Sparks City Council Meeting 3/22/2021 2:00:00 PM

Meeting Link: https://zoom.us/j/99404947145
Meeting Dial-in #: 1-669-900-6833 Meeting ID: 994 0494 7145

General Business: 9.11

Title: Consideration, discussion, and possible approval of an agreement (AC-5743) with Truckee Meadows Water Authority, in the estimated amount of $51,110.00, for the lease of water rights to satisfy reclaimed water return flow requirements for the Truckee River.
Petitioner/Presenter: John A. Martini, P.E., Assistant City Manager/Kevin Porter, P.E., Utility Manager
Recommendation: Staff recommends City Council approve the agreement.
Financial Impact: $51,110.00 will be funded from two Capital Improvement Programs in Fund 1650 Effluent Non-Cap CIP EN
Total Costs: $51,110.00
Fund: Effluent Operations Fund    Account: 603190
Program: Effluent Metered Site Upgrades (21-6790)
Amount: $25,000.00    Budget Status: Budget Exists
Fund: Effluent Operations Fund    Account: 603190
Program: Annual Contingency for Emergencies (21-6791)
Amount: $26,110.00    Budget Status: Budget Exists
Business Impact (Per NRS 237):
    
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

The 5 Ridges Development is seeking approximately 780 acre-feet of reclaimed water from the City of Sparks for mass grading and dust control operations during project construction.  To manage the return flow requirements associated with the temporary reclaimed water use, the City of Sparks will utilize Truckee Meadows Water Authority's Interruptible Large Volume Non-Potable Service (ILVNPS) to temporarily lease water rights dedicated for Truckee River in-stream flow.   



Background:
Reclaimed water, also referred to as effluent, discharged from the Truckee Meadows Water Reclamation Facility (TMWRF) is put to beneficial use as irrigation water for parks, golf courses, and common area landscaping.  Additionally, reclaimed water is used in the production of aggregates for roadway pavements and concrete, as well as for dust control and mass grading during construction.  Reclaimed water use is advantageous to TMWRF’s discharge permit compliance because it reduces the total loading of nitrogen, phosphorous, and total dissolved solids to the Truckee River.  
 
Groundwater, primarily from the Truckee Meadows Water Authority (TMWA) well network, that sewers to TMWRF is used to offset reclaimed water use without impacting the Federal Water Master’s operation of the Truckee River through TMWA's Interruptible Large Volume Non-Potable Service (ILVNPS).  Reclaimed use above and beyond the groundwater component of TMWRF effluent requires the dedication of Truckee River water rights so that the use of reclaimed water does not result in a net loss of water for the river system.  This concept is referred to as return flow management and is specified in, and required by, the Sparks-Reno reclaimed water permit (29973) as well as section 1.E.2 of the Truckee River Operating Agreement (TROA).  
 
The 5 Ridges Development plans to use approximately 780 acre-feet of reclaimed water throughout the eighteen-month phase of mass grading for tentative maps that City Council approved on February 8, 2021. The TMWA ILVNPS water will be used to meet the additional return flow requirement throughout project construction.  The ILVNPS provides temporary use of large volumes of Truckee River water rights controlled by TMWA.  This agreement will use the ILVNPS to satisfy the return flow requirement by scheduling the leased water to remain in the Truckee River to offset the use of reclaimed water for the 5 Ridges Development project.


Analysis:
Attachment 02 - 5 Ridges Projected Reclaimed Use Table provides a breakdown by month of the anticipated reclaimed water demand, the return flow requirement, the estimated TMWA ILVNPS fee, and the estimated effluent revenue to the City.  The return flow requirement is approximately 38% greater than the reclaimed water demand due to the Consumptive Use calculation.  Water used for construction, as in the case of this project, is deemed to be fully consumed compared to water used for irrigation, and therefore requires the Consumptive Use calculation to be applied, which is 2.5 acre-feet/acre divided by 4 duty acre-feet/acre, equating to 62% consumptive and 38% non-consumptive.  
 
The estimated total fee of the TMWA ILVNPS leased water is $51,110, based on the rate schedule of $47 per acre-foot and $35 per monthly billing period.  The estimated City revenue from the sale of reclaimed water is $467,600, based on the Sparks Municipal Code 13.85.030 bulk temporary reclaimed water rate of $1.84 per 1000 gallons.  The Sparks reclaimed water rate can be compared to the TMWA Non-Potable Water Rate of $3.58 per 1000 gallons; or $909,800 cost for construction water if it were supplied by TMWA.  The actual ILVNPS fee and the City revenue will be determined by the actual demand of reclaimed water from the 5 Ridges project.


Alternatives:
  1. City Council may approve the agreement as outlined by staff.
  2. City Council may reject the agreement and provide direction to the City Manager.


Recommended Motion:

I move to approve agreement (AC-5743) with Truckee Meadows Water Authority, in the estimated amount of $51,110.00, for the lease of water rights to satisfy reclaimed water return flow requirements for the Truckee River. 



Attached Files:
     01 - TMWA ILVNPS Contract.pdf
     02 - 5 Ridges Projected Reclaimed Use Table.pdf
     03 - TMWA ILVNPS Rate Schedule.pdf
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