Title
Adopt a Resolution to:
a. Approve the results of the 2026 Grazing Lease Sealed Bid and Auction and waive any irregularities or defects in the bid or auction process as minor and immaterial;
b. Approve the proposed grazing leases for grazing lands located at and around San Antonio and Nacimiento Reservoirs; and
c. Authorize the General Manager of the Agency to execute the grazing leases.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors adopt a resolution to:
a. Approve the results of the 2026 Grazing Lease Sealed Bid and Auction and waive any irregularities or defects in the bid or auction process as minor and immaterial;
b. Approve the proposed grazing leases for grazing lands located at and around San Antonio and Nacimiento Reservoirs; and
c. Authorize the General Manager of the Agency to execute the grazing leases.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (Agency) manages grazing leases on Agency-owned lands surrounding Nacimiento and San Antonio Reservoirs. The Grazing Lease Program supports responsible livestock grazing while promoting watershed protection, vegetation management, wildfire fuel reduction, infrastructure stewardship, and long-term land management objectives. The program encompasses approximately 16,400 acres of Agency-owned rangelands associated with the Nacimiento and San Antonio Reservoir systems. These lands include a mix of open grazing areas, rolling rangelands, oak woodlands, road and utility access corridors, and areas containing Agency infrastructure.
On June 23, 2026, the Board approved the 2026 Grazing Lease Bid and Auction process, associated bid documents, and the minimum bid schedule. In accordance with the approved process, Agency staff issued a Request for Bids and public notice of the live auction on July 29, 2026.
As part of the initial approval of the Grazing Lease bid packets, the Nacimiento grazing leases were identified as totaling 4,779 acres. Following further review, Nacimiento Grazing Lease 3A & 3B was revised to reflect the correct acreage of 4,652.6 acres, resulting in a reduction of 126.4 acres. The corrected acreage and revised lease are attached for reference.
Sealed bids were received on July 29, 2026, at 9:00 a.m., followed by a live auction at 10:00 a.m. The bid and auction process was successfully completed, and all leases received bids meeting or exceeding the approved minimum bid schedule.
If the Board approves the recommended lease awards, the successful bidders will take possession of their respective leased premises on November 1, 2026. Each lease will have a ten-year term, expiring on October 31, 2036. All recommended lessees have demonstrated experience in managing grazing operations and have completed, or will complete, the Agency's required grazing land management and conservation practice training. Pro forma lease agreements are attached, as Agency staff is in the process of obtaining all required signatures prior to final execution.
OTHER AGENCY INVOLVEMENT:
The County Counsel’s Office has reviewed the grazing lease as to form.
FINANCING:
The bidding results increase the projected revenue to $351,000.00 for the Grazing Lease Program that was included in the FY26-27 Approved Budget, Fund 116.
Prepared by: Jessell Fenley, Administrative Services Assistant (831) 755-4860
Approved by: Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. Grazing Lease Certified Sealed Bid Results
2. Summary of Proposed Leases
3. San Antonio 1 & 2 Grazing Lease
4. San Antonio 3 Grazing Lease
5. San Antonio 4 & Nacimiento 1 Grazing Lease
6. Nacimiento 2 Grazing Lease
7. Nacimiento 3A & 3B Grazing Lease
8. Resolution