IN EQUITY A-3 : UNITED STATES OF AMERICA V. ORR WATER DITCH COMPANY

Filing 1949

ORDER APPROVING AGREEMENT OF FUNDING PARTIES FOR APPROVAL OF TRUCKEE RIVER OPERATING AGREEMENT BUDGET FOR FISCAL YEAR OCTOBER 1, 2023 TO SEPTEMBER 30, 2024. Signed by Chief Judge Miranda M. Du on 3/20/2024. (Copies have been distributed pursuant to the NEF - DLS) (Main Document 1949 replaced on 3/21/2024) (DLS).

DocuSign Envelope ID: 9C5E9BD9-635E-464E-9283-5C2D1A065DAB

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John K. Gallagher, Esq.
Nevada State Ba1·No. 956
Patrick H. Gallagher, Esq.
Nevada State Bm·No. 14875
GUILD, GALLAGHER &FULLER, LTD.
100 West Liberty Street, Suite 800
P.O. Box 2838
Reno, Nevada 89505
Telephone: [phone]
Fax: [phone]
jga/[e-mail]
[e-mail]
Attomeys for Chad Blanchard, Water Master

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UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF NEVADA

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THE UNITED STATES OF AMERICA,

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Plaintiff,

v.

IN EQUITY
Case No. 3:73-CV-00003-MMD

ORR WATER DITCH COMPANY, et
al.,
Defendants.
AGREEMENT OF FUNDING PARTIES FOR APPROVAL OF
TRUCKEE RIVER OPERATING AGREEMENT BUDGET FOR
FISCAL YEAR OCTOBER 12 20232 TO SEPTEMBER 302 2024

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Pursuant to Section 2.C.3 of the Truckee River Operating Agreement dated September 6,

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2008, the required approval is needed of a majority of the three Funding Parties, to wit: The United

22 States of America, the State of California and the State of Nevada.
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The Federal Water Master, Chad Blanchard, the designated Administrator ("Federal Water

24 Master"), herein, submits to the Court, that the Court previously approved by Order signed January
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19, 2023, the "tentative" budget for the fiscal year October 1, 2022, to September 30, 2023. This

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tentative budget has been updated and the Federal Water Master now submits this budget to the

27 Comt as his "proposed" budget for the fiscal yea1· Octobe1· 1, 2023, to September 30, 2024. This
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Agreement ls signed by the required majority of the Funding Parties and the proposed budget is
AGREEMENT OFFUNDINO PARTIES FOR APPROVALOFTRUCKilI! RIVER OPERATING AORI!EMENT BUDGET FOR FISCAL
YEAR OCTOBER I, 2023, TO SEPTllMBIJR 30, 2024/C/\SI! NO: 3:73-CV-00003-MMD

DocuSign Envelope ID: 9C5E98D9-635E-464E-9283-5C2D1A065DAB

attached hereto as Exhibit "A". The proposed budget is the sum of $1,700,000.00, which sum will
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be paid from the Funding Parties per their previously agreed percentages as follows:

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United Stntes of America
State of Nevada
State of Califomia

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$ 680,000.00
680,000.00
340,000.00
$1,700,000.00

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The Feclernl Water Master is asking for the Comt to approve this proposed budget.

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The Federal Water Master, Chad Blanchard, also submits for approval by the Funding Parties,

8 his proposed tentative budget for the Truckee River Operating Agreement for fiscal year October 1,
9 2024, to September 30, 2025, as Exhibit "B" attached hereto. The projected budget is the sum of
10 $1,850,000.00, which sum will be paid from the assessment of the Funding Parties per their
11 previously agreed to percentages as follows:
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United States of America
State of Nevada
State of Califomia

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$ 740,000.00
740,000.00
370,000.00
$1,850,000.00

The Federal Water Master also submits for approval by the Funding Parties, his proposed

16 tentative budget for the fiscal year October 1, 2025, to September 30, 2026, as Exhibit "C" attached
17 hereto. The projected budget is the sum of $2,000,000.00, which sum will be paid from the
18 assessment of the Funding Pm'Lies as follows:
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United States of America
State of Nevada
State of Califomia

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$ 800,000.00
800,000.00
400,000.00
$2,000,000,00

In addition, TROA section 7(A)(2)(b)(3) provides "[i]n addition to any fees that may be

23 charged by United States, [Washoe County Water] Conservation District may impose fees [Annual
24 Fee] for its calculated annual cost of operation and maintenance of Boca Dam and Reservoir
25 performed in accordance with this agreement",
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The Conservation District shall provide this information to the Federal Water Master on

27 November 1, 2023, and continue to provide the information by November 1 of each subsequent
28 year.
AORilllMilNT OP FUNDINO PARTll3S FOR APPROVAL OFTRUCKilll RIVER OPEI\ATINO AotmEMENT DUDOllT FOR FISCAL
YEAR OCTOBER 1, 2023, '1'0 St:lPTllMBllR 30, 2024/CASll NO: 3:73-CV-00003-MMD

DocuSign Envelope ID: 9C5E9BD9-635E-464E-9283-5C2D1A065DAB

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The Average Proportion ofFlow for the Annual Fee shall be calculated by the Federal Water
Master based on a rnnning average as provided in section 7(A)(2)(b)(3), beginning with the water
year ending September 30, 2021.
No later than January 15, 2024, Federal Water Master's Annual Fee calculations shall be
communicated to the Parties.
The Parties agree to pay the Federal Water Master for their apportioned share of the Annual
Fee no later than April 30 each year based upon the latest calculation of the Annual Fee as
determined by the Federal Water Master.
The second Annual Fee has been calculated to be $87,986.03 (Exhibit "D") and shall be paid
by the Parties no later than April 30, 2024, as follows:
United States ofAmerica
State ofNevada
State of California
Total Annual Fee

$39,499.60
$35,194.41
$13,292.02
$87,986.03

The Federal Water Master shall distribute the Annual Fee collected for the Boca Account to

15 the Conservation District within 30 days upon receipt of all funds.
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The Federal Water Master shall include an accounting of fees collected and distributed in

17 the Boca Account in his annual audited financial report to be filed with this Court.
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These proposed tentative budgets are designed to give the Pa1ties notice, and ample time to

19 prepare for future budgets for the Truckee River Operating Agreement and the Water Master
20 proposes to continuously provide two years of"tentative" budgets along with the "proposed" current
21 budget. Signatures to this Agreement are not bound by these budgets, as costs and expenses may
22 vaiy from year to year as circumstances may change, and actual budgets are submitted each year.
23 Any and all surpluses ofincome over expenses shaU be held in reserve by the Federal Water Master
24 to be used for any budget short falls or unanticipated expenses.
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The Federal Water Master, Chad Blanchard, also submits to the Court for its approval the

26 audited Financial Report for Administration ofthe Truckee River Operating Agreement filed for the .
27 fiscal year October 1, 2022, to September 30, 2023.
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This Agreement may be executed in two or more counterparts (including by facsimile or by
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AGREEMENT OF FUNDING PARTIES f10R Al'PROVAL OF TRUCKEE RlVER OPI!RATINO AOREI!MI!NT BUDOI!T FOR FJSCAL
YEAR OCTOBI!R 1, 2023, TO SEPTBMBBR 30, 2024/CASll NO: 3:73-cv-00003-MMD

29th

DocuSign Envelope ID: 9C5E9BD9-635E-464E-9283-5C2D1A065DAB

EXHIBIT LIST

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A. Proposed Budget for the Truckee River Opemting Agl'eement fol' the Fiscal Year October
I, 2023, to September 30, 2024.
B. Proposed Tentative Budget for the Trnckee River Operating Agreement for Fiscal Year
October l, 2024, to Septembel' 30, 2025.
C. Proposed Tentative Budget for the Trnckee River Operating Agreement for Fiscal Year
October 1, 2025, to Septembel' 30, 2026.
D. Proposed Budget for Boen Dam and Reservoir Account for Fiscal Year ending September
30, 2024.

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AoRimMENT OPFUNDINO PARTl!lS FOR APPROVAL OFTRUCKI!ll RIVEll OPEllATINO AGREEMENT DUDOI!T FOR FISCAL
YI!AR OCl'OB£lll I, 2023, TO SEPTilMB£lll 30, 2024/CASll NO: 3:73-CV-00003-MMD

Exhibit "A"
In Equity 3:73-cv-0003-MMD

U.S. District Court - Chad J Blanchard, TROA Administrator
Truckee River Operating Agreement Administration

Proposed Budget

Statements of Revenues, Expenses and Retained Earnings
Fiscal Year ending September 30, 2024

Budgeted Revenues
Administrative Fees - United States
Administrative Fees - State of Nevada
Administrative Fees - State of California

$680,000
$680,000
$340,000

Total Budgeted Revenue

$1,700,000

Budgeted Expenses
Computer Consulting, Software & Licensing
Depreciation
Habitat Restoration Fund
Hearing Officer
Payroll Taxes
Professional, Legal & Audit Fees
Rent, Telephone, Supplies & Overhead
RiverWare Modeling & Technical Consulting
Stream Gaging & Telemetry Data Retrieval
Travel & Conference
TROA Administration Staff & Benefits
Total Budgeted Operating Expenses

$46,871
$34,945
$68,236
$5,000
$63,312
$55,900
$112,580
$40,000
$96,330
$33,050
$1,159,048
$1,715,271

Budgeted Net Income (Loss)
Item Not Affecting Working Capital (Depreciation)
Total Budgeted Working Capital Provided
Working Capital Applied To Budgeted Equipment Acquisitions
Budgeted Increase (Decrease) in Working Capital

-$15,271
34,945
$19,674
-52,000
-$32,326

Exhibit "B"
In Equity 3:73-cv-0003-MMD

U.S. District Court - Chad J Blanchard, TROA Administrator
Truckee River Operating Agreement Administration

Tentative Budget
Statements of Revenues, Expenses and Retained Earnings
Fiscal Year ending September 30, 2025

Budgeted Revenues
Administrative Fees - United States
Administrative Fees - State of Nevada
Administrative Fees - State of California

$740,000
$740,000
$370,000

Total Budgeted Revenue

$1,850,000

Budgeted Expenses
Computer Consulting, Software & Licensing
Depreciation
Habitat Restoration Fund
Hearing Officer
Payroll Taxes
Professional, Legal & Audit Fees
Rent, Supplies & Overhead
RiverWare Modeling & Technical Consulting
Stream Gaging & Telemetry Data Retrieval
Travel & Conference
TROA Administration Staff & Benefits
Total Budgeted Operating Expenses

$51,558
$37,391
$73,695
$5,500
$67,743
$61,490
$119,961
$42,000
$105,963
$36,355
$1,271,293
$1,872,949

Budgeted Net Income (Loss)
Item Not Affecting Working Capital (Depreciation)

-$22,949
$37,391

Total Budgeted Working Capital Provided
Working Capital Applied To Budgeted Equipment Acquisitions

$14,442
-$30,000

Budgeted Increase (Decrease) in.Working Capital

-$15,558

Exhibit "C"
In Equity 3:73-cv-0003-MMD
U.S. District Court - Chad J Blanchard, TROA Administrator
Truckee River Operating Agreement Administration

Tentative Budget
Statements of Revenues, Expenses and Retained Earnings
Fiscal Year ending September 30, 2026

Budgeted Revenues
Administrative Fees - United States
Administrative Fees - State of Nevada
Administrative Fees - State of California

$800,000
$800,000
$400,000

Total Budgeted Revenue

$2,000,000

Budgeted Expenses
Computer Consulting, Software & Licensing
Depreciation
Habitat Restoration Fund
Hearing Officer
Payroll Taxes
Professional, Legal & Audit Fees
Rent, Supplies & Overhead
RiverWare Modeling & Technical Consulting
Stream Gaging & Telemetry Data Retrieval
Travel & Conference
TROA Administration Staff & Benefits
Total Budgeted Operating Expenses

$54,136
$39,261
$79,590
$5,775
$71,131
$64,565
$122,777
$44,100
$111,261
$38,173
$1,358,864
$1,989,633

Budgeted Net Income (Loss)
Item Not Affecting Working Capital (Depreciation)
Total Budgeted Working Capital Provided
Working Capital Applied To Budgeted Equipment Acquisitions
Budgeted Increase (Decrease) in Working Capital

$10,367
$39,261
$49,628
-$33,000
$16,628

Exhibit "D"
In Equity 3:73-cv-0003-MMD
U.S. District Court - Chad J Blanchard, TROA Administrator
Truckee River Operating Agreement Administration
Proposed Budget
Administrator Statement of Annual Fees and Expenses
Fiscal Year ending September 30, 2024
BOCA DAM AND RESERVOIR ACCOUNT

Boca Dam and Reservoir Annual Fees
United States of America
State of Nevada
State of California

Total Annual Fees

$39,499.60
$35,194.41
$13,292.02
$87,986.03

Budgeted Operating Expenses
Transfer to
Washoe County Water Conservation District

$87,986.03

Total Budgeted Operating Expenses

$87,986.03

Budgeted Net Income (Loss)

$0.00