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Sparks City Council Meeting 5/26/2020 2:00:00 PM

Meeting Link: https://zoom.us/j/92302995013
Meeting Dial-in #: 1-669-900-6833 Meeting ID: 923 0299 5013

General Business: 9.9

Title: Consideration, discussion, and possible approval of a two-party agreement (AC-5668), with D’Andrea Phoenix Acquisition LLC, for the temporary sale of treated effluent.
Petitioner/Presenter: John Martini, P.E., Assistant City Manager/Kevin Porter P.E., Utility Manager
Recommendation: Staff recommends the City Council approve the agreement.
Financial Impact: Expected revenue between $60,000 and $150,000 to Fund 1650 Effluent Operations Fund.
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

This agreement is for temporary effluent use by D’Andrea Phoenix Acquisition for irrigation and construction water.  The term for the agreement is 24-months with an option for a one-time 12-month extension.  D’Andrea Phoenix Acquisition anticipates using up to 500 acre-feet of effluent per year. 



Background:

The D’Andrea golf course was irrigated using effluent, supplied by the Truckee Meadows Water Reclamation Facility (TMWRF), prior to the course closure in 2012. Irrigation and construction water are beneficial uses of reclaimed water, which TMWRF discharges to the Truckee River and to the City’s effluent distribution system or “purple pipe” system.  D’Andrea Phoenix Acquisition is beginning improvements to the property and has expressed the desire to utilize effluent water.  In addition to the beneficial use, treated effluent is provided to customers at a rate less than potable water.   



Analysis:

The term of the agreement is 24-months with a 12-month optional extension provided both parties are supportive of the extension.  D’Andrea Phoenix Acquisition is solely responsible for obtaining a discharge permit from the Nevada Department of Environmental Protection (NDEP) and obtaining approval of an effluent management plan.  The City agrees to provide treated effluent via TMWRF and the effluent distribution system. The agreement provides two rate options: (A) with the temporary dedication of water rights for return flow management, and (B) without dedication of water rights. Rate A is $0.66 per 1000 gallons and Rate B is $0.96 per 1000 gallons.

The agreement is attached for Council’s review.



Alternatives:
  1. Council could approve the agreement as outlined by Staff.
  2. Council could reject the agreement and provide direction to the City Manager.


Recommended Motion:

I move to approve the two-party agreement (AC-5668), with D’Andrea Phoenix Acquisition LLC, for the temporary sale of treated effluent. 



Attached Files:
     01 – D’Andrea Phoenix Agreement.pdf

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