2013 2:00:00 PM

Monday, April 22, 2013 2:00 PM
City Council Chambers, Legislative Building, 745 Fourth St, Sparks, NV

Consent Items: 5.4

Title: Consideration and possible approval of a Third Amended Interlocal Agreement Regarding the Purchase of Water Rights Pursuant to Truckee River Water Quality Settlement Agreement between Washoe County, the City of Reno, and the City of Sparks (A-2311).

Petitioner/Presenter: John A. Martini, P.E., Assistant Community Services Director/Andrew Hummel, P.E., Utility Manager

Recommendation: Staff recommends the approval of the Third Amended Interlocal Agreement Regarding the Purchase of Water Rights Pursuant to Truckee River Water Quality Settlement Agreement between Washoe County, the City of Reno, and the City of Sparks (A-2311

Financial Impact: None, this program is already funded through the TRWQSA Expense, Account 603285 in the Truckee Meadows Water Reclamation Facility’s operating budget using TMWRF Administration Key Service Area, 131500, and Program, 131500.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: On October 10, 1996, Reno, Sparks, and Washoe County entered into the Water Quality Settlement Agreement with the U.S. Department of Interior. To implement the local government’s part of the WQSA, Reno, Sparks and Washoe County signed an interlocal agreement (July 28, 1998 Amended and Restated Interlocal Agreement Regarding the Purchase of Water Rights Pursuant to the Truckee River Water Quality Settlement Agreement, A-2311) creating the Local Government Oversight Committee (LGOC), which includes representatives of each jurisdiction. The Third amendment presented herein provides that accumulated investment earnings above the $12,000,000 obligation may be used, if necessary, for the purpose of retaining outside legal counsel for representation pertaining to possible protests and hearings before the State Engineer along with any subsequent appeals in the court of law on the water right’s transfer applications. Staff recommends approval.

Background: On October 10, 1996, the three local governments (Sparks, Reno, and Washoe County; LGOC) entered into the Truckee River Water Quality Settlement Agreement (WQSA) with the U.S. Department of Interior (working through the Pyramid Lake Paiute Tribe). The purpose of this agreement was to purchase water rights for instream flows to benefit and improve the water quality and overall ecological health of the river and Pyramid Lake. This agreement resulted in the dismissal of lawsuits and allowed the expansion of the Truckee Meadows Water Reclamation Facility. Reno, Sparks and Washoe County pledged to spend $12,000,000 for the purchase of water rights and the federal government appropriated $12,000,000 for the purchase of tribal water rights working through the Pyramid Lake Paiute Tribe. To implement the local government’s part of the WQSA, Reno, Sparks and Washoe County signed an interlocal agreement (July 28, 1998 Amended and Restated Interlocal Agreement Regarding the Purchase of Water Rights Pursuant to the Truckee River Water Quality Settlement Agreement, A-2311) creating the Local Government Oversight Committee (LGOC), which includes representatives of each jurisdiction. The expenditures to date are approximately $100,000 short of the $12,000,000 commitment, when adjusted by future land sale revenue, and have acquired 3283 acre-feet of Truckee River water rights. The July 28, 1998 Amended and Restated Interlocal Agreement Regarding the Purchase of Water Rights Pursuant to the Truckee River Water Quality Settlement Agreement provides that to the extent that the services of private counsel are required to accomplish water rights transfer and changes, the parties agree that any such costs will be equally shared. There is approximately $778,000.00 in accumulated investment earnings remaining in the WQSA account in excess of the $12,000,000 obligation. This money would eventually be remitted to Reno, Sparks and Washoe County’s respective enterprise funds at the conclusion of the water quality water rights purchase program. The Third amendment to the Interlocal Agreement provides that a portion of this sum, if necessary, may be used for the purpose of retaining outside legal counsel for representation pertaining to possible protests and hearings before the State Engineer along with any subsequent appeals in the court of law on the water right’s transfer applications. Any agreement to retain outside legal counsel and the use of this amount for this purpose would and must be approved by the governing bodies of Reno, Sparks and Washoe County. Staff recommends approval.

Analysis: See background.

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

Recommended Motion: “I move to approve the Third Amended Interlocal Agreement Regarding the Purchase of Water Rights Pursuant to Truckee River Water Quality Settlement Agreement between Washoe County, the City of Reno, and the City of Sparks (A-2311).”

Attached Files:

Third Amended Interlocal with RSW regarding WQSA 2013 3_28_13.pdf

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