HomeMy WebLinkAboutF-3.1. Approve Temporary Leasing of Water Rights to Suburban Water SystemsCONSENT CALENDAR F-3
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JUNE 23, 2025
SUBJECT: APPROVE TEMPORARY LEASING OF WATER RIGHTS TO SUBURBAN WATER
SYSTEMS
BACKGROUND:
Azusa Light & Water (ALW) has reviewed its available Main San Gabriel Basin water rights and
determined it has sufficient excess rights to make 250 acre feet (AF) available to third parties for FY 2024-
25. Accordingly, Staff has negotiated a temporary lease of the excess rights to Suburban Water Systems
for a total consideration of $228,375. 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 that the Utility Board take the following action:
1) Approve water rights lease agreement with Suburban Water Systems
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 250 AF of production rights to Suburban Water Systems. Compensation for said lease
is based on 90% of the replacement water cost of $1,015 per AF, for a total lease amount of 250 AF,
resulting in total revenue of $228,375.
Approved
Utility Board
06/23/2025
Temporary Lease of Water Rights
June 23, 2025
Page 2
FISCAL IMPACT:
The fiscal impact of approving the water rights lease is a receipt of $228,375 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 – Suburban Water Systems