HomeMy WebLinkAboutI-5 UB Staff Report-Approval of Temporary Water Rights LeasingCONSENT ITEM
I-5
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: MAY 18, 2020
SUBJECT: APPROVAL OF THE TEMPORARY LEASING OF WATER RIGHTS TO THE
CITY OF MONROVIA, VALLEY COUNTY WATER DISTRICT, AND SAN
GABRIEL COUNTY WATER DISTRICT
BACKGROUND:
Azusa Light & Water (ALW) has reviewed its available Main San Gabriel Basin water rights and
determined it has sufficient excess rights to make 2,400 acre feet (AF) available to third parties
for FY 2019-20. Accordingly, Staff has negotiated temporary leases of the excess rights with
three counterparties for a total consideration of $1,894,464. Staff seeks the Utility Board’s
authorization to execute said leases. Revenue from these leases will be used to offset water
system fund expenses.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1) Approve water rights lease agreements with the City of Monrovia, Valley County
Water District, and San Gabriel County Water District; and
2) Authorize the Mayor to execute such water rights leases, pursuant to Utility Board
Resolution 09-C69.
ANALYSIS:
ALW produces water from the adjudicated Main San Gabriel Basin (Basin) established by the
Los Angeles County Superior Court (Court) on January 4, 1973. Implementation of the judgment
is administered by the Main San Gabriel Basin Watermaster (Watermaster), under Court
oversight. Pursuant to this adjudication, and its acquisition of Azusa Valley Water Company in
1993, ALW holds surplus water rights in the Upper San Gabriel Valley portion of the Basin.
APPROVED
UTILITY BOARD
5/18/2020
Special Meeting
Temporary Lease of Water Rights
May 18, 2020
Page 2
The amount of surplus varies each year based on the “Safe Yield” of the Basin, as set by the
Watermaster Board annually in May for the following fiscal year. Based on the Safe Yield for
Fiscal Year ending June 30, 2020, ALW recommends temporarily leasing 1,100 AF of
production rights to Valley County Water District, 1,000 AF to the City of Monrovia, and 300
AF to San Gabriel County Water District. Compensation for said leases is based on 92% of the
replacement water cost of $858 per AF, for a total lease amount of 2,400 AF, resulting in total
revenue of $1,894,464.
FISCAL IMPACT:
The fiscal impact of approving the water right leases is a receipt of $1,894,464 for the Water
Fund to be deposited in account number 32-40-721-000-4841.
Prepared by: Reviewed and Approved:
Jared Macias Manny Robledo
Assistant Director of Utilities – Water Operations Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1)Lease of Water Rights Agreement - Valley County Water District
2)Lease of Water Rights Agreement - City of Monrovia
3)Lease of Water Rights Agreement - San Gabriel County Water District
Attachment 1
Attachment 2
Attachment 3