figure 2 shows the recent history of activation lots in Member Lands and Member Service Areas by AMA. MSA lots are represented with crosshatching while ML lots are solid colors by AMA. In 2018, the number of lots activated totaled 13,840 (Member Land lots = 6,820; Member Service Area lots = 7,020). Table 2 provides a breakdown by AMA of previously enrolled lots that were activated in CAGRD Enrollment & Activation Activity Update April 18, 2019

30 Q Update Figure 1: Member Land Enrollment Figure 2: Activation Units 16,000 14,000 Phoenix West Phoenix East 16,000 14,000 12,000 Pinal 12,000 Housing Units 10,000 8,000 6,000 Tucson Housing Units 10,000 8,000 6,000 4,000 2, Q1 4,000 2,000 - West Phoenix AMA East Phoenix AMA Pinal AMA Tucson AMA Plan Projection Member Service Areas (Cross-hatched) Member Lands (Solid) Table 1: Q Enrollment Units AMA ML Lots Projected Demand (AF/yr) West Phoenix East Phoenix 1, Pinal 0 0 Tucson 0 0 TOTAL 2,296 1,426 Table 2: Q Activation Units AMA ML Lots MSA Lots Total Lots Phoenix 1,663 1,226 2,889 Pinal Tucson TOTAL 1,730 1,557 3,287 CAGRD Enrollment & Activation Activity Update April 18, 2019

31 CAGRD Enrollment & Activation Activity Update April 18, 2019

32 Agenda Number 5. CONTACT: Doug Dunlap MEETING DATE: Thursday, April 18, 2019 AGENDA ITEM: Discussion on Financing Options for Water Acquisition Approved by the Board between CAWCD, Gila River Indian Community and Gila River Water Storage LLC - Dunlap LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: CAWCD 2016 Board of Directors Strategic Plan Replenishment: Obtain Sufficient Water Supplies to Meet Long-Term Replenishment Obligations Finance: Effectively communicate financial issues to Board and stakeholders PREVIOUS BOARD ACTION/ACTIVITY: October 18, 2018 November 1, 2018 ISSUE SUMMARY/DESCRIPTION: Staff Discussed with the CAGRD & Underground Storage Committee the CAGRD/GRIC/GRWS Agreement The CAWCD Board Approved the CAGRD/GRIC/GRWS Agreement CAWCD on behalf of CAGRD entered into an agreement with the Gila River Indian Community (GRIC) and Gila River Water Storage (GRWS) for the purchase of 375,000 AF of LTSCs (Pinal AMA) and 70,375 AF of LTSCs (Phoenix AMA). The purchase price was for $95 million consisting of an initial payment 30 days after signing of $65 million and the remaining payment of $30 million 6 months subsequent to the signing. The agreement was signed February 1, The initial payment of $65 million was made on March 4, The second payment is due August 1, The CAGRD Infrastructure & Water Rights reserve does not have the full amount accumulated at this time. A significant amount of the CAGRD collections are through the tax collection of the County Treasurer, and therefore the reserve will not have the amount until late Staff is bringing forward 3 options to make the final payment. The first option is to utilize terms in the purchase agreement with the associated interest as indicated in the agreement. The second option is to acquire a bond (loan) from an outside source. The third option is to borrow the funds from the CAWCD General Fund. Each option carries interest cost and issues to consider. Staff anticipates returning to the CAGRD and Underground Storage Committee in May 2019 for a recommendation to the CAWCD Board for a financing option based on the CAGRD Committee s discussion and direction. A method of payment needs to be determined at the June Board meeting to meet the contractual time constraint From Tucson Fax CentralArizonaProject.com

33 ATTACHMENTS: None

34 Agenda Number 6. CONTACT: Laura Grignano Greg Adams MEETING DATE: Thursday, April 18, 2019 AGENDA ITEM: Discussion and Possible Consideration of Action to Recommend that the Board Approve Standard Form CAGRD Member Land Enrollment Documents for New Member Lands that Contain Category 2 Lands - Grignano RECOMMENDATION: FISCAL IMPLICATIONS: No Impact on Budget: None Additional spending authority requested: None Impact on Reserves: None Impact on Rates: None LINKAGE TO STRATEGIC PLAN, POLICY, STATUTE OR GUIDING PRINCIPLE: Replenishment: CAGRD Management and Oversight PREVIOUS BOARD ACTION/ACTIVITY: October 18, 2018 November 1, 2018 ISSUE SUMMARY/DESCRIPTION: Committee Recommended that the Board Approve Standard Form Enrollment Documents for Member Lands with Category 2 Lands Discussion and Possible Consideration to Approve Standard Form Enrollment Documents for Member Lands with Category 2 - No action by Board, sent back to Committee for further discussion Currently, standard form enrollment documents exist for enrollment of CAGRD Member Lands (MLs) unless they contain Category 2 Lands (Cat 2 Lands). This means that when a new ML without Category 2 Lands is enrolled, the enrollment agreements do not need to go to the Board for individual approval. Cat 2 Lands are golf course parcels that have opted out of the benefits from the Replenishment Reserve and are not required to pay the Replenishment Reserve fees and charges for those parcels. On October 18, 2018, the CAGRD & Underground Storage Committee recommended that the Board also approve standard form enrollment documents for MLs with Cat 2 Lands. Pre-approved standard form enrollment documents for MLs with Cat 2 Lands will streamline the enrollment process by avoiding the need From Tucson Fax CentralArizonaProject.com