Water utilities mull merger

Citing increased efficiencies and potentially lower rates, local water officials last week took preliminary steps on the road to consolidating the Truckee Meadows' major water utilities.

The Board of Directors of the Truckee Meadows Water Authority agreed during its annual strategic planning meeting to begin investigating the possibility of merging TMWA with Washoe County Water Resources.

Specifically, the board added study of a possible merger to the list of TMWA's goals and objectives for the year, and asked board member Pete Sferrazza to find out the requirements for it from the Washoe County Board of Commissioners.

Sferrazza, who is also a Washoe County commissioner, had said earlier in the meeting that the county's commissioners would likely want more representation on TMWA's board if the water utility were to subsume Washoe County's water purveyor.

"My personal belief since the creation of TMWA has always been the right thing to do is consolidate TMWA and Washoe," said Lori Williams, general manager of TMWA in Reno.

Such a consolidation, said Williams, would lead to enhanced yields, productivity, and drought reserves, and other improvements to the fast growing area's water system.

Steve Bradhurst, the head of the county's water utility, disagreed, although he said, like Williams, that the two entities would make a "good marriage," because TMWA has facilities for serving surface water while Washoe County has the resources for delivering groundwater.

But, Bradhurst said, the arrangement that already exists between the two works fine.

"I don't see anything that is broke," said Bradhurst.

"We just need to make sure we hold tight to the agreement that's in there."

Bradhurst had other objections.

He said the Truckee River Operating Agreement, which will oversee the use of the river once it is signed, requires TMWA to keep any conserved water in the river.

The county has no such obligation.

"As water gets tight around here 100 acre feet here or 200 acre feet there will become very important," he said.

Bradhurst also said the county's water rates are lower than TMWA's and that its system is in better shape.

"I'm familiar with your CIP," or capital improvement programs, said Bradhurst, "and that says you have some work to do."

In response, Jeff Tissier, TMWA's manager of financial and administrative services, who used to work for the county, got up to list some of the county system's shortfalls.

And after the meeting,Williams said TMWA's and the county's rates are comparable when you figure in all costs to the end user.

TMWA funds everything through its rates, while the county assesses property owners fees as well as rates to cover its costs.

Initially, the discussion at the meeting focused on TMWA taking over Washoe County Water Resources, but it soon turned to the idea of the county taking over TMWA or the creation of a new government agency that would operate both.

Board member and Reno City Councilman David Aiazzi and Sferrazza both said they'd be in favor of turning a combined water utility over to the county.

Sferrazza said that would allow for the county to issue general obligation bonds for the water utility that would lower considerably the interest TMWA is now paying on its debt.

The issue of a possible merger between TMWA and the county's utility came to the fore last month when a group of large property owners in Verdi requested to be served by TMWA rather than Washoe County.

The request went to the county's board of commissioners, which voted it down four to one, saying the property owners would have to receive water services from the county.

Sferrazza was the sole vote to allow the owners to fall under TMWA's territory and he said the best solution would be to merge the two utilities.