2011 2:00:00 PM

Monday, September 26, 2011 2:00 PM
Legislative Building, 745 4th Street, Sparks, NV

General Business: 6.4

Title: Consideration and possible approval of the Second Amendment to the Truckee River Water Quality Settlement Agreement (for possible action).

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

Recommendation: Staff recommends the approval of the Second Amendment to the Truckee River Water Quality Settlement Agreement

Financial Impact: While the time extension of the WQSA has no direct expense, any future LGOC action items approvals supporting the WQSA will be charged to 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. The agreement was extended in 2001. As the program is not yet completed, a second amendment is proposed to extend the timeline for completion for an additional five (5) years. The program is nearing completion; however there is a need to extend the agreement to allow for final expenditures and water rights transfers. 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. The initial term of agreement was five (5) years; in 2001 this agreement was extended for ten (10) additional years to allow additional time for purchase and transfers of the water rights purchased. A Second Amendment of the Agreement is being proposed for an additional five (5) years, or through October 10, 2016. To date, the fund has expended slightly under $12 million dollars in purchasing 3,280± acre-feet of water rights towards the program. Remaining work includes water rights filings as needed to correctly place the water rights to the intended use (instream flow to benefit Pyramid Lake), the sale of one remaining property, and possible sale of inactive Water Rights through a Bureau of Reclamation program. It is anticipated that sale of the land and water rights could net approximately $300,000 in additional funding to be expended. This potential additional funding and water rights transfer process necessitates extension of the WQSA.

Analysis: The WQSA required the purchase of $12 million in water rights by both the Local Governments and Pyramid Lake Paiute Tribe, for a total of $24 million. Funding for this program was a combination of sewer connection fees and rates, and is fully funded. The Local Governments, through the Local Government Oversight Committee (LGOC) have nearly reached the $12 million expenditure; sale of land and inactive water rights may result in additional funds to be expended towards additional water rights. Furthermore, the LGOC has commenced the process to transfer the water rights pursuant to the conditions of the WQSA and begun negotiations with the Bureau of Reclamation for storage within the Truckee River system. These transfers and storage issues are tied to the Truckee River Operating Agreement (TROA) which is before Federal Court for confirmation. Coordination of the parties for the transfer of the water rights is a critical component of the WQSA, making it necessary to extend the term of the WQSA. Staff has reviewed the proposed time extension and recommends approval.

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

Recommended Motion: “I move to approve the Second Amendment to the Truckee River Water Quality Settlement Agreement.”

Attached Files:

lgoc amendment.pdf

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