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Published: 07 July 2017 07 July 2017

By Mary Alice Murphy

The meeting of the New Mexico Central Arizona Project Entity took place on July 6, 2017, a change of the regular first Tuesday of the month meeting, due to the Fourth of July holiday.

Allyson Siwik of the Gila Conservation Coalition gave the only public comments.

"As the New Mexico CAP Entity shifts its focus to acquisition of the Freeport-McMoRan Bill Evans diversion infrastructure, I wanted to share some of our concerns about the project," Siwik said.

She said they don't understand how the project squares with Grant County's resolution when it joined the entity that it supported only those diversion projects that keep Gila River water in Grant County.

 

"Clearly, keeping the water in Grant County is not what is contemplated," Siwik said. She alleged the infrastructure would be purchased or leased to convey water to Deming.

Secondly, the concerns are that acquiring the Bill Evans infrastructure creates a vehicle to export Freeport's water out of the region to Las Cruces and the Rio Grande Basin.

Siwik also brought up testimony the then-Deputy Director of the Interstate Stream Commission Craig Roepke made in 2007 before the New Mexico Water Quality Control Commission, when she alleges he described such an export scheme by the then copper-mining company Phelps Dodge to treat and pipe the water outside the region to Hatch and Las Cruces. An alternative would pipe the water to Caballo Reservoir to meet demand or compact obligations.

"Is the intent of the New Mexico CAP Entity to ship our water to the Rio Grande? How does this proposal create water security for southwest New Mexico?" Siwik concluded.

In old business, NM CAP Entity Executive Director Anthony Gutierrez said at the last ISC meeting, the members had approved the amended joint powers agreement, giving the CAP Entity more authority and expanding its authority to options other than only a New Mexico Unit.

"Each member entity will have to approve the new version of the JPA," Gutierrez said. "Make sure you give us written notice of any changes of personnel from the original JPA."

NM CAP Entity Attorney Pete Domenici Jr. said if each member has written authorization from the agency or organization it represents, then that person can sign the JPA. If a new person has come on board, he or she may need to get authorized by his or her entity before signing.

"Each entity will need to meet, in regular or special session, and vote to approve the amended JPA and authorize the representative or alternate to sign it," Domenici further clarified.

"The Grant Soil and Water Conservation District, for instance, has been approved to be a member of the CAP Entity by the CAP Entity, but it has not yet been approved by the Department of Finance and Administration and cannot sign this JPA until DFA has approved the GSWCD," Domenici said.

Howard Hutchinson noted that his alternate is Billy Webb.

Hutchinson said the SFSWCD would meet next Monday, and he would put it on the agenda.

In new business, entity members approved a memorandum of understanding between the entity and the Office of the State Auditor to audit the entity's books.

"My understanding is that the entity can be audited every year," Gutierrez said, "for a fee of $10,000."

The city of Deming is the fiscal agent for the entity, and Aaron Sera represents the city. "This entity is subject to audit. It will be audited every year until it is designated as a state political subdivision. That would take legislative action. We haven't moved forward on that."

Vance Lee, representing Hidalgo County and as vice chairman, serving as the chairman in the absence of Chairwoman Darr Shannon, noted that the audit MOU dates needed to be changed to 2017.

Sera agreed and said it was the one sent to him.

Gutierrez said it was a PDF, so he would contact the auditors for the changes to be made. "I would request a conditional approval with the date changes."

Entity members also approved the budget for fiscal year 2019. Sera explained that the Interstate Stream Commission requires a forecasted budget for the following fiscal year. "We increased professional services from $60,000 to $150,000 to allow for the contract for an engineer. The $850,000 on the fiscal year 2018 budget will be carried over for pre-banking of water rights, if we decide to do that."

He explained that the vehicle item on this year's budget was zeroed out for FY 2019, because the entity will purchase a vehicle for the executive director's use.

Sera said anything purchased by the CAP Entity will be under the city of Deming asset control, and the vehicle would fit into this category.

John Sweetser, representing Luna County, asked if the vehicle purchase would replace the transportation expense line.

"We changed the $10,000 transportation expense down to $1,000, in case the CAP Entity vehicle is not operational, so Gutierrez will be able to use his personal vehicle," Sera replied.

In his executive director report, Gutierrez said he had been moving forward with the engineering scope of work. "We received a preliminary diversion design. We also received a notice to proceed with hiring an engineer."

He said he attended the ISC, where the amended JPA was approved.

Gutierrez also commented on previous comments about Freeport McMoRan. "Freeport hasn't agreed to anything. Any of our conversations are only preliminary. The only thing we have is their agreement to work with us. Yes, potentially their adjudicated water rights can be a benefit to us."

"But it is very premature to make assumptions on what might happen," Gutierrez said. "We need to do a preliminary investigation on the infrastructure. We are in the very beginning of that investigation."

He said he, the previous week, had attended a course to become a certified procurement officer. "I passed the test."

"We are trying to review land ownership to prove it up for a New Mexico Unit," Gutierrez continued.

Sera noted that if the CAP Entity becomes a political subdivision, it would require having a certified procurement officer. "I thank Anthony for being ahead of the game."

Hutchinson said he also serves on the Water Quality Control Committee. "I think if we are going to refer to Craig Roepke's testimony in 2007 that we have to say where he did the testimony. The company referred to was then Phelps Dodge. Now it's Freeport McMoRan. I think it is premature to speculate on what might happen."

"When the ISC approved the JPA amendment, individually, ISC members made it clear they wanted us to do substantial due diligence," Domenici said. "Things are very preliminary with Freeport. The ISC will expect a robust agreement and business plan to enter into any such collaborations.

"We are undertaking seeing what Freeport has available and how the CAP may use it," Domenini continued. "We think it will take several levels of due diligence—particularly engineering and financial, including a business plan. I want the board to know we will present updates and we will need input from the board. This will not move quickly."

Gutierrez said, unless he had a huge misunderstanding, "I think the intent of this board is still to have a New Mexico Unit. Anything with Freeport will be in addition to a New Mexico Unit."

"To the ISC, I explained it as filling multiple needs, agricultural, municipal and environmental," Gutierrez said.

He also said the entity had received five good engineering proposals. "I have distributed them to the reviewers. Potentially, we will have a meeting with those reviewing the proposals. We want to bring the decision to the meeting next month."

Sera noted it would be appropriate to get the decision to the city of Deming for approval and then to the CAP Entity for approval.

Hutchinson announced the Interim Water and Natural Resources Committee would meet in Silver City Sept. 5 and 6, which would conflict with the regular meeting date for the CAP Entity of Sept. 5.

Lee said the next regular meeting was 9 a.m. Tuesday, Aug. 1.

Hutchinson said the Gila National Forest would be holding a field tour in the Reserve District on Aug. 1 and 2. "If I can't be here, I will have my alternate here."

Van "Bucky" Allred said he would attend the NM CAP Entity meeting and would let someone else go on the field tour.

Jeff Riley of the Phoenix U.S. Bureau of Reclamation officer gave a brief update on the NEPA process. "The NEPA contract request for proposal was posted on June 15, which quotes due by July 13."

Siwik asked that documents to be discussed at a meeting be posted to the nmcapentity.org website prior to the meeting, so audience members had access to them.

Gutierrez said he would certainly try to. "I tried to upload them, but my website skills did not allow it. I will get my skills updated. I do have some copies for your information."

The meeting adjourned at 9:50 a.m.