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Council votes to advertise lease of surplus water rights; draft agreement set for three‑year term
Summary
Council authorized staff to advertise a draft water‑user lease for recently acquired water rights, noting state law prevents sale and staff proposing a three‑year lease term with the city retaining priority for its own needs.
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City staff explained the city's water‑rights purchase made in January 2024 and clarified a state‑law constraint: purchased municipal water rights generally cannot be sold but may be leased if the water is excess to the city's needs. Staff described a water‑user agreement drafted to allow others to bid for delivery of surplus shares so long as the city can first claim the water as needed for municipal use.
The draft agreement was described as a three‑year lease. Councilmember moved to advertise the water‑rights lease and the motion was seconded; roll call votes in the transcript recorded affirmative responses from council members and the motion advanced. Staff said the advertisement would solicit bids and that interested parties had already contacted city staff about potential leasing opportunities.
Council members asked whether leases would be year‑by‑year or multi‑year; staff said the draft contemplates a three‑year term but the city would retain rights to prioritize municipal demand. Council did not finalize lessee selection at the May 7 meeting; advertisement and bidding were the immediate next steps.
