The Truckee River Operating Agreement (TROA) is an agreement among five parties:  California, Nevada, the Pyramid Lake Paiute Tribe (PLPT), the United States, and the Truckee Meadows Water Authority (TMWA).  There are approximately ten other parties signing which include:  The Cities of Reno and Sparks, Washoe County, water purveyors in the Truckee area, and the Sierra Valley Water Company which takes water from the Truckee system to the Loyalton/Sierra Valley area.  When implemented, TROA will allow for a congressionally authorized interstate allocation of water between Nevada and California and change the operations of the Truckee River system to accommodate multiple beneficial uses for drought supply, improve spawning flows for endangered and threatened fish species, improve water quality and California water use and storage.  In addition, operations will enhance riparian habitat, re-establish river canopy, enhance reservoir releases, improve recreational pools in the reservoirs, and improve emergency draw-down procedures for Lake Tahoe.

Section 1.E.4 of the TROA requires that the Cities of Reno and Sparks and Washoe County (the Entities) allocate 6700 acre-feet of Truckee Meadows Truckee River (Orr Ditch decreed) water rights to improve water quality within the Truckee River.  The Entities had anticipated that the decreed Truckee River water rights appurtenant to roadways and street right of ways within each jurisdiction would produce sufficient water rights to meet this requirement.  In 2006, the Entities selected TEC Engineering to perform water rights research associated with the Street Rights of Ways within each jurisdiction.  During the research it was discovered that 213.99 acre-feet with clear title in the name of Sparks had been erroneously conveyed to Sierra Pacific Power Company (the water purveyor at the time of dedication).  As TMWA is now the water purveyor within the Truckee Meadows service area they are the current holders of the water rights in question.

To resolve the issue, TMWA was provided documentation clearly demonstrating the chain of title showing ownership should be in the name of Sparks, which was verified.  The various water rights making up the original 213.99 acre-feet consisted of seven permits with underlying portions as small as 0.28 acre-feet.  To simplify things and reduce permitting costs, TMWA identified four larger permits of an equivalent amount of water rights to deed back to Sparks.

The attached deed quitclaims the original 213.99 acre-feet of water rights from Sparks to TMWA in exchange for a quitclaim of 213.99 acre-feet of water rights from TMWA to Sparks as identified in the associated exhibits.

Staff recommends approval.

See Background.

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

I move to approve a Water Rights Deed (D-1451) between the City of Sparks and Truckee Meadows Water Authority to transfer 213.99 acre-feet of water rights.