Update from Mark Foree (TMWA) and Rosemary Menard (DWR)
Joint Meeting of TMWA Board of Directors
and the Board of County Commissioners (BCC)
September 8, 2009

Below is an overview of actions taken Tuesday, September 8, 2009 at the joint meeting of the TMWA and DWR boards.  It is our intention to keep our customers and staff informed of the decisions and progress made regarding consolidation.  This update will follow the agenda format.  If you would like to see the entire agenda packet with staff reports, it can be found on the TMWA web site or the Washoe County Water Resources web site.

Public Comment:  This was a well attended meeting, but no public comment was offered during the meeting.

Recommendation from the Western Regional Water Commission (WRWC) regarding consolidation of the Truckee Meadows Water Authority (TMWA) and the Washoe Country Department of Water Resources (DWR):   We updated those who had not attended the August 14 WRWC meeting about the WRWC's recommendation to the TMWA Board and the Washoe County Board of County Commissioners (BCC) to proceed with the integration/merger of DWR water functions into TMWA. 

We also reviewed 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:  Our legal counsels, Sylvia Harrison (TMWA) and Pete Simeoni (Washoe County), took over this part of the discussion.  As you know, 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 our staffs to move forward with completion of the ILA.  Ms. Harrison and Mr. Simeoni received compliments from board members for doing such a good job of putting together the very detailed outline 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 started the discussion regarding the WRWC's other recommendation from the August 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 8 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.

Staff Comments:  We are planning to have another joint meeting regarding the ILA and other items.  We will look at scheduling this meeting immediately after the TMWA Board's Strategic Planning Session, planned for October 21st.  If this date works, the joint meeting would be scheduled at approximately 11:00 a.m. 

We would like to once again thank our staff members who worked on the interagency teams that developed the Preliminary Assessment Reports.  The teams have worked very well together and produced a lot of great information that can be used going forward. 

Sincerely,

Mark Foree & Rosemary Menard