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.   

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.

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

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