Editor's Note: This is part 1 of a multi-part series on the first New Mexico Central Arizona Project Entity meeting.

By Mary Alice Murphy

The New Mexico Central Arizona Project Entity held its first meeting Monday, Aug. 10, at the Grant County Administration Center, after members, at the end of July, informed the Interstate Stream Commission of their requests to be part of the entity with their signatures on the joint powers agreement to form the entity. The entity is named in the Arizona Water Settlements Act as the official organization to be in charge of design, construction, operations and maintenance of a New Mexico Unit in cooperation with the U.S. Secretary of the Interior.

The process is informed by deadlines. The first deadline was last Dec. 31, 2014, when the state of New Mexico informed the U.S. Secretary of the Interior of its decision to divert water at a maximum of 140,000 acre feet of water over 10 years, as allocated in the AWSA, and to build a New Mexico Unit to store that water for future use.

The first order of business was to elect officers. Lacking a chairman, Grant County Planner Anthony Gutierrez, Gila/San Francisco Water Commission chairman, led the first part of the meeting. He and the water commission had been key in getting the JPA created and approved.

The election was for temporary officers, while the process to develop bylaws and a budget moves forward. Hidalgo County Commissioner Darr Shannon was elected as temporary chairwoman, with Luna County Commissioner Javier Diaz being named vice chairman and Catron County Commissioner Van "Bucky" Allred being chosen as secretary.

Vance Lee of Hidalgo County made the motion, which was approved, to change the agenda order to allow the update from the Interstate Stream Commission to precede the presentations about the NM Unit Agreement by the ISC and the U.S. Bureau of Reclamation.

Also approved was the Open Meetings Act resolution, based on that of the GSFWC.

During discussion of the meeting times, Shannon said she preferred 1 p.m., to save taxpayer money, so the ISC and Reclamation would not have to spend the night.

Lee asked that the meetings be coordinated with the GSFWC. He said he liked the 9 a.m. time as stated in the OMA.

Diaz requested an occasional rotation to Deming for the meetings.

Aaron Sera, city of Deming manager, said the OMA was acceptable as is, with the Grant County Administration Center as the location for the meetings. "If we want to rotate, we can do it by vote."

Discussion ensued on the appointment of the New Mexico CAP Entity Negotiating Team to negotiate any supplemental terms to the New Mexico Unit Agreement with Reclamation. The deadline for completion of the NM Unit Agreement is Nov. 23, 2015. It must also be approved by the Secretary of the Interior.

Grant County Commission Chairman Brett Kasten asked for an explanation of the NM Unit Agreement. Deborah Dixon, the ISC alternate to the CAP Entity, explained the items to be discussed were supplemental items to the proposed agreement that needed to be negotiated.

"You have two documents," Dixon said. "You have the draft of the NM Unit Agreement before you. Secondly, Reclamation has discussed some supplemental items, which you will hear about later today."

Lee suggested the negotiating team have one from each county.

Amy Haas, ISC general counsel, asked the group to keep in mind in designating members to make sure there would be no quorum of the entity.

"This item is very time-sensitive," Haas said. "Items in it from the AWSA and the Consumptive Use and Forbearance Act are non-negotiable."

Kasten nominated Gutierrez from Grant County. Sera asked if the ISC would be part of the negotiating team. "Yes, the ISC will be part of this team," Dixon said.

Diaz nominated Luna County Manager Charles "Tink" Jackson to serve on the team. Allred nominated Howard Hutchinson as the Catron County representative. B.J. Agnew of the Upper Gila Irrigation Association nominated Allen Campbell of the Gila Hotsprings Irrigation Association to represent irrigators, and Billy Webb of the San Francisco Soil and Water Conservation District nominated Vance Lee for Hidalgo County.

Under non-action items was a discussion for bylaws for the NM CAP Entity.

ISC attorney, Dominque Work, said she was still working on the draft. "As soon as I have a draft, I will forward it." Later in the meeting she said it would be sent by the end of the week.

Next for discussion was a budget and potential staffing for the entity.

"This group assembled is the policy-making board for the CAP Entity," Kasten said. "We have to have staff. Every one here has a job and perhaps another job. We need an executive director, possibly counsel, office space and clerical help. We need to sit down and build a job description, set the salary scale and decide how to fund it. Maybe under the second fiscal agent?"

Sera said Deming would entertain serving as the second fiscal agent, contingent upon approval of the City of Deming Council.

Kasten said Grant County or Deming could possibly find office space. "We have to decide what we want for staff. The problem is that the person needs to be an employee of a government entity, so they get benefits. Once we figure out the salary and benefits, we need to determine how much travel will be involved."

"It's difficult to put a budget together without counsel," Sera said.

Lee agreed and said the legal representative needed to be knowledgeable about the AWSA. "I'm throwing out the name of Pete Domenici Jr., who the Gila/San Francisco Water Commission has used."

Later in the meeting Sera recommended using Deming's attorney, Jim Foy.

Ryan Jameson of the Fort West Irrigation Association asked how the group would come up with a budget. "Do we need to all come up with money?"

"We come up with the money and then ask for reimbursement," Shannon said.

Haas explained the entity would put its budget request before the ISC. "I want to alert you that any hiring will be required to follow state procurement laws."

Work said the hiring would have to be done through the second fiscal agent, because the CAP Entity doesn't have the authority.

Sera volunteered to put together a budget in discussion with Deming's city counsel.

Grant County Attorney Abigail Robinson suggested that pooling money might not be necessary, because the entity could directly request reimbursement.

Haas said the budget could go before the next ISC meeting. "The only timeline for this first budget is that it be considered at the next ISC meeting. Every year after this, the deadline for the annual budget will be May 1."

David Pato, Catron County counsel, said if the hiring was under $60,000, the second fiscal agent could do it as a small purchase and then issue a formal solicitation.

"We have to be ready for the next meeting on staffing, counsel, second fiscal agent and the budget," Shannon said.

"I would like to ask ISC counsel," Sera asked, "if Deming or whatever party becomes the second fiscal agent, and we want to remove ourselves later, will we be obligated to continue as second fiscal agent?"

Work said the second fiscal agent has to be a member of the entity, and if it is no longer a member that could remove the obligation.

Jameson asked how many staff the entity needed.

Sera said he thought only one would be needed the first year. "After that, we might determine we need more."

Lee said a potential need might be for clerical help.

Sera said the group might also need engineering and legal services. "I'll put them in a budget."

Jameson asked if the entity would be renting office space. Kasten said he thought Grant County could provide an office. Shannon asked if it would violate the anti-donation statute. Work said if the group decides to do dues, the office space could be provided as an in-kind, with no anti-donation implications.

Kasten suggested the budget allow for clerical help and hire the person and let them decide what they need.

Campbell asked where the starting point is without bylaws. "We haven't looked at addressing any current problems in the bylaws."

Shannon asked if the entity needed counsel to make sure the "bylaws are what we want."

Campbell said one of the big issues is liability as far as dues. "The smaller groups cannot afford dues commensurate with the counties. The population and the amount of water can be metrics. It has to be set up before we obligate our parties. We have to know what we're getting ourselves into."

Kasten said each individual party could take the draft bylaws back to their own respective councils or commissions and their own legal counsel.

Sera reminded the parties that dues are not an issue right now. "We may realize further down the road that we may have to kick something in."

Jameson said irrigators could not afford what the counties and cities could. "They may muscle us out because of the amount of dues. I don't want us to be muscled out."

"That was part of the discussion," Sera said. "This is about getting water in New Mexico, not about the size of the individual members."

Haas said a placeholder in the bylaws considered dues, "but it's your decision."

Allred asked if it would be possible to have something ready by the next ISC meeting, set for later in August. Sera said it was not going to happen. "We need a couple of meetings before the ISC September meeting."

It is tentatively set for Sept. 16, according to Dixon. "And we will be in town for the Aug. 31 Interim Legislative Water and Natural Resources Committee meeting."

"In the first year, what kind of funding might be available for an executive director," Allred asked. " Dixon said the JPA states the budget must be approved by the ISC.

"What we receive into the New Mexico Unit Fund is "$9.04 million yearly, and we have received four payments," Haas said. "The past four years might be a starting point for how the ISC has budgeted."

Kasten noted that what the group asks for, if it's approved, "that's what we can spend, according to the JPA."

The update from the ISC will be covered in the next article in this series.