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Home My WebLink AboutPackets - Water Utillity Commission (77) AGENDA WATER UTILITY COMMISSION REGULAR SESSION January 12, 2026 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE NOVEMBER 10, 2025 REGULAR SESSION MEETING MINUTES 2.WELCOME NEW WATER UTILITY COMMISSIONERS (P. ABRAHAM) 3.NOMINATION AND ELECTION OF COMMISSION CHAIR EFFECTIVE JANUARY 13, 2026 4.NOMINATION AND ELECTION OF COMMISSION VICE CHAIR EFFECTIVE JANUARY 13, 2026 5.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY) 6.UPDATE AND DISCUSSION ON POSSIBLE ACTION ON THE 2026 WATER UTILITY COMMISSION WORK PLAN (P. ABRAHAM) 7.REVIEW OF WUC RECOMMENDED WATER RATE CHANGES FOR FY 2026/2027 (P. ABRAHAM) 8.UPDATE, DISCUSSION AND POSSIBLE ACTION ON GROUNDWATER PRESERVATION FEE FY 2026/2027 (P. ABRAHAM) 9.UPDATE AND DISCUSSION ON WATER RESOURCES & DEVELOPMENT IMPACT FEES FOR FY 2026/2027 (P. ABRAHAM) 10.DIRECTOR'S REPORT CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. ADJOURNMENT POSTED: 01/08/26 at 5:00 pm by ck When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.” Water Utility Commission 1. Meeting Date:01/12/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: REVIEW AND APPROVAL OF THE NOVEMBER 10, 2025 REGULAR SESSION MEETING MINUTES RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with changes) the November 10, 2025 Water Utility Commission Regular Session Meeting Minutes Attachments 11-10-25 DRAFT MINUTES D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION November 10, 2025 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER Chair Vescio called the meeting to order at 5:00 p.m. ROLL CALL Present: Niranjan Vescio, Chair Tom Marek, Vice Chair David Atler, Commissioner Alan Forrest, Commissioner Greg Hitt, Commissioner Joe Hornat, Commissioner Michael Smejkal, Commissioner Staff Present: Peter A. Abraham, Water Utility Director Mary Rallis, Water Utility Administrator CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. No public speakers REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE OCTOBER 13, 2025 REGULAR SESSION MEETING MINUTES Motion by Commissioner Alan Forrest, seconded by Commissioner Michael Smejkal to approve the October 13, 2025 meeting minutes with no changes Vote: 7 - 0 Carried 2.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY) Councilmember Mary Murphy provided the following updates: Recap on most recent Council Meeting 3.DISCUSSION ON WATER RATES ANALYSIS (P. ABRAHAM & M. RALLIS) Water Utility Director Peter A. Abraham provided the following updates regarding the Water Rates Analysis for fiscal year 2026-2027: Purpose of having a yearly water rates analysis Tentative water rates analysis schedule (from November 2025-July 2026) General water rates analysis goals and the specific goals for fiscal year 26–27 Reclaimed water rate goals for fiscal year 26-27 Recommendation on Water Rates for fy 26–27 General fund assumptions & enterprise funds Historical and projected personnel and power costs by year Operations and Maintenance costs Historical and projected CAP Water delivery and wheeling costs by year CAP water delivery cost based on costs projections City of Tucson CAP water wheeling costs (based on historical cost increases) Capital costs Historical and projected operating fund debt services (schedule by year) Potable water accounts by meter size (mostly residential) and historical and estimated annual potable use Operating revenues, expenses, capital, debt service & ending cash balance Potable water cost comparisons with other municipalities in our area Discussion ensued amongst the Commission and Water Utility Director Peter Abraham regarding the analysis. Motion by Commissioner David Atler, seconded by Commissioner Greg Hitt to make the recommendation to forward the water rates analysis, as presented, to the Mayor and Council for their consideration for approval. Vote: 7 - 0 Carried 4.DISCUSSION AND POSSIBLE ACTION ON THE CANCELLATION OF THE DECEMBER WUC MEETING (P. ABRAHAM) Motion by Commissioner Alan Forrest, seconded by Commissioner David Atler to cancel the December Water Utility Commission regular session Vote: 7 - 0 Carried 5.DIRECTOR'S REPORT Water Utility Director Peter Abraham presented the following information: Upcoming meeting dates Special thanks to Commissioners Marek & Atler for their service to the Commission CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. No public speakers ADJOURNMENT Motion by Commissioner Alan Forrest, seconded by Commissioner Greg Hitt to adjourn the meeting at 6:52 p.m. Vote: 7 - 0 Carried I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 10th day of November, 2025. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2026. ___________________________ Maritza M Valenzuela Senior Office Specialist Water Utility Commission 6. Meeting Date:01/12/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON POSSIBLE ACTION ON THE 2026 WATER UTILITY COMMISSION WORK PLAN (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: 2026 Work plan includes topics that may be presented and potentially discussed during our Water Utility Commission regular session meetings. BACKGROUND OR DETAILED INFORMATION: A workplan is drafted annually to present to the Commissioners for their approval. This provides a guide to the Commissioners on what they can expect to be updated on throughout the year. FISCAL IMPACT: SUGGESTED MOTION: Attachments ITEM 05- 2026 WORKPLAN ORO VALLEY WATER UTILITY COMMISSION 2026 WORK PLAN 1 DATE ITEM January 12, 2026 Hopi • Election of Water Utility Commission Chair • Election of Water Utility Commission Vice Chair • Discussion and Possible Action on 2026 WUC Work Plan • Review of WUC recommended water rate changes FY2026/27 • Update and Discussion and Possible Action on Groundwater Preservation Fee • Update and Discussion on Water Resources and Development Impact Fees • Director’s Report February 9, 2026 Hopi • Discussion on Draft Water Utility Annual Report • Update and Discussion on Water Utility Financials • Update and Discussion on Water Operations • Update and Discussion on Capital Improvement Projects • Update and Discussion on Water Resource Usage • Director’s Report March 9, 2026 Hopi • Update, Discussion and Action on Water Utility Annual Report • Update and Discussion on Partnered NWRRDS • Update and Discussion on Independent NWRRDS • Director’s Report April 13, 2026 • Field Trip (Date and Time TBD) May 11, 2026 Hopi • Update and Discussion on Water Conservation Program • Update and Discussion on Water Utility Financials • Update and Discussion on Water Operations • Update and Discussion on Capital Improvement Projects • Update and Discussion on Water Resource Usage • Director’s Report • Discussion and Possible Action on Cancellation of June and July WUC Meetings June 8, 2026 • Tentatively Cancelled – Summer Break July 13, 2026 • Tentatively Cancelled – Summer Break August 10, 2026 Hopi • Update and Discussion on Water Quality • Update and Discussion on Capital Improvement Projects • Update and Discussion on Water Utility Financials • Update and Discussion on Water Operations ORO VALLEY WATER UTILITY COMMISSION 2026 WORK PLAN 2 • Update and Discussion on Water Resource Usage • Director’s Report September 14, 2026 Hopi • Guest Speaker (TBD) October 12, 2026 Hopi • Discussion on Water Rates Analysis Schedule • Update and Discussion on Partnered NWRRDS • Update and Discussion on Independent NWRRDS • Update and Discussion on Capital Improvement Projects • Update and Discussion on Water Utility Financials • Update and Discussion on Water Operations • Update and Discussion on Water Resource Usage • Director’s Report November 9, 2026 Hopi • Discussion and possible action on Water Rates Analysis • Discussion on CAP Water Supply • Discussion and Possible Action on Cancellation of the December WUC Meeting December 14, 2026 • Tentatively Cancelled - Winter Break Water Utility Commission 7. Meeting Date:01/12/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: REVIEW OF WUC RECOMMENDED WATER RATE CHANGES FOR FY 2026/2027 (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 07- REVIEW OF THE WATER RATES ANALYSIS Water Utility Commission January 12, 2026 Oro Valley Water Utility Review WUC recommended water rate changes for FY 2026/27 Peter A. Abraham, P.E., Water Utility Director Mary Rallis, C.P.A., Water Utility Administrator Purpose Purpose In accordance with Mayor and Town Council Water Policies – II.A.2.b(4), an annual review of the revenue requirements and water rates is performed to ensure the long-term financial health of the Water Utility. Functions of the Oro Valley Water Utility Commission include reviewing and developing recommendations for water revenue requirements, water rates and fee structures. The Commission evaluates staff recommendations based on a rates analysis to ensure the recommendations meet Town policies and bond covenants. Tentative Water Rate Analysis Schedule 11/10/25 WUC meeting: - Update & Discussion on Rates Analysis - WUC approved recommended water rate changes to Town Council 12/08/25 WUC meeting: - Meeting Cancelled 01/12/26 WUC meeting: - Review WUC recommended water rate changes to Town Council - Update & Discussion on Proposed Fee Changes - WUC Recommendation to Town Council on Proposed Fee Changes 03/04/26 Town Council: - Notice of Intent (NOI) to change water rates & Fees 03/05/26 Publish public hearing date on Town website: - Minimum 60-day notice prior to Public Hearing date 03/05/26 Publish NOI: - Minimum 20-day notice prior to Public Hearing date 06/03/26 Town Council: - Public Hearing (60 days from NOI) - Council considers adoption of water rate & fee change 07/04/26 New rates and fees become effective (30 days after adoption) Develop water rates that generate sufficient revenue to: Water Rates Analysis Goals - General Meet revenue and cash reserve requirements Meet debt service coverage requirements Ensure revenue stability (Balance Base & Commodity Rates) Maintain the overall financial health of the Utility The water rates shall also: Promote water conservation (Tiered Commodity Rates) Generate the revenue necessary while avoiding rate shock Adapt to changing rate drivers and consumer trends Be equitable between customer classifications Recover the cost of service (Potable & Reclaimed) Potable Water Rate setting goals for FY 26/27: Water Rates Analysis Goals – Specific for FY 26/27 Limit rate increase to 5% or less for a residential customer in Tier 1 Last year’s rate increase for a residential customer in Tier 1 was 3.6% Meet revenue requirements with a base rate increase only Stable revenues are necessary to ensure funding of post 2026 CAP delivery cost uncertainty and projected increases in existing system improvement costs No increase to the groundwater preservation fee Current GPF meets costs associated with the NWRRDS project, including debt service Reclaimed Water Rate setting goals for FY 26/27: No planned changes for the Reclaimed Water base rate or commodity rate Recommendation on Water Rates for FY 26-27 Potable Water Rates Increase to potable base rates only No change to potable commodity tiers for all user classifications No change to construction commodity rate No change to potable groundwater preservation fee Reclaimed Water Rates No change to reclaimed base rates No change to the reclaimed commodity rate No change to the reclaimed groundwater preservation fee Rate Model Input File Rate Model Input Data Assumptions consistent with the General Fund Water Rates Analysis Assumptions – General Fund Personnel costs Increases to the ASRS contributions Increases in healthcare costs Inflation rate Projected at 3% annually during the 5-year projection period SFR Growth Rate Projected at 521 SFR’s during the 5-year projection period Assumptions specific to the Water Utility Water Rates Analysis Assumptions – Enterprise Fund Personnel costs No new employees were added during the 5-year projection period Increasing CAP water delivery & wheeling costs 800,000 AF water volume in FY 2026/27 – 7.46% increase in delivery charge Wheeling costs have historically been increasing 5.5% annually Minimal annual increases to reclaimed water delivery costs Reclaimed water delivery costs remain stable over the 5-year projection period Existing System Capital Projects Cash funding of capital projects over the 5-year projection period Rate Model Output File Rate Model Output Data Input Rate Data for Proposed Potable Water Rates Recommended Base Rate Increase Potable water base rates increase by meter size: 84% of customers have a 5/8-inch meter and will see a $1.86 per month increase in the base rate. Meter Size Current Proposed Monthly (in inches)Potable Base Rates Potable Base Rates Increase 5/8 $ 23.31 $ 25.17 $ 1.86 3/4 $ 34.93 $ 37.72 $ 2.79 1 $ 58.23 $ 62.89 $ 4.66 1.5 $ 116.47 $ 125.79 $ 9.32 2 $ 186.35 $ 201.26 $ 14.91 3 $ 372.68 $ 402.49 $ 29.81 4 $ 582.33 $ 628.92 $ 46.59 6 $1,164.65 $1,257.82 $ 93.17 8 $1,863.45 $2,012.53 $149.08 Proposed Rate Increases / Debt Service Ratio & Cash Reserve Requirements Pe r c e n t a g e i n c r e a s e % 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%Ac t u a l F Y 2 0 1 9 / 2 0 Ac t u a l F Y 2 0 2 0 / 2 1 Ac t u a l F Y 2 0 2 1 / 2 2 Ac t u a l F Y 2 0 2 2 / 2 3 Ac t u a l F Y 2 0 2 3 / 2 4 Ac t u a l F Y 2 0 2 4 / 2 5 Ac t u a l F Y 2 0 2 5 / 2 6 Pr o j e c t e d F Y 2 0 2 6 / 2 7 Pr o j e c t e d F Y 2 0 2 7 / 2 8 Pr o j e c t e d F Y 2 0 2 8 / 2 9 Pr o j e c t e d F Y 2 0 2 9 / 3 0 Pr o j e c t e d F Y 2 0 3 0 / 3 1 Potable Rate Increases for a 5/8-inch SFR @ 7,000 gallons/month Historical & Projected Potable Rate Increases by Year Potable Water Cost Comparisons Comparison of monthly bills to other service providers for a 5/8-inch SFR Meter: Water Provider Cost for 7,000 Gallons Cost for 15,000 Gallons Cost for 25,000 Gallons Cost for 40,000 Gallons Oro Valley Current $51.45 (3.6%)$99.61 (3.3%)$188.61 (2.1%)$358.91 (.9%) Oro Valley Proposed $53.31 (3.6%)$101.47 (1.9%)$190.02 (1.0%)$360.77 (.5%) Metro Water $57.10 $105.10 $179.65 $307.90 Marana Water (Proposed 10.5% Rate Increase) $55.50 $104.56 $179.26 $319.81 Tucson Water (Outside City Limits)$67.24 $162.15 $334.52 $669.72 Tucson Water (City Limits)$60.00 $143.77 $293.68 $582.94 Discussion Water Utility Commission 8. Meeting Date:01/12/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE, DISCUSSION AND POSSIBLE ACTION ON GROUNDWATER PRESERVATION FEE FY 2026/2027 (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 08- UPDATE DISCUSSION AND POSSIBLE ACTION ON GPF Water Utility Commission January 12, 2026 Oro Valley Water Utility Update & Discussion on Groundwater Preservation Fee & Impact Fee FY 2026/27 Peter A. Abraham, P.E., Water Utility Director Mary Rallis, C.P.A., Water Utility Administrator Groundwater Preservation Fee (GPF) Per the Mayor and Council Water Policy GPF shall be used for: Renewable water capital costs and associated debt Renewable water supplies and associated debt Costs to wheel Central Arizona Project water to the Town The fee was established in FY 2003/2004 In FY 2026/27 GPF is paying for: CAP capital costs: 7,305 Acre-ft. @ $56.00 /Acre-ft. = $409,080 40% of the NWRRDS: Estimated: $800,000 2021 Sr. Lien Revenue Refunding Obligations (Reclaimed Debt): $473,158 2025 Sr. Lien Revenue Obligations (NWRRDS): $280,768 2025 WIFA Loan Sr. Lien (NWRRDS): $312,426 FY 2026/27 GPF Summary Total FY 2026/27 GPF Expenses: $2,275,432 Projected FY 2026/27 GPF Revenue: $2,707,000 No change in GPF proposed Groundwater Preservation Fee (GPF) Proposed Financial Scenario Pro Forma for GPF: Discussion Water Utility Commission 9. Meeting Date:01/12/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER RESOURCES & DEVELOPMENT IMPACT FEES FOR FY 2026/2027 (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 09- UPDATE AND DISCUSSION ON WRSDIF Water Utility Commission January 12, 2026 Oro Valley Water Utility Update & Discussion on the Water Resource & System Development Impact Fees FY 2026/27 Peter A. Abraham, P.E., Water Utility Director Mary Rallis, C.P.A., Water Utility Administrator Water Resource & System Development Impact Fee (WRSDIF) Per the State Law Impact Fee shall be used for: Fund new or expanded water infrastructure associated with growth Fund new treatment/delivery systems and related debt associated with growth Paid for at the time a new water meter is purchased The fee was established in 1996 In FY 2026/27 WRSDIF is paying for: CAP capital costs: 3,000 Acre-ft. @ $56.00 /Acre-ft. = $168,000 60% of the NWRRDS: Estimated: $1,200,000 2021 Sr. Lien Water Revenue Refunding Obligations (Growth Related Debt): $56,354 2025 Sr. Lien Revenue Obligations (NWRRDS): $421,152 2025 WIFA Loan Sr. Lien (NWRRDS): $468,639 FY 2026/27 WRSDIF Summary Total FY 2026/27 WRSDIF Expenses: $2,314,145 Projected FY 2026/27 WRSDIF Revenue: $1,224,427 Change in WRSDIF is proposed. Proposed change is not reflected in 5-year Pro-Forma. Impact Fee changes slated to go before Council in 2026. Water Resource & System Development Impact Fee (WRSDIF) Proposed financial Scenario Pro Forma for WRSDIF: Discussion Water Utility Commission 10. Meeting Date:01/12/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: DIRECTOR'S REPORT RECOMMENDATION: A recommendation is not applicable for a Director's Report. EXECUTIVE SUMMARY: The Director's Report is intended to provide important updates to the Commissioners regarding departmental and Town-wide events and updates. BACKGROUND OR DETAILED INFORMATION: Schedule of meeting events for the upcoming month, information pertinent to the Water Utility, updates on the Colorado River reservoirs and snowpack. FISCAL IMPACT: Fiscal impact not applicable in the Director's Report. SUGGESTED MOTION: N/A Attachments ITEM 10- DIRECTOR'S REPORT Peter A. Abraham, P.E. Water Utility Director Water Utility Commission Meeting January 12, 2026 Oro Valley Water Utility Director’s Report Upcoming Meetings January 14, 2026 Town Council Regular Session Council Chambers @ 6 p.m. January 28, 2026 Town Council Regular Session Council Chambers @ 6 p.m. February 4, 2026 Town Council Regular Session Council Chambers @ 6 p.m. February 9, 2026 Water Utility Commission Meeting Hopi Conference Room @ 5 p.m. Colorado River Water Users Association Conference • “Adapting to a New Normal” • Delegates from all seven basin state discuss perspectives on what needs to happen to reduce the demands on the Colorado River to a sustainable level. Colorado River DCP Status At End of CY 2025 ►Bureau of Reclamation – Which manages water in the West under the Department of the Interior gave basin states (Upper: Colorado, Utah, New Mexico, Wyoming) (Lower: California, Arizona, Nevada) until November 11, 2025, to submit a preliminary agreement for a plan to replace the Colorado River guidelines set to expire at the end of 2026. ►This goal was not met. ►The initial timeline also called for the basin states to share a final consensus-based plan by February 14, 2026, to reach a final agreement in the summer of 2026 with implementation of the new guidelines beginning in October of 2026. ►Secretary of the Interior Doug Burgum indicated that the federal government would intervene in the Colorado River water negotiations if the seven basin states could not reach their own agreement. ►The Lower Basin – Nevada, Arizona, and California – want all seven Colorado River states to share mandatory water cuts during dry years under the new guidelines. The Upper Basin, which is not subject to mandatory cuts under the current guidelines, says they already use much less water than downstream states and should not face additional cuts during shortages. Colorado River DCP Status At The End of CY 2025 ►Arizona has called for stronger federal intervention in shaping post-2026 Colorado River operating guidelines. ►In a letter to Interior Secretary Burgum on November 11, 2025, Arizona Gov. Katie Hobbs and legislative leaders asked the federal government to include water supply reductions for Upper Basin states in any new guidelines they consider. ►The upper Basin States are refusing to participate in any sharing of water shortages. This has led to a fundamental impasse that is preventing the successful development of a 7-State consensus plan for management of the Colorado River. ►Upper and Lower basin sates have until February 14, 2026 to present new Colorado River shortage sharing guidelines, otherwise Federal government will intervene. Colorado River System Reservoir Status Colorado River Basin Above Lake Powell Snow Acc. Snow accumulation as of 1/4/2026 is at 4.8 inches, which is 73% of the 30-year median for this date of 6.6 inches. Thank You