HomeMy WebLinkAboutE-3.1. Water Rights Lease SGVWCCONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: JUNE 28, 2021
SUBJECT: APPROVAL OF THE TEMPORARY LEASING OF WATER RIGHTS TO THE
SAN GABRIEL VALLEY WATER COMPANY
BACKGROUND:
Azusa Light & Water (“ALW”) has reviewed its available Main San Gabriel Basin water rights
and determined it has sufficient excess rights to make 2,000 acre feet (“AF”) available to third
parties for FY 2020-21. Accordingly, Staff has negotiated temporary leases of the excess rights
with one counterparty for a total consideration of $1,584,000. 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 San Gabriel Valley Water Company;
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.
E-3Approved
Utility Board
6/28/21
Temporary Lease of Water Rights
June 28, 2021
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, 2021, ALW recommends temporarily leasing 2,000 AF of
production rights to the San Gabriel Valley Water Company. Compensation for said leases is
based on 90% of the replacement water cost of $880 per AF, for a total lease amount of 2,000
AF, resulting in total revenue of $1,584,000.
FISCAL IMPACT:
The fiscal impact of approving the water right leases is a receipt of $1,584,000 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 – San Gabriel Valley Water Company
2) Resolution No. 09-C69