Title
Adopt a Resolution:
a. Approving the proposed Monterey County Water Resources Agency (Agency) grazing lease, bidders’ pre-qualification form, public notice to bidders, lease area maps, minimum bid schedule, timeline, grazing lease bid form for grazing lands located at and around San Antonio and Nacimiento Reservoirs;
b. Direct Agency Staff to advertise for bids; and,
c. Authorize the General Manager of the Agency to modify the grazing lease and bid forms lease, subject to approval as to form by the County Counsel.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors adopt a resolution:
a. Approving the proposed Monterey County Water Resources Agency (Agency) grazing lease, bidders’ pre-qualification form, public notice to bidders, lease area maps, minimum bid schedule, timeline, grazing lease bid form for grazing lands located at and around San Antonio and Nacimiento Reservoirs;
b. Direct Agency Staff to advertise for bids; and,
c. Authorize the General Manager of the Agency to modify the grazing lease and bid forms lease, subject to approval as to form by the County Counsel.
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.
The current grazing leases are set to expire on October 31, 2026. The Agency desires to continue to lease this land for a new ten-year term. Therefore, Agency staff are seeking the authority to begin and conduct the grazing lease bid process for five leases around San Antonio and Nacimiento Reservoirs. Those leases include: San Antonio 1 & 2; San Antonio 3; San Antonio 4 & Nacimiento 1; Nacimiento 2; and Nacimiento 3A & 3B.
The Agency seeks authority to begin and conduct the grazing lease bid process using
the recommended documents and forms. Attachment 1 includes the Grazing Lease Agreement, which establishes operational standards, stewardship requirements, monitoring expectations, and lease compliance procedures. Attachment 2 includes the Bidder’s Pre-qualification Forms that established the approved bidder’s list. Attachment 3 is the public noticing for advertising the grazing leases available for bidding. Attachment 4 includes the maps of the lease areas at Nacimiento and San Antonio Reservoirs. Attachment 5 includes the minimum annual lease bid requirement.
The bidding schedule has been drafted to support new leases effective November 1, 2026, and is outlined in Attachment 6. The Agency also requests that the Clerk of the Board of Supervisors of the Agency be directed to advertise for grazing lease bids (Attachment 3).
The leases will be offered through a two-step public bid process. The first step is a
bid qualification process and submission of a sealed bid utilizing the Grazing Lease Bid Form (Attachment 7). The second step is the opening of sealed bids and invitation for oral bids. The highest sealed bid amount from a qualified bidder will serve as the opening bid for the public auction. Only those persons or entities who submit a Pre-qualification from by the deadline, and who are approved by the Agency, will be allowed to bid.
The leasing program is statutorily and categorically exempt from CEQA (14 Cal. Code Regs.
15301 (existing facility (including leases)) and 15261 (ongoing project).)
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the grazing lease forms.
FINANCING:
Revenue from the Grazing Lease Program is included in the FY26-27 Recommended Budget and includes current lease rates. In addition, new lease administration fees are proposed to defray certain costs of contract compliance monitoring and enforcement.
Prepared by: Jessell Fenley, Administrative Services Assistant (831) 755-4860
Approved by: Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. Grazing Lease Agreement and Exhibits
2. Bidders Pre-Qualification Form
3. Public Notice to Bidders
4. Lease Area Maps: Nacimiento and San Antonio Reservoirs
5. Minimum Bid Schedule
6. Proposed Timeline
7. Grazing Lease Bid Form
8. Resolution - Grazing Lease
9. MCWRA Board of Directors Executed Board Order