HomeMy WebLinkAboutF-6.1. Approve Temporary Leasing of Water Rights to the San Gabriel Valley Water CompanyCONSENT ITEM F-6
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MAY 27, 2025
SUBJECT: APPROVE 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 1,200 acre feet (AF) available to third parties
for FY 2024-25. Accordingly, Staff has negotiated a temporary lease of the excess rights to the
San Gabriel Valley Water Company for a total consideration of $1,096,200. Staff seeks the
Utility Board’s authorization to execute said lease. Revenue from the lease will be used to offset
water fund expenses.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve water rights lease agreement with the San Gabriel Valley Water Company.
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 water rights in the Upper San Gabriel Valley portion of the Basin.
The amount of water rights varies each year based on the Safe Yield of the Basin, as set by the
Watermaster Board annually in May. Based on the Safe Yield for Fiscal Year ending June 30,
2025, ALW recommends temporarily leasing 1,200 AF of production rights to the San Gabriel
Valley Water Company. Compensation for said lease is based on 90% of the replacement water
cost of $1,015 per AF, for a total lease amount of 1,200 AF, resulting in total revenue of
$1,096,200.
Approved
Utility Board
05/27/2025
Temporary Lease of Water Rights
May 27, 2025
Page 2
FISCAL IMPACT:
The fiscal impact of approving the water rights lease is a receipt of $1,096,200.00, to be
deposited in Water Fund account number 32-40-721-000-4841.
Prepared by: Reviewed and Approved:
Melissa Barbosa, PE Danny Smith
Assistant General Manager Utilities Admin & Finance Manager
Water Operations
Reviewed and Approved: Reviewed and Approved:
Tikan Singh Sergio Gonzalez
General Manager City Manager
Attachments:
1) Lease of Water Rights Agreement – San Gabriel Valley Water Company