FERNLEY EXCHANGES 2009 SURFACE WATER

July 10, 2009
submitted

On July 1, 2009, the City of Fernley entered into a one-year Water Exchange Agreement with the Pyramid Lake Paiute Tribe. Under the Agreement, in 2009, Fernley will allow 6,088 acre-feet of its surface water rights to flow to the lower Truckee River and Pyramid Lake. In exchange, Fernley will receive a water storage credit of up to 1,826 acre feet for use in the future for service to Fernley customers.

Without the Agreement, Fernley would receive no benefit this year from the surface water rights it owns. Fernley is currently unable to deliver this surface water to customers, and serves those customers with groundwater. Fernley cannot use surface water until a pipe is built from the Truckee Canal or Truckee River to deliver that water. Until such time as the pipe is constructed, Fernley worked with the Tribe to obtain credit for the water rights it cannot otherwise put to use this year.

This Agreement marks the first time that Fernley has received a value in return for directing the use of its surface water rights. The Agreement is set to expire one year from its date of execution, and Fernley will revisit the Agreement to determine whether to renew it next year.

Even though Fernley has not received its surface water rights, it still has been forced to pay Operations and Maintenance (O & M) Fees to the Truckee Carson Irrigation District. As part of the Water Exchange Agreement negotiations, the Tribe and Fernley approached the Western Regional Water Commission to seek reimbursement for the payment of O and M fees. Since Fernley’s transfer of surface water to the lower Truckee River creates water quality benefits for the Commission, the Commission is considering a reimbursement to Fernley of up to $71,000. The exact amount of reimbursement will be determined and based on the amount of surface water that Fernley provides to the lower Truckee River.

The Truckee-Carson Irrigation District recently stated that 2009 water deliveries in the Fernley area will be reduced from 100% to 90%. Should the 10% reduction be enacted, Fernley will not receive the full 1,826 acre-feet of future water storage and the City will not receive the full $71,000 reimbursement from the Western Regional Water Commission.

For more information contact:

Greg Evangelatos, City Manager

City of Fernley

775-784-9858