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.

The Entities have accumulated 3952.08 acre-feet of water rights towards the obligation, which consists of 3499.18 acre-feet from streets and rights of ways and an acquired block; TMWA, through funding from Western Regional Water Commission (WRWC) for the specific purpose of satisfying the Obligation, acquired 452.90 acre-feet of water rights.   Language with Section 1.E.4 of TROA and associated agreements requires ownership of the water rights to be held in the name of the Entities, as such the water rights purchased by TMWA are being transferred to the Cities of Reno and Sparks and Washoe County as tenants in common per the attached Water Rights Deed.

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-1452)  of approximately 453 acre-feet of water rights from Truckee Meadows Water Authority to City of Reno, City of Sparks and Washoe County.