HomeMy WebLinkAboutE-3.1. Approve Temporary Leasing of Water Rights_Monrovia and SGV Water CoCONSENT CALENDAR E-3
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MAY 22, 2023
SUBJECT: APPROVE TEMPORARY LEASING OF WATER RIGHTS TO THE CITY OF
MONROVIA AND 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 2022-23. Accordingly, Staff has negotiated temporary leases of the excess rights with two
counterparties for a total consideration of $1,034,640. 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 and 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,
2023, ALW recommends temporarily leasing 200 AF of production rights to City of Monrovia
Approved
Utility Board
05/22/2023
Temporary Lease of Water Rights
May 22, 2023
Page 2
and 1,000 AF to San Gabriel Valley Water Company. Compensation for said leases is based on
90% of the replacement water cost of $958 per AF, for a total lease amount of 1,200 AF,
resulting in total revenue of $1,034,640.
FISCAL IMPACT:
The fiscal impact of approving the water right leases is a receipt of $1,034,640.00 for the Water
Fund to be deposited in account number 32-40-721-000-4841.
Prepared by: Reviewed and Approved:
Melissa Barbosa, PE Tikan Singh
Assistant General Manager General Manager
Water Operations
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Lease of Water Rights Agreement – San Gabriel Valley Water Company
2) Lease of Water Rights Agreement - City of Monrovia