Truckee Meadows Water Authority (TMWA) and Washoe County Department of Water Resources (DWR) are analyzing the possible consolidation of the two utilities. To keep you informed, we will continue to post any current information here. Be sure to check back often.
Latest news:
Updated 11/9/11
Currently, we are in the final stages of the financial analysis related to the merger. The analysis, prepared by TMWA and DWR staff, is being reviewed by a third party financial advisor at this time.
TMWA's Board and the Board of County Commissioners is planning to have a joint meeting in 2012 that will map out the next steps towards the merger. While with any such undertaking there are many issues that need to be worked out, we believe that merging the region's two largest water purveyors will be a benefit to the community. Studies have determined that consolidation will result in better water resource management, more efficient use of infrastructure, improved customer service and long-term savings for water customers.
Updated 8/2/11
TMWA continues to work with the Washoe County Department of Water Resources and are working towards consolidation of the two water utilities. In order to ensure that TMWA's customers are protected throughout this consolidation process, we are closely examining the financial health of both organizations. The TMWA Board of Director's focus is to make sure that customers are not negatively impacted by the merger. This is a long process and one that takes a tremendous amount of work for all those involved. Both entities are dedicated to completing the merger in a manner that will cause the least amount of disruption for customers.
Updated 12/11/09
The following editorial appeared in the Reno Gazette-Journal on December 11, 2009:
Merger of county water utility and TMWA will benefit users
Interlocal Agreement Unanimously Approved
Possible Merger of Water Utilities
Truckee Meadows Water Authority (TMWA) Board of Directors and the Washoe County Board of Commissioners (BCC) met in a joint meeting yesterday and unanimously approved an Interlocal Agreement which will govern the merger of Washoe County Department of Water Resources Water Utility into TMWA.
The Interlocal Agreement will govern and provide a framework for the merger process and allow the entities to develop and implement a plan to provide the most efficient operation of the combined water system. A final close date is yet to be determined, and will depend on when market conditions are right for debt refinancing. With the Interlocal Agreement as a guideline, the transition will continue through most of 2010, addressing such issues as due diligence and risk allocations.
“This is a local consolidation that makes sense for everyone in the Truckee Meadows,” said TMWA Chairman Mike Carrigan. “We’re keeping our precious resource under local control, while providing the most efficient operation possible for all customers. Our intention is that this will also ensure improved water planning for the future,” he concluded.
TMWA Board of Directors and the County Commission began discussing the possibility of merging the two water operations to achieve improved customer service, water resources management, system reliability, cost reductions and future cost avoidance for the benefit of customers and the community.
To view a video of the 40-minute meeting, click here and select the 12/9/09 BCC/TMWA Joint Meeting video under the “County Commission” section.
Updated 11/20/09
The TMWA Board of Directors and the Board of County Commissioners of Washoe County met on October 27, 2009 to discuss the proposed Inter-Local Agreement and revisions to TMWA's Joint Powers Agreement. To review a full summary of the meeting, click here.
Updated 9/8/09
Below is an overview of actions taken Sept. 8, 2009 at the joint meeting of the TMWA Board of Directors and the Board of County Commissioners of Washoe County (BCC). This update will follow the agenda format. If you would like to see the entire agenda packet with staff reports, it can be found here.
Recommendation from the Western Regional Water Commission (WRWC) regarding consolidation of TMWA and the Washoe Country Department of Water Resources (DWR): An update was provided of the Aug. 14 WRWC meeting regarding the WRWC’s recommendation to the TMWA Board and the BCC to proceed with the integration/merger of DWR water functions into TMWA. Also reviewed was the information produced by staff, Swendseid & Stern (bond counsel of both agencies) and Public Financial Management (the financial advisor to both agencies) leading to that recommendation. Jeff Tissier, TMWA’s Chief Financial Officer, also reviewed the Phase II financial analysis and the financial requirements that must be met prior to full consolidation. The two boards voted unanimously to accept the WRWC’s recommendation.
Discussion regarding the outline of a proposed Interlocal Agreement (ILA) between TMWA and DWR governing consolidation, and possible direction to staff: Legal counsel Sylvia Harrison (TMWA) and Pete Simeoni (Washoe County) took over this part of the discussion. This was a recommendation that also came from the August WRWC meeting. A detailed outline was presented (see agenda packet) of a proposed ILA that would govern the phased consolidation of the DWR Water Utility into TMWA. The outline provides a description of the proposed functions within the separate sections of the document without attempting to create final contractual language. Basically, an ILA will govern and provide a framework for the process and allow the entities to negotiate details resulting in the most efficient configuration of the consolidated entity. A proposed timeline was also presented and is included in the agenda packet. Before voting, the board members discussed the fact that they are agreeing to move forward and are committing to consolidation. But, they realize there will be exit ramps built into the ILA in case we uncover an issue that would adversely affect TMWA, DWR, or our customers. The boards accepted the outline and directed TMWA and DWR staffs to move forward with completion of the ILA.
Recommendation from the WRWC regarding amendment of TMWA’s Cooperative Agreement (the Joint Powers Agreement or JPA) to modify governance structure: Mark Foree, TMWA’s general manager, started the discussion regarding the WRWC’s other recommendation from the Aug. 14 meeting related to modifications to the TMWA JPA to change its governance structure. Any amendments to the JPA must be approved by the BCC, and the city councils of Reno and Sparks. The proposed amendments must also be submitted to the Nevada Attorney General for approval. The WRWC made the recommendation to the TMWA Board and the BCC to change the rotating, “at-large” member seat on the TMWA board to a second County Commissioner seat.
TMWA’s staff is also recommending that TMWA’s Technical Advisory Committee (TAC) review the existing JPA and make other recommendations for possible amendment. A lot of language in the original agreement was incorporated because TMWA was a “start-up” entity at that time and since we are eight years past that now, that language can be removed. Other changes should be made to make the JPA consistent with TMWA’s bond covenants. The boards voted to give staff direction to move forward with having the TAC review the JPA and make recommendations for other amendments in addition to the governance change.
Next Meeting:
Another joint meeting will be planned for October and will address the ILA and other items.
Updated 8/14/09
The Western Regional Water Commission (WRWC) met on Aug. 14, 2009, to review the next steps in a possible consolidation of Washoe County’s Department of Water Resources (DWR) with Truckee Meadows Water Authority (TMWA). WRWC members voted to recommend to the TMWA Board and the Washoe County Board of Commissioners (BCC) that they proceed with the consolidation process and develop an Interlocal Agreement (ILA). The agreement between the agencies will address the framework for integration in the interest of sharing resources and improving efficiencies, for the mutual benefit of all involved.
Staff from TMWA and DWR presented research and recommendations regarding financial risks, bond covenant issues, labor issues, scope of DWR services and service areas. You can find a copy of this staff report here. The current recommendation does not include the Sun Valley General Improvement District or the South Truckee Meadows General Improvement District, and will not impact private well owners. It was also recommended at that meeting to only address water operations, not sewer or reclaimed water.
