WATER RIGHT LICENSE AND AGREEMENT
(Central Basin)
For a valuable consideration, the City of Vernon (Licensor) hereby grants to the City of Compton (Licensee): a license to extract 1,500 acre-feet of Licensor's Allowed Pumping Allocation allocated to Licensor (or predecessors in interest) under and pursuant to Judgment dated October 11, 1965, and entered in Los Angeles Superior Court Case No. 786,656 entitled "Central and West Basin Water Replenishment District vs. Charles E. Adams, et al." (the Judgement) during the periods commencing July 1, 2025_ and continuing to and including June 30, 2028.
Said License is granted subject to the following
conditions:
1. Licensee shall exercise said right and extract the same on behalf of Licensor during the period above specified and put the same to beneficial use and Licensee shall not by the exercise hereunder of said right acquire any right to extract water independent of the rights of Licensor.
2. Licensee shall pay assessments levied on the pumping of said groundwater by the Water Replenishment District of Southern California (District).
3. Licensee shall notify the District that said pumping was done pursuant to this license and shall provide the District with a copy of this signed document.
4. Licensee shall note, in any recording of water production for the period of agreement that said pumping was done pursuant to this license.
5. Licensee's Allowed Pumping Allocation shall not be increased by the amount hereby leased when computing carryover or allowable over-extraction as provided by Part IlI, Subpart A and B in said Judgment.
6. Licensee shall pay to Licensor $160 per acre foot for water extraction rights granted under the License. Final amount of Payments to the Licensor shall total $240,000 per Fiscal Year. Payments shall be made as follows:
• FY 25-26 due December 15, 2025 and June 15, 2026
• FY 26-27 due December 15, 2026 and June 15, 2027
• FY 27-28 due December 15, 2027 and June 15, 2028
Any notice given or made in connection with this Agreement shall be in writing and delivered as follows:
To the City of Vernon: Vernon Public Utilities
Attention: Todd Dusenberry, General Manager
4305 Santa Fe Avenue
Vernon, CA 90058
To the City of Compton: Water General Manager
City of Compton-Water Department
205 S. Willowbrook Avenue
Compton, CA 90220
7. Licensor warrants that is has 1,500 acre-feet of Allowed Pumping Allocation for each period, and that is has not pumped and will not pump or permit or license any other person to pump any part of said 1,500 acre-feet for each of fiscal years 2025- 2026, 2026-2027 and 2027-2028.
8. This Agreement shall be effective upon execution by the parties and shall continue in effect through Fiscal Year 2028, subject to termination at any time by either party in the event of any material breach of any of the provisions contained herein.
Dated: Dated: 22 APR 25
Licensor: City of Vernon Licensee: City of Compton
Signed By: Signed By:
Brian Saeki, City Administrator Wite Hopkins, City Manager Approved as to Form: Approved as to Form:
Wende Arene II - 1/21/25
Zaynah N. Moussa, City Attorney Legal Division
Attest:
Ano ata pee surita
Yonnie Parker, Deputy City Clerk Satra Zurita,/ City Clerk This Agreement may be signed by the parties by facsimile, electronic or digital signature, and such signature shall be deemed valid and binding on the party signing this lease agreement in that manner.
RESOLUTION NO. 26,230
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON 3 AUTHORIZING THE CITY MANAGER TO ENTER INTO A THREE (3) YEAR
AGREEMENT WITH AND ISSUE A PURCHASE ORDER TO THE CITY OF
VERNON CALIFORNIA FOR THE LEASE OF CENTRAL BASIN
GROUNDWATER PUMPING RIGHTS FOR FISCAL YEARS 2025-2026, 2026- 5 2027 AND 2027-2028 ($720,000.00)
WHEREAS, the Compton Municipal Water Department (Department) produces groundwater, which can be augmented by purchasing treated water supplied by the Metropolitan Water District of Southern California (MWD); and 9 10 meet its customers' demands, which leaves approximately 1,420 acre-feet of difference 1I i between supply and demand to be made up by purchasing water from the MWD or by leasing pumping rights from other agencies; and
12 HEREAS, each year holders of groundwater rights solicit request for proposal 13 o lease their water rights (i.e. the amount of water they are not able to carry over into th next fiscal year), creating an opportunity for other parties to leverage, thereby reducing 11 their supply cost because pumping groundwater is less expensive than purchasing 15 imported water from the MWD; and
16 of their allowable pumping allocation of ground water to the City for Fiscal Years 2025- 17 2026, 2026-2027 and 2027-2028 at the unit cost of $160.00 per acre-foot of water totalling 6240,000.00 per fiscal year, which the City can utilize this leased allocation to offset the 18 required amount of imported water, and
19 WHEREAS, staff recommends Council authorize the City Manager to execute a 20 hree (3) year agreement with the City of Vernon, California to lease up to 1,500 acre-fee of water rights for Fiscal Years 2025-2026, 2026-2027 and 2027-2028, and issue :
21 purchase order, upon the approval of the budget, to the City of Vernon, Califomia in the amount of $240,000.00 for Fiscal Year 2025-2026; and
22 23 WHEREAS, funds for this expenditure will be allocated in the Department's Annual Fiscal Year Budget in Account No. 5000-850-000-4251. 21 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES 25 HEREBY RESOLVE AS FOLLOWS:
27 28
29 and Zero cons 240,000) for each Fiscal year i. 2025-2027. 2026-2027, lang 30 Department Annual fiscal Year Budget in Account No. 5000-850-0000-4251ed in. the 31 32 SECTION 3. That a purchase orders in the amount not to exceed Seven Hundred Twenty Thousand Dollars and Zero Cents ($720,000.00) is hereby authorized to be issued to the City of Veron, Califomia for lease of water rights for Fiscal Years 2025- Resolution No. 26,230
2 3
SECTION 4. That a certified copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Compton Municipal Water Department.
5 SECTION 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
7 • ADOPTED this _15th _ day of APRIL - 2025.
8 9 Emmas
10 EMMA SHARIF
11 MAYOR OF THE CITY OF COMPTON
12 ATTEST:
13 14 batra.
le Bustla
15 S'AVRA D. ZURITA
16 CITY CLERK OF THE CI GOFCOMPTON
17 STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
18 CITY OF COMPTON: ss
19 • Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the 20 oregoing Resolution was adopted by the City Council, signed by the Mayor and atteste by the City Clerk at a regular meeting thereof held on the 15th day of 21 22 That said Resolution was adopted by the following vote to wit:
23 AYES: COUNCIL MEMBERS-DUHART, SPICER, BOWERS, DARDEN, SHARIF 21 NOES: COUNCIL MEMBERS-NONE
ABENT: COUNCIL MEMBERS-NONE
25 ABSTAIN: COUNCIL MEMBERS-NONE
26฿
27 Datra dee Subite
28 SATRA D. ZURITA
29 CINECLRKOF THE CHECOF COMPTON
30 32